U.S. auto sales hit 15-year low

By Kevin Krolicki

DETROIT (Reuters) - U.S. auto sales plunged in June to a 15-year low, but a month-end clearance sale helped General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) retain its No. 1 spot and steer clear of the wipeout many had feared, sending its shares higher.

Record gas prices and declining trade-in values for big trucks and SUVs hit truck sales hard while major automakers, including Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz), struggled to keep up with demand for some popular smaller cars and hybrids.

GM was the industry's main surprise after a sale featuring zero percent financing for six years allowed the U.S. automaker to avoid losing sales leadership in the month to Toyota.

In a reversal of recent trends, Toyota trailed GM in June with a 21-percent sales decline, reflecting a 31-percent drop in sales of its trucks like the Tundra pickup.

Equally damaging, sales of Toyota's hybrids including the market-leading Prius hybrid dropped 27 percent as dealer inventory ran short of demand.

"GM was better than expected, and it looks like Toyota missed a big opportunity in the month," said Jesse Toprak, an analyst with industry-tracking Web site Edmunds.com.

Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) sales were down 28 percent, while Chrysler LLC sales fell 36 percent, the weakest result in the industry. Now controlled by Cerberus Capital Management CBS.UL, the privately held automaker relies on light trucks for almost 70 percent of its sales.

By contrast, Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz), which boasts the most fuel-efficient vehicle line-up among major automakers, bucked the downturn and posted a 1 percent sales gain.