Auto Sales Have Recovered a Bit

The major automotive retailers reported in July 2010 that sales improved from previous months, indicating that the automotive industry may not be as doomed as once predicted.

As the recession continued throughout 2009, car sales dipped considerably. With fewer dollars in their pockets, consumers decided to pass up purchasing or leasing a new ride. But it seems that some brands are recovering. Even the recall-plagued Toyota reported increased sales of about 20 percent. Four brands from GM -- Chevrolet, Buick, GMC, and Cadillac -- were also up about 25 percent.

Ford leveled out in sales, seeing some slight slumping of sales of its Mercury brand. The company has reported that Mercury will be phased out at the end of this year. Also being discontinued is the Lincoln Town Car.

Summer is generally a time when consumers go car shopping, so industry analysts are being cautious whether summer sales indicate a change in the tides. Industry prognosticators suspect many buyers will take advantage of end-of-year promotions that run through the summer and fall to sell off remaining 2010 stock and make room for new inventory.

Experts predict that as long as the economy starts improving bit by bit, employment picks up, and gas prices stay at or below $3, sales of vehicles will continue to rise gradually.