JUNE 2, 2010, 1:36 P.M. ET.

U.S. Car Sales Rose in May .

By Sharon Terlep

U.S. auto sales rose in May, reflecting an economic recovery straining against volatility in the financial markets and deepening troubles in Europe, General Motors Co. said Wednesday.

GM reported a 17% year-over-year rise in monthly sales, which included a 32% surge for the company's four remaining brands: Chevrolet, Buick, GMC, Cadillac. The car maker held on to its market share despite shedding four of its eight brands last year.

Meantime, Ford Motor Co. posted a 22% increase in May U.S. light-vehicle sales as it benefited from high demand for its crossovers and trucks, as well as strong sales to fleets such as rental companies.

Ford maker also slightly boosted its second-quarter production target by 15,000 vehicles, to 640,000. For the third quarter, Ford plans to produce 570,000 vehicles, up 16% from a year ago. It attributed the increase to higher consumer demand across Ford's "entire family of cars, utilities and trucks."

Chrysler Group LLC, meanwhile, reported its May sales jumped 33% to 104,819 vehicles, surpassing the 100,000 mark for the first time in 14 months. Results were boosted by the Jeep Wrangler, it said. It was the car maker's second consecutive year-over-year increase in monthly sales.

At Nissan Motor Corp., May U.S. sales rose 24% to 83,764 as consumers snapped up the company's Versa compact and Armada full-sized sport-utility vehicle, said Al Castignetti, vice president of sales for North America.

"There's more consumer confidence, and a little better availability of credit," Mr. Castignetti said in an interview. He said more buyers are returning to trucks and SUVs.

The growth is a continuation of a strong year for Nissan. The Japanese maker's U.S. market share is the highest it has ever been for the first four months of a year, at 8.3%, and likely will be higher again in May, Mr. Castignetti said.

Nissan-brand sales rose 24% to 75,673 and the Infiniti luxury brand rose 25% to 8,901, he said.

GM, meanwhile, estimated that U.S. sales for all vehicle makers reached 11.4 million in May on an annualized basis, up from 11.2 million in April.

The growth at GM reflected higher sales to rental and commercial fleets as well as strong sales of some of the company's new cars and trucks. GM boosted spending on buyer discounts during the month.

U.S. vehicle sales will likely remain flat though the summer, with a noticeable recovery beginning around September, GM's U.S. sales chief, Steve Carlisle, said. One concern is that a deeper slide in the financial markets could increase jitters among consumers, leading them to hold off buying vehicles.

"We don't think this means a collapse of the economy or the auto industry," Mr. Carlisle said. "We think it is bringing markets back in line with fundamentals."

The economic crisis in Europe, meantime, is contributing to uncertainty around the globe, he said. Still, Mr. Carlisle said GM is sticking with its forecast of 11.5 million to 12 million U.S. sales for all of 2010.

The latest sign of strength at GM comes after it reported last month a profit of $865 million in the year's first quarter and said it generated $1 billion in cash. The results, which came 10 months after GM's exit from bankruptcy, surpassed expectations on Wall Street, making a profitable 2010 seem less out of reach.

Among the four continuing GM brands, Cadillac and Buick led the way, rising 54% and 37%, respectively. Sales at the much bigger Chevrolet and at GMC climbed 31% and 26%, respectively. GM said total combined sales of those four brands were 222,305 for the month, the eight straight month of gains.

GM's total sales, which include the four brands the company is ditching, were 223,822, or up 17%.

New-vehicle sales industrywide are expected to increase from last year, with Memorial Day weekend sales projected to provide a boost, car-shopping website Edmunds.com said last week. Sales have improved as a gradual improvement in the economy has inspired consumers to shop for big-ticket items again.

Other car makers were to report sales later Wednesday.

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