Analysts Expect New Record in Auto Sales

December’s U.S. auto sales will push the industry past the previous annual record, thanks to continued low unemployment, low interest rates, rising consumer incentives and a strong U.S. stock market, analysts said. Continued strong results from foreign auto makers in December also will help boost sales past the record in 1986, when 16.03 million passenger cars and light trucks were sold, analysts said. General Motors Corp. is feeding the continuing boom with consumer incentives such as rebates to boost its market share. A major interest rate hike by the Federal Reserve could put a damper on sales, but analysts don’t expect that. “Barring some unforeseen shock or 1/8Federal Reserve Chairman Alan 3/8 Greenspan losing his mind and raising rates to 15%, it’s going to continue for a while,” said Burnham Securities analyst David Healy. GM’s and DaimlerChrysler’s December sales will be up slightly, thanks to incentives, while Ford Motor Co. will be down, as it continues to emphasize profitability over market share, analysts said. The rate in December at which vehicles sold in the United States, if repeated over a full year, would translate to 16.9 million to 17.4 million vehicles for the year, analysts said. GM will report December sales Jan. 5, while most other auto makers will reveal their results Jan. 4. Foreign car makers are expected to make strong double-digit sales gains in December, analysts said.