Free Annual Reports
GM Stars In December Auto Sales
As expected, U.S. automakers Ford Motor Co. (NYSE:F), General Motors Co. (NYSE:GM) and Chrysler Group LLC posted impressive sales numbers in December. Final figures for U.S. auto sales in December (annualized rate) was expected to reach a seasonally adjusted 12.5 million light vehicles.This continues the positive trend for U.S. auto sales as the industry returns from its recession nadir.
IN PICTURES: 5 "New" Rules For Safe Investing
U.S. Automakers Continue to Perform
Ford reported 190,191 light vehicles sold in December, a 6.8% increase from last December. This excludes Volvo, which would put Ford's increase at 3.5%. The Ford Escape, Fusion and F-Series pickup led the way. Ford, which gained market share this year from its rivals, had a strong 2010.
But GM was the star of the show. GM sold 224,147 vehicles for December, an 8% increase from December 2009. Its fast-selling Chevrolets contributed heavily. GM had a landmark year, as it emerged from bankruptcy, shed vehicle brands and tightened operations. Chrysler, also after its bankruptcy, sold 100,702 vehicles in the month. With the economy improving, the auto industry is looking for an even bigger year in 2011.
Toyota's Struggles Continue
Toyota Motors (NYSE:TM) did not share so much in the domestic bounty with the U.S. automakers; its December U.S. sales decreased by 5.5%. Plagued by year-long recall issues, Toyota's U.S. sales in 2010 were off by 0.4%. Asian rivals, Hyundai, Nissan Motor Co.(OTC:NSANY) and Honda Motor Co. (NYSE:HMC) all fared better. Toyota officials, however, remain confident in their company's future in the U.S.. With such models as the Prius hybrid, the company expects U.S. sales to grow in 2011. (For related reading, take a look at The Cost Of An Auto Recall.)
European Automakers Strong
Daimler (OTC:DDAIF) and Volkswagen (OTC:VLKAY) both had an impressive month in the U.S. with December sales.Volkswagen gained 17%, while Daimler increased sales by 5.5%. In addition, European automakers continue to play out their quiet success stories on the global front, despite the otherwise negative European economic news.
Consumer Comeback
Analysts cited factors such as increased consumer confidence, as well as loan availability, for bringing customers back into showrooms and boosting auto sales. Demand showed itself through increased sales at dealerships to retail customers, not just business or fleet sales.
Many other indicators suggest that the domestic auto sales trend may be a sustainable one. Among them, truck sales are rebounding. Small business and construction use these pickups and light trucks. Ford's important announcement that it would raise its vehicle inventory levels, which it held at 400,000 in 2010, should also be noted. The auto industry is also considered to be a vital window into the U.S. economy, making the year-end sales surge a good omen for the broad economy in the new year as well.
More Growth Ahead
Industry analysts see more growth for U.S. auto sales in 2011. GM is projecting auto sales to reach 13 to 13.5 million in 2011, while Ford sees a 12.5 million figure. Both Ford and GM stock have been bid up near 52-week highs. GM stock is up 10% from its IPO in November, while Ford stock is up 70% in the last year.
The emerging U.S. recovery is showing itself in the auto industry, where it's gathering force and power. Look for GM and Ford to continue to benefit on the top and bottom line as autos continue to come back.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: 5 "New" Rules For Safe Investing
U.S. Automakers Continue to Perform
Ford reported 190,191 light vehicles sold in December, a 6.8% increase from last December. This excludes Volvo, which would put Ford's increase at 3.5%. The Ford Escape, Fusion and F-Series pickup led the way. Ford, which gained market share this year from its rivals, had a strong 2010.
But GM was the star of the show. GM sold 224,147 vehicles for December, an 8% increase from December 2009. Its fast-selling Chevrolets contributed heavily. GM had a landmark year, as it emerged from bankruptcy, shed vehicle brands and tightened operations. Chrysler, also after its bankruptcy, sold 100,702 vehicles in the month. With the economy improving, the auto industry is looking for an even bigger year in 2011.
Toyota's Struggles Continue
Toyota Motors (NYSE:TM) did not share so much in the domestic bounty with the U.S. automakers; its December U.S. sales decreased by 5.5%. Plagued by year-long recall issues, Toyota's U.S. sales in 2010 were off by 0.4%. Asian rivals, Hyundai, Nissan Motor Co.(OTC:NSANY) and Honda Motor Co. (NYSE:HMC) all fared better. Toyota officials, however, remain confident in their company's future in the U.S.. With such models as the Prius hybrid, the company expects U.S. sales to grow in 2011. (For related reading, take a look at The Cost Of An Auto Recall.)
European Automakers Strong
Daimler (OTC:DDAIF) and Volkswagen (OTC:VLKAY) both had an impressive month in the U.S. with December sales.Volkswagen gained 17%, while Daimler increased sales by 5.5%. In addition, European automakers continue to play out their quiet success stories on the global front, despite the otherwise negative European economic news.
Analysts cited factors such as increased consumer confidence, as well as loan availability, for bringing customers back into showrooms and boosting auto sales. Demand showed itself through increased sales at dealerships to retail customers, not just business or fleet sales.
Many other indicators suggest that the domestic auto sales trend may be a sustainable one. Among them, truck sales are rebounding. Small business and construction use these pickups and light trucks. Ford's important announcement that it would raise its vehicle inventory levels, which it held at 400,000 in 2010, should also be noted. The auto industry is also considered to be a vital window into the U.S. economy, making the year-end sales surge a good omen for the broad economy in the new year as well.
More Growth Ahead
Industry analysts see more growth for U.S. auto sales in 2011. GM is projecting auto sales to reach 13 to 13.5 million in 2011, while Ford sees a 12.5 million figure. Both Ford and GM stock have been bid up near 52-week highs. GM stock is up 10% from its IPO in November, while Ford stock is up 70% in the last year.
The emerging U.S. recovery is showing itself in the auto industry, where it's gathering force and power. Look for GM and Ford to continue to benefit on the top and bottom line as autos continue to come back.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Greg Sushinsky
Greg Sushinsky is a passionate independent investor, who has done his own research, analysis and investing for 20 years. One of his earliest investing memories was when he first saved and bought U.S. Savings Bonds with his own money as a small child. From there, he studied investing on his own and made small stock purchases as he grew as an investor.
Sushinsky still follows the markets, studies and reads widely in financial literature, and has written over 75 articles on investing. He is also a professional editor, whose work is published extensively in large-circulation magazines, digests and across the internet. In other pursuits, Sushinsky writes fiction and has a university degree in philosophy. To see more of Sushinsky's literary work, see http://writing.gregsushinsky.com/.
Sushinsky still follows the markets, studies and reads widely in financial literature, and has written over 75 articles on investing. He is also a professional editor, whose work is published extensively in large-circulation magazines, digests and across the internet. In other pursuits, Sushinsky writes fiction and has a university degree in philosophy. To see more of Sushinsky's literary work, see http://writing.gregsushinsky.com/.
Free Annual Reports
