• by Karl Greenberg , June 4, 2007

Toyota is reaping the benefits of higher gasoline prices, selling lots of hybrids and smaller cars. With gasoline passing $3 a gallon last month, Toyota sold some 24,000 of its Prius hybrids. In fact, almost every automaker saw improvements carried largely by smaller cars, crossovers and compact SUVs.

General Motors' sales edged up 4.7% in the U.S. versus last May, with retail sales at 375,682, making the company the top-seller in the U.S. last month. The company benefited both from sales of relatively new cars like Saturn Aura and Chevrolet Impala, up 16.2%, to 150,979. But, fuel prices not withstanding, the company also did well with its light trucks, which gained 5.6%, to 220,077, better than Ford's F-150.

Toyota posted its best-ever month, with 269,023 vehicles delivered for the month--a 9.7% improvement versus last year's May. The Toyota division posted 10.9% better sales last month versus the month a year ago, while Lexus posted a 4.8% increase versus the month a year ago.

Scion is waiting to exhale this year, as it ramps up sales of the new xB--and later this year, the xD. Steve Haag, Scion's current corporate manager, conceded that he expects 2007 sales to be softer by some 20,000 units versus 2006, during which the division sold some 170,000 of its diminutive and/or boxy cars.

The company says its hybrids last month improved by 75% versus last year.

Crosstown, Torrance, Calif. rival Honda also posted its best May ever--with 145,367 vehicles sold last month versus 141,810 last year. Honda's Civic improved 32.6%, and CR-V sales improved 35.9%, with Honda's Fit compact accounting for 5,361 units.

While Ford saw a 9.4% drop in Ford divisional sales last month, and a 6.8% decline across its brands, the company is trumpeting sales of its crossovers and smaller SUVs. The company says sales of Ford Edge improved 39% from April, with Lincoln MKX up 20% from April. Ford says Edge sales this year will be 20% better than expected, around 120,000 units.

Ford says its new Escape and Mercury Mariner crossovers are at 18,953 sold--up 13% from a year ago, and 4,395--up 87%, respectively. Ford says each posted their third-highest sales month ever.

Nissan got some welcome news for the second month in a row, improving 3.2% versus last May. Nissan divisional sales improved 2.9% to 82,314, while Infiniti improved 5.6% to 10,748 versus last May.

Both Hyundai and sibling Kia posted their best May sales months ever--with the former notching a 3% improvement last month to 43,885 vehicles, and Kia improving 7.5% versus last year to 8,512 units.

Chrysler Group, in the process of cutting the hawsers to DaimlerChrysler, saw a 4% boost in sales last month, selling 199,393. Dodge was up 3%, while Jeep--driven by the remarkably successful four-door version of Wrangler and the new Patriot compact SUV--enjoyed a 20% increase in sales. The Chrysler division, which has relied on the 300 sedan and Town and Country minivan, hasn't fared well this year.

Chrysler's parent is enjoying a renaissance at Mercedes, which three years ago was struggling to regain its reputation and brand identity. Mercedes-Benz posted its highest May ever with sales of 21,771 vehicles, and a 4.8% increase year to date. The company benefited from an 18.7% improvement in sales of its redesigned C-Class cars and its E-Class sedan. Last month, Mercedes M-Class SUV improved 14.2% versus May last year.

BMW, meanwhile, reported strong sales, with an 8.7% increase for the month, to 30,819 Mini and BMW cars and trucks sold.