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For car sales, this year may mark worst in 10
Business News; Market ResearchHigh gas prices, housing slump, weakening economy discourage shoppers

DETROIT - Industry analysts are predicting a lackluster end to an already dismal year for automakers, likely the worst in nearly a decade.

Holiday discounts failed to bring consumers out of their funk, and December sales are expected to fall around 4 percent, which would bring the full-year total for U.S. auto sales to 16.1 million vehicles, the lowest volume since 1998.


Sales have been hurt by consumer anxiety over gas prices, the housing crunch and the overall weakening economy.

Industry watchers warn that the 2008 auto sales performance could be even weaker.

"Given the current economic challenges and the uncertainty associated with the upcoming presidential election, we do not anticipate that 2008 will be any more robust for the car business," said Jesse Toprak, chief economist for the auto information site Edmunds.com. Toprak said there is little promise for a turnaround until 2009.

AP

Posted on Monday, December 31 @ 09:07:54 PST by Leanan
 
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