GM U.S. June 2006 US Sales Down 26%t

DETROIT, July 3, 2006; Reuters reported that General Motors Corp. said its U.S. sales fell 25.9 percent in June, a sharp decline from last year's incentive-boosted results and in line with the company's cautionary forecast.

The world's largest automaker sold 413,473 vehicles in the United States last month, compared with 558,092 vehicles a year earlier.

GM recorded a 41-percent jump last June after it began offering U.S. consumers the same discounts it gives its employees.

This year, GM has vowed to stick to a strategy of offering more limited discounts, such as zero-percent financing on many 2006 models through the July 4 weekend.

The automaker kept its third-quarter production forecast unchanged at 1.050 million units.

The weak numbers come amid intensifying pressure on GM's management. GM's board called an emergency meeting on Friday to discuss a letter from Tracinda Corp., the investment arm of billionaire investor Kirk Kerkorian, which urged the automaker to consider a three-way alliance with Nissan Motor Co. Ltd. and Renault SA.

Under the proposal, Nissan and Renault would buy a minority stake in the world's largest automaker.

If such a deal were to materialize, the combined company would be the largest force in the global automotive industry by a wide margin.

On a combined basis, the three companies had 2005 sales of about 14.5 million units, nearly double the sales of Toyota Motor Corp., the No. 2 worldwide automaker and the most profitable.