By Alan Fein

(AXcess News) New York - US automakers saw a downturn in vehicle sales in August with General Motors reporting a 7% decline over the previous month.  Ford Motor Co. (NYSE: F) faired slightly better than GM with a 5% drop.  Now auto pundits expect all automakers to report the worst month in decades.

J.D. Power and Associates, which tracks the auto industry, believes sales in the United States fell in August due to a drop in consumer confidence in the economy.

Automakers have also been reluctant to over consumers more incentives such as lower interest rates or rebates.

On a year-over-year basis, GM sales fell 11% in August while Ford's US auto sales also dropped 11%.  Ford now says it will lower fourth quarter production levels.

Shares of Ford Motor Company were up 38 cents at $11.66.