U.S. auto sales recovery seen slow amid Feb recall

U.S. auto sales in February are expected to rise from a year ago, but the pace of recovery likely slowed from last month with consumers sidelined by Toyota Motor Corp's recalls, an industry forecaster said on Thursday.

U.S. light vehicle sales are expected to rise 8 percent to 741,500 units in February, influential industry tracking firm J.D.Power & Associates said.

That would mark a seasonally adjusted annualized rate of 9.9 million units, an improvement from 9.1 million a year earlier when sales were depressed by the credit crisis, but down from 10.8 million in January.

"While February sales have improved from a year ago, the pace of the recovery has hit a speed bump," said Jeff Schuster, executive director of global forecasting at J.D.Power.

"This hiccup appears to be the result of consumers waiting out the Toyota recalls and winter storms impacting showroom traffic, but the effects of these external factors are likely temporary and the recovery is expected to get back on track."

Toyota announced a series of recalls in recent months covering more than 8.5 million vehicles globally, including its most popular Camry and Corolla sedans and the Prius hybrid.

In the U.S. market, Toyota suspended sales of eight models while its dealers fixed sticky accelerator pedals in the recalled vehicles. Executives have said most of its inventory of 131,000 vehicles involved in the recall will be back in showrooms for sale by the end of February.

J.D.Power raised its 2010 forecast for U.S. auto sales to 11.7 million units from 11.5 million units, citing stronger-than-expected economic growth in the fourth quarter, and improved financing and leasing conditions. U.S. auto sales fell to 10.4 million units last year, a 27-year low.

Production volume for 2010 overall is expected to increase by 24 percent to 10.6 million units from 8.5 million in 2009, J.D.Power said.