Auto sales were expected to rise only slightly in July, adding to concerns in the industry that Americans are pulling back on car buying. A lack of discounts and lingering shortages of Japanese cars kept many buyers away. Americans also worried about the economy. But July wasn’t a total loss. Sales of compact cars and newer, more fuel-efficient SUVs rose. Pickup truck sales were down, however, hurt by continuing weakness in construction.
Sales rose 8% at General Motors, led by fuel-efficient vehicles such as the Chevrolet Cruze, which can get 30 mpg in combined city-highway driving. Analysts say even though gas prices have dropped, most people expect them to rise again. Sales rose sharply for the Chevrolet Equinox and GMC Terrain small crossovers, which also get good gas mileage. Ford Motor says sales rose 6%. The new Ford Explorer was a strong performer, with sales more than double those of a year ago. One of the company’s small cars did well, too. The Fiesta saw sales rise 58%. But in a disappointment for the company, the popular Focus couldn’t capitalize on strong small-car sales because problems at a factory limited production. Chrysler Group says its sales rose 20%, helped by new products, such as the Jeep Grand Cherokee, which saw sales jump 76%. Automakers spent an average of $2,418 per vehicle on incentives, down 15% from July 2010, according to car pricing site TrueCar.com.
