GM's U.S. auto sales plunge 21 percent

DETROIT, July 3 (UPI) -- General Motors' U.S. sales fell 21 percent June, while Ford Motor sales slid 8.1 percent and Chrysler sales fell 1.4 percent, the automakers said Tuesday.

In contrast, Japan's Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. all posted double-digit increases as customers flocked to their fuel-efficient cars and heavy incentives.

Nissan's U.S. sales rose 23 percent, Honda's grew 12 percent and Toyota's advanced 10 percent, although it fell behind Ford in overall monthly sales.

GM said its poor sales were in part a result of a 22 percent cutback in sales to rental-car fleets.

They were also due to "a soft industry and lower incentive spending than our competitors," North American sales, service and marketing Vice President Mark LaNeve said in a statement.

GM has sought to lessen its reliance on incentives to boost its profitability.

Despite the poor showing, GM kept its third-quarter North American production forecast unchanged at 1.075 million vehicles.

Ford's sales of light trucks, its most profitable business, were up 3 percent, and sales of crossover sport utility vehicles rose 83 percent from a year earlier, the Dearborn, Mich., automaker said.