NEW YORK — With gas prices still near record highs, the overall economy in a slump and continued trouble in the credit markets, just about everybody expects August vehicle sales to be down significantly from a year ago.
But analysts say August’s numbers probably won’t be as bad as July’s record lows, mainly because of General Motors Corp.’s late-month employee pricing offer.
Jeff Schuster, executive director of global forecasting for J.D. Power and Associates, said he expects August’s seasonally adjusted annual sales rate to be a little over 13 million when automakers release their monthly sales data Wednesday. That compares with 16.2 million in August 2007.
The rate, known as SAAR, indicates what sales would be for the full year if they remained at the month’s pace all year, with adjustments for seasonal fluctuations.
“Sales could be even closer to 13 million if it weren’t for the GM anniversary sale, which could provide a lift,” Schuster said. “But sales will still be substantially below a year ago.”
GM said earlier this month that it would extend employee discounts to everyone on almost all of its 2008 and some of its 2009 models. Employee discounts generally are 10 percent below the invoice price but vary by model.
While the promotion, which runs through Tuesday, is expected to boost the Detroit automaker’s sales numbers, analysts have said that these kinds of moves tend to take away from sales in future months and cut deeply into profits.
U.S. sales hit a 16-year low in July, falling to a SAAR of 12.5 million vehicles. Most of the major automakers posted double-digit sales declines, with Nissan Motor Co. the only one to report an increase.
Automakers have seen their sales tumble as weak consumer confidence and high gas prices have steered many buyers away from dealer lots and pushed the ones who remain toward smaller, more fuel-efficient vehicles.
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