Auto-sales data shows industry beginning to stabilize

After months of fluctuating sales, the auto industry offered signs of recovery from its yearlong slump, as most automakers reported yesterday higher levels of U.S. sales in October.

GM, the largest U.S. automaker, reported its first monthly sales gain in almost two years, while Hyundai and Subaru were huge winners thanks for their popular models and fuel-efficient sedans. Other top automakers -- Toyota, Ford, Nissan --also posted higher sales.

The mood was in contrast to a year ago, when consumers were frightened away from showrooms by the early effects of the financial meltdown, plunging stock markets and the credit freeze.

Automakers had said that this October would be a test of the strength of the auto market after the volatile effects of the government's Cash for Clunkers program. The industry staggered through a tough September after the summer's clunker-fueled sales surge.

GM's sales rose 4.7 percent, while Ford notched a 3 percent gain. Japanese rival Toyota Motor Corp. said its sales edged up less than a percent.

Less rosy news came from Chrysler Group LLC, whose sales fell 30 percent, though the numbers improved from September.

Hyundai, based in South Korea, said its sales jumped 49 percent, boosted by its fuel-efficient Elantra sedan. Japanese automaker Subaru also topped the winner's list with a 41 percent surge, helped by strong sales in its Outback and Forester models.

Honda's U.S. sales edged lower, weighed by a big drop in sales of its popular Civic.

Ford's top economist, Emily Kolinski Morris, said last month's sales signal a real underlying demand for new vehicles after the distorting impact of Cash for Clunkers. The economy, she said, is "in transition from recession to recovery."

"We expect consumers to remain cautious as the recovery continues," she told analysts and reporters during a conference call.