Easier credit access aids U.S. car sales rise in July

DETROIT - Automakers posted higher U.S. sales last month, a sign that Americans are still willing to buy big-ticket items even though concerns linger about the economy and jobs.

After a sluggish June, sales rose slightly for General Motors Co. and Chrysler. Foreign-based companies such as Toyota and Honda posted bigger gains. Ford, meanwhile, had flat sales, reporting deliveries rose to 170,411 last month from 165,279 a year earlier.

Sales were boosted by easier credit and new versions of cars and trucks ranging from Jeeps to large family wagons. Summer promotions also helped.

"Consumers have been conditioned to think that the summer is a great time to pick up a deal on a new car," said Jessica Caldwell of Edmunds.com.

Car loan approvals have risen for buyers. And GM - whose July sales rose 2.6 percent to 199,692 - announced last month that it will buy a company that specializes in loans to shoppers with poor credit. Those subprime customers represent a big chunk of car buyers.

But the car industry is still vulnerable. Auto sales are recovering from a 30-year low in 2009, but the pace has been fitful. Month-over-month sales have fallen as often as they have risen in the first half of the year. Most automakers saw sales fall from May to June as shoppers worried about home values and high unemployment.

Other automaker results:

Honda's U.S. deliveries fell 5.6 percent from June, to 112,437 vehicles.

Chrysler sales were up almost 1 percent from June. They rose 5 percent over July 2009, to 93,313 vehicles.

Hyundai sales rose 6 percent from June. The automaker sold 54,106 vehicles in July, up 19 percent from a year ago.

Toyota sales jumped 20 percent in July from June. Sales fell 3.2 percent, to 169,224, last month compared with July 2009.

Nissan was up 28 percent from June. Sales rose 15 percent from a year ago, to 82,337 vehicles.