UPDATE 1-Fitch cuts GM, Chrysler deeper into junk; reviews Ford

(Adds details, bond and share prices)

NEW YORK, June 25 (Reuters) - Fitch Ratings on Wednesday cut General Motors Corp's GM.N and Chrysler LLC's [CBS.UL] ratings deeper into junk, citing weaker sales, high fuel prices and a sluggish economy.

Fitch also said it will review Ford Motor Co (F.N: Quote, Profile, Research) and Ford Motor Credit (FCZ.N: Quote, Profile, Research) ratings over the next six weeks. The review could also result in a downgrade.

Despite the rating action, GM and Ford share and bond prices rose slightly on Wednesday after suffering heavy losses earlier this month.

The three big U.S. automakers are struggling with a deepening slump in auto sales amid a consumer exodus from pickup trucks and sport utility vehicles due to record high gasoline prices. Standard & Poor's last week said it also may downgrade the three companies.

Fitch cut the ratings of GM and Chrysler by one notch to "B-minus," six levels below investment grade from "B" with a negative outlook.

A rise in demand for fuel efficient vehicles has hurt GM's market position and additional restructuring of the company will be required, Fitch said in a statement.

"GM's product portfolio remains misaligned with market demand," Fitch said.

The downgrade follows announcement by the No.1 U.S.-based automaker on Monday that it would take a series of steps -- from cutting production of trucks to offering aggressive incentives -- to combat the drop in demand for large vehicles. For details, see [ID:nN23279654].