PREVIEW-U.S. auto sales suffer amid financial crisis

* What: Major automakers release September U.S. auto sales

* When: Wednesday, Oct. 1, from about noon EDT (1600 GMT)

* Analysts see 11th consecutive month of declines

By David Bailey

DETROIT, Sept 30 (Reuters) - Automakers are expected to report that U.S. auto sales fell in September to about a 15- year low amid uncertainty over a potential Wall Street bailout and tight credit, which has made it more difficult for potential buyers to get car loans.

The expected drop in September would leave August's month- to-month sales increase as a one-month bump swamped by credit market paralysis that could confound industry hopes for reaching a bottom after a brutal three-year decline.

All major automakers are expected to report year-over-year sales declines, with U.S.-based General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler [CBS.UL] posting deeper declines than Toyota Motor Corp (7203.T), Honda Motor Co Ltd (7267.T) and Nissan Motor Co Ltd (7201.T).

"After a modest sales rebound in August, auto sales are likely to lose momentum in September on tighter credit conditions and nervousness over the broader financial crisis, despite high levels of vehicle incentives," Citigroup analyst Itay Michaeli said in a note to clients.

The average forecast is for U.S. auto sales to drop to a 13.5 million annual rate in September from a 16.2 million rate a year earlier and down from a 13.7 million rate in August, according to contributions from economists to Reuters.

The annualized sales rate is a key U.S. economic indicator and one of the earliest pieces of information economists will get to gauge the impact on big ticket item sales since the credit crisis began and the government embarked on an effort to bail out the rapidly consolidating financial sector.

The forecasts for the annualized rate of sales ranged from 12.5 million to 14.1 million for the month.

"They are going to be really ugly," George Magliano, director of auto research for North America at Global Insight, said in an interview. "We are talking something like 13-13.5 million units on a running rate and it could even go lower than that."

Auto executives said earlier in 2008 that a sharp rise in gas prices accelerated a shift in consumer demand toward more fuel efficient cars and away from large trucks and SUVs.

But in recent months, executives have said a lack of available credit has supplanted gas prices as a reason for sales declines and most now look beyond 2009 to 2010 for a potential rebound in sales.

SLOW SALES DEEP INTO 2009

"Traditionally, October sales are even worse than they are in September, so we don't likely have much to look forward to next month," said Jesse Toprak, executive director of industry analysis for Edmunds.