What The Top-Ten Selling Cars Will Be For 2011

The auto industry went through two bruising years in 2008 and 2009 when annual domestic sales dropped to about 10 million vehicles per year. This is in stark contrast to 2005 and 2006 when the figure was closer to 16 million. The depression in the industry drove GM and Chrysler into bankruptcy and caused tens of billions of dollars in losses among their financially stronger competition.

The sector has recovered somewhat this year, at least based on the progress made in the first half. The annual sales run-rate moved to about 12 million earlier in 2010 despite a raft of recalls led by Toyota. An improved economy and substantial incentives brought consumers back into showrooms.

The industry’s growth slowed in July, and August was one of the worst sales months in two decades. August last year may not be fair comparison because it was during the period when the federal government was running its “cash for clunkers” program which over 600,000 buyers took advantage. Still, domestic sales in August fell to 1,000,000 and the annual sales rate dropped to 11.7 million.