Automakers Buoying U.S. Growth With Most Sales Since 2006: Cars

When the U.S. economy tanked six years ago, Detroit led the way, as auto chieftains trooped to Washington to ask for a bailout. In a reversal, the car industry is now driving the growth.

The latest evidence came yesterday when automakers reported August sales that reached an annual pace of 17.5 million vehicles, the highest since January 2006, blowing away a forecast of a 16.6 million rate. That followed a Commerce Department report released Aug. 28 showing motor vehicle production climbed by about $20 billion at an annualized rate last quarter, contributing half a percentage point to gross domestic product growth, the most in nine quarters.