Passenger car sales at GM, the world's largest automaker, rose 1.6 percent, while Ford's, including its Jaguar and Volvo car units, surged 10.6 percent. Those increases helped balance out declining or flat light-truck sales, which faced comparisons with incentive-driven record highs in the same month a year ago.

The US auto industry sold cars last month at a pace that would translate to 17.16 million light-vehicle sales for the entire year. Last year's June rate was 17.04 million. The strong numbers had GM officials thinking about the industry's record year of 1986, when light-vehicle sales topped 16.05 million. Last year, the industry sold 15.59 million light vehicles, the second-best year ever.

"I can't find any forecaster in this country who forecast the industry running this strong," GM sales andmarketing vice president Roy Roberts said. "It's got a chance of beating the 1986 record year, and I think we're on track to do just that."

A strong US economy, which features high consumer confidence, slow inflation and low unemployment, has fuelled the industry's record sales pace.

Total US industry light-vehicle sales last month rose 2.3 per cent from a year earlier to 1,610,309 vehicles, with Autodata Corp. estimating Porsche AG's results. The German Sports car-maker will not report results until Tuesday.

Total US June car sales rose 1.6 percent from a year earlier, while truck sales were up 3.1 percent. Sales through the first six months of 1999 were 7 per cent ahead of last year.

To be sure, the torrid sales pace has some analysts worried.

"That's a strong month by any measure," Arnhold and S Bleichroeder analyst Greg Kagay said. "It scares me. At some point, it's almost too strong. I don't think it's sustainable for the rest of the year."

GM said US sales in June rose 0.5 percent from ayear earlier to 490,196 units as the gain in cars helped balance out a 0.6 percent decline in light trucks. The strong car sales helped boost GM to its best month for US sales since May 1989.

Still trying to reclaim US market share, GM is offering regional rebates as much as $2,000 cash back on the Chevrolet Cavalier compact car, as well as discounted leases on such large sport utilities as Chevy Tahoe and the giant Suburban.

GM's June market share was 30.4 percent, and 29.5 per cent for the first six months. Kagay, who said incentives likely played a role in the June car results, wondered whether GM would increase incentives through the rest of 1999.

Ford, the world's No. 2 automaker, had a record June as sales, including its Jaguar and Volvo car units, rose 4.5 percent from a year earlier to 429,571 vehicles. Excluding the European brands, Ford's sales rose 1.3 percent from a year earlier to 414,572 units.

Thanks to strong demand for the new Jaguar S-Type luxury sedan and Volvo cars, Ford topped theprevious record of 424,091 vehicles in June 1978. Sales benefited from the inclusion of Volvo, which Ford purchased in March. Sales of Ford's North American-built cars rose 2.8 percent, while total car sales rose 10.6 percent. Sales of pickup trucks, sport utility vehicles and mini-vans rose 0.2 percent to 242,277 units, setting a record for the 14th straight month.

The gain in trucks came despite the comparison against last year's record June, when the domestic automakers offered generous retail incentives to entice consumers into showrooms.

Ford's strong car sales contrasted with those for German-US automaker DaimlerChrysler AG. Its sales of US car brands slid 13.9 percent. Overall sales of its Chrysler, Plymouth, Dodge and Jeep brands fell 5.3 percent.