Auto Analysts: 2008-A Bad Year For US Auto Business

It would be another tough year for American automakers, possibly the worst after a decade.  That’s according to latest forecasts projected by auto analysts.

In manufacturing.net, auto analysts disclosed the possibility that US sales could drop for about 1 million vehicles this year.

“Car sales were remarkably slow in January, probably in part because of dramatic stock market fluctuations that flustered consumers at a time when the housing market and other economic uncertainties were also making headlines,” Jesse Toprak, executive director for industry analysis, said at Edmunds.com.

According to Bear Stearns analyst Peter Nesvold, macroeconomics pressures specifically declining consumer confidence and gas price hike are some factors affecting the auto market sales.

“For many consumers, a new vehicle purchase has become largely a discretionary item,” he added.

According to usnews.rankingandreviews, General Motors was the sole automaker that earned an increase in US sales last month, up by 2.1 percent compared to January of last year.  This was attributed to high sales projected by the Chevrolet Malibu and Cadillac CTS.  Meanwhile Toyota and American Honda Motor Co. Inc. announced the decline of their sales by 2.3 percent whereas Ford Motor Co and Nissan North America’s sales were down by 4 and 7.3 percent respectively. 

Seems like the auto industry really need a protective system to keep it from bankruptcy just the way an Acura Legend bumper absorber protects an Acura car.