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Toyota and GM auto sales rise, but Ford sales drop

DETROIT (AP) — Toyota Motors' US vehicle sales jumped 14.1 percent in May to its best monthly level ever and General Motors' sales rose 9.7 percent as both automakers credited in part the appeal of their more fuel-efficient offerings amid high gas prices.For the second month this year, Toyota outsold Ford Motor Company, which saw sales fall 6.9 percent as it continued to cut low-profit sales to rental companies. Nissan's sales gained 7.4 percent and DaimlerChrysler AG's sales rose 3.9 percent with help from a 20 percent jump in its Jeep brand.

GM, the industry's top seller, said Friday it sold 371,056 light vehicles last month. Car sales, including the Chevrolet Impala and Saturn Aura, rose 16.2 percent to 150,979, while light truck sales, including the Chevrolet Silverado and GMC Sierra, gained 5.6 percent to 220,077. GM's sales include the European Saab brand.

GM said its retail sales rose 12.8 percent compared with May 2006.

"We saw strong total and retail sales increases," Mark LaNeve, GM's vice president of North American sales, service and marketing, said in a statement. "Our significant market share gains in full-size trucks and crossovers validates the decision we made to invest in industry-leading fuel economy in these important segments."

Toyota, which has been gaining market share in the US, sold 269,023 Toyota and Lexus vehicles in May, topping its previous monthly record of 242,675 set in March. Car sales rose 16.2 percent to 168,270, while light truck sales, including the Tundra, rose 10.9 percent to 100,753.

Toyota said its sales gains came as rising retail gas prices were met by increasing consumer confidence. Sales of the Camry sedan rose 16.3 percent to 50,126, while hybrid Prius sales jumped to 24,009 from 8,103 in the same month a year ago. Tundra sales were 17,727, up 122 percent.

"Despite the industry's shift toward passenger cars, Toyota's all-new Tundra hit an all-time high in May," Jim Lentz, executive vice president of Toyota's US division, said in a statement. "As for hybrids, the market's appetite continues unabated, with Prius also establishing an all-time record."

Toyota sales surpassed Ford's in two months of last year as well as in January of this year. Analysts predict that Toyota likely will knock Ford out its traditional number two spot for the full year in 2007, but Ford has said it is focused more on returning to profitability in North America.

Ford said its sales to retail customers, which were three percent lower than a year ago, still marked its best retail month of the year as the Ford Edge and Lincoln MKX crossovers continued to make gains.

"These new crossovers are the right products at the right time," Mark Fields, Ford's president of the Americas, said in a statement. "Consumer demand for the Ford Edge and Lincoln MKX has exceeded our original expectations."

Ford said it now expects Edge sales to reach 120,000 this year — 20 percent higher than its original forecast.

Sales of Ford, Lincoln, Mercury, Volvo, Jaguar and Land Rover brands, including fleet sales, totalled 258,391 last month, including 169,265 light trucks and 89,126 cars. Truck sales were essentially flat from a year ago, but car sales dropped 17.7 percent. Ford said its Escape and Mercury Mariner hybrid sport utility vehicles did well for the month.

George Pipas, Ford's top sales analyst, earlier this week had predicted that his company's retail sales to individual buyers would show a year-over-year monthly increase for the first time since October 2006. But he said Friday that sales during the Memorial Day holiday weekend didn't rise to his expectations.

"The last week of the month was softer for us," Pipas said during a Friday conference call with analysts and reporters.

Pipas, however, said the numbers indicate Ford's US market share appears to have stabilised between 14 and 15 percent, a milestone since it had been losing about one percentage point of share per year. The company had set 14 to 15 percent as a goal for 2007 and 2008 under its restructuring plan.

Chrysler's passenger vehicle sales, which include the Chrysler, Jeep and Dodge brands, rose 4.3 percent to 199,393, while Mercedes sales rose 0.7 percent to 21,771. Dodge sales were up about three percent.

DaimlerChrysler sold a total of 221,164 vehicles in the US last month. Chrysler Group reported total sales of 199,393, up 4.3 percent from the same month last year. That included 59,970 cars, up 15.4 percent, and 139,423 light trucks, essentially flat from the same month a year ago.

Michael Keegan, Chrysler's vice president for volume planning and sales, said the automaker's "Maximize Your Miles" sales campaign resonates with drivers and will continue this month.

He said the appeal of the program is especially reflected in the company's rising May car sales.

"Facing continued pressure on gas prices, the program communicates Chrysler Group's fuel economy message across all three of our brands and offers customers a great value package based on low-rate financing plus additional bonus cash," Keegan said.