J.D.Power cuts '08 U.S. auto sales outlook

DETROIT (Reuters) - Auto industry tracking firm J.D. Power & Associates has lowered its forecast for 2008 U.S. light vehicle sales and said it expected no significant recovery in 2009 amid a deepening economic downturn and record gas prices.

J.D. Power now sees U.S. light vehicle sales of 14.2 million units in 2008, down from its earlier projection of 14.95 million vehicles, it said in a report on Wednesday. That would mark the industry's lowest result since 1993.

The outlook cut was prompted by a deteriorating economic environment, credit market strains and record gasoline prices, J.D.Power said. It projected only a slight sales improvement to 14.3 million units in 2009.

"The economic stress and uncertainty that consumers may face over the next six to 12 months will likely result in a continuous period of slow new-vehicle sales," said Jeff Schuster, executive director of automotive forecasting at J.D. Power.

"It is also unlikely that a pronounced rebound will occur in 2009 and conditions could actually worsen before they improve."

J.D.Power said weak U.S. light vehicle sales seen in June, which showed the worst monthly result in 15 years, were expected to carry over into July. It forecast light vehicle sales in July would remain unchanged from June at 13.6 million units on a seasonally adjusted annual rate.

(Reporting by Soyoung Kim, editing by Dave Zimmerman)