U.S. Auto Sales Teeter in June, While Japanese Automakers Defy Downturn

New sales incentives couldn't stop the slide in sales by major Detroit automakers in June. General Motors posted a precipitous 21 percent decline, and sales also fell at Ford and Chrysler.

In comparison, most Japanese brands saw sales and market share increase in June and the first six months of the year. Several European brands did not fare so well.

According to industry trade publication Automotive News, Americans bought 1,455,503 new cars and trucks in June, down 3 percent from the previous year. In the first half, vehicle sales totaled 8,248,274, off 1.5 percent from the first six months of 2006.

GM saw little to cheer about in June, as virtually all of its brands, with the exception of Saab, suffered year-to-year declines for the month. Losses ranged from 9 percent at Saturn to 30 percent at Buick. Saab's sales were up 32 percent in June.

For the first half, GM's sales were down nearly 7 percent.

Ford's June sales were down 8 percent from a year ago, and its first-half sales plunged 11 percent.

The automaker said it continues to reduce the number of low-margin vehicles sold to daily rental fleets. Ford said the Edge and the Focus are both selling well, but the Mustang is limping, with sales down nearly 16 percent in June.

DaimlerChrysler, which has agreed to sell its Chrysler Group to private-equity firm Cerberus, saw U.S. sales decline 2 percent in June and 1 percent for the year.

Chrysler Group sales were down 1 percent for the month, but Mercedes-Benz posted a decline of 6 percent.

Honda, Nissan and Toyota all gained ground, powered by a rise in incentive spending, including substantial rebates on the new Toyota Tundra pickup. The Camry was America's best-selling passenger car in June, with sales of more than 45,000.

Subaru bucked the Japanese trend, with sales down 7 percent in June.

Among the Europeans, BMW saw June sales climb 6 percent, while Porsche sales rose nearly 14 percent. But Audi posted a 3 percent drop.

The Koreans had mixed news, with Hyundai sales up 11 percent and Kia sales down 5 percent in June.