DETROIT — General Motors Corp.'s revival of zero-percent financing won't be enough to keep the automaker's U.S. vehicle sales in June and July from dropping to "brutal" levels compared with a year ago, when employee discounts boosted results, a top GM executive said yesterday.

However, the automaker, which capped its cost-cutting drive Monday by announcing that about 35,000 U.S. hourly workers have agreed to retire or quit, nevertheless sees some good signs on the sales front.

In June last year, GM's U.S. sales soared nearly 50 percent after the automaker launched its Employee Discount for Everyone program, offering the general public the same prices GM employees pay.

This year, GM has eased off incentives and cut vehicle prices, causing sales to drop about 8 percent during the first five months of the year.

"Our year-over-year comparisons are going to be especially brutal," GM sales chief Mark LaNeve said yesterday. "June and July aren't going to be a picnic."

Stock prices of GM and other companies in the auto industry fell yesterday after GM announced its incentives. GM shares, which have climbed about 28 percent since the start of the year, closed at $25.90, down $1.85, or 6.7 percent, on the New York Stock Exchange.

Despite the drop in shares, several Wall Street analysts raised their earnings estimates for GM after more workers than expected took the automaker's attrition package.

Ford Motor Co. and the Chrysler Group also are expected to post weaker sales in June, said Art Spinella, president of Bandon, Ore.-based CNW Marketing Research.

"The year over year is going to look miserable," he said.

Toyota Motor Co., thanks to strong sales, particularly of its Camry midsize car, might be the only major automaker to post improved results in June, Spinella said.

Automakers are scheduled to report June sales next week.

Despite the poor results, GM sees growing demand for its new models, such as the Pontiac Solstice, Chevrolet HHR and Saturn Sky, which are selling as fast as GM can build them.

Consumers also are willing to spend more on GM vehicles. The average price paid for a GM vehicle during the first five months of the year was $26,431, up $1,200. The industry average was a rise of $365 for a price of $25,908.

In addition, GM is no longer fighting news reports about a possible bankruptcy, which hurt sales five or six months ago, LaNeve said.