Slow

sales the first two weeks of the month indicate a weakening of U.S.

light-vehicle sales in September, according to J.D. Power and

Associates.

New-vehicle sales were slow the first week of the month because

sales through the Labor Day holiday counted toward August totals, and

incentives, which were scheduled to expire Sept. 3, pulled some sales

ahead. Second week sales likely were affected by the anniversary of

the Sept. 11 terrorist attacks as well as consumers waiting for

incentive programs to improve.

Following two very strong months in which total new light-vehicle

sales reached a seasonally adjusted annualized rate (SAAR) above 18

million units, September sales are projected to dip to a 15.9

million-unit SAAR -- based on Power Information Network (PIN) retail

sales data from the first two weeks of the month. Actual units sold in

September are expected to reach 1.2 million.

Automakers' use of incentives, which were the driver behind the

recent sales boom, have been scaled back somewhat in September. The

industry average total of cash-plus-interest subvention peaked at

$1,480 per vehicle in the last week of August. By the second week of

September it had fallen to less than $1,380 per vehicle.

J.D. Power and Associates is keeping its 2002 calendar-year

forecast at 16.8 million units.

The firm's monthly 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 5,900 participating

auto franchises in 26 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.