DETROIT (AP) — Americans bought more cars in May than in any other month this year, drawn by fire sale prices that pushed General Motors' and Chrysler’s sales above expectations despite their forays into bankruptcy protection. Overall sales were still 34 percent lower than a year ago.
But low gas prices encouraged the sale of bigger vehicles while small cars stacked up on dealer lots. That could be a problem for the Obama administration, if the demand for more fuel-efficient vehicles drops just as it is forcing the U.S. auto industry to produce more of them.
“The great migration away from fuel efficiency is once again under way,” said Mike Jackson, chairman and chief executive of AutoNation Inc., the nation’s largest automotive retailer. “The price of gasoline determines the type of vehicles consumers buy. Period.”
All major automakers including Toyota and Honda posted drops from last year, with Ford Motor Co. benefiting from the financial woes of its Detroit competitors and recording the smallest decline at 24 percent.
GM and Chrysler have pegged their recoveries to fuel efficiency — Chrysler with small cars from Fiat SpA, GM with new American-built compacts and subcompacts, and both with plans for electric vehicles. It could take months of expensive gas for people to buy their new products.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/wednesday.gif" border=0> Discounts, not efficiency, drive US auto sales up
- Business
-
-
Obama call for manufacturing revival a tough goal
President Barack Obama is making a strong election-year push for an economic revival “built on American manufacturing.” But he faces an uphill slog, with little consensus even within his own party on how to do it.
-
Stocks fall sharply as Greek deal is held up
Stocks are closing their worst day this year after Greece hit a roadblock on its way to a critical bailout.
-
Budget deficit drops to $27 billion in January
The budget deficit fell sharply in January compared to a year earlier, as an improving economy lifts income tax revenue.
-
Feds slap CA utility for San Onofre ammonia leak
Federal regulators say an ammonia leak that caused an emergency alert at Southern California’s San Onofre nuclear plant was caused by employees who failed to recognize degraded equipment and fix it.
-
Chicago officials make plans for potential massive protests of G-8, NATO summits
In Wisconsin, a group of environmentalists plans to bicycle to Chicago’s G-8 and NATO summits to protest an economy that relies too heavily on fossil fuel.
-
Obama praises Italian leader’s economic efforts
Eager for Europe to contain its economic troubles, President Barack Obama praised Italian Premier Mario Monti on Thursday for his efforts to lead Italy out of its fiscal quagmire.
-
Consortium in South wins federal approval for 2 new nuclear reactors
A consortium of utilities in the South won government approval Thursday to construct two new reactors at an estimated cost of $14 billion, the strongest signal yet that the three-decade hiatus of nuclear plant construction is finally ending.
-
Stocks fall at the open as Greek deal is held up
U.S. stocks opened lower Friday after Greece’s bailout deal was put on hold, a day after it seemed that the country had satisfied its creditors.
-
Asia stocks slip as Greek bailout remains in limbo
Asian stock markets dropped Friday after Europe’s finance ministers demanded more spending cuts from Greece before clearing a (euro) 130 billion ($170 billion) bailout to stave off the country’s bankruptcy.
-
Google’s first employee leaves to join education nonprofit
Google Inc.’s first hired employee, Craig Silverstein, is leaving the tech giant, where he’s worked since its founding, to sign on with the rising education startup Khan Academy.
- More Business Headlines
-
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Expert: Removing LA School's Staff 'Appropriate'
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
