GM, Ford, Toyota post sales gains

DETROIT -- General Motors on Tuesday reported its first monthly gain in U.S. sales in almost two years, while Toyota and Ford also improved, a sign that the auto industry it starting to crawl back from a yearlong slump.

Demand for new cars and crossovers in October fueled better results for GM and Detroit rival Ford. GM's sales rose 4.7 percent from October 2008, while Ford notched a 3-percent gain.

Japanese rival Toyota said its sales edged up less than 1 percent, while less rosy news came from Chrysler, whose sales fell 30 percent, though they improved from September.

The biggest winners were Hyundai, based in South Korea, whose sales jumped 49 percent to 31,005 vehicles, boosted by its fuel-efficient Elantra sedan; and Japanese automaker Subaru, which saw a 41-percent surge, helped by strong sales in its Outback and Forester models.

Automakers had said October would be a test of the strength of the auto market after the volatile effects of the government's Cash for Clunkers program.

The industry staggered through a tough September, hurt by the collapse of demand following the clunker rebates that fueled a sales surge over the summer.

The mood was in contrast to a year ago, when consumers were frightened away from showrooms by the early effects of the financial meltdown and credit freeze.

Emily Kolinski Morris, Ford's top economist, said October sales signal a real underlying demand for new vehicles after the distorting effects of the clunkers program. The economy, she said, is "in transition from recession to recovery."

"We expect consumers to remain cautious as the recovery continues," she said.

Ford got a boost in October from new-product launches and gained U.S. market share for the 12th time in 13 months as its critically acclaimed vehicles continue to grab buyers from rivals.

Ford also has benefited from consumer goodwill because it didn't take government bailout money or go into bankruptcy, as General Motors and Chrysler did.

More than 80 percent of Ford's sales last month came from 2010 models, which also helped the company lower its incentives.

That was in line with the industry, which spent less to give car buyers big rebates. Automakers focused on clearing out old inventory and on selling 2010 models, which are not discounted as heavily.

Fuel-efficient models like the Ford Fusion sedan and Escape small sport utility vehicle sold well, with both notching sales jumps of around 25 percent. Ford's overall car sales rose 11 percent over last October, while crossovers climbed 23 percent.

New 2010 models like the Taurus and Lincoln MKT crossover also flew off dealer lots.

Ford's truck sales, by contrast, fell 10 percent.

Chrysler, the maker of the Chrysler, Dodge, Jeep and Ram truck brands, sold 65,803 vehicles last month, up 6 percent from September. That was when its sales slumped because dealerships could offer few popular models.