SACRAMENTO, Calif., March 5 /PRNewswire/ -- Auto sales in California are expected to exceed 2 million units in 2007. New light vehicle registrations during the fourth quarter of last year decreased 7.9 percent from relatively week year-earlier levels, according to the fourth quarter California Auto Outlook report released today by the California Motor Car Dealers Association (CMCDA).
"New registrations of cars and light trucks in California declined 7.9 percent in the fourth quarter of last year versus a year earlier. Concerns about unemployment, high household debt and a housing market correction suggest another slight decrease for California in 2007, although analysts believe that a combination of high consumer affordability, economic growth through 2007 and an unprecedented assortment of exciting new vehicle offerings during the year could mitigate that decrease. The auto market is predicted to move higher in 2008 and 2009, with 2009 registrations approaching a record 2.2 million vehicles," said Peter Hoffman, CMCDA chairman and president of Sierra Auto Cars, Inc. in Monrovia.
CMCDA's press conference call earlier today discussed the following: -- Full Size Pickup segment had the largest decline in California from 2005 to 2006, down 1.7 points. Many consumers who were reluctant to purchase a pickup or SUV purchased a car instead. The Sub Compact Car segment had a 1.2 point increase in market share last year. -- The Big Three lost four market share points in California last year. Japanese brands were the primary benefactors, with their market shares increasing a total of 3.7 points. -- New light vehicle registrations in California declined 5.1 percent from 2005 to 2006, slightly higher than the 2.6 percent decline in the U.S. market. The larger decline in California is mostly due to the state market's relatively strong performance during 2005. -- There was very little discernable difference in 2006 results in Northern and Southern California, with registrations declining 5.4 percent and 5.7 percent, respectively. The San Francisco Bay regional market fared relatively well last year, with new retail registrations falling 2. 9 percent, compared to a 4.8 percent decline in the Los Angeles/Orange County market, and 8.1 percent in San Diego County.
California Auto Outlook, is produced for CMCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. Vehicle Registration data was obtained from AutoCount, an Experian Company.
About CMCDA
The California Motor Car Dealers Association is the country's largest state association of franchised new car and truck dealers with over 1,350 dealer members.
California Motor Car Dealers Association
CONTACT: Marcella Rojas, +1-916-441-2599
