Filed under: Car Buying, Earnings/Financials
J.D. Power lowers U.S. sales forecast... again
J.D. Power and Associates have lowered their U.S. sales light-vehicle forecast for 2008 to just 14.2 million units. This is the third time the global information services company have updated their numbers. In March, they announced that sales would not hit their initial 15.7 million estimate, instead they would come in at about 14.95 million units. Now, the company is estimating sales at 14.2 million units (the industry sold 16.2 million units in 2007). J.D. Power is citing the prolonged credit crisis, deteriorating economic conditions, and the high cost of fuel as reasons consumers are holding off on purchasing new vehicles. Not helping the matter, fleet sales (a common way for the automakers to boost sales in the past) are also down 21 percent from last year.
[Source: Automotive News, subs. req'd]
Reader Comments (Page 1 of 1)
Fernando 8:45AM (7/25/2008)
This should come as a surprise to no one.
Reply
mike 8:49AM (7/25/2008)
Well it is to me. One award winning economist once said (i do not recall his name now) ---Never undermine the ability of American people to spend money they do not have--
I totally agree with him and i thing even at these gas prices people will again start buying not just cars, but SUVs again.
This is USA, we buy what you like, we buy as thirsty a vehicle as you like, this is our G-D given right.............................then we blame politicians for high oil prices.
Scott 8:58AM (7/25/2008)
There is a huge shortage of small cars to boot. I went to my local Toyota dealer to just look and saw one Prius on the lot and it was sold. No shock there. But the real shock was there was not a single Yaris on the lot even to look at. Then even more shocking was they did not even have a Corolla on the lot. The smallest Toyota on the lot was the Camry. It is hard to sell cars when you don't have them on the lot.
Reply
jimbo 10:02AM (7/25/2008)
Having too correct a forecast three times in six months points to their lack of professionalism and foresight in this matter. Come on, girls, it wasn't that obvious that this year was going to suck was it?
Reply
Wildgoosechase73 12:43PM (7/25/2008)
Just wait unitl the state and local governments start feeling the loss of sales tax income. Get ready for a bump in property taxes to compensate.
Reply
stevejust 12:59PM (7/25/2008)
There aren't any cars worth buying in 2008 or 2009. The GT-R is the most exciting thing out there, and it's pretty low production. That's about it. It's just an uninspiring next couple of years for cars.
Add to that the fact that so many people are upside down in not only their homes, but also their car loans, and I'd say a prediction in the 12-13 million cars sold is probably closer to what will happen.
I'm not really a car guy anymore because I woke up to the fact that my old Porsche and muscle car lifestyle was for douchebags. I have a 2004 honda Civic Hybrid that gets 48.8 mpg. There's not a car for sale this year or next that gets better mileage. I have a deposit on the Fisker Karma plug-in hybrid, but that won't arrive until 2010. In the meantime, when I want to actually have a "driving experience" I ride my motorcycle.
Reply