Analysts offer gloomy forecast for the automotive industry 30th May 2003

Analysts are predicting that the American automotive trade is set for further difficulties with the news that May will herald weak car and truck sales.

Despite a number of incentives experts are tipping May to prove problematic for the so-called 'Big Three' automakers, with some anticipating production cuts as a result.

According to Automotive News the average forecast from industry analysts puts May's sales at a seasonally adjusted annual rate of about 16 million vehicles, below April's figure of 16.4 million.

'The spring selling season continues to disappoint,' commented Merrill Lynch analyst John Casesa in a research note.

'May auto demand appears to be relatively unresponsive to continued incentive support,' he added.

The sales totals will be released on June 3rd.


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