VP, Editorial and Partner Development
Expected seasonal movement in residual values for this edition of ALG’s Industry Report is -1.3 percentage points (ppts). At the industry level, ALG’s supply forecast rose for this edition, causing a -0.2-ppt impact on residuals. Gasoline prices were down significantly; vehicles with weak fuel economy had increases of up to +0.4 ppts, while fuel efficient segments had declines of up to -0.4 ppts.
General Motors Has Been Doing Well During Dramatic Recalls:
So far there’s been no used market impact on Chevrolet Cruze, and even Cobalt seems to be escaping relatively unscathed.
Segment-level Supply Had a -0.2-ppt Impact on Residuals:
Supply changes varied by segment, ranging from -0.7 ppts for Fullsize Utility to 0 ppts for Microcar.
Unemployment Rate Has Stabilized at 6.7% Over Past 4 Months:
GDP is expected to rise by approximately 2.7% in 2014 and 3.0% in 2015.