Car sales in the US have been hit by the ongoing crisis in the sub-prime mortgage market in a development that could impact on platinum autocatalyst manufacturers, according to General Motors (GM) Vice Chairman Bob Lutz.

Speaking at an automotive industry conference in Kentucky, Mr Lutz indicated that while April's figures have not been confirmed, he expected sales of new vehicles to show a dip as homeowners struggle to meet mortgage repayments.

He told Reuters: "The market as a whole has been a little weakish. That has come as a result of the housing market problems and the mortgage industry meltdown. A lot of people are finding themselves in a position of reduced affordability and that has had an impact, not just on us, but across the industry."

News of Mr Lutz' projections comes as repossessions in the sub-prime sector have hit a record high and as American car manufacturers continue to struggle against difficult conditions such as high labour costs and competition from Japanese rivals.

GM is currently pressing ahead with its strategy to address its poor performance that has thus far seen the company post a loss of $2 billion for 2006.

Source:

US mortgage woes 'hit car firms', 23/04/07

http://news.bbc.co.uk/1/hi/business/6586189.stm  

Mortgage 'meltdown' hits auto sales: GM's Lutz, 23/04/07

http://money.cnn.com/2007/04/23/news/companies/bc.gm.sales.update.reut/?postversion=2007042316

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