14% Drop Seen in August Auto Sales
This should not come as any surprise.
(CNNMONEY.com) New-vehicle sales in the U.S. for August are expected to drop 14% from a year earlier as the industry's slump continues, according to car-shopping Web site Edmunds.com.The sales, if the estimates are meet, would be up 11% from July's dour levels. Edmunds' executive director of industry analysis, Jesse Toprak, said a major recovery isn't expected the rest of the year.
The forecast echoes J.D. Power & Associates' expectation last week for U.S. auto makers to report big declines in August domestic sales despite stepped-up incentives, though industrywide sales are expected to improve slightly from July's moribund rate.
The decline reflects sliding sales of trucks and SUVs - the longtime drivers of profits for Detroit amid surging gasoline prices, the housing-market downturn and economic worries.