Car loan approvals have risen for buyers. And GM announced last month that it will buy a company that specializes in loans to shoppers with poor credit.
But the car industry is still vulnerable. Auto sales are recovering from a 30-year low in 2009, but the pace has been fitful. Month-over-month sales fell as often as they rose in the first half of this year. Most automakers saw sales fall from May to June.
But July could rank as one of the strongest sales months of 2010.
Sales at General Motors Co. rose 2.6 percent over June, boosted by promotions to make room for 2011 models. The Chevrolet Camaro, Chevrolet Equinox crossover, Buick LaCrosse sedan, and Cadillac SRX crossover showed strong increases, the company said.
Ford Motor Co., which has enjoyed a strong 2010 so far, said its sales were flat compared to June. They rose 3 percent compared with July of last year.
Ford’s overall sales were weighed down by a drop in Mercury sales. Production of that brand stops at the end of this year. Sales at the Lincoln luxury brand slid 16 percent.
Strong sales of Jeeps and Ram pickups lifted Chrysler Group’s results over June; they increased 5 percent over July of 2009 —a poor month because the company had just exited bankruptcy protection.
Sales at Japan’s Toyota Motor Corp. jumped 20 percent in July from June. The Japanese automaker has continued to offer generous rebates to appease customers worried about safety recalls. Sales fell 3.2 percent from last year.
Nissan Motor Co.’s sales soared 28 percent from June.
Honda Motor Co. sales rose 5 percent from June, but fell slightly from a year earlier.
Any second-half recovery in sales depends on consumer spending, since government stimulus programs and businesses’ inventory building have run their course, said Ted Chu, GM’s chief economist. As long as employment improves and gas prices stay below $3 per gallon, sales should rise gradually.
“I think pent-up demand is going to continue to be the driver,’’ he said.
