Mitsubishi has added to fears that the global automotive market is slowing down by warning of a difficult time ahead in its crucial American market.

Whilst the firm has enjoyed a relatively strong financial year, chief executive Rolf Eckrodt predicted a 'challenging year' ahead.

Traditionally the company's American sales have underpinned their global performance, a situation that now looks less stable.

Mitsubishi said while it hoped to maintain last year's sales level on a retail basis in the US, sales on a wholesale basis were likely to drop by as much as nine per cent.

However, Mr Eckrodt did offer some encouraging news with regard to the Asian market, forecasting vehicle sales to increase.