U.S. Auto Sales in May Expected to Drop 5%

U.S. auto sales for May, to be released this week, are expected to have dropped about 5% from a year ago.

Analysts and industry executives estimate the seasonally adjusted annual sales rate for May will run at roughly 16.1 million light vehicles, a steep drop from the 17.1 million rate of May 2000 and off from the 16.7 million rate in April.

General Motors Corp., Ford Motor Co. and the Chrysler side of DaimlerChrysler are each expected to see sales declines of about 8% to 10%.

But that drop comes as auto makers drive down vehicle prices with new rebates, cheap leases and artificially low interest rates on loans. GM and Ford are averaging $2,100 in incentives per vehicle, with Chrysler slightly higher at $2,386.