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What Happened When Alex Kenjeev Paid His Student Loan in CashSome of the smart money that tracks the car industry thinks total sales in the US could go as low as 14.5 million to 15 million vehicles next year, down from 16 million this year.
Investors like Wilbur Ross and former Chrysler president Thomas Stallkamp see car sales in America hitting their worst year in the last 15. According to Reuters, "Stallkamp, a partner at private equity firm Ripplewood Holdings, which owns several auto parts makers, said the market could slump to 14.5 million, the lowest level since 1993."
High fuel prices and a falling housing market are likely to cause a large drop in demand for vehicles.
It would be hard to underestimate the impact of such a drop on Detroit and the largest Japanese firms. It had been anticipated that GM (NYSE: GM) and Ford (NYSE: F) might get their North American operations back into the black next year, helped by favorable UAW contracts.
If pessimistic forecasts hold true, though, 2008 could be awful for Detroit.
Douglas A. McIntyre is an editor at 247wallst.com.
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