Goldman Sachs Slashes Forecast For Auto Sales, Cuts Price Targets In Auto Group

Goldman Sachs cut its estimates for auto sales for 2008, 2009 and 2010. The firm now sees 2008 light vehicle sales of 13.4 million, versus its prior forecast of 13.8 million. For 2009, the firm now sees sales of 11 million, versus its prior forecast of 13 million and for 2010 the firm sees sales of 13 million, versus its prior views of 14 million. The firm cited tighter credit and the worst consumer-spending slump since the 1940s.

The firm cut its price target on Ford Motor (NYSE: F) to $1.50 per share, cut its price target on Goodyear Tire & Rubber (NYSE: GT) to $6, cut its price target on Johnson Controls (NYSE: JCI) to $15 and cut its price target on Lear (NYSE: LEA) to $1.25.

Goldman expects the auto makers to get government aid this year, but said there is a real possibility action may get delayed until President- elect Barack Obama takes office.

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