NADA Raises Auto Sales Estimates

The National Automobile Dealers Association issued a forecast on Monday indicating 16.94 million new cars and light trucks will be purchased or leased in the United States in 2015. The forecast was increased from previous estimates of 16.4 million units.

"Rising employment and wages, continued low interest rates and lower gasoline prices all signal an increase in new light-vehicle sales in 2015," NADA Chief Economist Steven Szakaly said at a press briefing ahead of the NADA / J.D. Power Western Automotive Conference in Los Angeles.

"The economy will continue to build on the solid growth established in 2014, and we also expect the fundamental conditions to improve in the year ahead," he added. "Gross domestic product will grow at 3.1 percent in 2015, with the potential for growth to exceed our forecast."

"Lower oil prices, which translate into lower prices at the gas pump for consumers, increases household spending on other goods and services, resulting in higher growth," Szakaly said. "If oil and gasoline prices remain low through 2015, we could easily see consumers return in even greater numbers to the light-vehicle market during the second half of 2015."

After opening higher, shares of General Motors Company GM fell 0.59 percent Tuesday morning to $32.11 and Ford Motor Company F fell 0.45 percent to $15.47.