GM sales show double-digit gains, exceeding forecasts

General Motors recorded a nearly 17 percent jump in May sales, bolstered by sales of new vehicle models and a government fleet contract. 

GM seems to be recovering after coming out of bankruptcy last summer, as the double-digit U.S. sales increase represents the first time since January that the automaker has topped forecasts. Analysts were expecting somewhere around a 6 percent increase. 

The Detroit-based automaker is still aiming for an initial public offering either later this year or sometime in early 2011 that would allow them to pay back the remainder of their government debt.

Sales of GM's four core brands — Buick, Cadillac, Chevrolet and GMC — were up 32 percent last month, the fourth straight month of double-digit gains for the four brands, GM announced Wednesday. Cadillac sales alone were up 54 percent for the month, a more than 100 percent increase over May 2009 sales and a 32 percent increase for the year. 

GM is selling or eliminating four others: Saab, Saturn, Pontiac and Hummer. 

GM's strength is rooted in its crossover sales, such as the Chevrolet Equinox and other models that were up 83 percent compared with May 2009 and up 81 percent for 2010. 

"We're a much leaner and more agile company today and can take advantage of movements in consumer tastes," said Steve Carlisle, vice president of U.S. sales, in a statement. 

Ford and Toyota, along with other automakers, are scheduled to report their U.S. sales reports later today.