US sales data offer ray of hope

US auto sales fell 37 percent in March, a smaller-than-expected drop that encouraged hope the world's largest car market is nearing a bottom after a freefall that has pulled the industry into a deepening crisis.

General Motors Corp, which has until June to complete a new restructuring under federal oversight that could push it into bankruptcy, said its sales fell 45 percent, the largest decline of any of the major automakers.

Industry-wide sales dropped for the 17th consecutive month but were up from February with the help of record discounts and higher sales to fleet operators such as government agencies.