Great American Group Reports Strong Auto Sales Driving Demand for OEM Parts
–Domestic Market Outpaces Other Sectors–
Analysts with Great American Group, Inc. (OTCBB: GAMR) report that the automotive original equipment manufacturer (OEM) parts industry has performed well in the first three quarters of 2012 driven by the strength of the domestic auto market, which continues to outperform other sectors despite tumultuous conditions in the overall U.S. economy.
Preliminary estimates place October’s sales of new automobiles between 10 and 15 percent above the same month in 2011, despite a chaotic end of month when the eastern seaboard was devastated by Hurricane Sandy, effectively eliminating auto sales for a large portion of the country for several days.
The sales levels indicate that consumers are breaking out of recessionary spending habits and growing more comfortable with committing to large purchases that may have been delayed for several years, according to Ken Bloore, COO of Great American Group’s Advisory & Valuation Services Division.
“The domestic automotive market has proven to be far more resilient than many would have expected, given its highly unstable condition a few short years ago,” Bloore said. “As Americans begin to trust that the greater economy is making a true recovery, they are purchasing more new vehicles. This trend not only has a positive impact on upstream parts manufacturers, but also on many other sectors of the domestic economy.”
In its latest Automotive Monitor, Great American Group also notes that the domestic recovery in the automotive market is not necessarily indicative of a global resurgence. The automotive industry in Europe has fallen on hard times, with many experts estimating that unit sales of new cars will fall to levels not seen since the late 1980s or early 1990s. The decline is rooted in the ongoing and widespread economic difficulties and debt crisis that are ravaging many Western European countries.
For more information about industry trends in OEM and aftermarket parts, accessories and tires, download Great American Group’s newest quarterly Automotive Monitor at http://www.greatamerican.com/news_media/downloads/Nov_Auto_Monitor.pdf.
For more information about asset disposition, valuation and appraisal services available through Great American Group, visit the company’s website at www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
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