According to J.D. Power and

Associates, consumers are keeping sales of U.S. light

vehicles at exceptionally high levels.

Total new light-vehicle sales in August are projected to hit an

18.4 million-unit seasonally adjusted annualized rate (SAAR) -- up

from July's 18.1 million SAAR -- based on Power Information Network

(PIN) retail sales data from the first two weeks of the month. Actual

units sold in August are expected to reach 1.69 million.

"As surprising as an 18.4 million-unit SAAR may seem, we're

actually basing that on a fairly conservative assessment," said Walter

McManus, executive director of global forecasting at J.D. Power and

Associates. "We would not be surprised if the numbers at the end of

the month actually come in a bit stronger."

According to J.D. Power and Associates, aggressive incentives are the force behind the recent sales boom.

The industry average total of cash-plus-interest subvention has

averaged approximately $1,400 per vehicle for the past two months.

Most of the current rebate and incentive offers expire Sept. 3,

the day after Labor Day. If automakers extend the deadline for the

current incentive programs or offer new ones, strong sales could

continue in September, said the company.

"If one automaker extends its incentives, it is very likely the

others will follow suit," said McManus. "If that happens, it's quite

possible momentum from the third quarter will carry over into the

fourth quarter."

Due to strong light-vehicle sales this summer, J.D. Power and

Associates is revising its 2002 calendar-year forecast to 16.8 million

units, up from its previous forecast of 16.5 million units.

J.D. Power and Associates' sales forecasts are derived from a

joint effort between its Global Forecasting Department and Power

Information Network (PIN), a division of J.D. Power and Associates

that compiles new-vehicle retail transaction data from more than 5,300

participating auto franchises in 25 U.S. markets.

Headquartered in Westlake Village, Calif., J.D. Power and

Associates is a global marketing information services firm operating

in key business sectors including market research, forecasting,

consulting, training and customer satisfaction.