Better Domestic US Auto Sales Expected in Coming Months

Washington DC August 29, 2006; The AIADA newsletter reported that last year's hurricanes drenched the Gulf coast, damaging the nation's crude oil infrastructure and causing a drop in sales of domestic autos.

This year, barring another natural disaster, sales numbers for GM, Ford, and Chrysler should look better due to easy year-over-year comparisons, reports The Detroit Free Press.

However, Robert Barry, an automotive analyst for Goldman Sachs, was a little less optimistic. Barry predicted lukewarm August results for the industry overall and weak results for Detroit automakers in particular.

In a note to investors Monday, he said the softer spending "seems to be mostly driven by weak consumer confidence on the back of high gas prices, geopolitical risk and weakness in housing" sales.

To help boost sales, GM announced last night it will offer up to $1,500 in bonus cash rebates, on top of other promotions, on many 2006 and 2007 models beginning today through Sept. 5.