CHRYSLER

U.S. auto sales slipped in June from the previous month and major automakers said there was no sign of the second-half recovery the battered industry had expected at the start of the year.

Auto sales slipped in June from the previous month's pace and major automakers said there was no sign of the definitive second-half recovery that the battered industry had expected at the start of the year.

Ford Motor Co ranked No. 1 for new car quality among mass-market brands while recall-hit Toyota Motor Corp plunged in a closely watched quality survey released on Thursday.

Chrysler is generating the cash needed to rebuild its product portfolio as sales continue to gain momentum, Chief Executive Sergio Marchionne told employees on Friday.

Doors that could catch fire, brakes that could fail and accelerators that could stick have caused Chrysler Group LLC to recall nearly 600,000 vehicles involving five models in the United States.

Chrysler is recalling more than 25,000 Dodge Caliber and Jeep Compass vehicles to address the risk that accelerator pedals could become stuck and cause unintended acceleration, the automaker said on Friday.

General Motors and Chrysler are reasonably positioned for growth after U.S. intervention saved the companies last year, and government support for the auto sector will begin to be pulled back, the manufacturing adviser to the president said on Thursday.

The European bailout of Greece may have prevented catastrophic results but Europe needs to take further action to resolve the region's debt crisis, Chrysler Chief Executive Sergio Marchionne said on Thursday.

Ford Motor Co and General Motors Co posted double-digit sales gains for May that outpaced growth for Toyota Motor Corp as U.S. auto sales rose 19 percent from the depressed levels of a year earlier.

Ford Motor Co sees great options to improve its balance sheet and return to investment grade credit rating as its financial results continue to strengthen, Chief Executive Alan Mulally said on Friday.

Chrysler will probably launch its public offering in 2011 and expects that 2010 will be a better year than it originally had forecast, the company's chief executive said on Thursday.

General Motors Co posted a first-quarter profit as demand steadied in the United States and sales boomed in China, a turnaround the automaker said could put it on track for its first full-year profit since 2004.

The U.S. government has recovered about half of the initial $4 billion in bailout money that was extended to Chrysler Group under the Bush administration, the Treasury said on Monday.

Chrysler Group LLC would need time to find a permanent and stable replacement for providing auto loans if it loses access to bank financing it shares with General Motors Co, Chrysler Chief Executive Sergio Marchionne said on Thursday.

Ford Motor Co expects earnings improvement in 2011 after solid profits in 2010 as its turnaround gains traction, executives said at its annual meeting of shareholders on Thursday.

Hyundai Motor Co has floated plans to enter the high-stakes U.S. pickup truck market and proposed a partnership with Chrysler Group LLC, three people with knowledge of the process said.

General Motors Co is considering options that would give it a captive auto financing arm and allow its dealers to offer more competitive loans and lease deals, two people with knowledge of the plans said.

The last recession forced the auto industry to slash costs, shutter factories, tear up contracts and rely on government funding.

Chrysler could raise its financial targets for 2010 in the second half of the year and aims for a public offering of its stock as quickly as possible, Chief Executive Sergio Marchionne said on Monday.

Chrysler is offering free financing on most 2010 model-year vehicles or up to $4,000 in cash rebates for the month of May as it tries to boost U.S. sales amid heavy discounting by rivals.

Auto sales rose about 20 percent in April from recession-stunted results a year earlier, reflecting a still-gradual recovery in the economy.