October Light-Vehicle Sales Plunge In First Two Weeks Of October

Autoparts Report,  Nov 5, 2002  

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A drop in incentives is resulting in a dramatic decline in U.S. light-vehicle sales in October, according to J.D. Power and Associates. With the average total incentives (cash-plus-interest reductions), now at approximately $1,200 per vehicle compared to $1,480 in late August, consumers appear content to wait and see if automakers will get more aggressive with their use of incentives, Power said.

"As automakers start to sweeten the deal again with greater use of incentives, we believe many consumers are holding out to see how far the automakers will go," said Walter McManus, executive director of global forecasting at J.D. Power and Associates.

New-vehicle sales through the second week of October were down 12 percent from the same period in September and down 30 percent compared with the same period last October, when sales of new vehicles set an all-time record.

J.D. Power and Associates is keeping its 2002 calendar-year forecast at 16.8 million units.

COPYRIGHT 2002 Ron DeMarines
COPYRIGHT 2008 Gale, Cengage Learning