U.S. auto sales in July continued to slide from last year's record pace. The drop got a bit steeper amid a double-digit sales drop at Ford Motor Co. and smaller dips at General Motors Corp. and Chrysler Group.

Sales at the Big Three were down 9.6 percent, or more than 88,000 vehicles, compared to a year ago.

Many foreign automakers, however, posted slight increases, with companies such as Toyota Motor Corp. and Volkswagen AG continuing to chip away at the market share formerly controlled by GM, Ford and the Chrysler Group.

Including figures from foreign automakers, U.S. auto sales declined about 5.25 percent from July 2000, according to Autodata Corp. The month's annual sales rate fell to 16.25 million, compared to the pace of 17.15 million in July 2000.

The slowing sales were blamed on a shaky economy, weakening demand for new vehicles and a June incentive splurge that may have pulled sales away from July.

Ford, Chrysler and GM all had big declines in small car sales.

The industry has a hard act to follow, after 2000's record-breaking sales. Last year about 17.4 million cars and light trucks were sold. For the first six months of 2001, the industry had been on a pace to sell 17 million vehicles.

Many industry executives believe the long-expected slowdown in auto sales is here and will likely stick around for a few months, even though the industry is on pace for its third-best year ever.

Sales at Ford fell 13.7 percent, not counting its foreign subsidiaries Volvo, Jaguar and Land Rover. Car sales were down 17.9 percent and truck sales dropped 11.1 percent.

Ford's larger-than-expected fall was hastened by large drops in sales of the small car Focus, which were down 28.6 percent, the sport utility vehicle Expedition, down 16.4 percent, and Ranger pickup, dropping a precipitous 31.4 percent.

Sales for Ford's best-selling SUV, the Explorer, were down 8.9 percent. The Explorer's reputation has suffered due largely to the federal investigation of Firestone tires, many of them on Explorers. Ford said it was still the second-best July in the 11-year history of the Explorer.

The numbers were somewhat better at GM; car sales fell dramatically, but GM's bright spot was its line of trucks, which are typically more profitable.

GM sales for the month were down 9.3 percent, not counting foreign subsidiaries Saab and Isuzu. New car sales at GM fell 18.8 percent, while light-truck sales rose 1.7 percent. Chevrolet Cavalier sales were down 48.9 percent.

GM was helped by a 7.9-percent increase in sales of the Chevy Suburban, a large SUV, and a 12.7-percent increase in sales of the Cadillac Escalade, a luxury sport utility.

The declines at Ford and GM were bigger than forecasts by auto analysts.

The Chrysler Group, meanwhile, posted better-than-expected sales in July. The Auburn Hills division of Stuttgart, Germany-based DaimlerChrysler AG, saw July sales fall only 3.1 percent.

Passenger-car sales were down 11 percent, while truck sales slipped 1 percent. Neon sales, however, were off 37 percent.

Chrysler minivan sales remained surprisingly strong, showing a 1-percent increase compared to a year ago.

Overseas automakers, including Toyota and Volkswagen, are predicted to take U.S. market share from GM, Ford and Chrysler, a trend that has been going on all year long.

Toyota sales were up 5.8 percent for the month, posting the best July ever. The Japanese automaker reached the 1-million unit milestone for the year in July, the earliest it has ever done so in its 44-year history in the United States.

VW sales were up 6.2 percent for the month, for the German automaker's best July in 28 years.

Other smaller foreign automakers posting large gains were Ford's Volvo Car Group, up 31 percent, and South Korean leader Hyundai Motor, which was up 32 percent.

Not all foreign automakers posted increases.

Honda Motor Co. sales were off 6.1 percent, while Nissan reported a drop of 17 percent from a year ago. Mitsubishi sales dropped 24 percent amid bad press for the Montero Limited SUV, which was given an "unacceptable" rating from Consumer Reports due to the vehicle tipping over in driving tests overseen by the magazine.

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