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Ford Expects U.S. Auto Sales to Fall Again in July (Update1)

By Bill Koenig

July 22 (Bloomberg) -- Ford Motor Co., the world's third- larges automaker, expects U.S. industrywide auto sales this month to decline from a year earlier, its Americas chief said.

``July continues the trend we've seen of the market being slower than last year,'' Executive Vice President Mark Fields told reporters in Richmond, Indiana, the site of an event celebrating the 100th anniversary of the Ford Model T. He didn't say how much of a drop the company expects.

U.S. auto sales already have fallen for eight straight months, the longest decline in eight years, as high gasoline prices and the worst U.S. housing slump in a quarter century scare off potential buyers. Sales of cars and light trucks tumbled 18 percent in June and 10 percent in the first half.

Fields declined to comment on details of the company's plans to boost small-car production and to build U.S. versions of models made by its European unit. The company disclosed its general plans on June 20. Ford said it would bring the European version of the Focus small car to North America to replace an older version of the model made in the U.S.

Fields supervises Ford's auto operations in North America, the main cause of $15.3 billion in losses the past two years. The Dearborn, Michigan-based company's U.S. sales fell 14 percent in this year's first half, and Ford retreated from a target of returning to profitability next year.

The executive also declined to comment on Ford's targets for buyouts of U.S. factory workers. The automaker yesterday expanded such offers to workers at almost all of its U.S. plants.

To contact the reporter of this story: Bill Koenig in Richmond, Indiana at wkoenig@bloomberg.net

Last Updated: July 22, 2008 12:11 EDT

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