U.S. auto sales seen down in Nov. as outlook dims

[steinravnik]

DETROIT, Dec 3 (Reuters) - U.S. auto sales likely slipped in November as concerns about the strength of the economy and fallout from the collapse of the U.S. housing market kept buyers from showrooms, analysts say.

Vehicle sales, widely watched as a leading indicator of consumer spending, began slowing in the second quarter and are on track to finish the year with the lowest tally since 1998.

With concern mounting about the risk of recession, many analysts are now expecting a continued slide in U.S. vehicle sales through 2008, which would mark the third-consecutive year of lost sales.

Goldman Sachs analyst Robert Barry recently cut his 2008 U.S. sales estimate to 15.6 million vehicles on an industry- wide basis from 16 million, citing growing concerns on the overall U.S. economy.

In citing the reasons for his lowered outlook, Barry mentioned "a now-familiar litany of concerns related to housing and gas prices and the U.S. consumer sentiment to near- recession levels."

For November, analysts expect total sales at a seasonally adjusted annual rate between 15.7 million and 15.9 million vehicles, down compared with the 16.1 million reported in November 2006.

Among U.S.-based automakers, privately held Chrysler LLC is expected to take the hardest hit, with sales seen down as much as 18 percent in November.

Continued...
http://www.reuters.com/article/marke...BrandChannel=0

[ponchoman49]

Pretty obvious that if average to low income folks are shelling out more and more money for gas, heat, grocerys taxes etc that there will be less money to buy that new car. And it's the average class that makes up most of this country. I predict things will get even worse next year if oil goes up any more than it currently is.

[yoblues]

The worst may be yet to come for the auto industry. Next year the credit card industry may take a huge hit as more and more people are defaulting on paying their credit card bills. Lots of people in this country are way over extended financially and it's comming home to roost.