As the federal government looks to add billions more to the "cash for clunkers" program, at least one Detroit automaker is attributing a boost in July sales to the popular effort.

Ford Motor Co. will report its first monthly year-over-year sales gain in nearly two years today, thanks to a much-needed push from the program, company officials said Sunday. The Dearborn automaker would not provide specific figures until today.

The $1 billion federal program to retire less efficient vehicles is all but out of money, but will continue through at least Tuesday, U.S. Transportation Secretary Ray LaHood said Sunday.

General Motors Co., Chrysler Group LLC and other automakers also will report July sales today, which are expected to jump as a result of the "cash for clunkers" program. Hyundai Motor Corp. last week said about 15 percent of its July sales were the result of deals fueled by the program, which offered car buyers up to $4,500 to trade in their old cars and light trucks for new, more fuel-efficient models. It went into effect July 24.

President Barrack Obama says he is hopeful that lawmakers soon will approve the funds necessary to continue the program. The House voted for an additional $2 billion for the program on Friday. The Senate is expected to consider the bill this week.

Ford said the sale increase proves that "cash for clunkers" needs more funding, noting that the $1 billion initial investment was tiny compared to the government's other stimulus efforts and has already paid big dividends.

"It really did elevate new vehicle sales," George Pipas, Ford's head of sales analysis and forecasting, said Sunday.

But even without the federal aid, sales of Ford vehicles were already stronger than they had been in months, he said. "Things have been getting better and better each month. The month of July started out pretty solid, even before 'cash for clunkers.' I do think consumers are in a better place."

Ford's fleet sales are down, so all of the increase is due to gains in retail sales, he said.

According to Pipas, the latest data for all automakers shows the most traded-in vehicle as of Friday was a Ford Explorer and the most purchased new vehicle was a Ford Focus.

On Sunday, Transportation Secretary LaHood told C-SPAN that the "cash for clunkers" program will be suspended later this week if the Senate fails to approve more money.

The Senate won't take up the bill for new money for the program until Tuesday at the earliest, said Jim Manley, a spokesman for Senate Majority Leader Harry Reid. .

The government will "continue the program until we see what the Senate does," LaHood said. "Any deal that is made (today) or the next day and is in the pipeline, the dealer will be reimbursed," he said.

Senate approval, however, is in doubt because several Republicans oppose the extension and others, including Sen. Dianne Feinstein, D-Calif., want the new program to have tougher environmental requirements.

Late Friday, the National Highway Traffic Safety Administration loosened two program requirements.

Dealers may now choose to disable the engine of the trade-in vehicle after they receive payment from the government. Dealers must disable the engine within seven days after receiving reimbursement.

NHTSA also will no longer require proof of insurance from Wisconsin and New Hampshire residents because those states do not require insurance.

Ford, the second-largest U.S. automaker, sold 156,406 vehicles in July 2008. The company hadn't posted a year-over-year monthly sales increase since November 2007, Pipas said.

Pipas said Ford also improved its U.S. market share in July, extending its gains after the company became the only domestic automaker to avoid filing for bankruptcy.

Ford increased its U.S. market share in June to 17 percent from 14 percent a year earlier, climbing past Toyota Motor Corp. and into second place behind GM.

The company has said it has achieved those improvements while reducing incentives. "It's a continuation of what Ford has been working on for the last year -- gaining better-quality market share," said Michael Robinet, an analyst with consultant CSM Worldwide Inc. in Northville.

U.S. sales have languished at an annual rate of less than 10 million vehicles since December and have fallen for 21 consecutive months, dampened by a lack of credit, tumbling housing prices and the recession.

U.S. industry sales probably ran at an annualized rate of more than 10 million vehicles last month, the highest level of 2009, Pipas said. That prediction suggests that the average estimate of 10.1 million among seven analysts surveyed by Bloomberg may have been too low.

Fords sales were projected to drop 6.1 percent, based on six estimates, while the decline was estimated at 24 percent for GM and 33 percent at Chrysler Group LLC.

Sales matching or exceeding analysts' estimates may signal a possible bottom in the worst U.S. auto slump since at least 1976. Automakers sold 13.2 million vehicles last year and averaged 16.8 million from 2000 through 2007.