Domestic auto sales rose only five percent in July overall, but that is compared to the same month in 2009 — which included the first $1 billion of the Cash for Clunkers program to boost sales for the month.
General Motors led the way with a six percent jump, followed by Chrysler, which grew five percent, and Ford at three percent. Auto industry officials seemed relatively pleased with the results, according to Automotive News:
Despite broad signs the economic recovery is slowing, GM said it was keeping its forecast for full-year industry-wide U.S. auto sales unchanged at 11.3 million to 11.8 million light vehicles and said its sales incentives were in line with the industry average.
“From our perspective, we see little risk of (a) double dip (recession), absent some external shock,” said Don Johnson, GM’s head of U.S. sales.
The Cash for Clunkers program had its strongest effect in August, so keeping up with last year’s sales this month may prove more difficult than last month.