Fiat Chrysler Automobiles NV on Tuesday logged a better-than-expected 1.7% increase in U.S. auto sales in August despite a calendar quirk and a tough year-over-year comparison, extending the auto maker's streak of sales gains to 65 months.

More sales results from auto makers are due out later Tuesday, and overall U.S. sales are expected to cool in August as the impact of a later Labor Day masked an otherwise strong month of buying.

Much of the blame for the lackluster sales is the accounting for Labor Day holiday purchases. For the first time since 2012, those sales will be included in September results. Traditionally, Labor Day sales are reported in August when the holiday falls in early September. This year, it falls on Sept. 7.

Last August also included one more selling day, which—coupled with the impact of Labor Day—helped make it the strongest month for auto sales of 2014, according to Sterne Agee.

Still, the seasonally adjusted annualized rate is expected to come in above 17 million new cars and trucks for the fourth month in a row as the gravy train of low lease rates, cheap gas and consumer enthusiasm continues to roll. The last time the industry had a four month sales streak above 17 million vehicles was 2006.

At Fiat Chrysler, growth in August was again driven by strength in its Jeep brand and Ram pickup trucks.

Jeep sales grew 18% to 80,804 vehicles, the brand's best sales month ever. Sales of Ram trucks grew 6.1%, with pickup trucks logging their best month of August sales ever.

Dodge sales fell 15% amid declines in Dart, Avenger and Charger sales.

In all, Fiat Chrysler sold 201,672 vehicles, above the 199,091 Edmunds.com had forecast.

Industry watchers will be studying August sales to see if auto makers can continue to squeeze more money from the showrooms. The industry's average transaction price, according to TrueCar Inc., should come in at $31,825—about $220 more than the same period a year earlier.

Auto makers need all the cash they can get as the China market continues to struggle. In July, China passenger-vehicle sales fell for a second consecutive month. Sales of passenger cars fell to 1.27 million vehicles, a 6.6% drop compared with the same period a year earlier.

Last week, Chinese stocks suffered their worst single-day loss since February 2007 amid concerns the country's economy is significantly slowing. China's car sales figures are due out later this month.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com and Jeff Bennett at jeff.bennett@wsj.com

 

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(END) Dow Jones Newswires

September 01, 2015 08:25 ET (12:25 GMT)

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