Japanese
automakers shook off the effects of last year's earthquake to post strong sales
in July, compared to their U.S. peers General Motors Company(NYSE:GM) and Ford
Motor Company(NYSE:F), U.S. vehicle sales data reported on Wednesday showed.
Toyota
Motor Corporation’s (ADR)(NYSE:TM ) July vehicle sales rose 26 percent from a
year earlier and Nissan's rose 16 percent. In contrast General Motors' reported
a 6 percent fall in sales, and blamed it on a drop in sales to car rental
companies. Ford's sales slid 4 percent, dragged down by the Lincoln luxury
brand and the Fiesta subcompact.
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Auto Sector
Sales
of Chrysler vehicles rose 13 percent, led by demand for its Ram pick-up and its
Chrysler 200 sedans. Volkswagen saw a 27 percent growth in sales on incentives
offered.
Preliminary
data point to an 11 percent rise in industry sales in July with analysts
predicting robust gains for Japanese automakers. There will be more of their
cars in showrooms compared to last year, when production was hit due to the
earthquake.
Pent-up
demand and better financing deals from dealers are expected to be two of the
big drivers for growth. There are bank loans available at about three percent
and zero interest financing from car companies, who are going all out to
attract customers.
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In
the first half of the year, sales of new cars and trucks ran at an annual pace
of just over 14 million, the industry's best performance in five years. Buyers
snapped up everything from small cars to pickups, making the industry a bright
spot in the economy. The only setback came in May, when sales slowed to a pace of
13.8 million as the stock market dropped. But buyers returned in June and are
expected to keep sales strong in July.
Shares
of Ford fell 0.87% to $9.11, Toyota Motor Corporation (ADR)(NYSE:TM) rose 0.46%
to $76.86 and General Motors Company(NYSE:GM) gained 1.17% to $19.94.
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