JD Powers: 2002 U.S. Auto Sales May Reach 16.4 Million

BLOOMBERG NEWS reported that J.D. Power & Associates raised its forecast for U.S. car and light-truck sales this year to 16.4 million from 16 million because incentives such as no-interest loans bolstered first-quarter results.

Sales this month are expected to fall less than 1 percent from "a very strong March 2001," the Agoura Hills, California-based marketing-research company said after its survey for the first two weeks. The company expects sales this month at an annualized rate of 16.5 million to 17 million vehicles. J.D. Power collects data from about 5,000 U.S. new-car dealerships.

"We've been pretty optimistic all along," said company spokesman John Tews. "We expected the first quarter to be pretty slow but it sounds like these incentives are here to stay."

Automakers led by General Motors Corp. began using no-interest loans to revive demand after the Sept. 11 terrorist attacks and have continued to use the discount financing and cash rebates this quarter. Sales dropped 3.5 percent in February and 5.2 percent in January, less than analysts expected. Last year, industrywide sales reached 17.2 million, the second best ever.

Consumers are buying more luxury cars, sport-utility vehicles, pickup trucks and sports cars, while sales of midsize sedans and vans are falling, J.D. Power said. European automakers are benefiting and U.S.-based companies are showing the biggest declines, the company said.