2nd UPDATE: Auto Makers Report Lower US Sales From May

   (Updates to add data for auto makers including Toyota, Honda and Hyundai; updates share prices.) 
 
   DOW JONES NEWSWIRES 
 

Auto makers posted generally modest June vehicle sales growth but most saw their sales slip from May as the industry was hurt by sales that were pulled ahead due to higher incentives earlier this year.

The Detroit Three--Ford Motor Co. (F), General Motors Co. and Chrysler Group LLC--all reported higher sales from a year ago, the latter two coming off of periods in which they were dealing with their bankruptcy efforts. Japanese auto makers reported smaller growth.

Jim Lentz, Toyota Motor Corp.'s (TM, 7203.TO) U.S. sales chief, said, "The entire automotive industry struggled in June as weakening consumer confidence weighed on sales."

The weakness comes as concerns have been raised about current sales. While higher from last year's moribund levels, current sales would have been considered abysmal before the financial crisis.

One bright spot has been Ford, the only U.S. auto maker to avoid bankruptcy during the economic downturn. Thursday, Ford said its retail market share grew for the 20th time in 21 months as U.S. company-wide light-vehicle sales rose 13% to 175,690, compared with 154,873 a year earlier.

Truck sales jumped 25% while car sales increased 16% and crossovers grew 3.1%. Retail and fleet sales each rose 15%, with the latter benefiting from higher sales of Ford's trucks to commercial customers. There were 25 selling days in the month, the same as a year ago.

GM, meanwhile, reported that domestic sales in June climbed 36% for the four brands the company will keep following its restructuring, fueled by strong sales for crossovers and some recovery for pickups and sports-utility vehicles. GM said total combined sales of Buick, GMC, Chevrolet and Cadillac were 194,828 for the month, the ninth-straight month of year-over-year gains. In total, GM sold 196,716 light vehicles in June, compared with 174,785 a year ago and 223,410 in May.

Chrysler said sales grew 35% on year to 92,482. It was the third consecutive month of improved sales for Chrysler, which exited bankruptcy protection a year ago last month. The month's results were led by car sales nearly doubling. The company finished June with a 60-day supply of inventory, a 14% increase from a year ago.

Toyota reported 6.8% growth in the U.S. from last June to 140,604 vehicles, off 14% from May, as Toyota's car sales fell 2.7% from a year ago. Trucks gained 24%.

Earlier Thursday, Toyota disclosed it was preparing to recall 270,000 luxury vehicles worldwide, including some of its flagship Lexus LS sedans, to repair an engine problem. The company's announcement comes as it works to promptly deal with safety concerns after criticism for responding slowly to global recalls earlier this year.

Honda Motor Co.'s (HMC, 7267.TO) year-over-year growth was 6%, putting its total at 106,627 vehicles. Nissan Motor Co's (NSANY, 7201.TO) June sales grew 11% to 64,570 vehicles, but fell 23% from May. The growth was fueled by the renewed Infiniti M and G lines, and Nissan said every one of its products showed sales increases from a year ago.

Overall, Chrysler said the U.S. industry sales figures for June are projected to be an estimated seasonally adjusted annualized rate of 11.4 million vehicles. GM put the figure slightly lower at 11.2 million. May's figure was 11.7 million.

Hyundai Motor Co. (HYMLY, 00580.SE), meanwhile, reported it sold 51,205 vehicles in June, a 35% increase from a year ago and a sales record for the month. It was the auto maker's 18th consecutive month of year-over-year retail market share gains.

Luxury auto makers fared a bit better in June--with Porsche Automobil Holding SE (POAHY, PAH3.XE) reporting sales more than doubled, to 2,141 vehicles. Daimler AG's (DDAIF, DAI.XE) Mercedes-Benz posted a 25% increase, selling 18,997 vehicles, with gains noted for passenger car and light trucks.

Auto makers' shares were generally higher in recent trading, with Ford's shares up 4.4% to $10.52. Toyota's American depositary shares rose 23 cents to $68.80, while Honda's fell a penny to $28.74.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]