Double-digit sales gains for Big Three automakers

DETROIT - Drivers snapped up new models and rental-car companies and governments expanded their fleets in May, leading to big U.S. sales gains for most automakers. The exception was Toyota, whose tepid results showed that the company's discounts are losing their luster.

The industry's overall jump in sales shows that automakers are benefiting from a fragile but improving economy. Credit is thawing for cars loans and gas prices are stable.

Detroit automakers Ford, General Motors Co. and Chrysler Group Llc saw double-digit sales gains over the same month last year, when GM was headed into bankruptcy protection and Chrysler was already there.

Several Japanese, South Korean and European carmakers also saw increases of 20 percent or more. If the trend holds for most automakers, May would be the seventh straight month of year-over-year sales increases for the industry.

But consumers backed away from Toyota Motor Co., whose sales rose just 6.7 percent over last May.

Ford's sales rose 22 percent, boosted by strong demand for the F-Series pickup and new Ford Mustang. But sales fell at its Lincoln, Volvo and Mercury brands, with Mercury down 11 percent. The company announced yesterday that it is phasing out the midrange brand. Ford brand sales climbed 28 percent.

Other automaker results:

South Korea's Hyundai Motor Co. had its best May ever; sales rose 33 percent. The company said sales of the new Sonata sedan rose 92 percent, while sales of the new Tucson SUV jumped 227 percent.