While American car inventories reached a total of 2.76 million last year, the impact of the recession (which slowed down production), combined with the cash-for-clunkers plan in August, has equated to this year’s inventory of 1.41 million units.
Such numbers have pushed manufacturers to crank up production, which had been put on hold as a result of the economic crisis.
Evidently, the entire auto industry will benefit from the situation. The US Federal Reserve also indicated that activities had increased by 20% in July, and 5.5% in August.
The impact on the Canadian economy is significant, since it would contribute up to 1 percentage point of economic growth.
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