(Updates throughout with Chrysler, GM, Toyota and Nissan figures)

DOW JONES NEWSWIRES

U.S. light-vehicle sales posted their best performance in more than a year for October, excluding impact from the summer's "cash-for-clunkers" program. Ford Motor Co. (F) maintained its recent standout performance with a 3.3% increase, the third time in four months sales grew.

However, laggard Chrysler Group LLC continued to struggle, though its 30% drop wasn't as bad as much of 2009, while General Motors Co. reported a 4.7% increase, its first growth since January 2008.

U.S. auto sales in October delivered more concrete signs the economy is on the mend. Monthly auto sales hit the highest rate of 2009-–the mid 10-million range on a seasonally adjusted basis--absent cash-for clunkers boosts in July and August.

Replenished inventories also helped deliver results better than September’s anemic 9.2 million rate. Many cars and trucks were in short supply last month following the "clunkers" sale and major production cuts earlier in 2009 by many auto makers.

"The economy is in transition from recession to recovery," Ford chief economist Emily Kolinski Morris said on a conference call with analysts and reporters.

Meanwhile, sales were also slightly higher in the U.S. last month for Japan's Toyota Motor Co. (TM) and Nissan Motor Co. (NSANY).

Ford rebounded after the prior month's clunkers-related decline, on higher demand for the company's new 2010 models.

U.S. sales executive Ken Czubay said fuel-efficient products were driving Ford's recent string of market share gains. Ford reported its total market share was more than 15%, higher than a year ago and the first nine months of 2009. The company has gained retail market share in 12 months over the past 13.

On Tuesday, Ford reported U.S. companywide light-vehicle sales were 136,583, compared with 132,248 a year earlier. The figure rose 20% sequentially. There were 28 selling days in October, one more than last year.

Ford, Lincoln and Mercury truck sales fell 1.1% while sport-utility vehicle sales continued to suffer, although the 5.8% decline was more modest than prior months. Cars saw 11% growth.

GM's light-vehicle sales rose to 176,632 from 168,719, with retail sales rising 15%. The month's growth was due to a 17% jump in truck sales, more than offsetting a 13% drop for cars.

The company reported it gained market share for the third consecutive month--estimated at 21% of the total light vehicle market.

GM said it expected industry inventory levels to increase moderately in the fourth quarter to support modestly rising industry sales. The company also said it believed the bulk of the clunkers-related decline occurred by the end of September.

Chrysler's total sales slipped 30% to 65,803 units, with total cars down 30% and total trucks falling 31%. But Chrysler reported sales increased 6% from September.

"The industry showed signs of improvement this month with increasing sales, which is a trend we expect to continue for the remainder of the year," said Fred Diaz, president and chief executive of the Ram brand.

Toyota, meanwhile, reported a 64-vehicle increase to 152,165. Sales at the larger Toyota division were down 2.3% while Lexus sales grew 20%. Total light truck and sport utility vehicle sales slid 2.3% and 2.5%, respectively.

Nissan reported October sales improved 5.6% to 60,115 units, as rising Sentra and Maxima sales helped boost the Nissan Division, offsetting lower Infiniti sales.

Auto sales have improved in recent months, but difficult challenges remain for the auto industry. Government-backed incentives, which sparked sales globally, are winding down. Meanwhile, the recession is slowing Ford's recovery in the U.S. while pushing sales to historic lows in Russia.

Ford's shares fell 3 cents to $7.55 in recent trading. American depositary shares for Toyota were down 32 cents to $78.80, but flat at $14.35 for Nissan.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

(Sharon Terlep contributed to this article.)

(END) Dow Jones Newswires

11-03-09 1423ET