The July 2011 sales of General Motors were 8% higher than in July 2010, boosted by the demand for crossovers and small, fuel-efficient vehicles. GM announced that last month, its passenger car sales increased by 8% while crossover demand surged by 20%.
The combined retail sales of the GMC Terrain and Chevrolet Equinox crossovers increased by 73%. July marks the fourth straight month that sales of the Chevrolet Cruze surpassed 20,000 units.
Last month, more than 24,000 Cruze models were sold. GM said that sales of GM's large pickups fell by 3% compared to last year but it did grow by 2% from June. GMC set the pace for all GM brands with a 37% increase in July sales.
Cadillac had been the sole GM division that had its sales fall last month. It’s predicted that the demand in the auto industry for the month of August will be light. According to the analysts surveyed by Bloomberg, the average seasonally adjusted sales rate was 11.9 million, the third consecutive month that figures dropped below 12 million.
U.S. sales of light vehicles increased by 13% this year through June as demand fell in the past few months due to supply shortages that resulted from the March 11 earthquake in Japan, a steep drop in incentives, unstable fuel prices and the slow economy.
Don Johnson, head of U.S. sales for GM, said that people delay buying a vehicle due to uncertainties surrounding the economy, fuel prices, and vehicle availability. He believes as more buyers will go back to the market as these conditions are expected to improve.