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May sales slide 4 percent on rising fuel prices, tight vehicle supplies

U.S. light vehicle sales dropped 4 percent in May--the first decline since August--as rising gas prices, inventory shortages, higher stickers and economic jitters curbed demand. The pace of sales last month--11.78 million units on an annualized basis--was the year's lowest and marked the first seasonally adjusted total below 12 million units in seven months.

Changing course, Chrysler considers a small Ram pickup

Chrysler may develop a unibody small pickup positioned below the Dakota, whose production will end in 2011. "We're thinking of something that will separate itself from the full-sized truck more than what happens today, both in capability, price and size," said Joe Veltri, Chrysler Group vice president of product planning. "The Ram brand has room to expand into a compact-truck segment." Veltri, interviewed this month at the National Truck Equipment Association's Work Truck Show in St.

GM shelves Camaro convertible, Z28

General Motors has delayed indefinitely the Chevrolet Camaro convertible and Z28 high-performance variant to save cash, sources say. GM also has tabled plans to add a four-cylinder engine version of the Camaro. GM is starting to ship the Camaro to dealers this week.