Mohatarem expects the second quarter to show anything from no U.S. growth to 2 percent. At Ford, the second-quarter forecast is for economic growth around 1.5 percent. At DaimlerChrysler, Jolissaint said if the first quarter ends up being close to a 2-percent growth rate, once revised, the second quarter could be 1 percent. High gasoline prices are likely to continue to cut into consumer spending in the next few months, as well. Yet auto economists expect some relief, with prices easing at the pump later this summer as demand drops.
Spending is likely to be sluggish for now.
But the three auto economists aren't overly worried. Good deals to be had One edge for consumers, particularly car buyers, is that the dollar has been so strong relative to European and Asian currencies. So, non-U.S. automakers have been offering aggressive pricing on their cars and trucks. And rather than lose market share and have to close plants, U.S. automakers have played along with the pricing game. While the economists agree that no recession is likely, they warn that the worst might not be over in terms of the jobless rate.