Honda Eyes Annual U.S. Sales Rise of 2-3 Pct

Tokyo, November 24, 2007; Honda Motor Co. intends to increase light vehicle sales in the U.S. market by 2-3 pct a year in 2008 and later, Managing Director Tetsuo Iwamura said Monday.

Honda's U.S. sales are expected to total 1.56 million units in 2007, up 3.4 pct from the previous year.

Industrywide sales are projected to shrink by 400,000 units to 16.2 million units, said Iwamura, head of the Japanese automaker's North American operations.

The effects of soaring crude oil prices are becoming more prominent, he said.

But he added that rising crude oil prices are expected to boost demand for small cars. Sales in 2008 are unlikely to drop sizably, he said.

On the U.S. subprime mortgage crisis, he said there has been no direct impact on vehicle sales.

But he noted that sales of construction machine engines have fallen by 30 to 40 pct from a year before due to a housing downturn.