Gas prices fuel U.S. big-vehicle sales in July

The major automakers posted strong U.S. sales performances in July as the auto industry creeps closer to its first full year of 17 million-unit sales since before the Great Recession.

The automakers reaped profits from consumers' rush to buy bigger vehicles as gasoline prices remain low. SUV sales stood out.

"That segment of the market continues to be smoking hot," said Mark LaNeve, Ford's sales chief, on a conference call.

Low gas prices spelled sales declines for many small models, leaving distinct questions about how the automakers can sell fuel-sipping cars without piling on incentives.

The price of a barrel of West Texas Intermediate crude oil is half what it was a year ago. It continued its recent free fall, dropping below $46.

Big vehicles mean big profits for the automakers. The average transaction price for a vehicle sold in the U.S. rose 3% in July, compared to a year ago, to $33,453, according to Kelley Blue Book.

The average pickup truck sold for $45,700, up 5% from the same period a year ago. That partly reflects a greater number of consumers purchasing expensive options on their pickups.

"Consumers continue to swing more toward SUVs and trucks," Kelley Blue Book analyst Alec Gutierrez said.

Japanese automaker Subaru continued its stunning hot streak in the U.S., posting its best month ever with sales of 50,517 vehicles.

General Motors posted a 6% sales increase in July, compared to the same period a year earlier. GM was powered by a 14% increase in sales to retail customers, the most profitable kind of transaction in the business. The Chevrolet brand rose 8%, the GMC brand increased 1%, the Buick brand rose 18%, and the Cadillac brand fell 7%. GM reduced its reliance on less-profitable daily rental sales for the month.

Fiat Chrysler Automobiles also recorded a 6% increase in July, marking its 64th consecutive month of U.S. sales gains. Ford posted a 5% increase.

Honda's sales rose 8%, and Toyota's sales rose 1% in July. Nissan Group's U.S. sales rose 8% in July, compared to a year earlier. The Nissan brand rose 6.7% and the Infiniti brand increased 22%.

Fiat Chrysler's biggest brand, Jeep, surged 23% in July, with all of its U.S. vehicles posting increases. The Wrangler was up 18%, and the Cherokee was up 13%. The company sold 6,320 units of its recently introduced Renegade small crossover.

The comeback of Ford’s Lincoln brand continued, as the luxury line and Cadillac rival enjoyed a 21% increase for the month.

But in the pickup truck wars, GM gained ground on Ford during the month. GM’s Chevrolet Silverado soared 34% to 56,380, compared to the same period a year earlier, and the GMC Sierra increased 13% to 19,808, while Ford’s F-series pickup rose only 5% to 66,288.

Ford's LaNeve said the company is still ramping up production of the F-150 pickup truck, nearly a year after the company launched the new all-aluminum version of the most popular vehicle in the country. He said the company would reach "normalized" levels by the end of the third quarter.

With Ford lacking enough pickups, GM capitalized on consumer demand. That includes sales of mid-size pickup trucks. GM sold 7,209 units of the new Chevrolet Colorado and 2,654 of the GMC Canyon.

AutoTrader.com analyst Michelle Krebs said pickup truck sales still have room to accelerate as new-home construction increases.

"Pickup trucks on the road are still very old, so there’s a lot of potentially pent-up demand to release there," Krebs said.

Nissan Group posted a 22% increase in sales of pickup trucks, SUVs and crossovers, reflecting consumers' rush into bigger vehicles as gasoline prices remain low. Hyundai enjoyed its best July ever, rising 6%.

German luxury brand Audi each reported a 21% increase, marking its fourth-best month ever in the U.S. Rival German luxury brand Mercedes-Benz reported a 1% gain. Jaguar Land Rover sales rose 7%.

Volkswagen's U.S. sales edged up 2% for the month.

Small-car sales remained disappointing. The Nissan Versa subcompact, for example, plunged 36% to 9,949 units, and the Nissan Leaf electric vehicle fell 61% to 1,174.

Fiat Chrysler's Fiat brand fell 15%. Ford car sales fell 4% for the month. GM small cars also sagged, with the Sonic subcompact falling 21% and the Spark minicar falling 11.5%.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.