Honda Sees SUV Bubble Bursting

Deflating stock market values likely to have have similar impact on SUV sales in US, Honda official says.

Published: 21-Dec-2000

TOKYO (Reuters) - The head of Honda Motor Co.'s U.S. operations said on Thursday U.S. industry-wide vehicle sales are likely to shrink next year as the market faces the bursting of a bubble in sport-utility vehicle (SUV) sales.

"For the last five years SUVs have seemed to be in a bubble," Honda Executive Vice President Koichi Amemiya told a reception for reporters.

Japan's second-largest automaker expects industry-wide sales in the United States to fall to 16 million-16.5 million vehicles in 2001 from an estimated 17.4 million-17.5 million for this year, Amemiya said. The figures are in line with U.S. industry forecasts.

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