Auto sales to slow

U.S. auto sales are likely to remain sluggish and may fall again next year due to a deepening slump in the housing market that is eroding consumer confidence, say automakers, consulting and investment firms.

Industry experts say they expect the market to contract because discounts have lost some of their effectiveness after propping up demand for several years. Detroit's automakers, in the midst of turnaround plans and capacity cuts, are reluctant to pile on the amount of incentives necessary to boost sales.

U.S. car and truck sales are on track to end 2007 at a nine-year-low of around 16 million vehicles, down from 16.6 million in 2006 and 17 million in 2005.

General Motors Corp. officials expect a flat market next year, while Nissan Motor Co.'s CEO Carlos Ghosn said in October that the market would be flat at best, ranging between 15.5 million and 16 million vehicles.

Toyota Motor Corp. expects U.S. auto sales to total 16.1 million vehicles this year and next.

"Probably the first half of the year will be tracking below that rate, and the second half of the year will probably be above that rate, ending up at around 16.1 million," Toyota Motor Sales President Jim Lentz told The Detroit News this week. Detroit News