US car sales get boost from hurricane recovery

The US auto industry was boosted in September by shoppers replacing vehicles destroyed in major hurricanes, and was poised to show the first reversal this year of sales declines.

The recovery in Texas and Florida from hurricanes Harvey and Irma, which destroyed hundreds of thousands of vehicles, was expected to help the industry in September, October, and even in November.

The growth would reverse steady declines every month this year following record-setting sales in 2016 capping a seven-year growth streak.

The major North American players reported good news – with Toyota, GM and Ford all recording significant sales growth. FCA US, the American subsidiary of Fiat Chrysler, struggled, but showed improvement in its retail sales.

The industry could notch a onepercent boost in September for 1.44 million vehicles sold, according to a forecast by auto research firm Kelly Blue Book.

“While major hurricanes devastated parts of Texas and Florida in the past month, this is driving replacement demand for those drivers with vehicles destroyed,” Kelly Blue Book analyst Tim Fleming forecasted.

“This demand has already started in some areas, but will continue into October and potentially November, as vehicle insurance payouts are received.” (AFP)