J.D. Power predicts auto sales slump will worsen

J.D. Power and Associates are predicting a gloomy end to 2008 and an even grimmer year in 2009.

The company is looking for retail sales (not including fleet and government sales) to total about 10.8 million units this year, two million down from the 12.8 million retail sales made in 2007. Power is predicting total light vehicle sales will come in at about 13.6 million cars and light trucks. That’s about 2.5 million or 16 percent fewer than last year.

The forecast doesn’t get better for next year: 2009 sales will fall to 13.2 million as consumers continue to hang on to their current vehicles and one J.D. Power analyst says an “outright collapse” is possible in 2009.