GM Posts 4.7% October Sales Increase

(DETROIT) — General Motors Co. says its October sales rose 4.7 percent over the same month last year, a sign that the U.S. auto market was starting a slow recovery from its yearlong slump.

The nation's largest automaker said it sold 176,632 light vehicles last month, up about 13 percent from September sales. That's when nearly all automakers reported dismal numbers because the government's Cash for Clunkers rebates pulled September buyers into July and August. (Read "GM's Eight Great Hopes for 2010.")

GM's news comes after Ford Motor Co. reported a 3 percent increase over October of last year.

Automakers are hoping that October sales are a sign that the U.S. economy is starting to improve from the worst market in more than a quarter century.

Meanwhile, Chrysler Group LLC says its October sales fell 30 percent below the same month last year. But they improved from September when the U.S. auto industry had a hangover from the government's summertime Cash for Clunkers program. See the best cars from the 2009 Detroit Auto Show.

The maker of the Chrysler, Dodge, Jeep and Ram truck brands says it sold 65,803 vehicles last month, up 6 percent from September.

Chrysler, which is announcing a new product strategy on Wednesday, is aiming to show steady improvement from month to month as the U.S. economy starts to emerge from its yearlong slump. The automaker's sales dropped 42 percent in September following the end of hefty clunker rebates.

See the most important cars of all time.