CORRECTED - CORRECTED-UPDATE 1-Goldman sees US auto sales improving in H2

(Corrects headline and paragraph 1 to show that Goldman did not upgrade the U.S. autos sector)

June 4 (Reuters) - U.S. auto sales are likely to improve in the second half of 2009, said Goldman Sachs, which rates the sector "neutral."

Industry-wide auto sales in May, fewer distractions from bankruptcy-related headlines, and greater clarity on issues likeremaining brands, dealerships, and warranties at General Motors Corp GMGMQ.PK and Chrysler set the stage for an improvement in sales, analyst Patrick Archambault said in a research note. Industry-wide auto sales for the month reached nearly 10 million units on an annualized basis -- a better result than most economists had expected with the industry reeling from auto bankruptcies. May represented the highest sales rate so far this year. [ID:nN02511678]

"We see this as a positive for the industry, as we are finally seeing someevidence of a sales bottom driven by increased consumer confidence, andimproved affordability from the recent decline in auto loan interest ratesparticularly at captive finance arms," the analyst said.

Archambault also said Ford Motor Co (F.N) was well positioned to gain share, given its stronger product presence. (Reporting by Neha Singh in Bangalore; Editing by Himani Sarkar)