The European car market will weaken temporarily in 2001, with a modest recession shaving production and sales by two per cent, industry consultancy JDPower/LMC predicted today.
US sales of cars and light trucks meanwhile will dive in 2001 to 16.2 million, compared with 2000's record 17.4 million, JDPower/LMC said.
"We expect the US market to slow, but to avoid recession," JDPower analyst Mr Jeff Schuster told a conference.
JDPower forecasts another slight fall in 2002 in the US to 15.9 million, and a gradual recovery to 16.6 million by 2006.
JDPower economist Mr Bob Schnorbus said the crucial US economy is still likely to have a soft landing, with growth in 2001 somewhere between one and two per cent.
"A soft landing could be bumpy, but will still fall short of a full-blown recession," he said.
European economic growth would be boosted by tax cuts, but the prospects for Germany, are casting a shadow over prospects, according to JDPower.