A leading global auto production and demand forecaster revealed yesterday (10th March) that it is cutting its 2009 industry-wide sales prediction for the US, Reuters reports.

CSM Worldwide confirmed that it expects light vehicle sales to fall from 13.2 million units in 2008 to 9.7 million units this year, compared to its 10.7 million forecast in January.

Furthermore, the body suggested that North American production will be driven down to 8.1 million units, a figure which is substantially lower to the recent peak of 15.1 million units, recorded in 2007.

The company has attributed its decision to increasing unemployment and, in particular, to the continuing uncertainty over the future of cash-strapped car giants such as General Motors (GM) and Chrysler.

In a note to its clients, the news provider quoted CSM as saying: "The situation is more severe and will dramatically intensify pressure on Chrysler and GM as they work to execute restructuring plans.

"Disproportionately sharp sales declines are expected to persist at Chrysler and GM as consumers are faced with ongoing concerns surrounding the viability of the struggling companies and their respective brands."

In addition, the forecaster noted that if GM, which has requested a $30 billion government injection, faces bankruptcy, "further headwinds" on consumer confidence will inevitably follow.

GM has previously predicted that 10.5 million vehicles will be sold in the US this year, while Chrysler - which is looking for aid worth $9 billion - has set a baseline forecast of 10.1 million units.

Source:

CSM slashes U.S. auto sales outlook for 2009 (10/03/09)
http://www.reuters.com/article/GCA-autos/idUSTRE5296PC20090310