General Motors Sales Up in August

After a dismal start to summer, August looked a little brighter for the auto industry despite continuing concern over high gas prices and turbulence in the housing and financial markets. U.S. sales were flat compared with last August, but that was better than the 12 percent decline the industry saw in July. The annualized sales rate for August was 16.3 million vehicles, the first time that number topped 16 million vehicles since May.

General Motors

General Motors shares hit a two year high after the automaker said it had agreed to sell its Allison Transmission commercial and military business to an investment conglomerate and a private equity firm. The deal adds funds to GM's cofers as it gears up for crucial contract negotiatioms with unionized workers, although it also means losing a profitable division. GM shares rose 74 cents, or 2 percent to $38.15 after climbing as high as $38.66.