General Motors Corp. (GM) had another good month in Brazil in May, but it's U.S. counterpart, Ford Motor Co. (F), had less to celebrate, according to numbers published Thursday by the Brazilian Motor Vehicles Manufacturers Association, or Anfavea.

GM sold 40,607 cars in Brazil in May, up 18.2% from April sales, but down 1.1% from May, 2008.

"May was a great month for the Chevrolet brand in Brazil," said Jaime Ardila, chief executive of General Motors do Brasil Ltda, the Brazilian subsidiary of the Detroit auto maker.

"We are firing on all cylinders and operating at 100% capacity thanks to local demand," he said, adding that the first few days of June also saw a big number of buyers at GM-registered dealers.

A continued tax break from the government, resulting in as much as a 7.5% discount on new car prices, coupled with extended term limits on new car loans has Brazilians buying even, with the economy in a recession.

Meanwhile, Ford sold 17,778 cars, down 5.4% from April, making it the only major car maker in Brazil to see a sales decline last month, according to Anfavea.

Volkswagen and Fiat remained market leaders once again. Volkswagen sold 51,233 cars, up 6.1% on the month and Fiat sold 50,909 cars, up 3.6% from April.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@dowjones.com