GM's sales analyst says Fed cut to help sales

DETROIT, Jan 23 (Reuters) - General Motors Corp's GM.N chief sales analyst said on Wednesday the Federal Reserve's interest rate cut would boost consumer confidence and help the auto industry weather headwinds such as high gas prices and the subprime mortgage meltdown.

"We welcome those actions and feel they can have a positive effect on consumers," Mike DiGiovanni told analysts and reporters on a call following GM's 2007 global sales announcement.

The Fed on Tuesday cut interest rates by three-quarters of a percentage point, helping to stabilize global markets spooked by fears of a U.S. recession.

"We were expecting a cut of 50 basis points," DiGiovanni said. "And they cut 75 points, so it was more aggressive. It should help the auto industry face the headwinds of high gas prices, weak housing starts, the subprime mortgage crisis."

DiGiovanni also said he expected industrywide vehicle sales to grow 3.5 percent globally to 73 million in 2008. (Reporting by Jui Chakravorty; editing by John Wallace)