AFP - Ford Motor Co. said Wednesday its March US sales slumped 40.9 percent from the same month a year ago, but rebounded sharply from February levels.

The number two US automaker said it delivered 131,465 new vehicles in March, highlighting the collapse in auto sales in response to a deepening recession.

However, Ford said sales increased 30 percent compared with February 2009 with retail sales up 34 percent, offering some hope of a bottom in the troubled sector.

The sale reports come amid a horrific drop in auto sales in recent months that have forced General Motors and Chrysler to get emergency loans from the US government.

Ford, which has said it has enough cash to operate without assistance, said the latest figures pushed its retail market share in March to its highest level since December 2006.

The company said March sales for its domestic nameplates Ford, Lincoln and Mercury were down 41.3 percent while sales for its Volvo brand fell 31.4 percent compared to levels of March 2008.

At the end of March, Ford, Lincoln and Mercury inventories totaled 408,000 units, down 27 percent from a year ago.

The company produced 349,000 vehicles in the first quarter, a reduction of 26,000 vehicles from its previous forecast.