U.S. Auto Sales: Chrysler  Up 11% in July image

Chrysler’s sales in the United States in July increased 11% to 140,102 units, accounting for the 40th straight month of growth, the Auburn Hills based automaker said on Thursday.

Chrysler’s sales increase in the U.S. is helping the market keep on track of reaching its best year since 2007, as customers begin to replace their old vehicles. During the second half of the year Chrysler will introduce the new Cherokee SUV, which is expected to help the company continue its expansion fueled so far this year by Dodge Dart compact vehicles and Ram trucks.

”The second half is not doable without a proper launch of the Cherokee,” Marchionne said during a July 30th conference call after reporting an increased second-quarter profit. “It’s an absolute necessary condition for the achievement of the targets that we set for ourselves.”

Analysts estimate that auto sales in the U.S. in July might have increased 15% to 1.33 million vehicles, while Chrysler expects a Seasonally Adjusted Annual Rate for U.S. increase to 15.8 million units for July. TrueCar.com said it also expects a July SAAR of 15.8 million, up from a year ago when it was only 14.1 million.

Chrysler, as well as other major automaker, have turned to leasing to boost sales. Leases are quickly becoming quite common among family sedans, such as GM’s Chevrolet Malibu and Toyota’s Camry. According to J.D. Power & Associates the leasing share in the US auto sales has been at least 22.5% in each month so far this year.

Source: Bloomberg