US car sales in May are tracking at an annualised rate of 15.8 million, down from 16.4 million in April despite heavy incentives, The Car Connection (TCC) website said, citing Deutsche Bank auto analyst Rod Lache. The website also cited GM sales chief John Smith as saying on Thursday: “so far in May, industry sales are running at a weaker rate than in April, but the pace could pick up as incentives rise.”

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TCC added that research firm Autodata said incentives are already 47% ahead of last year while, according to CNW Research, they are more than $US3,500 per vehicles when rebates and “soft” incentives are factored in such as double points from the GM card and employee incentives.

Lache told TCC he believes GM’s sales are running 1% less than a year ago, while Ford’s are flat and Chrysler’s sales are 7% lower.

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