Look Out Below: U.S. Auto Sales Heading for Nine Year Low
CSM Worldwide have some bad news for auto execs waking up to their skinny lattes. The automotive forecasters reckon the collapse of the housing market and soaring consumer debt will send U.S. auto sales plummeting by nine percent. CSM's Senior Economist connected the dots. "With many consumers having a harder time getting mortgages or coping with higher payments from their adjustable rate mortgages, there will be a considerable impact on light vehicle sales," Charles Chesbrough predicted. "Weak sales of existing homes and declining home values also are dampening consumer spending, leaving less money available for vehicle purchases." It gets worse. CSM's NA soothsayer says American automobiles sales will recover "no sooner than" the fourth quarter of 2008. In fact, Joe Barker says "market fundamentals have deteriorated and will need at least a year to rebuild." He also noted that the domestics' production is heading south, while the transplants' are ramping-up. As David Halberstram might have said, a reckoning is on its way.
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