Investors: Don’t Forget Auto makers!
Signs of economic recovery can be seen in the automotive sector! Chrysler Group saw auto sales rise by 11% in April led by double digit growth in its truck sales. Truck sales jumped by 14.8% and car sales increased just over 4%. This was expected for the industry as a whole anyway. New auto sales in the US in April were expected to grow by 10% from the previous year but dropped by 10% from the total sales in March.
Another auto maker seeking redemption from the recent past is General Motors (GM). The company has a lot going for it right now including a string of very profitable quarters and a war chest boasting $40 billion. GM, based in Detroit, will probably report its 13th straight quarter of profit May 2 when it announces results for the first three months of the year. The first quarter of this year saw sales rise 9.3% which is far above the industry average of 6.4%.
Even Ford (F) is doing well as it inches closer to its 52 week high. The company expects to announce solid double-digit growth the first quarter of this year as its “Fusion and Focus” were in big demand as the year started. Kelly Blue Book has the company’s sales estimates at 15.3%.
Seems like a good season for the auto makers as they continue to show signs of healthy sales. It will be interesting to see how they fare this second quarter as many of the economic indicators are signaling a slowdown. Will these cause consumers to buy less big-ticket items like autos? We will see how this plays out!