General Motors posted a 34 percent drop in June sales Wednesday but said it had managed to increase its retail sales for the fourth consecutive month despite seeking bankruptcy protection.
Total sales fell to 176,571 vehicles in June, but GM said its retail sales rose about 10 percent from May.
Sales for the first half were down 41 percent to 954,356 vehicles.
"We're pleased with our retail performance for the month, and it shows consumers' strong attraction to our products," said Mark LaNeve, vice president for GM North America vehicle sales, service and marketing.
"Customers are cautiously coming back into the market, although the industry remains very weak," he said.
"The reinvention of GM remains on track and we have compelling new offers in July."
GM was back in court Wednesday seeking approval for a speedy exit from the bankruptcy protection it sought on June 1 by selling off its best assets to a new company in which the US government will hold a majority stake.
LaNeve said the proceedings were going well and "we're anticipating a quick sale."
GM said its inventories were down 26 percent from June of 2008 at 582,000 vehicles and are on track to approach the half-million mark as planned.