US sales rise at both GM and Ford

GM's monthly sales last rose in January 2008

General Motors (GM) has reported its first rise in monthly US car sales for almost two years, as the American car industry seems to be slowly recovering.

The firm's domestic sales rose 4.7% in October from a year earlier. Sales at rival Ford were also up, adding 3%.

However, sales at Chrysler, the third of the so-called "Big Three" US carmakers were down 30%.

The October figures are important as they are the first not to be impacted by the US car scrappage scheme.

This government initiative - dubbed cash for clunkers - gave customers a cash incentive to trade in their old cars.

The scheme ran in July and August, boosting car sales in both months, only to cause sales to fall sharply in September following its conclusion.

'Economic transition'

While GM helped lift sales in October through generous financing schemes, and Ford benefited from popular new models, analysts said Chrysler was handicapped by its older range of cars.

We expect the recovery to be very gradual, extending into next year and beyond Toyota vice president Bob Carter

Ford's top economist Emily Kolinski Morris said the US was now "in transition from recession to recovery".

"We expect consumers to remain cautious as the recovery continues," she said.

GM's monthly sales last rose in January 2008.

Among the other main carmakers, US sales at Toyota rose less than 1% in October, while those at Japanese rival Nissan added 5.6%, and Honda's fell 0.4%.

Meanwhile, sales at South Korea's Hyundai added 49%, lifted by the popularity of its fuel-efficient Elantra model.

Toyota vice president Bob Carter agreed that the US car industry faced a slow recovery, with Americans still concerned about high levels of unemployment.

"We expect the recovery to be very gradual, extending into next year and beyond," he said.