The chief economist of the National Automobile Dealers Association (NADA), Dr. Paul Taylor, has raised his annual automobile sales projection to 16.6 million new vehicles, from 16.3 million early this year, on the strength of an improved industry outlook.

"A strong summer selling season, improving economy and completion of major combat operations in Iraq are favorable signs that auto sales are likely to finish the year somewhat higher than expected," Dr. Taylor said. "Robust consumer incentives for 2004 models are also part of the brighter sales picture. This year will mark the fifth straight year of sales above 16 million units - a remarkable accomplishment in a three-year period of economic and global uncertainty," he added.

Taylor pointed out that "crossover" sport utility vehicles, or CUVs, continue to be a key source of strength in the auto retail market. CUVs, which have a unitized car platform, have led sales growth among all vehicles this year, up over 37 percent year-to-date.

Sales of traditional truck-based SUVs were up 1.3 percent in September over a year earlier, as many people choose true off-road vehicles with towing capacity. "Consumers are making a strong statement that they like their choice of an SUV, despite the many assaults on these vehicles by various special interest groups," Taylor said.