J.D. Power lowers August sales estimates

On the eve of “Numbers Day,” when automakers release their monthly sales results, J.D. Power and Associates have revised their projected August SAAR (seasonally adjusted annual sales rate) down by 200,000 units. The research firm is now looking for a SAAR in the range of 11.4 million; down 2.77 million from the rebate-stoked 14.17 million recorded last August and, more worrisome, off 140,000 from July 2010. In an earlier poll published by Bloomberg News, Jeff Schuster, executive director of global forecasting at the firm, had estimated an August SAAR of 11.6 million sales

Citing a significant slowdown in retail deliveries in the last week of the month, Powers believes the rate for retail sales will drop below 8.5 million. Fleet sales will take up some of the slack.

“With mixed economic signals and flat incentive levels, there hasn’t been enough horsepower behind the recovery to motivate consumers to regain their confidence and purchase vehicles at a higher rate,” Schuster said. “In addition, it’s likely that new-vehicle buyers are holding off on purchases in anticipation of Labor Day incentives, which may benefit September sales.”

 Like on Facebook