Lifting hopes of a recovery, auto sales rise

GM, the largest US automaker, reported its first monthly sales gain in almost two years, while Hyundai and Subaru were huge winners because of their popular models and fuel-efficient sedans. Toyota, Ford, and Nissan also posted higher sales.

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

Automakers had said October would test 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 following the summer’s clunker-fueled sales surge.

The industry still has to see its way through a number of economic challenges, said Bob Carter, a Toyota vice president. Americans remain anxious about high unemployment, while consumer confidence remains dampened.

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

Demand for new cars and crossovers fueled the better October sales for General Motors Co. and Detroit rival Ford Motor Co.

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, whose sales, though improved from September, fell 30 percent.

Ford’s sales got a boost from new-product launches and gained US market share for the 12th time in 13 months with critically acclaimed vehicles. Ford has also benefited from consumer good will because it didn’t take government bailout money or go into bankruptcy.