A leading industry tracking firm has predicted today (10th October) that the global automarket may suffer a major collapse during the course of 2009.

JD Power and Associates has forecast that sales of light vehicles in the US will fall to 13.2 million next year from the likely total of 13.6 million in 2008.

The company has insisted that with the availability of credit greatly reduced and the financial markets still struggling, the market could be 18 months away from recovering.

Executive Director Jeff Schuster said: "While the global automotive industry is clearly experiencing a slowdown in 2008, the global market in 2009 may experience an outright collapse.

"While mature markets are being impacted more severely than emerging markets, no country or region is completely immune to the turmoil."

Mr Schuster's comments appear to be backed up by new data from China which reveals that car sales in the country slumped for the second successive month in September.

The China Association of Automobile Manufacturers confirmed that monthly car sales dropped by 1.44 per cent on a year-on-year basis, down from 552,800 units.



Source:

Global auto market may "collapse" in 2009: J.D.Power (09/10/08)
http://www.reuters.com/article/businessNews/idUSTRE49863N20081009?feedType=RSS&feedName=businessNews&rpc=23&sp=true

China car sales fall for 2nd month as economy ebbs (10/10/08)
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSSHA17304120081010