Auto Knight

US Auto Sales Expected To Recover By 2009

by Darren

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US Auto sales have been in the dump due to the ongoing tough economic times the nation has been facing. But analysts expect an upswing as early as next year. Car and truck sales are expected to rebound as tax stimulus checks get to cash hungry car buyers.

Sales of cars and light trucks totaled 16.1 million in 2007, the lowest level in a decade, and automakers and analysts expect a further slide in 2008. Northville, Michigan-based CSM’s projection was part of a report prepared for auto executives.

Interest-rate cuts by the Federal Reserve and economic stimulus from U.S. tax rebates “will lay the groundwork for recovery” in the second half of the year, CSM said. Most of the increase between 2009 and 2014 will go to Toyota Motor Corp., Honda Motor Co., Nissan Motor Co. and Hyundai Motor Co., as sales shift to smaller vehicles, CSM said.

U.S. light-vehicle sales fell 12 percent last month as record gasoline prices and concern that the economy is in a recession kept customers away from showrooms. Ford Motor Co. said the second quarter may be the most difficult period for sales this year.

The economy has been expanding at the lowest rate since the 2001 Recession.