U.S. auto sales rose at the strongest rate in more than five years in June, propelled by a surge in pickup truck demand, lending new confidence to industry executives’ belief the nation’s auto recovery has more room to run.
General Motors Co. predicted June’s annualized selling clip would hit 15.8 million cars and light trucks. That would be the fastest selling pace since November of 2007. A total for June was not available early Tuesday because some auto makers were still calculating their sales figures.
“America’s families are better off than they were at the beginning of the year and they believe—with good justification—that the economic expansion is going to continue,” said Mustafa Mohatarem, GM’s chief economist.
He said even moderate economic growth would keep the auto sales rate in the second half of the year at healthy levels around the mid 15 million-unit mark. Mr. Mohaterem also said that so far auto makers are not resorting to drastic price cuts to keep sales strong, a sign of strong demand.