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July sales, if converted to an annual rate, could top 10 million, but in 2007, sales topped 16 million.
Ron Naugle traded in a 1992 Chevy Caprice under the government’s cash for clunkers program to buy a 2009 Chevy Impala from Valley Chevrolet on Friday. The program is believed to have helped automakers post better-than-expected sales results in July.
Pete G. Wilcox / The Times Leader
DETROIT — Lured by the government’s cash for clunkers campaign, buyers started returning to showrooms last month, as Ford Motor Co. reported its first U.S. sales increase in nearly two years and other major automakers said sales showed signs of stability.
July sales, if converted to an annual rate, could top 10 million cars and trucks, the first month this year sales rose above that level. As recently as 2007, car and light truck sales topped 16 million vehicles, but the recession, tight credit and a lack of consumer confidence sent sales plunging late last year.
Ford, led by the redesigned midsize Fusion, and strong sales of the Escape crossover vehicle and F-series pickup line, offered hopeful signs for analysts who predicted a modest improvement in the second half of the year.
July sales of Ford, Lincoln, and Mercury light vehicles rose 1.6 percent from the same month last year. It was the first year-over-year rise since November 2007. GM posted a double-digit sales decline for July, selling a total of 188,156 vehicles, down 19.4 percent from the same month last year. The drop included a 9 percent decrease in retail sales and a 47 percent plunge in fleet sales.
Chrysler Group LLC posted a smaller year-over-year sales drop compared with recent months. Its sales fell 9.4 percent, receiving help from heavy incentives and the cash for clunkers program.
Officially called the Car Allowance Rebate System, or CARS, the program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, in exchange for scrapping their old vehicle.
Congress approved the plan early in July, but the government mulled suspending it Thursday after the great response threatened to deplete the $1 billion allocated for rebates.
But the program continued and the House voted to allocate another $2 billion to keep it going. The program’s fate hangs on whether the Senate will vote to extend more funds this week.