Auto Sales: 10.5 Million in 2009

GM is thinking "worst-case scenario."

General Motors Corp. said Thursday that it's basing its turnaround plan on the assumption that the auto industry will sell 10.5 million cars and trucks in the U.S. this year, a 1.5 million drop from the expectation it shared with Congress last month.

While asking lawmakers for $18 billion in loans, the Detroit automaker said it expected industrywide sales of about 12 million for 2009, with 10.5 million seen as a worst-case scenario.

U.S. auto sales fell to 13.2 million in 2008, down 18 percent from a year earlier as poor consumer confidence and tight credit kept buyers away. Many analysts have been predicting sales of 10.5 million to 11.5 million in 2009.

I don't know if I like this part:

GM has said it will become profitable again once sales return to between 12.5 million and 13 million

2007 sales were around 12.4 million units.

It will be interesting to see GM's "recovery plan."