Car buyers appear undaunted by General Motors Corp.'s (GMGMQ) bankruptcy, assuaging one of the auto maker's biggest fears heading into Chapter 11 protection.

Early signs point to stable demand for GM cars and trucks since it filed for Chapter 11 protection on June 1.

GM Chief Executive Fritz Henderson on Wednesday said June retail sales are tracking higher than May.

"June sales are moving along just fine," Henderson told reporters at a summit in Detroit. Sales to rental and other fleets are down from last month, he said. "We're very gratified for the support of dealers and customers that we've received through this."

Meantime, AutoNation Inc. (AN), the nation's largest auto retailer, reported that showroom traffic at GM dealerships has held steady since the auto maker entered court as part of a government-mandated restructuring.

Traffic at AutoNation's GM stores has been virtually unchanged from the week prior to the company's filing and is actually tracking higher than it has been in the last two months, according to the company's data.

GM initially feared that consumers would flee if it filed for bankruptcy. But the U.S. government, keeping GM alive with cash infusions, promised to back warranties on GM vehicles in a move to reassure consumers. Additionally, the company and government laid out a plan in which GM would emerge from Chapter 11 in 60 to 90 days.

Henderson said Wednesday the court proceedings were "progressing according to plan" and that GM could be out before the end of August.

A true test of GM sales won't come until the end of June when the bulk of sales for the month are traditionally made.

Chrysler Group LLC, which emerged from bankruptcy last week after about six weeks, saw a 47% sales decline in May that was steeper than the industry average.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com