Projo Cars Blog

DETROIT -- Auto sales perked up in August because of cash for clunkers, but both General Motors and Chrysler struggled after emerging from bankruptcy protection, according to The New York Times.

Total industry sales in the United States increased 1 percent during the month compared with August 2008, and rose 26 percent compared with July.

Much of the improvement was attributed to the government's popular cash-for-clunkers program that gave consumers vouchers worth up to $4,500 if they traded in an older, gas-guzzling model.

But even as most automakers posted gains in August, sales at G.M. dropped 20 percent and Chrysler's sales fell 15 percent.

Ford posted a 17 percent gain in sales in August, partly because its Focus compact car was one of the top-sellers in the clunker program.

Over all, the industry's annualized sales rate for the month hit 14 million units, the highest pace so far this year.

Analysts said that showroom traffic was already starting to fall now that the clunkers program is over. But the stimulus provided by clunkers could have a lingering impact in the months ahead.

 Tags  Auto sales Chrysler Ford General Motors

---