J.D. Power and Associates Reports: Light-Vehicle Retail Sales Fall off Pace During Latter Half of July, but Improvement from June Holds

WESTLAKE VILLAGE, Calif., Aug. 2, 2010: The sharp improvement in new-vehicle retail sales experienced during the first half of July slowed during the final two weeks of the month, pulling down the retail selling rate to approximately 9 million units from a previously projected rate of 9.4 million units, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.

For total sales, the seasonally adjusted annualized rate (SAAR) is expected to come in at slightly below 12 million units, with fleet sales making up for some of the decline in retail sales. July is expected to post the strongest total SAAR since the CARS program-induced rate of 14.1 million units in August 2009, improving from a total SAAR of 11 million units in June 2010.

"Softening of sales as July progressed indicates some vulnerability in the market, likely brought on by the lack of escalating incentive levels," said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. "The benefit of the fiscal stimulus has faded, which has led to slower economic growth and a decline in consumer confidence--both of which may have contributed to the slowdown in mid-to-late July."

J.D. Power and Associates will be tracking new-vehicle sales as they are announced by auto manufacturers on August 3 and will have automotive analysts available for both print and broadcast interviews after 8:00 a.m. E.T./5:00 a.m. P.T.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.