UPDATE 1-Auto sector's woes could spur deals - Renault CEO

(Updates throughout with more Renault comments, background)

By Sudip Kar-Gupta

AIX-EN-PROVENCE, France, July 5 (Reuters) - A current slump in the global automotive sector could give fresh impetus to plans for consolidation within the industry, the head of French carmaker Renault (RENA.PA: Quote, Profile, Research) said on Saturday.

"Something will have to happen," Renault Chief Executive Carlos Ghosn told delegates at a business conference in this southern French city.

Ghosn said the problems of the U.S. sector could spur deals.

"What is happening in the States at the moment does not bode well for the future," he said.

The world's largest automobile market is reeling from record gasoline prices, tighter credit conditions from banks and a slump in the American housing market.

U.S. auto sales plunged in June to a 15-year low.

Although General Motors Corp (GM.N: Quote, Profile, Research) held onto its number one spot in the American market, some analysts have raised concerns over the financial state of GM, whose shares fell to a 54-year low earlier this month.