Auto sales are recovering because of the superior value offered by manufacturers -- not because of the economy. What else explains why auto sales recovered in 2011 while so many other economic indicators remain poor? Do increased sales volumes in 2011 mean that the US economy is recovering or is it indicative of the automobile's value proposition to the consumer?
While most agree that the economy is slowly improving, unemployment is still north of 8.3%, the real number is 11% when you consider the millions that have given up. Furthermore, wages are flat or declining, the housing industry is mired in too much inventory, foreclosures are on the rise and home prices are still dropping. So why the recovery in autos?
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