(June 13, 2011) New car and truck sales should pick up in the second half of year, the National Automobile Dealers Association said Sunday, but warned that sales would lag again in June.

Paul Taylor, chief economist of NADA, said the group anticipates inventory shortages that slowed May sales to affect this month's results. But a turnaround should occur in the U.S. after that, helped by an improving credit outlook and lower gasoline prices.

"Gasoline prices are currently falling, and that will allow dealers to sell a full mix of new vehicles, ranging from small cars, crossovers to pickup trucks," he said.

Pump prices are down 18 cents over the past week with the national price for regular unleaded standing at $3.78 a gallon last week.

If gasoline prices had reached $4.50 or more, it would have shifted demand to hybrids and small economy cars, all currently in short supply, Taylor said.

Availability of many popular models remains under pressure from slowdowns associated with the earthquake and tsunami in Japan. For instance, Toyota only has 10 days of inventory for its Prius hybrid, NADA said.

Source: Reuters