J.D. Power and Associates announced today that it is lowering its U.S. auto sales forecasts for August, the remained of 2010 and 2011 as its expects a slow economic recovery.
“The new-vehicle retail selling rate in August is expected to decline slightly from a relatively strong level in July, but remains above the selling rate from the first half of 2010,” J.D. Power and Associates said in a statement. “August new-vehicle retail sales are expected to come in at 857,000 units.”
“Incentive levels are down 8 percent from July, but retail light-vehicle sales in August are showing relative strength,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “While August retail sales are expected to be down 22 percent from August 2009, if the distortion from 2009″s CARS program is removed, August 2010 is actually up about 14 percent on a selling day-adjusted basis, signaling continued improvement year over year.”
Total light-vehicle sales for August are expected to come in 15 percent lower than August 2009.
As a result of August sales, J.D. Power and Associates has also revised its 2010 forecast to 9.2 million units for retails sales and 11.6 million units for total sales. The slow recovery is expected to go into 2011, with J.D. Power’s forecast now being revised down to 10.7 million units for retail sales and 13.2 million units for total sales.
– By: Omar Rana