The number of US car sales is predicted to decline in August and could mean a cut in vehicle production, according to Reuters.

Market analysts believe that the seasonally adjusted annual rate of sales in August will be around 17.2 million, lower than the 17.9 million rate set in August last year and unchanged from the rate in July 2004.

Some experts are forecasting that figures could even be as low as 16.7 million because of the recent turmoil caused by Hurricane Charley in the key car buying state of Florida.  Charley left many cars damaged at dealer lots when it hit one of the nation's biggest markets in mid-August, and kept some consumers busy repairing their homes rather than shopping for new vehicles.  Mark McCready, director of pricing strategy and market analysis with Internet car buying site CarsDirect.com commented "Florida is a very populous state, it is going to have some effect [on national car sales figures]." 

The major car manufacturers are expected to reveal sales figures for August at the beginning of September and the figures could mean that they will have to revise their production targets for the fourth quarter of 2004.

Goldman Sachs analyst Gary Lapidus said: "We believe GM and Ford will cut production as much as they can without jeopardizing their 2004 earnings targets."