VOANews.com

Voice of America Trusted Source of News & Information since 1942

13 January 2009 

Today from VOA:

News in 45 Languages
US Auto Sales Headed for Crash

13 January 2009

Unsold 2008 300 sedans sit at a Chrysler dealership in the south Denver suburb of Englewood, Colorado, 17 Aug. 2008
Unsold 2008 300 sedans sit at a Chrysler dealership in the south Denver suburb of Englewood, Colorado (file)
A global marketing firm says 2009 will be another grim year for the auto industry, predicting U.S. auto sales will plunge by 13 percent.

U.S.-based J.D. Power and Associates said Tuesday that American consumers will only buy about 11 million vehicles this year, down from 13 million in 2008.

The firm's president Finnbarr O'Neill says, as a result, one of the major U.S. car companies will not survive.

America's two biggest car companies are not feeling optimistic despite unveiling several hybrids and electric cars this week at the International Auto Show in Detroit.

Logos for the Big Three automobile manufacturers, General Motors, Ford, and Chrysler
In separate interviews with Bloomberg news, Ford says its car sales could slide as much as nine percent in the coming year, while General Motors warns it is having trouble selling small, fuel-efficient cars because gas prices have fallen.

Earlier Tuesday, the governor of Michigan called on the U.S. government to invest more money to help develop cheaper fuel-efficient technologies.

Struggling auto sales have also sparked concern in Germany. As part of its almost $66 billion economic stimulus package, Germany is offering one-time payments to consumers who buy new, environmentally-friendly cars.

Also Tuesday, workers at a General Motors plant in Brazil staged a brief protest, after the company announced it was eliminating more than 700 jobs.  

Some information for this report was provided by AFP and Reuters.


E-mail This Article E-mail This Article
Print This Article Print Version
  Related Stories
Big Three US Automakers Tout Fuel-Efficient Vehicles
Hybrids Hit Hard as Auto Sales Slide
 
  Top Story

  More Stories