AUTOMOTIVE INDUSTRY Sales in May are better than predicted, but not by much

GM was the only Big Three automaker to post a sales gain in May.
STAFF/WIRE REPORTS
Sales of cars made at the Lordstown Assembly Plant fell dramatically in May.
Chevrolet sold 23,504 Cavaliers last month, which was down 20 percent from the 29,542 that were sold in the same month last year. For the first five months of this year, Cavalier sales are off 18 percent at 94,133.
Sales of the Cavalier's twin, the Pontiac Sunfire, continue to be bad. Pontiac sold 3,754 Sunfires last month, which was down 60 percent from the 9,405 sold in the same month last year. For the year, Sunfire sales are down 56 percent at 15,154.
General Motors Corp. was the only of Detroit's Big Three automakers to post a sales gain in May, while the American affiliates of Toyota, Honda and Nissan all saw business increase from a year ago.
"Emerging signs of a strengthening economy, a much-anticipated tax break and a stock market showing hints of a comeback combined to fuel sales," said Jim Press, executive vice president and chief operating officer for Toyota Motors Sales USA.
Industrywide, May's seasonally adjusted annual sales rate was 16.1 million units -- a bit above most predictions but below April's rate of 16.5 million units. The seasonally adjusted annual rate indicates what sales for the full year would be if they remained at the same pace for 12 months.
Cutting production
Tepid business since the first of the year prompted Ford Motor Co. and rival GM to announce profit-curtailing production cuts for the third quarter, and DaimlerChrysler warned of a likely second-quarter operating loss for Chrysler.
Ford said it would reduce production for the July-September period by 15 percent. GM plans to scale back production for the same period by 6 percent.
Most analysts expect foreign automakers to continue gaining share this year from the Big Three as the transplants add new vehicles and production capacity in North America. Nissan opened the latest plant last week in Mississippi.
GM, the world's largest automaker, recorded a 13.3 percent rise in light truck sales, which include pickups, SUVs and vans, while car sales were off 7.4 percent. The net result: a 4 percent increase from a year ago, GM's first monthly sales gain this year.
Ford's light truck sales rose 1.8 percent last month, but total volume for Ford, Lincoln and Mercury brands fell 5.8 percent because of an 18.4 percent decline in car sales.
Chrysler's results were more balanced, but negative nonetheless: car sales down 5 percent, truck sales off 2.7 percent. Total volume fell 3.3 percent.
David Healy, an analyst with Burnham Securities, said a last-minute flurry of sales in May helped offset what was shaping up to be a sour month.
"The industry fared slightly better than I expected, but it's nothing to write home about," Healy said.