DETROIT - General Motors Corp. outsold Toyota Motor Corp. in June to retain its traditional U.S. sales lead, even though GM says its sales dropped 18 per cent for the month.

Toyota sales fell 21.4 per cent for the month, with both companies saying they were hurt by a sluggish economy and poor sales of trucks and sport utility vehicles.

GM on Tuesday reported selling 265,937 vehicles for the month, compared with Toyota's 193,234.

For the first half of the year, GM sales were down 16.3 per cent compared with the year-ago period. Toyota sales fell 6.8 per cent for the first six months of the year.

Ford reported its sales in June dropping 27.9 per cent and are down 14 per cent compared with the year-ago period.