Forecast dims for auto sales
By Tom Stundza -- Purchasing, 3/19/2008 10:56:00 AM
J.D. Power & Associates cut its forecast for new vehicle sales in the U.S. by 4.8% to 14.95 million, a level last seen in 1994, and told the Wall Street Journal that the sales market will weaken further in the second quarter before beginning a rebound. The market-research firm, while noting weaker sales in January and February, said much of the outlook reduction was due to slumping consumer confidence and persistent economic turbulence. J.D. Power's prior 2008 sales forecast was 15.7 million; the last time U.S. sales totaled less than 16 million vehicles was 1998. Auto sales were expected to be weak this year given the economic climate and with few new models driving traffic to showrooms. In addition, delinquencies on auto loans have been increasing, and the credit crunch has tightened lending standards.
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