US July car sales boosted by “cash for clunkers”

US vehicle sales were a mixed bag in July, with Ford seeing sales rise compared to a year earlier while both Chrysler and GM saw a decline.

Asian car manufacturers also saw varied US sales, with Subaru and Hyundai sales up while Honda and Toyota both posted falls year-on-year.

While the results varied significantly, the government's scrappage scheme has been credited with improving sales but analysts are worried that any improvement could be short-lived.

"It has psychologically had a huge positive effect for the industry, which is what is needed," said Tom Libby, an independent auto analyst.

Car giant Ford saw July's US sales up 2.3% from a year ago, while Chrysler saw sales fall 9.4% and GM shed 19% during the same period.

The Ford group - which includes the Ford, Lincoln, Mercury and Volvo brands - sold 165,279 vehicles last month. Ford is the only one of the "Big Three" US carmakers not to have filed for bankruptcy protection.
GM, which recently emerged from bankruptcy, saw sales fall last month compared to a year earlier but said retail sales climbed for the fifth month in a row, helped by the "clunker" scheme. GM sales fell to 188,156 while Chrysler sales fell to 88,900 vehicles for July.

Among leading Asian automakers, sales for Subaru rose sharply, adding 34%, while Hyundai added 12%. In contrast Toyota Motor sales shed 11%; Honda declined 16% and Nissan Motor dropped 25%.

German firm Daimler saw US sales shed 24% last month, hit by lower sales of its Smart minicar and Mercedes-Benz luxury models.

US July Car sales year on year
Subaru: +34%
Hyundai: +12%
Ford: +2.3%
Chrysler: -9.4%
Toyota: -11%
Honda: -17%
GM: -19%
Daimler: -24%
Nissan: -25%

Source: BBC News