Edmunds.com predicted new auto sales in the U.S. would rise a
modest 1.6% in July from the prior year, as stronger sales from
Detroit's Big Three and Nissan Motor Co. (NSANY, 7201.TO) should
again offset declines from Japan's other top manufacturers.
But Chief Executive Jeremy Anwyl cautioned it was unclear how
consumers would react to the uncertainty in Washington related to
the U.S. government's debt-ceiling impasse. News of the bitter
debate has dominated headlines for weeks, and with an Aug. 2
deadline looming, it could hurt auto sales for the final weekend of
the month.
Japanese auto makers Toyota Motor Corp. (TM, 7203.TO) and Honda
Motor Co. (HMC, 7201.TO) continue to be stung by inventory
shortages in the wake of an earthquake and tsunami that struck
Japan in March. Honda's sales are seen dropping 27%, while Toyota's
decline is projected to be 21%.
But Toyota is expected to post a sequential increase, due to
less serious inventory issues and a 25% increase in incentives from
June, according to Jessica Caldwell, a senior Edmunds analyst.
Edmunds predicted Chrysler Group LLC will post a 15% increase in
sales from year-earlier levels, which would make it the strongest
performer in July. Larger rivals General Motors Co. (GM) and Ford
Motor Co. (F) are expected to notch single-digit increases, while
Nissan's sales are seen rising 12%.
July's sales are expected to result in a seasonally adjusted
annualized rate of 12.3 million light vehicles, up from 11.4
million in June.
July had 27 selling days, one more than a year ago.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com