In what could be seen as an inverse of the past few months, sales for import automakers were relatively strong in July, while the two largest domestics saw sales declines. Last month, almost every automaker saw a growth in sales, with increased year-to-date sales figures for all but General Motors and Ford.

After rebounding from supply problems caused by the devastating earthquake last year, Japanese automakers in particular had a good month. Honda sales jumped 45.3 percent to 116,944 vehicles, Toyota sales increased 26.1 percent to 164,898 vehicles, and Nissan sales climbed 16.2 percent to 98,341 vehicles. Other import brands also showed growth: Sales at Volkswagen, including the Audi brand, rose 27.5 percent to 48,941. Hyundai sales were up 4.1 percent to 62,021.

Chrysler was the only domestic automaker to gain ground in July, with sales rising 12.6 percent to 126,089. GM's overall U.S. sales fell 6.4 percent to 201,237, while Ford sales dropped 3.8 percent to 173,482 vehicles. Much of the decline for the two largest Detroit-based automakers resulted from the timing of sales to rental fleets, as GM and Ford try to reduce their reliance on that part of the business.

Even though some see auto sales as still sluggish at current levels, they continue to be a bright spot in the economy.

"As the federal, and state and local governments have had budget issues, we have seen the pullback in their purchases," said Ken Czubay, Ford's sales chief. GM said that by taking a more "disciplined" approach in its sales to rental car companies, the company believes it will eventually improve profits and support the resale value of its vehicles.

Overall, the industry sold almost 1.2 million vehicles in the U.S. last month, up 8.9 percent from July of last year. This results in a sales pace of a little more than 14 million units and is in line with most analyst estimates for the month and the year.

Any sluggishness in the auto market resulting from fewer fleet sales is not a big worry at this point, said Peter Nesvold, a Jefferies & Co. analyst. "It generally is favorable when the mix moves from fleet to the retail part of the business,” he said.

While auto sales are slightly up across the board, that's better than going the other direction -- and better than many other sectors of the economy. "Automotive sales are essentially moving in a direction that is not consistent with the general economic news," Jeff Schuster, senior vice president of forecasting for LMC Automotive, told the Detroit Free Press.

One reason for the continuing rise in auto sales is that many people put off buying a new car because of the recession. "Today's rebound is driven by pent-up demand from consumers who delayed their purchase during the downturn," Kelley Blue Book's senior market analyst Alec Gutierrez told CBS News. "In our survey, 30 percent of consumers said the primary reason they are shopping for a new vehicle is because their existing vehicle's mileage is too high."

[Source: Los Angeles Times]