Global auto market may “collapse” in 2009 as GM tumbles to 58 year low
Global auto market may ‘collapse’ in 2009
J.D. Power points to growing concerns around credit availability
updated 9:56 a.m. ET Oct. 10, 2008DETROIT – The global auto market may experience an “outright collapse” in 2009 amid growing concerns around the availability of credit and general economic stress, an influential industry tracking firm said on Thursday.
J.D. Power and Associates forecast U.S. light vehicle sales would fall to 13.2 million units in 2009 after likely settling at 13.6 million units this year, adding that a pronounced recovery is more than 18 months away.
“While the global automotive industry is clearly experiencing a slowdown in 2008, the global market in 2009 may experience an outright collapse,” said Jeff Schuster, executive director of automotive forecasting for J.D. Power.
“While mature markets are being impacted more severely than emerging markets, no country or region is completely immune to the turmoil,” Schuster said.
—GM shares tumble to 58-year low
Oct. 10: General Motors shares drop more than 30 percent to their lowest level since 1950 as the company faces a downgrade of its credit rating. CNBC’s Phil LeBeau reports.