General Motors Co.'s (GM) U.S. auto sales grew 7.6% in July as
consumers purchased more cars and crossovers, while fleet sales
growth outpaced retail demand.
Car information website Edmunds.com last week predicted U.S.
new-vehicle sales would rise a modest 1.6% in July from the prior
year, as stronger sales from the Detroit Three and Nissan Motor Co.
(NSANY, 7201.TO) were expected to offset declines from Japan's
other manufacturers. Edmunds predicted GM would report an 8.7%
increase.
Investors and analysts are expected to closely watch the
industry's latest results, after sales slumped in May as a result
of declining inventory from Japanese auto makers--due to a March
earthquake--rising new-car prices and consumer concerns about the
economy.
GM on Tuesday said the industry has faced several significant
headwinds in the past several months, but believes auto makers are
poised to regain some of the lost momentum in the second half of
the year, aided by higher supply and pent-up demand. "There are
people who put off vehicle purchases because of uncertainty about
fuel prices, vehicle availability and the economy," said U.S. sales
executive Don Johnson.
"As these conditions improve in the latter half of this year,
many of these buyers will return to the market," he added.
GM reported it sold 214,915 vehicles in July, up from 199,692 a
year earlier but 0.2% lower than June's total. The year-to-year
growth built on a 6.1% increase in sales GM posted in July
2010.
GMC and Buick posted sales increases of 36% and 0.4%,
respectively. Sales of the larger Chevrolet improved 6.5%, although
they slid 25% for Cadillac.
Total sales of GM passenger cars increased 8%, while full-size
pickup-truck sales fell 3%. Crossover sales were up 20% due to
strong retail sales for the Equinox and Terrain.
Overall, retail sales were 6% higher, while fleet sales improved
13%.
Month-end dealer inventory in the U.S. stood at about 538,000
units, down 11% from the prior month but 27% above last year's
inventory.
GM now expects total industry sales for the year "in the low
end" of the 13 million to 13.5 million unit forecast originally
announced in January.
July had 27 selling days, one more than a year earlier.
GM's shares were down 1.7% to $27.60 in recent trading as the
broad market fell.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com