U.S. auto sales to fall sharply in 2008: J.D. Power

DETROIT (Reuters) - U.S. sales of cars and light tracks are expected to drop sharply in 2008, hitting their lowest level since 1994, influential industry tracking service J.D. Power and Associates said on Tuesday in a revised forecast.

J.D. Power said it now expects U.S. light vehicle sales to drop to 14.95 million vehicles this year, compared with its earlier forecast for 15.7 million.

The new forecast represents a weaker outlook than most major automakers have anticipated for 2008 in the world's largest auto market, and suggests that U.S. automakers may have to cut production and costs more sharply than they had planned.

"Declining consumer confidence and spending, as well as turbulent financial and economic market conditions, are primarily driving the decline," Jeff Schuster, executive director of automotive forecasting for J.D. Power, said in a statement.

(Reporting by Kevin Krolicki; editing by John Wallace)