J.D. Power points to high joblessness and a flattening economy in lowering its auto sales...


J.D. Power points to high joblessness and a flattening economy in lowering its auto sales forecast for this year and next: to 11.6M vehicles in 2010, from 11.7M, and to 13.2M vehicles from 13.7M next year. Both are well below the decade's average of 16.4M vehicles.
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Comments (3)
  • remdak
    , contributor
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    I find it hard to believe that auto sales would increase as much as JD Power thinks in 2011.
    19 Aug 2010, 12:04 PM Reply Like
  • Morg
    , contributor
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    One potentially good thing about lowered expectations is that it creates the possibility for upside surprises.

     

    This is not me being bullish, but I like to keep these things in mind. The old Warren Buffet adage of "Buy when there is blood in the streets."
    19 Aug 2010, 12:35 PM Reply Like
  • Poor Texan
    , contributor
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    According to my friend in the auto business, good used cars are getting scarce. Reduced sales of new cars means fewer trade ins. Much of the auto stock is not going to be replaced. Families will ratchet down from three cars to two or two cars to one due to high original cost, high maintenance and high gasoline cost. I'm seeing more people riding bicycles around town nowadays. We're moving to a lower standard of living. Growth stocks will be hard pressed to justify their prices. Value stocks will be measured on their dividends. jmho
    19 Aug 2010, 02:19 PM Reply Like
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