Discounts Fuel June 2007 U.S. Auto Sales

Washington DC July 3, 2007; The AIADA newsletter reported that generous month-end discounts fueled U.S. car and truck sales in June, offsetting concerns about high gasoline prices and a slowing economy, analysts said.

"Sales appear to have picked up nicely in June, following the lackluster selling rate of the past three months," Lehman Brothers analyst Brian Johnson told Automotive News. "This is largely due to a sizable increase in incentives so far this month, and the generous new marketing programs."

New U.S. vehicle sales are expected to come in flat to as high as 16.8 million vehicles on a seasonally adjusted annual rate basis for June, according to analysts. That compares with last June's 16.2 million-unit rate and May's 16.16 million.

Across the industry, vehicle sales are down 1 percent so far this year as concerns over the economy have caused consumers to hesitate in purchasing vehicles.