US industrywide vehicle sales seen flat next year

DETROIT, Sept 25 (Reuters) - U.S. vehicle sales will beflat next year with any recovery in demand expected only in2010 as consumers struggle with tight credit, high gasolineprices and a housing market slump, according to an industryforecast from a leading auto sales tracking firm. 'There is no recovery next year,' said Rebecca Lindland,analyst with Global Insight. 'We don't have the economicstructure to support that.' Lindland expects overall U.S. industrywide sales to come inat 14 million vehicles this year, which would mark a 15-yearlow, and about 14.1 million vehicles in 2009. The numbers are down sharply from 16.2 million sales ratein 2007. Lindland expects a return to more than 16 million unitsonly in 2012. Earlier in the year, some auto executives had held out hopefor a recovery in auto sales in 2009. U.S. auto sales are down 11 percent through the end ofAugust. The annualized sales rate was 12.6 million in July and13.7 million in August. Lindland said there was a 'tremendous amount of turmoil' inthe auto industry with most automakers dealing with the massiveshift in consumer taste in vehicles. Auto industry executives had said the sharp rise in U.S.gas prices to above $3.50 per gallon in April and May haddriven a permanent shift in consumer demand toward more fuelefficient cars and away from trucks and SUVs. A recovery in the auto sector is not expected to occuruntil housing prices stabilize and consumers can more easilyget loans to buy or lease vehicles. (Reporting by Poornima Gupta; Editing by Gary Hill)

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