Double-digit increase in May auto sales
June 3, 2010
General Motors, Ford and Chrysler yesterday each posted surprising double-digit sales gains for May -- reflecting the effect of cheap gas, zero interest rates, pent-up demand and more fleet sales.
Chrysler enjoyed a surprise 33 percent jump in sales that was the industry's biggest percentage gain and double what analysts had expected.
Chrysler's executives gushed that their formerly bankrupt company is a "born-again" group, aided by a mini-boom of the Jeep Wrangler and the very deep pockets of new partner Fiat.
A slimmed-down GM remained slightly ahead of Ford with a 17-percent sales gain to retain its title as the leading US automaker -- while Ford pushed Toyota further back into the pack with its 32-percent gain in sales to cement Ford in the No. 2 spot.
Ford isn't worried by GM's slim lead in sales, however, and is stepping up its assembly line output by an impressive 16 percent this summer to become the industry's busiest. Ford has plans to roll out 640,000 vehicles in time for autumn showrooms.
Toyota sales increased just 6.7 percent.
Analysts had expected dismal May sales as a result of fearful consumers and the demise of manufacturer incentives and discounting -- but sales soared, marking seven straight months of industry sales gains.
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