CullmanTimes.com - Cullman, Alabama

Business

January 1, 2013

Auto Sales Saved the Economy in 2012

WASHINGTON — It's not too much of an exaggeration to say the U.S. economy was powered by car sales in 2012. Auto companies are now expected to have sold 14.5 million new vehicles in 2012, according to Kelley Blue Book. That's a 13 percent rise over last year and the highest number of sales since the financial crisis hit.

If cars hadn't been flying out of dealerships, the year would have looked considerably bleaker. Vehicle purchases by consumers alone accounted for roughly 30 percent of all economic growth in the first half of the year, according to Credit Suisse.

And what made this car-buying frenzy so striking is that 2012 also happened to be a terrible year for car recalls. As auto analyst Jim Gorzelany reports, automakers had to recall some 14.3 million vehicles over the past year because of various defects — everything from steering issues to power-window problems.

But that didn't slow down car sales one bit. Indeed, as Gorzelany explains, Toyota and Honda had to issue the greatest number of recalls in 2012 — Toyota with 5 million, Honda with nearly 3.4 million. Yet both companies increased their market share this year: Toyota's sales were up some 17.3 percent over last year, while Honda's were up nearly 25 percent.

Among the automaker's initiatives during 2012, Toyota recalled approximately 2.5 million vehicles across a dozen 2007-2009 model lines for power-window issues, 778,000 RAV4 and Lexus HS 250h vehicles for suspension problems and 670,000 Prius models for steering troubles. Honda recalls included 807,000 Honda Pilots and Odysseys and Acura MDXs for faulty ignition switches, 572,000 Honda Accords for power steering hose issues and 820,000 Civic and Pilot models for potential low-beam headlamp failures.

Now, Toyota and Honda had a bad year in 2011 in part because their supply chains were hurt by the big earthquake in Japan and a tsunami in Southeast Asia. So some rebound was expected anyway. But it wasn't just these two Japanese companies. General Motors had to recall 1.3 million vehicles. Ford had to recall 1.1 million. Just about every major car company had to issue at least one recall this year. But Americans kept buying up cars en masse anyway.

Text Only
Business
  • Facebook tests button to let people shop from its website

    Members on desktop computers or mobile devices can click a "buy" button to make purchases through advertisements or other posts on the world's largest social network, the Menlo Park, California-based company said Thursday in a blog post.

    July 18, 2014

  • WSCC HILL.jpg Hill hits the ground running at Wallace State

    Marcie Hill of Double Springs likes taking on new challenges. As an 18-year veteran of the education system, Hill has taught first grade, sixth grade and served as a reading coach to students and teachers in Kindergarten through sixth grade.

    July 16, 2014 1 Photo

  • VIDEO: A boom in firework sales

    This year could be quite the boom for fireworks sales across the U.S. According to the American Pyrotechnics Association, or the APA, sales are already off to a good start.

    July 3, 2014

  • Edward Jones Recognized as 2014 Most Valuable Employer for Military by CivilianJobs.com

    Local financial services firm Edward Jones in the Cullman-area was named a 2014 Most Valuable Employer (MVE) for Military by CivilianJobs.com, recognizing the firm's deep committment to recruiting, training and retaining military veterans as financial advisors.
     

    June 23, 2014

  • CRMC welcomes Harrison.jpg CRMC Welcomes Adam Harrison, DO to the Medical Staff

    Cullman Regional Medical Center (CRMC) is pleased to welcome Adam Harrison, DO to the Medical Staff. Dr. Harrison is originally from Cullman and graduated from Cullman High School in 2002. He obtained his bachelor of biomedical science degree from Auburn University in 2006, and attended Wallace State Community College prior to Auburn. He received his degree in osteopathic medicine in 2010 from Philadelphia College of Osteopathic Medicine Georgia Campus in Suwanee, Ga. He successfully completed an internship through Columbus Regional Medical Center in Columbus, Ga., in 2011. He will complete his residency through UAB Family Medicine in Huntsville, Ala.
     

    June 16, 2014 1 Photo

  • Deadly guardrails spearing drivers is whistleblower's crusade

    Harman is suing Trinity Highway and its Dallas-based owner, Trinity Industries Inc., alleging that it made quiet design changes that transformed guardrail systems across the U.S. into potentially deadly hazards.

    June 12, 2014

  • google-seo-search-results-screenshot.jpg Your new boss is going to Google you, so make sure she likes what she sees

    This is what a professional online reputation management "campaign" looks like: four people — one patched in via video — around a conference room table, jotting notes on laptops, carefully examining every trace of a client's digital existence and plotting a strategy to improve it.

    June 11, 2014 1 Photo

  • Merchants Bank promotes 1.jpg Merchants Bank promotes four officers

    The Board of Directors of Merchants Bank of Alabama, a community bank since 1907, recently announced the promotions of four key officers.
    Kerry Hanvey was promoted from vice president of retail banking to senior vice president of operations. Kerry joined the bank in 1992 and has served in various positions over this 22- year period. Kerry is responsible for bank wide operations for the five bank offices.
     

    June 11, 2014 4 Photos

  • Chamber's June Small Biz of Month.jpg Chamber's June Small Business of the Month winner

    The Cullman Area Chamber of Commerce recently awarded their Small Business of the Month award to Quick Tire Sales of Cullman. The award is given monthly to a local small business that meets nomination requirements. Victor Quick of Quick Tires Sales was thrilled for their business to be selected for this honor.
     

    June 11, 2014 1 Photo

  • $15 minimum wage puts Seattle in uncharted waters

    Depending on which pundit is nattering away, this means Seattle is either going to fall off the map and become a "Mad Max"-style economic wasteland or transform into an egalitarian utopia that inspires sweeping pro-labor activism nationwide.

    June 9, 2014