DOW JONES NEWSWIRES 
 

New-vehicle sales are expected to rise this month from April, but still remain far below year-earlier levels as Ford Motor Co. (F) and Toyota Motor Corp. (TMC) are projected to get into striking distance of General Motors Corp. (GM), said car-shopping Web site Edmunds.com.

The month-to-month results show the industry's sales stabilization appears to continue, although sales have been at nearly multidecade lows, pushing one and possibly two of America's three main auto producers into bankruptcy protection.

"Consumer demand is slowly starting to come back, but is still far below last year's levels," noted Jesse Toprak, Edmund's executive director of industry analysis. He added part of the year-to-year decline is the continue slump in He fleet sales, especially at Chrysler LLC, which shut production May 1 after its bankruptcy filing.

Industrywide sales have been tumbling since September as the U.S. economy worsens, prompting consumers to stop buying big-ticket items and hindering the financing of new-car purchases.

Edmunds sees May sales at 890,000 vehicles, down 36% from a year earlier but up 8.9% from April.

By company, it projected GM at 170,000, followed by Ford and Toyota at 153,000. April was the first time in 13 months that Ford topped Toyota.

Chrysler's bankruptcy is expected to pressure sales at the company, which for some time has been experiencing some of the biggest declines but rebounded a bit in April. Its May sales are forecast to fall 54%, said Edmunds.com, staying just ahead of Nissan Motor Co. (NSANY) and Hyundai Motor Co. (005380.SE).

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com