GM Generali

(Updates throughout with Chrysler, Toyota, Nissan sales figures, stock quotes.)

Ford Motor Co. (F) reported a smaller-than-expected 11% drop in U.S. sales for June, while rival Chrysler Group LLC posted a steeper-than-expected decline of 42%.

But Chrysler's results were caused in part by a 95% tumble in fleet sales, with the auto maker's retail market share up 1 percentage point to 9%.

Meanwhile, Toyota Motor Corp. (TM) continued to struggle, reporting a 32% drop as the company sold fewer vehicles domestically than Ford for the third-straight month.

Ford's results continued its recent trend of increased market share - up three percentage points in June. The results by Ford further highlight the incremental signs of improvement the industry has been seeing recently. Analysts and auto makers are hopeful annualized U.S. sales could hit 10 million in June for the first time this year, topping May's 9.9 million rate.

But Chrysler said Wednesday that the sales rate was likely at 9.7 million.

Ford, the healthiest of the Detroit Three, boosted its third-quarter U.S. production target for a second time Monday. The change is a sign demand is improving and Ford is gaining market share from rivals General Motors Corp. (GMGMQ) and Chrysler, which are still dealing with restructuring.

Ford executives saw regional variations with a third of its 22 areas reporting higher year-on-year retail volume and almost a third more "close to" year-ago levels.

The company's June U.S. light-vehicle sales were 154,873, down from 173,462 a year earlier. Ford, Lincoln and Mercury car sales fell 11% while sport-utility vehicles dropped 20% in June. Trucks and vans declined just 6.9%.

June had 25 selling days, one more than a year ago.

Inventories totaled 343,000 at the end of June, equivalent to a 60-day supply, down 2.3% on the month and 38% from a year earlier.

Toyota reported its sales slid to 131,654 from 193,234 as car sales slumped 36%. The Corolla saw a 53% plunge.

Chrysler, meanwhile, reported its total sales dropped to 68,297 from 117,457, as car sales slid 48% and truck sales dropped 40%. By brand, the Chrysler line posted the steepest decline in sales, down 49%, followed by a 40% drop in the Dodge brand and a 38% drop for its Jeeps.

Chrysler, which didn't produce any vehicles for fleet sales in June, reported it finished the month with 195,272 units in inventory, down 56% from a year ago, and representing a 71-day supply. Nissan Motor Co. (NSANY) reported its North American U.S. sales fell 23% to 58,298 vehicles in June. The company also said showroom traffic patterns over the past 60 days were showing signs of somestabilization in the U.S. auto sales market.

Ford's shares were up 1% to $6.13 in recent trading. Nissan's American depositary shares were up 1.5% to $12.26.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

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