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Last Update on June 02, 2015 17:05 GMT
DETROIT (AP) -- U.S. automakers are posting stronger-than-expected sales for the month of May, thanks to Memorial Day promotions and strong demand for new SUVs.
General Motors says sales rose 3 percent over last May, while Fiat Chrysler's sales rose 4 percent. Both automakers benefited as buyers continued a steady shift from cars into small and medium-sized SUVs. Sales of the Jeep Cherokee SUV were up 23 percent, while sales of the GMC Acadia jumped 67 percent.
Volkswagen surprised with an 8 percent sales gain. Ford's sales fell 1 percent and Toyota's sales were flat.
May is typically one of the biggest sales months of the year, as buyers flush with tax returns look forward to summer road trips. Last May, sales jumped 11 percent to 1.6 million, their highest monthly total in nine years.
After five years of growth after the recession, it's getting increasingly difficult for the industry to match those kinds of numbers. U.S. sales are expected to hit 17 million this year, near their historic peak of a decade ago, and automakers will have to work harder to post big gains.
But the industry isn't alarmed. Because of factory closures during the recession, output is closer to matching consumer demand, so car companies don't have to resort to as much expensive discounting as they did in the past. Demand for new vehicles also remains healthy.
DEARBORN, Mich. (AP) -- Ford will shorten the traditional summer shut-down of some of its plants to meet strong demand for its vehicles.
The automobile maker said Tuesday that six of its assembly plants, as well as supporting powertrain and stamping plants, will shut down for only one week beginning June 29, rather than the usual two weeks.
Ford Motor Co. said that there's strong demand for its F-150 pickups, as well as vehicles like the Escape, Explorer and the Edge, a mid-size crossover. The company says that it will produce almost an additional 40,000 vehicles this summer with plants open longer.
It is the third consecutive year that the Dearborn, Michigan, company has kept plants open longer to meet demand.
WASHINGTON (AP) -- Lawmakers are seeking answers from the maker of defective air bags and federal regulators as they focus on the biggest auto-safety recall in U.S. history.
Japan's Takata Corp. agreed last month to declare 33.8 million air bags defective. Faulty inflators inside the air bags are responsible for six deaths and over 100 injuries worldwide. A top Takata executive and the head of the National Highway Traffic Safety Administration are answering questions at a U.S. House hearing Tuesday.
Lawmakers want to know how the replacement inflators being installed are different so that they won't suffer the same defect, and how long all the repairs will take.
The chemical that inflates the air bags can explode with too much force, blowing apart inflators and sending shrapnel into the passenger compartment.
NEW ORLEANS (AP) -- A federal prosecutor has told jurors that a former BP executive lied to federal investigators about how he came up with flow rate estimates after a 2010 rig explosion sent oil spewing into the Gulf of Mexico.
Defense attorneys countered Tuesday that prosecutors are trying to convict David Rainey based on an interview conducted a year after the spill.
They say there is no proof Rainey had any reason to lie about the way he tried to calculate the rate at which oil was flowing after the Deepwater Horizon explosion.
The jury in the case was selected Monday. Opening statements were delivered Tuesday.
U.S. District Judge Kurt Engelhardt says the case could go to the jury by the end of the week.
BRUSSELS (AP) -- Official figures show consumer prices across the 19-country eurozone rose in May were up 0.3 percent from the year before, the first positive reading in six months.
The increase reported Tuesday by the EU's statistics agency, Eurostat, was slightly higher than market expectations for a 0.2 percent increase and suggests that the eurozone is past its period of falling prices.
The European Central Bank was worried that a protracted period of falling prices, called deflation, may hurt the eurozone economy. Falling prices can prompt consumers to delay spending as they await cheaper bargains down the line and businesses to rein in investment.
CONCORD, N.H. (AP) -- A national survey that explores how people with disabilities find and keep jobs shows that more than two-thirds of them are "striving to work."
Researchers with the Kessler Foundation and the University of New Hampshire include three groups of people under that category. They are the 43 percent who are currently working, the 9 percent who are looking for work and the 17 percent who have worked since the onset of their disability.
The survey results they are releasing Wednesday also include information about what employment barriers people face and how often they overcome them. Officials hope the information will spur development of targeted strategies and programs to get more people with disabilities into the workplace.
TOYS R US-CEO
WAYNE, N.J. (AP) -- The chairman and CEO of Toys R Us is retiring and will be succeeded by an executive with experience in taking companies public.
The toy retailer said Tuesday that David Brandon will take over from Antonio Urcelay on July 1. The 63-year-old Brandon is the former chairman and CEO of Domino's Pizza, and helped that company with its initial public offering. Brandon also served as president and CEO of Valassis Communications and assisted with its transition to a publicly traded company.
Urcelay, also 63, had served as chairman and CEO of Toys R Us since November 2013. He'd worked for the chain since 1996.
The Wayne, New Jersey company went private in 2005 when it was acquired by Kohlberg Kravis Roberts & Co., Bain Capital Inc. and Vornado Realty Trust.
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