Auto Sales Jump, but Investors Punish GM

Automakers posted strong sales in March, growing more than 15% over last year, according to preliminary data.

Chrysler once again had a huge month, boosting sales by 34%. The result was the company’s best in four years. Toyota’s (TM) sales rose 15%, with sales of the Prius hybrid jumping 54%. With gas prices soaring, fuel-efficient vehicles have become attractive again.

Ford (F) posted 5% sales growth, its best March since 2007. Nissan (NSANY) saw sales rise 12.5% and Volkswagen (VLKAY) posted 35% growth, its best March gain since 1973.

General Motors (GM) said sales rose 12%, with small and compact car sales rising 62%, but the market was clearly looking for a better result. Shares fell about 5% in midday trading. Most other automakers were trading flat to slightly down, although Volkswagen fell 2.5%.

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