Downshift in Auto Sales Expected to Continue

The U.S. auto industry appeared to have continued to lose traction in June, as a combination of rising interest rates and growing consumer debt slowed sales, analysts said. Following a May sales decline of 2%, June U.S. car and light truck sales are projected to slip less than 1%, due to declines at the Big 3--General Motors Corp., Ford Motor Co. and DaimlerChrysler. The Big 3’s total sales should be down about 4.5%, analysts said. Foreign car makers’ sales, however, should be up 7% to 8.3%, thanks to gains in sales of European luxury cars and South Korean small cars; Nissan Motor Co.’s Xterra sport utility vehicle; Toyota Motor Corp.’s Tundra full-size pickup; and Honda Motor Co.’s Odyssey minivan. Most auto makers are scheduled to announce their June U.S. sales today. The expected dip in total U.S. vehicle sales, however, would still leave the industry on pace to match or approach last year’s record sales of 16.9 million vehicles.