More Americans buy foreign cars

DETROIT -- Detroit automakers lost control of the U.S. market in July, falling below 50% for the first time ever as they attempted to ride out a lackluster month without resorting to their usual habit: offering hefty incentives.

Months of higher-than-average gas prices, coupled with continued weakness in the housing market, are to blame for the soft sales, industry experts say.

Each of the Detroit automakers seems to be taking a different path on incentives. GM is looking at specific incentives on targeted products, such as large pickups, which are competing with nearly $7,000 in rebates on Toyota's new Tundra truck.

"We are not going to cede market share to the competition," Ballew said.

Chrysler, which has been weighed down with high inventory for months, is offering zero-percent financing for 60 months, combined with a lifetime powertrain warranty on many models.

Ford Motor, on the other hand, is attempting to stay true to its plan to cut back on rebates.

George Pipas, manager of sales and industry analysis, said Ford is concerned about when the current market weakness will end. "But sometimes, you just have to take your medicine and get on with it," he said. He noted that Ford hoped that backing off incentives would help its vehicles hold their values. That is happening, he said, which is more reason not to go back to the days of big deals.

Jesse Toprak, director of pricing and market analysis for Edmunds, said auto deals "are not creating the same surge of traffic that they have in the past."