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Lured by the government's cash for clunkers campaign, car and truck buyers started returning to showrooms in Utah and nationally 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.
Automakers such as Hyundai and Subaru turned in stronger performances, while Toyota Motor Co., whose sales have taken a beating in the downturn, posted a slower sales decline of 11 percent. July sales, if converted to an annual rate, could top 10 million cars and trucks, the first month this year that sales rose above that depressed 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.
"Any news like this is good," said Craig Bickmore, executive director of New Car Dealers of Utah. "We just hope it continues, and the government continuing cash for clunkers will do a lot to help."
Utah auto dealers Mark Miller and John Garff also are cheering the strong July sales figures, but each have the same concern: With new, fuel-efficient cars flying off the lots, what's going to happen to inventory?
"We're down to a 20-day supply," worries Miller, who owns Toyota and Subaru dealerships. "It will be difficult to replace all the cars were selling. Manufacturers had curtailed production so much."
But he's not complaining. "From the depths
And, Garff, who sells a variety of brands in 10 Utah dealerships, said that while the new-car inventory nationwide is at a historic low, he takes the long view. If the recession is truly ending, and the cash for clunkers program is run properly, the resulting sales boom "will [allow] a lot of the idle manufacturing plants and plants operating at half capacity to ramp back up and put people back to work.
"It's critical," he said, pointing out that 1-in-10 jobs nationally are associated with the automotive industry.
Ford, led by the redesigned midsized Ford Fusion, and strong sales of the Escape crossover vehicle and F-series pickup line, offered encouraging signs for industry 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. Ford sold 158,354 vehicles, a 2.2 percent increase over June's figures, showing that the worst U.S. auto sales slump in a quarter-century may be easing.
Crosstown rival Chrysler Group LLC posted a smaller year-over-year sales drop compared with recent months. The automaker, which emerged from bankruptcy protection earlier this year, said its sales fell 9.4 percent and received help from heavy incentives and the cash for clunkers program.
