FRANKFURT -- The German auto industry faces another difficult year in 2003 but should enjoy a rebound in sales in 2004, the head of the German Auto Federation said Friday.

"2003 will be a fight," Bernd Gottschalk told German news agency DPA. "It will not be an easy year but it will give us a chance to prove the stability of the sector."

Sales of new cars in Germany are expected to edge up to 3.3 million this year from 3.24 million in 2002, he said.

Heavily dependent on exports, the German auto industry's fortunes are closely bound up with the health of the U.S. market, where some 16.3 million vehicles are expected to be sold this year compared with 16.7 million in 2002, AFP reported.

Gottschalk described U.S. prospects this year as "supportable," adding that the German auto sector should pick up in 2004 in response to a healthier global economy.