Car industry analysts are reluctant to predict that the car industry will reverse its decline in the US, according to Dow Jones.

High petrol prices, Hurricanes Katrina, Rita and Wilma and a lack of incentives from manufacturers brought sales figures of only 14.7 million during October.

Glenn Reynolds from CreditSights said that "excuses" regarding high summer clearance sales will get "old in a hurry" as 2006 approaches.
Deutsche Bank analyst Rod Lache commented that figures from the three major US car makers had remained subdued towards the end of last month, with "no indications that the picture will improve" in the next few weeks.

The statement was backed by representatives from the car industry. A Ford spokesperson said that problems embittering consumers meant that the "normal sales rate" may be off the menu for the time being.

Problems have been particular pertinent for General Motors, who had its debt rating dropped to "junk" status earlier in the week.

One analyst kept a positive outlook, however, saying that falling oil prices may yet inspire interest within the car buying public.

Credit Suisse First Boston's Chris Ceraso said: "There may be hope. Gas prices have fallen steadily from the post-hurricane peaks, which could spark a turnaround in consumer sentiment. That would be good news for flagging truck sales, and possibly even better news for auto-sector stocks."


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