U.S. vehicle sales data released Friday delivered no signs of economic recovery despite widespread hope the beleaguered auto industry would begin to see relief in April.

The annual selling rate remained stuck in the low- to-mid 9 million vehicles, likely falling below 850,000 car and truck sales, according to early auto maker estimates. The drop represents a decline of 35% to 40% from a year ago.

"Industrywide, April felt more like a dust bowl than a spring garden for new car sales," said Jim O'Donnell, president of BMW in North America, in a statement.

Uncertainty around General Motors Corp. (GM) and Chrysler LLC, which entered bankruptcy protection on Thursday, helped drag sales down toward the month's end and erased a strong start to the month, auto makers said.

"I thought we were going to close much better than we did," GM sales Chief Mark LaNeve said. "We didn't see a significant break up or down."

Meanwhile, shaky consumer confidence and high levels of joblessness offset benefits of increased credit availability, deep discounts on cars and trucks and U.S. government backing of warranties on GM and Chrysler vehicles.

While auto makers said they see signs of an impending rebound, more turmoil lies ahead this spring as GM and Chrysler race to remake themselves under close watch of the U.S. government.

Even so, most auto makers posted their best sales figures of the year in April. An exception was Toyota Motor Co. (TM), reporting a 42% slump from a year earlier and allowing Ford Motor Co. (F) to eclipse it in monthly sales for the first time since March 2008.

Ford, the healthiest of the Detroit Three said it continued to outperform rivals with market-share gains, led last month by record sales of the Fusion sedan. Honda Motor Co. (HMC) also saw its results strengthen, posting a smaller decline of 25% for April.

GM, meanwhile, sold 172,150 light vehicles in April, down 33% from a year earlier. But volumes rose 11% from March. There were 26 selling days in April, the same as a year ago. Truck sales, including crossovers, fell 28%, while car sales slipped 41%.

Ford recorded a 33% drop to 133,979, as Ford, Lincoln and Mercury car sales dropped 31%. Sport-utility vehicles continued to tumble - down 61% in April. Sales of trucks and vans dropped 36%.

Toyota sales fell to 126,540 with cars and trucks down by similar percentages, while Honda reported sales of 101,029 amid an 18% drop for cars. Nissan Motor Co. (NSANY) had a 38% slump to 47,190. The company is seen by analysts as potentially falling behind Hyundai Motor Co. (005380.SE) in monthly sales for the first time.

GM's shares were down 6.3% to $1.80 in recent trading, as Ford dropped 3.5% to $5.77. Toyota's American depositary shares rose 0.1% to $79.21 and Honda's ADS added 0.5% to $29.20, while Nissan's ADS dropped 0.7% to $10.33.

 
   -By John Kell and Sharon Terlep, Dow Jones Newswires, 201-938-5285, john.kell@dowjones.com 
 

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