Automakers in the US are predicting a difficult 2008 as figures for last month show signs of a further slowdown in the market.

Reuters reports that car manufacturers in the country are expected to reveal weak sales during December 2007 and could deliver the worst sales record for the industry in over a decade.

The slump has been caused by the problems in the financial markets due to the subprime crisis in the US housing sector during 2007, while record high oil prices are expected to bring further woes to the car industry.

"The long-resilient American consumer, increasingly mired in the worst housing downturn in two decades, is likely to slow purchases of big ticket items like automobiles - a view seemingly supported by recent sharp reductions in consumer confidence," explained ear Stearns analyst Peter Nesvold.

There are concerns that the slowdown in the US could turn into a full-blown recession in 2008 and with those fears uppermost in consumers' thoughts, purchasing expensive items such as cars has been put on hold by many.

Source:

US auto sales seen down in December, outlook weak, 2/01/08
http://www.reuters.com/article/tnBasicIndustries-SP/idUSN0216866720080103

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