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Automkers in US anticipate a major slump in car sales

General Motors Corp, Ford Motor Co and DaimlerChrysler AG's Chrysler unit are likely to have their worst US sales year since 1992, forcing production cutbacks at factories in the next 12 months, analysts said.

The companies together will sell as few as 10.3 million North American-built vehicles this year, the lowest since 9.5 million nine years ago, CSM Worldwide estimated.

"They've had disruption after disruption" this year, said Michael Robinet, a CSM consultant. "There's a high amount of Bromo Seltzer being sold in the Detroit area."

US industrywide sales will decline 6.4 percent to 16.2 million light vehicles this year as the economy slows and attacks in New York and Washington reduce consumer confidence, forecaster DRI-WEFA estimated. While that's the third-best year ever, Ford, General Motors and Chrysler losing ground as rivals such as Toyota Motor Corp and Honda Motor Co gain market share.

DaimlerChrysler abandoned its earnings forecast for 2001, citing the decline in US auto demand following the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon. US consumer confidence in September dropped to the lowest level since January 1996, the Conference Board said this week.

CSM's forecast was based on North American-built vehicles.

Adding in the US sales of foreign subsidiaries Volvo, Land Rover and Jaguar with Ford and Saab with General Motors boosts the total by about 480,000 cars and trucks, and still would mark the worst combined sales for the three automakers in eight years.

North American industrywide production will decline 9.7 percent to 15.5 million from last year because of lower demand, DRI-WEFA estimates.
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