Oct. 2 (Bloomberg) -- General Motors Corp. and Honda Motor Co. said new models helped boost sales in a shrinking U.S. market last month, while weakening demand for trucks dragged down Ford Motor Co. and Toyota Motor Corp.

Honda's redesigned Accord sedan helped spur a 9.4 percent increase, and GM said the Cadillac CTS sedan and Buick Enclave contributed to its second straight monthly advance. Toyota and Ford continued to slump as sales of all of their large sport- utility vehicles fell. The U.S. market declined for the fourth consecutive month.

``The new models that thoughtfully address market needs did exceptionally well at all of the automakers,'' said Pete Hastings, a fixed-income analyst at Morgan Keegan & Co. in Memphis. ``The new Honda looks fresh, and what GM has brought has been good.''

Fuel-efficient models also helped Japan's Nissan Motor Co. buck a 2.9 percent industry decline in September caused by tighter credit, a housing slump and gasoline prices near $3 a gallon.

Ford's 20 percent tumble in September was its 11th consecutive monthly drop. Toyota's 4.4 percent fall marked the Japanese automaker's first three-month decline in the U.S. since 1995. Chrysler LLC fell for the second month since its separation from DaimlerChrysler AG.

``The industry is weighed down by energy prices and housing, and it's showing up in vehicle sales,'' said Paul Ballew, GM's director of market and industry analysis. GM's sales volume rose 0.28 percent.

Industry Decline

The industry's annualized sales rate fell to 16.2 million last month, down from 16.6 million a year earlier, according to Bloomberg data.

The U.S. housing slowdown, weighed down by defaults on subprime mortgages and concerns about rising interest rates, has prompted GM and other automakers to cut their outlook for U.S. auto sales to their lowest levels in a decade.

To stimulate the economy the Federal Reserve on Sept. 18 reduced its key lending rate a greater-than-forecast 50 basis points, its first cut in four years. GM's Ballew said the automaker expects at least two more interest-rate cuts this year.

Ford's decline was paced by a 21 percent plunge in sales of F-Series pickups, to 56,065. Also, the Explorer mid-size SUV fell 32 percent, and Expedition large SUVs dropped 8.6 percent. Ford's Edge crossover, which combines features of cars and trucks, outsold the Explorer -- once the nation's top-selling SUV -- for the first time.

Daily Rentals

The company said sales to daily-rental companies declined 62 percent. Ford is cutting back on such sales, which generate lower profits than deliveries to individual buyers. Sales to individuals dropped 15 percent.

Chrysler sales fell 5.4 percent to 157,799 vehicles as the automaker's Jeep and Chrysler branded products each dropped more than 10 percent. Sales of the Jeep Commander fell 54 percent to 4,509. Sales of Dodge products rose 5 percent for the month.

Toyota, the largest Asian automaker, sold 213,043 cars and light trucks, strengthening its No. 2 position in the U.S. market as Ford plunged more sharply. Toyota passed Ford in year-to-date sales in August.

Honda sold 127,200 vehicles. Its increase was led by the Accord following the Sept. 12 release of a redesigned 2008 model.

Nissan had a 6.7 percent rise on newer vehicles such as the Altima sedan. The third-largest Japanese automaker sold 94,269 vehicles.

Hyundai: Down

Hyundai Motor Co., South Korea's largest automaker, said sales fell 0.5 percent in the month.

Last month had 25 selling days, one fewer than September 2006. Some automakers adjust their sales comparisons to reflect that difference. Bloomberg and other automakers use unadjusted percentages, which are about 4 points lower.

The industry decline came as U.S. auto incentives fell 7.1 percent to an average $2,293 in September compared with August as each of the six largest automakers spent less to lure buyers, Santa Monica, California-based Edmunds.com said in a report today.

GM shares rose $1 to $37.05 at 4:02 p.m. in New York Stock Exchange composite trading, and Ford increased 34 cents to $8.57. Toyota's American depositary receipts fell 52 cents to $118.23; Honda's ADRs rose 5 cents to $33.73.

GM's 8.375 percent note due July 2033 gained 0.56 cent to 89.88 cents on the dollar, yielding 9.43 percent, according to Trace, the NASD's bond-price reporting service. Ford's 7.45 percent note due July 2031 dropped 0.19 cent to 79.62 cents on the dollar, yielding 9.6 percent.

Swaps

Credit-default swaps on GM debt fell 11 basis points to 489 basis points, according to CMA Datavision in London. Ford's fell 9 basis points to 591 basis points.

The contracts are designed to protect bondholders against default. An increase in the price indicates a decline in the perception of a company's credit quality.

This year will be the 12th year in a row that Ford has failed to boost its share of the U.S. market. GM hasn't had a U.S. sales gain since 1999.

Honda's U.S. sales have increased for 13 straight years, and Toyota's have gained 11 straight.

To contact the reporters on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net; Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

Last Updated: October 2, 2007 17:23 EDT