Stronger than expected first-quarter sales,

coupled with continuing aggressive incentives by automakers, are prompting

J.D. Power-LMC Automotive Services to revise its Canadian 2002 new

light-vehicle sales forecast to near-record levels, according to J.D. Power and Associates.

J.D. Power-LMC Automotive Services is boosting its Canadian new

light-vehicle sales forecast from 1.48 million units to 1.56 million units

in 2002, just shy of 2001's record performance.

"The economy is showing signs of picking up, and automakers keep

extending the use of rebates and incentives, which we believe will result in

a healthier-than-anticipated automotive market," said Dr. Robert Schnorbus,

chief economist at J.D. Power and Associates. "We expected first-quarter

sales to be the lowest of the year, but we have been pleasantly surprised by

the numbers."

The Canadian automotive market has been on an upward trend since

mid-1996 and reached a new record of 1.57 million units in 2001.

"As long as automakers are committed to incentivizing sales and the

economy is in a position to cooperate, we see sales following a higher sales

pattern than expected at the beginning of the year," Schnorbus said.

New light-vehicle sales in January reached levels in excess of a 1.7

million seasonally adjusted annualized rate (SAAR), and February's selling

rate was 1.69 million units. J.D. Power-LMC, while anticipating some

moderation, still expects robust sales in March.

"There is continued confidence among Canadian consumers, coupled

with great quality products that really meet consumer needs," said Richard

Cooper, executive director of Canadian operations for J.D. Power and

Associates. "It's not surprising that sales continue to be strong."

SUVs continue to gain market share in Canada, increasing from 13

percent of the market in 2001 to 17 percent by year's end. Much of the SUV

segment's gain is at the expense of mini-vans and midsize cars, both of

which are expected to drop a percentage point of market share in 2002 to 15

percent and 18 percent, respectively.

The luxury vehicle segment is also showing some moderate improvement

in market share, increasing from 3.9 percent in 2001 to 4.2 percent by the

end of the year.

J.D. Power-LMC, a global alliance between J.D. Power and Associates

and LMC Automotive Services in Oxford, England, provides comprehensive

vehicle forecasts and assessments on a worldwide basis.

Headquartered in Agoura Hills, Calif., J.D. Power and Associates is

a global marketing information services firm operating in business

sectors including market research, forecasting, consulting, training and

customer satisfaction. J.D. Power and Associates can be accessed through the

Internet at www.jdpa.com. LMC Automotive Services is

an economic research and forecasting firm headquartered in Oxford, England.

It can be accessed through the Internet at www.lmc.co.uk.