PARIS (Reuters) -- Ford Motor Co. CEO Alan Mulally expects no recovery in the global car market until 2010, he said on Thursday, and urged governments and central banks to work together to bring back stability to the financial markets.

"2009 is not going to be better than 2008," Mullaly told reporters at the Paris Auto Show after he was asked to comment on an unadjusted 34.6 percent drop in Ford sales in September in the United States.

"We won't see a recovery until 2010," he added, noting all markets were down around the globe, naming Europe, India and China.

"The downturn is longer and deeper than we foresaw a year ago," Mulally added, but he said that Ford "had the liquidity to deal with it".

"The problems of subprime and credit crunch are now all over the world. It is important that countries co-operate on fiscal and monetary policy to return stability to the financial system because that is key to turning the economy around," Mulally said.

Ford added that its expects stagnation next year in the Russian car market -- up until now the fastest growing market in Europe which had been set to overtake Germany as the biggest in 2009 or 2010.

Ford's production plants in Europe still had enough flexibility to deal with the downturn, the company said. If the European market fell by 8 percent in 2008 and another 10 percent in 2009, there was no need for a major restructuring of production in Europe.

Mullaly said new enabling technologies to make cars more fuel efficient and produce less CO2 were critical for the future and he said Ford had a good small car collection that would give it a global product line-up to cater to the various markets, in the United States, Europe and Asia, where customers now were asking for these vehicles.