IHS Automotive Lowers Auto Sales Estimates for 2011 and 2012

It looks like car sales in the US are taking a downward direction as IHS Automotive explains. The forecasts which were made preciously by the same company were reduced by 200,000 units in 2011 to 12.5 million light vehicles. As IHS analyst Rebecca Lindland explained, the forecasting group also cut its estimate for 2012 deliveries in the US to 13.5 million vehicles, from 14.7 million.

The Massachusetts-based researcher researcher revised also its forecasts for light-vehicle sales in 2013 to 15 million, from 15.5 million. Also, light vehicle sales rose lees than 1 percent in July, pushing some analysts into lowering their estimate for 2011 car sales. JPMorgan Chase & Co. last week reduced their estimates for the year 2011 and 2012 by a combined 700,000 vehicle sales.

Neither General Motors nor Ford Motor Co. are looking so good as as signs of weaker economic growth point out they expect 2011 sales to come in at the low range of 12.5 million to 1.5 million units. Car sales rose 11 percent this year through July, although growth has slowed down in recent months due to inventory shortages which followed the March earthquake in Japan.

Also, the rising gasoline prices and the economic uncertainty added to the drive factors of sales growth slowing down. Another factor would be the significant drop in discounts and higher new vehicle prices which were added the high unemployment which continues to undermine the consumer confidence. The risk of sliding deeper into recession grows as the US economy endures the slowing growth in global markets, as related by AutomotiveNews.