(Updates with more sales info from car makers, including incentive spending, and other details)

DOW JONES NEWSWIRES

U.S. light-vehicle sales posted their best performance in more than a year in October, excluding the effect of 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, 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.

New vehicles also helped boost results at GM and Ford. Monthly sales of the new Buick LaCrosse sedan, for instance, nearly doubled from a year ago. Sales of the new Chevrolet Equinox crossover close to tripled.

But unlike Ford, roughly half of GM's October U.S. sales were 2009 model-year vehicles. Deep discounting was needed, and that practice erodes profitability and tends to drag down vehicle resale values.

Meanwhile, sales were also slightly higher in the U.S. last month for Japan's Toyota Motor Co. (TM) and Nissan Motor Co. (NSANY), while Honda Motor Co. (HMC) posted a 0.4% decline.

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

Ford's increase came despite a fall in incentive spending. The company averaged $2,909 per vehicles on incentives, down 25% from a year ago and 5.8% from September, according to car shopping site Edmunds.com. Industrywide, incentives were flat on the month at $2,468 and down 12% from last year.

GM and Ford also highlighted the likely bottoming in housing starts, which they said is positive for the auto industry. Among the indications: stabilizing pickup trucks sales. Ford sold 6,000 more F-Series pickup trucks in October than September. F-Series sales last month fell 9% year-over-year, but that's far less than the year-to-date decline of 23%.

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 18% jump in light-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.

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.

Toyota, meanwhile, reported a 64-vehicle increase to 152,165. Nissan had 5.6% growth to 60,115 as rising Sentra and Maxima sales helped boost the namesake brand, more than offsetting lower Infiniti sales. Honda's sales fell to 85,502 as lower car sales more than offset truck growth.

Ford's shares fell 8 cents to $7.50 in recent trading while American depositary shares of the Japanese trio were slightly lower.

-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 1515ET