MercoPress. South Atlantic News Agency

US car sales drop in June but Ford shows stabilization signs

Japan’s Toyota US sales fell 31.9% and Honda, 29.5%

United States vehicle sales dropped in June, but there were signs of stabilisation as Ford saw its smallest fall in a year. Ford, the only one of the so-called “Big Three” carmakers not to have gone bankrupt, had the smallest drop, with sales down 10.7% from a year earlier. General Motors said sales fell 33.6%, while Chrysler sales fell by 42%.

The figures came as the US said it would pull financial support if GM does not get permission for a speedy exit from bankruptcy protection by July 10.

GM is seeking court permission to sell its best assets to a new company, one in which the US government will get a majority stake.

It is hoping to avoid a prolonged court battle with a group of GM bondholders who have opposed the sale.

Chrysler emerged from bankruptcy protection in early June and Italian carmaker Fiat bought its strongest assets.

In other company sales reports, Toyota said its US sales fell 31.9% in June in comparison with 2008, while Honda posted a 29.5% decline in sales.

US vehicle sales have been hit hard in recent months by bankruptcies at both GM and Chrysler. This is despite hefty discounts being offered to prospective car buyers.

Analysts expect sales to increase in the coming months as the US introduces a “cash for clunkers” scheme to encourage consumers to trade in old cars for new models.

Similar schemes have been introduced in the UK and Germany.