The Paris Motor Show had both vroom and gloom as it opened under the cloud of global financial turmoil.

Automakers made bold sales predictions, but unveiled smaller and more fuel-efficient cars to cater to consumers both cash-strapped and environmentally conscious.

Honda unveiled a new five-door gasoline-electric hatchback to challenge rival Toyota's success with the hybrid Prius.

Renault showed off a revamped Megane compact hatchback. France's second-largest automaker is cutting 6,000 jobs to maintain profitability and hopes the car will make up for poor sales of the low-cost Laguna.

The shaky economic outlook cast a pall over the glitz.

Overall U.S. auto sales plunged last month, dropping below 1 million for the first time in more than 15 years as some consumers struggled to get car loans and others stayed away from showrooms amid bank failures and Wall Street turmoil.

Sales at every major U.S. and foreign brand fell at least 24 percent from the previous year, with the exception of General Motors, which said it sold 16 percent fewer vehicles.

A GM official said it wouldn't rule out the need for further restructuring if economic times get even tougher and says it is vital that U.S. lawmakers pass a financial bailout package.

Chief Operating Officer Fritz Henderson told The Associated Press in an interview at the Paris Motor Show that Detroit-based GM will "take the actions that are necessary."

Henderson said if the "situation deteriorates further" the company will "have to look at further actions."

Henderson said it is "extraordinarily important" for both GM and the wider auto industry that Congress pass the bailout package for battered Wall Street financial institutions.

General Motors Europe President Carl-Peter Forster appealed to European politicians to help restore consumer confidence in the markets. He also called for clear, European-wide environmental laws at a GM press conference at the Paris Motor Show.

"In view of the gloomy market developments in Spain, Great Britain and Germany there must be an end to the uncertainty for consumers. The high oil and energy prices are hitting the middle class to the bone," he said.

In addition, confusion over future environmental policies in Europe paralyses purchasing decisions of European consumers and hinders auto sales, he added. Forster called for clear, transparent European-wide environmental policies and laws.

John Fleming, Ford's CEO for Europe, told the International Herald Tribune the automaker had an "excellent" first six months in Europe this year, turning profits of $1.3 billion.

"It's the highest we've ever done in Ford Europe," Fleming said. "The second half will be much more difficult because of the speed at which the market is going down.

"You can see a steadily and rapidly reducing market," he said.

Porsche To Up VW Stake

Porsche's CEO said the company plans to increase its stake in fellow German carmaker Volkswagen AG to more than 50 percent before the end of this year.

Wendelin Wiedeking made the pronouncement Thursday at the Paris Motor Show. He did not elaborate on when exactly Porsche plans to raise its stake to a majority.

Porsche Automobil Holding SE already is Volkswagen's biggest shareholder and said earlier this year it intends to take a majority holding.

On Sept. 16, Porsche increased its stake in Volkswagen to just over 35 percent and said it had gained effective control over Europe's biggest carmaker.

Peugeot Keeps 2010 Aim

France's largest carmaker PS Peugeot-Citroen will stick to its target of selling 4 million vehicles by 2010.

CEO Christian Streiff said that's despite a tough auto market.

The goal is part of a turnaround program known as CAP 2010, launched last year to restore Peugeot-Citroen's sagging profitability and regain market share.