The U.S. car market will be “little bit worse” in 2008 than this year, according to Nissan Motor Co. President Carlos Ghosn.

“I see a tough market in the U.S.,” said Ghosn, as cited by Market Watch.

Speaking at the Tokyo International Automotive Conference on October 23, Ghosn predicted that the demand for vehicles in the United States may drop between 15.5 million and 16 million in 2008.

Smaller and more fuel-efficient cars, in particular, are sought after by consumers amid the increasing gasoline prices in the United States, said Ghosn, according to a Bloomberg report.

According to Ghosn, costs of raw material such as steel will steadily increase. However, the rigid competition among auto companies stops them from passing the costs to the consumers.

The sales of Nissan cars in the United States increased by 4.7 percent to 813,053 cars in the first three quarters of the year.

Ghosn also sees the partnership between the Japanese automobile company and European brand Renault SA as the key to raising the former’s production and sales to between seven million and eight million cars, as opposed to the present six million. Forty-four percent of Nissan shares are owned by Renault.

On that note, Nissan’s chief official announced that he is open to the idea of including a North American partner at the Renault-Nissan partnership. But such an undertaking would have to be by “mutual consent.”

The Nissan executive did not reveal yet Nissan and Renault’s new business strategy. But Ghosn said the alliance will zero in on increasing sales of low-cost vehicles all over the world.

Sources: Bloomberg, Market Watch

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