Sales of new Ford cars and trucks in the United States have fallen heavily for the second month in a row.

The world's second-largest car maker said sales were down 10.6% in June.

Ford sold a total of 337,300 vehicles during the month, including its foreign brands Jaguar, Volvo and Land Rover.

Before it announced the figures, Ford confirmed it would be offer financing rates as low as 2.9% on five-year loans, as part of a broad discount campaign to try to boost sales.

GM sells more

The company said its car and truck sales both fell by 10.6%, with car sales totalling 128,649 and truck sales totalling 208,651.

DaimlerChrysler saw its sales fall by 4%, but the world's biggest car maker, General Motors (GM) managed to reverse its sales slump.

It said that US vehicle sales rose 4% in June, thanks to stronger truck sales and purchases by rental fleets.

GM said car sales increased 2.5% to 215,741, while truck sales - including Saab - rose 6% to 243,135.

Rival offers

GM said sales of trucks to retail customers rose 9% and rental fleets - which had cut back on buying new cars in recent months - had returned to the market.

Earlier on Tuesday, GM announced it was reviving interest-free loan deals on many of its models in an effort to sustain sales through the summer.

GM's move prompted DaimlerChrysler 's Chrysler arm to bring back its zero percent loans on many models.

These offers were first introduced to bolster consumer confidence and buying after the 11 September attacks in the US.

Ford said it was studying GM's offers.