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Auto sales rise in October
THE ASSOCIATED PRESS

DETROIT — After months of roller coaster-like sales, the auto industry offered signs of recovery from its yearlong slump on Tuesday, as most automakers reported 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 to popular models and fuel-efficient sedans. Other top automakers — Toyota, Ford, Nissan —also posted higher sales.

Automakers had said 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.

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 sales edged up less than a percent. Less rosy news came from Chrysler Group LLC, whose sales fell 30 percent, though they improved from September.

Hyundai, based in South Korea, said 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 its Outback and Forester models. Honda edged lower, weighed by a big drop in sales of its popular Civic car.

Ford's sales got a boost from new product launches and it gained U.S. market share for the 12th time in 13 months. Its critically acclaimed vehicles continue to grab buyers from rivals. Ford also has benefited from consumer goodwill because it didn't take government bailout money or go into bankruptcy, as General Motors Chrysler did.

OPEL

Also Tuesday, GM said it will keep its European Opel unit and restructure it instead of selling a 55 percent stake to Canadian auto parts maker Magna International and its partner, Russian lender Sberbank.

GM CEO Fritz Henderson said Europe's business environment and GM's overall health have both improved since it put the division up for sale.

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