New York  - The beleaguered General Motors expects an even worse sales drop in 2009 than in 2008, chief executive Rick Wagoner told a conference Thursday in Detroit.

But Wagoner was optimistic that the company was on the right path to fulfilling the demands of the US government in conjunction with the 13.4-billion-dollar loan it received from the US government in the waning days of 2008.

GM cut its US sales estimate for 2009 to 10.5 million units, which would be the lowest in 27 years and a reflection of the deepening effect of the year-old US recession.

The original estimate for the year was 10.5 million to 12 million vehicles. The information was in slides prepared for a Deutsche Bank AG conference in Detroit, Bloomberg financial news service reported.

Despite massive financial problems in 2008, the company sold more than 13 million vehicles.

In the bailout measure, GM's rival Chrysler received 4 billion dollars.

The companies must by the end of March prove to the government a survival plan, after which the industry may be eligible for more government help.

"Were on track," Wagoner told analysts. "We're confident GM will come through this a stronger company." dpa