US automotive analysts anticipate strong September sales 27th September 2004
Automotive industry analysts say they are anticipating a rise in sales during September, as a round of price cuts helps kick-start the market.
With September sales due to be announced on Friday, Merrill Lynch analyst John Casesa told Associated Press that he was expecting an upturn in sales.
Mr Casesa predicted that the seasonally adjusted annual selling rate would hit 16.8 million units for September, marking a hike of around 1.2 per cent from August.
He identified industry heavyweights General Motors and Ford as key to the strong sales, noting that both have begun offering discounted vehicles this month.
"The new round of incentive programs underscores our view that despite recent production cuts, the industry - and GM in particular - would rather push demand than reduce supply," he revealed in a research report.
Meanwhile, Burnham Securities analyst David Healy also predicts that September could prove an encouraging month for the industry.
He estimates an annual selling rate of 16.9 million units for September, but added that the impact of the clutch of hurricanes to hit the southern US had yet to be ascertained.
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