PREVIEW-US May auto sales limp amid Chrysler, GM turmoil

* What: U.S. auto sales for May

* When: Tuesday, June 2 starting about noon Eastern Time

* Median forecast: 9.4 mln unit annualized rate

* Chrysler closing dealers could push sales rate higher

By David Bailey and Nick Carey

DETROIT, May 31 (Reuters) - A late month surge in sales from Chrysler dealerships that are losing their franchises as part of the automaker's bankruptcy may have driven U.S. auto sales in May to levels above those seen in recent months.

But automakers are expected to report steep sales declines from a year earlier with the U.S. economy in a tailspin, the industry reeling from Chrysler's bankruptcy on April 30 and an expected General Motors Corp GM.N bankruptcy filing on Monday.

"We will probably see a little upside, a little pop," said Mirko Mikelic, an analyst at Fifth Third Bank. "But other than that sales will probably be much the same as in April."

"More people will probably have been looking at cars," he added. "But consumers are not ready to open their wallets."