Increasing Car Sales Good News For Satellite Radio
May 18, 2011 at 4:01 AM (PT)
SIRIUSBUZZ.COM quotes a report from industry analyst A.T. KEARNEY, expecting U.S. auto sales to total 13.2 million in 2011 -- but really making faces smile at SIRIUS XM RADIO by forecasting auto sales of close to 16 million in 2013.
"Behind the forecast, four key macroeconomic factors were measured. Economic recovery scenarios were developed to project the possible outcomes, the variables being: 1) overall economic growth; 2) credit availability; 3) consumer prices; and 4) consumer confidence. Pent-up demand and whether the recent downturn will resemble prior recessions adds additional factors, as does vehicle age and the need to replace older cars, the current average age being 10.4 years. The forecast's wild card is JAPAN, where in the aftermath of the earthquake and tsunami, parts shortages will impact 2011 U.S. new vehicle sales by 200,000 units."
A.T. KEARNEY Partner/Leader Of Automotive Practice DAN CHENG said, "Given what we know about production downtime, in 2011 we see 328,000 U.S. customers of the affected brands up for grabs, and more if the time to wait for a particular brand begins to extend."
SIRIUS XM gets the majority of its new subscribers from new car sales.