From Deutsche Presse-Agentur

DETROIT -- German car manufacturers are hoping for bumper sales of more than a million vehicles in the U.S. during 2006, Bernd Gottschalk, president of the German Automotive Industry Association (VDA) told attendees at the Detroit car show on Sunday.

German car companies were hoping to take advantage of downturns in the fortunes of U.S. carmakers Ford and General Motors, to enter what Gottschalk described as "a new phase of expansion.”

Both U.S. companies have seen sales decline and losses mount over the past few years. Ford is reported to be mulling a restructuring plan that could see it lay off one third of its 100,000 workers and close ten plants, while at the end of last year General Motors announced the loss of 25,000 U.S. jobs.

In 2005, German carmakers held a 5.1 percent market share in the U.S., shifting 870,000 vehicles. The industry hoped to increase its share to six percent in 2006.

The biggest opportunities lie in the market for diesel and hybrid cars, Gottschalk said.

Research figures indicate that purchases of diesel cars, which currently account for 3.2 percent of all U.S. car sales, would jump to 7.5 percent by 2012. Sales of hybrid autos should increase from 1.2 percent to 5 percent in the same time frame. Meanwhile, Stuttgart-based manufacturer DaimlerChrysler announced Sunday that it reported record turnover in 2005, with sales of more than 4 million vehicles, an increase of 3.8 percent on the previous year.

Mercedes Benz added 1.6 percent to its core market turnover, reaching sales of 1,077 million vehicles.

Copyright 2006 dpa Deutsche Presse-Agentur GmbH. All Rights Reserved.

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