Scotia economics reports that the battered and beaten auto industry is finally showing positive gains after months of terrible declines not seen for many years.

The largest recovery is coming from international markets, such as China that posted the biggest gain for developing countries and Germany posting the biggest gain as far as mature countries go.

Second quarter global sales reached 48 million units, up from an 8 year low of 43 million units for the first 3 months of 2008.  The report says the rebound will soon reach the North American market with much help from the cash for clunkers program that allows buyers to trade in older, less fuel efficient vehicles for newer ones while receiving $3500-$4500 in US Government vouchers.

“With sales on the upswing and industry-wide inventories back down to normal levels, the re-start of idled auto assembly plants will boost third-quarter economic activity across North America by roughly two percentage points. This represents a sharp reversal from the past nine months, when the economic downturn was intensified by significant auto industry cutbacks.”

• GM poised to retake #1 spot from Toyota
• Ford boosting sales goals as they see the recession ending
• Cash for Clunkers – Canadian Edition