US automobile manufacturers have reported falling car and truck sales during January, with market leader General Motors recording a 1.8 per cent decline and Ford a 9.8 per cent drop.

In contrast international car makers reported increasing US sales, with Toyota posting a 15.8 per cent rise and Daimler-Chrysler announcing a 9.4 per cent boost in sales.

GM told Associated Press that the figures were disappointing but insisted its outlook for the year remained bright.

John Smith, GM vice president for North American sales, commented: 'January sales results were below expectations.

'While we had good results in some divisions ... a new industry record in sport utility sales and strong truck sales overall, car sales and sales in certain regions were disappointing,' he added.

Jim O'Connor, Ford's vice president for North American sales, also expressed optimism that 2004 would bring better results.

'We're committed to pursuing a product and market strategy that will result in stronger retail sales performance,' O'Connor explained. 'By year end, we expect to see stronger retail performance in passenger cars.'