Will Auto Sales Pick Up or Slow Down?

Detroit - Automakers and virtually everyone working in the US auto industry have been acknowledging a soft beginning of the year 2001 but there have been high hopes that the year would end on a stronger sales note. Rationale has been that a long, cold winter and high interest rates kept car buyers out of showrooms, but with lower interest rates and warmer weather, not to mention attractive buying incentives, buyers were expected to flock to showrooms in the Spring.

Not so, says General Motors. While it's bucking the trend that most analysts and automakers are forecasting, GM says it believes sales thus far this year have been surprisingly strong, but that following this month, sales will decline. GM told a Reuter's journalist that the current litany of bad economic news will catch up with the market in the second half, causing a downturn. GM says a "big boost" in consumer confidence is what is needed to get car sales back on track.