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U.S. Sales Trending Down; Inventory Nears Record Highs

Executive Summary

The prospects of a U.S.-Iraq war are expected to dampen U.S. light-vehicle sales in February even as auto makers lay on the incentives to keep volume up. February’s dim outlook also flies in the face of rising inventories, which will get worse by the end of the quarter if the U.S. indeed goes to war and there isn’t a sudden cutback in production for the U.S. market (see related data: Feb. Sales Forecast).

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