U.S. auto sales tumble

By David Bailey

DETROIT (Reuters) - U.S. auto sales tumbled 28 percent in June, the narrowest decline in nine months, as Ford stole market share from its rivals.

Automakers said the results pointed to more stability for the economy, but fell short of marking a turnaround for the U.S. auto market after a punishing four-year decline.

Ford (F.N), the only U.S. automaker not supported by emergency U.S. government funding, reported a 10.9 percent drop in U.S. sales in June and took back the No. 2 position in U.S. sales from Toyota Motor Corp through the first half of 2009.

The sales results came as General Motors Corp GMGMQ.PK pleaded its case to the U.S. Bankruptcy Court to permit a swift sale of its best assets to a new company funded by the Obama administration and avoid liquidation.

GM, the top-selling automaker in the U.S. market, posted a 33.6 percent decline in U.S. sales in June and sounded a more cautious tone about the economy than rivals in a conference call with analysts and reporters.

"Our results are tenuous," said GM sales chief Mark LaNeve. "Our customers are expecting a very quick exit from bankruptcy similar to what they saw for Chrysler."

Chrysler Group LLC, in its first sales report following its sale to a group led by Italy's Fiat SpA (FIA.MI) in June, said U.S. June sales fell 42 percent.

Toyota Motor Corp (7203.T) posted a 31.9 percent sales decline in June. Honda Motor Co Ltd (7267.T) said sales fell 29.5 percent from June 2008, a month where a rise in gasoline prices drove demand for small cars.