FRANKFURT, March 27 (Reuters) - A Volkswagen AG management board member said on Thursday that the German automaker had noticed an effect on consumer spending in its main markets in Europe from the war in Iraq.
"We do feel caution -- also in our main markets in Europe," management board member Peter Hartz said, according to extracts from a speech to workers at the company's headquarters in Wolfsburg.
He said it was still too early to predict what consequences the war would have on the economy and on VW's markets but added: "We must adjust for difficult times."
The comments came one day after VW Chief Executive Bernd Pischetsrieder said that war in Iraq had so far had no noticeable effect on the global auto industry.
Pischetsrieder also said on Wednesday that there had been no noticeable backlash from consumers in the United States against German cars despite the German government's opposition to the Iraq war and its often harsh criticism of the U.S. administration.
Most companies and analysts expect car demand to fall by about two percent this year in both Europe and the U.S., as long as the Iraq war is not prolonged and does not have a major negative impact on consumer sentiment.