THE crisis-hit motor industry could begin to see signs of recovery this year in a revival inspired by the election of Barack Obama as US president, predicts one of the leading figures in the sector.

Tom Purves, chief executive of Rolls Royce, said he believed that after a long period in recession, the automotive sector would see light at the end of the tunnel this year in a global revival that would begin in the US.

The motor industry worldwide has suffered hugely during the economic downturn, with car makers taking drastic action to stay afloat, including Nissan in Sunderland axing 1,200 jobs and Toyota temporarily closing all 12 of its factories in Japan.

Figures released yesterday further illustrated the extent of the slowdown, with production for last month down 47.5 per cent on the same period in 2007. New car sales were also down 21.2 per cent for the month, and 11.3 per cent for the whole of last year.

But Mr Purves predicted the tide could be about to turn.

His sentiments were echoed by North-East car dealers, several of which said they saw a huge increase in business last weekend.

Speaking to the Entrepreneurs’ Forum in Durham, Mr Purves said: “Americans have a deep tradition of progress and wealth creation and, as a nation, they remain positive and eager to regain the momentum of growth.

“They have been recessional now for 18 months and I am convinced very soon they will find ways to grow again.

“President Obama will be the catalyst for this change with his ‘can do’ attitude.

“So I think we will see light at the end of the tunnel in the US this year, which will then spread to Asia Pacific and Europe.”

Indications were given that in the North-East the downward trend of new car purchases may not be continuing.

Alasdair MacConachie, managing director of Sherwoods, which has dealerships in Darlington, Northallerton and Stockton, said there was a significant upturn last weekend.

“We sold 48 cars on Saturday, which far exceeded expectations, and each of our showrooms was very busy,” he said.

“There is a huge amount of optimism coming out of America.”