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Analysts Predict Rough Sales Reports Today
02:15 p.m. EDT, October 01, 2008

Automakers will be reporting the results of their September sales today and the industry is bracing itself for bad news with analysts predicting as much as a 20 percent drop.

The auto market, already struggling at flat line status, has been hit hard by the tight credit market and increasing consumer uncertainty. Consequently, Edmunds has issued a prediction of a 19.7 percent drop over September 2007.

Edmunds forecasts Chrysler LLC to be hit the hardest with a potential drop of 36.5 percent while Ford could be down 25.1 percent and General Motors 23.9.

Economists working with Reuters are forecasting declining movement across the board that will bring annual sales down to 13.5 million from 16.2 million one year ago.

The September figures will reflect the effects of months of high fuel prices and the growing lack of confidence in the financial system in the United States.

According to experts quoted in a report on Automotive News, analysts are predicting sales of under 13 million units by years end. Citi is calling the figure at 12.7 million, just a fraction about the 12.55 million rate tallied in July that represented a 16-year low for the industry.

The activities of lawmakers in Washington still hotly debating passage of a bailout of the financial industry are not serving to quell consumer fears, so prospects for any improvement in auto sales this year are slim at best.


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