GM Leads Surge in Auto Sales in July

General Motors Corp. led a surge in U.S. auto sales in July, as interest-free loans and cash rebates drew customers into showrooms despite concerns about stock market losses and America’s tepid economic recovery.

July sales came in at a seasonally adjusted annual rate of 18.1 million, the highest since an all-time record of 21.3 million last October. Analysts on average had forecast a rate of 17.3 million vehicles in July.

GM, the world’s largest auto maker, said its U.S. sales of cars and light trucks jumped 24.2% for the month, excluding its import brand Saab. GM, riding high on a strong lineup of pickup trucks and sport utility vehicles, accounted for about 60% of the industry’s volume increase over July 2001.

Even Ford Motor Co., whose sales are down 9% so far this year including its foreign brands, managed to post a monthly sales increase for 2002.

Excluding its import brands--Volvo, Jaguar and Land Rover--the world’s No. 2 auto maker said its July sales were up 0.7%.

The Chrysler arm of DaimlerChrysler saw its July sales decline 4%, however, making it the odd man out among Detroit’s Big Three auto makers.

GM, which has been waging a punishing industry price war, announced July 2 that it was reviving zero-percent financing that it used to boost consumer confidence and buying after the Sept. 11 attacks.

Ford and Chrysler quickly matched GM’s offer and all three also are offering rebates, as high as $7,000 in the case of Ford’s Lincoln Continental luxury sedan, to keep product moving through dealerships.

Import auto makers are not immune to dealing in the fiercely competitive U.S. market. Toyota Motor Corp., which said its July sales rose 4.6%, is offering low financing rates and rebates up to $1,300 on some models.

Honda Motor Co. said its sales rose 7.1%, while Nissan Motor Co. Ltd. said its sales were up 5.4%. Mitsubishi Motors Corp. which also is offering zero percent financing, said its July U.S. sales rose 40.5%.