Ford, GM Sales Fall Steeply, but Less than Expected

Ford Motor and General Motors turned in better-than-expected U.S. sales figures for the month of May, with Ford's sales topping Toyota Motor domestically for the second consecutive month.

Ford's sales fell steeply regardless, shedding 21 percent compared with the same month last year. CNBC reports auto sales on an adjusted basis that compensates for the number of selling days in May versus a year earlier.

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Auto industry tracking firm Edmunds forecast unit sales at Ford declining by 28.5 percent.

GM reported a 29.6 percent decline in vehicles sold for the month. Edmunds saw GM reporting a 36.9 percent drop.

GM sales improved 11 percent from April as consumers shrugged off concerns over its impending filing for bankruptcy protection and pushed the automaker to its best sales month this year.

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Dearborn, Mich.-based Ford said it sold 161,197 cars and light trucks. The figure marked Ford's strongest since month since July 2008.

Sales of the Ford Fusion rose as the company began selling new 2010 models of the midsize sedan along with a hybrid version.

Ford said its better cars are driving sales and its increasing market share, not the bankruptcy protection filings of General Motors and Chrysler.

The 155,954 Ford, Lincoln and Mercury vehicles sold in May represented the strongest month for those brands since July 2008.

The automaker said it reduced incentive spending in May, but believed that the market share for its Ford, Lincoln and Mercury brands grew to its highest level since 2006.

Ford said it ended May with inventories of 350,000 vehicles, or a 56-day supply, 210,000 lower than a year earlier.

GM said it delivered 191,875 vehicles in May, helped by 110,866 truck sales.

GM entered bankruptcy protection with the hope of emerging within 60 to 90 days as a smaller, less debt-burdened company.

The Pontiac, Hummer, Saturn and Saab brands accounted for the company's biggest sales declines. GM has said it plans to get rid of those divisions as part of its restructuring and stick to four core brands: Chevrolet, Buick, Cadillac and GMC.

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Saturn sales fell 56 percent, and Pontiac sales were down 52 percent.

Toyota said Tuesday that its sales slid 38.4 percent in May compared with a year ago, as the world's largest automaker continued to see declining sales for every vehicle sold in the United States.

Toyota Motor Sales USA said sales dropped to 152,583 for the month, but were up 20.6 percent compared with April. There was one less selling day in May that a year earlier. Edmunds saw Toyota sales dropping 40.6 percent.

"We're encouraged that consumers are beginning to return to showrooms and that the industry continues to show signs of stabilization," Don Esmond, senior vice president of automotive operations, said in a statement.

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Sales in its Toyota division sagged 39 percent, while sales in its Lexus luxury division slipped 33.9 percent.

Honda Motor reported a 39.2 percent sales drop to 98,344 cars and trucks, roughly in line with estimates.

Sales at Nissan Motor fell an adjusted 30.5 percent to 67,489 vehicles, slightly worse than estimates.

Chrysler said it sold 79,010 cars and trucks in May, a decrease of 44.8 percent.

- Reuters and AP contributed to this report.

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