UPDATE 1-German car industry sees more trouble ahead

*German carmakers see 2009 new registrations down to 2.9 mln

*Expects 3.1 mln new registrations of passenger cars in 2008

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FRANKFURT, Dec 3 (Reuters) - The German auto industry -- this year heading for the worst domestic car sales since the country's reunification in 1990 -- sees more trouble ahead as the market shrinks more next year, it said on Wednesday.

New car registrations of passenger cars in 2009 will drop to about 2.9 million from 3.1 million forecast for this year, the VDA association of German carmakers predicted.

"Export and production will also drop significantly," said VDA President Matthias Wissmann.

"The situation on global passenger car markets is dramatic," he said.

The pessimism of German car manufacturers mirrows statements from the the VDIK association of foreign carmakers, which said on Tuesday that new car registrations in the country plunged nearly 18 percent in November.

Carmakers have reported tumbling sales across Asia and Europe this week as the recession drives buyers from showrooms and prompts warnings of more gloom next year. (Reporting by Peter Dinkloh)