DETROIT (Reuters) - The crisis rippling through the U.S. financial sector could drive U.S. auto sales to the low end of forecast ranges this year and leaves open the possibility of further industrywide declines in 2009, a senior Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) executive said on Wednesday.
John Mendel, executive vice president in charge of Honda's U.S. sales operations, told the Reuters Autos Summit in Detroit he expected industrywide auto sales in the U.S. market to end 2008 at between 13.8 million and 14 million units. For 2009, the industry could see sales between 13.5 million and 14 million units, he said.
Uncertainty about the U.S. financial sector, spurred by the weekend bankruptcy of Lehman Brothers Holdings Inc LEH.P and the bailout of insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz), will now spill over into weaker auto demand, Mendel said.
"It further rocks consumer confidence," he told Reuters. "I think it will continue to erode consumer confidence."
(For summit blog: summitnotebook.reuters.com/)
(Reporting by Kevin Krolicki and Soyoung Kim)
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