Honda cuts sales goals in US as economy falters

Honda Motor Co, Japan's second-largest automaker, cut its 2008 US sales forecast by 4.1 percent because of the faltering economy, predicting the first decline in the country in 15 years.

The company expects to sell 1.51 million vehicles for the 12 months ending Dec 31, compared with its earlier estimate of 1.575 million vehicles, Chief Financial Officer Yoichi Hojo said in an interview in Tokyo yesterday. The sales decline will be 2.6 percent from 1.55 million vehicles in 2007.

Rising unemployment and tighter consumer lending are hampering demand for new vehicles, spurring Tokyo-based Honda to cut its fiscal year operating profit forecast by 13 percent last month. Industry-wide US auto sales plummeted to the lowest monthly total in more than 17 years in October.