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Credit Turmoil Is Likely To Crimp U.S. Auto Sales

Wall Street Journal Original article ›

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JD Powers surveys now lowers the 2008 forecast of USA auto sales to 14.95 million from its previous one of 15.7 million. General Motors has not revised its forecast and is hoping for a second half rebound thats extemely unlikely given that the economic situation is deteriorating. Auto loan delinquencies are rising and expected are tighter curbs in auto loans lending practices which combined with higher oil prices, fewer new models to get customers interested, and the increasing layoffs, is likely to lower sales down more than the JD Powers estimate. Chrysler has lowered its sales forecast but sales have already dropped off significantly for Chrysler and its in the midst of a major revamping.


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