Big Three auto sales take a dive in July

Sales by the Big Three U.S. automakers nosedived in July as import brands grabbed a majority of the American auto market for the first time.

High gas prices and a slumping housing market were blamed for a 19% combined drop in car and light truck sales at General Motors Corp., Ford Motor Co. and Chrysler Group compared to a year ago, according to data tracking firm AutoData Corp. Although sales of foreign nameplates also were affected, they suffered a much smaller decline, falling 5% year over year.

Overall, car and light truck sales in the U.S. fell 12.3% last month, raising concerns about the implications for the broader economy.

“Housing sales are in the tank, and now we’re seeing the same in auto sales,” said industry analyst Erich Merkle of consulting firm IRN Inc. “What else is there? You can’t support an economy on groceries and gasoline.”

Cars bearing the nameplates of Asian and European automakers accounted for almost 52% of July sales.

For Detroit, which 50 years ago was building almost every car sold in America, it was a reversal of fortune that has become familiar among the nation’s manufacturers. But it also has lost some of its meaning in an industry that is becoming increasingly globalized.

While the Big Three still look to their home market for the bulk of their sales, success overseas is becoming increasingly important. And “imports” fit the description less and less these days: More than 80% of the 900,000 vehicles Honda Motor Co. has sold in the U.S. this year were made in the United States or Canada.

martin.zimmerman@latimes.com