The US Auto Industry Is Off To A Good Start: General Motors Company (GM), Ford Motor Company (F)

Page 1 of 2

The US auto industry continues to show signs of recovery and growth as it posted handsome figures for January. The industry is recovering with stronger numbers and recorded 2012 as the best of the past 5 years. Though the US economy recovered at a moderate rate in the past year, the auto industry delivered solid numbers with improving consumer confidence.  The year has kicked off to a great start and the industry is expected to record 15 to 15.5 million units’ sales.

The Detroit Three recorded double digit sales gains in January, which were pretty impressive given the general trend. Let’s take a closer look at the performance of these automakers.

General Motors Company (NYSE:GM)Diving into the number pool
General Motors Company (NYSE:GM)
continued to be the number one car company in sales. It witnessed a sales surge of 16% compared to the year ago period by selling 194,699 units. As the economic conditions are improving, the top US automaker is confident about future outlook and the prospects of its upcoming launches. Cadillac sales were up 47%, while Buick’s redesigned Enclave crossover experienced a 57% jump in sales. Sales of Chevy Silverado increased 32%, while the Sierra enjoyed 35% sales growth.

The second Detroit auto maker Ford Motor Company (NYSE:F) also experienced an impressive 22% sales growth. It beat the analyst estimates of 164,500 units by recording sales of 166,501 vehicles last month. Both Fusion and Escape are doing exceptionally well for the automaker. The new Fusion has been well-received by consumers, which is reflected in the strong 65% sales growth of the vehicle. Ken Czubay, the VP of US Marketing, Sales & Service, points out that the company’s investment in fuel efficient cars and hybrid technology is giving impressive returns.

The third largest US automaker Chrysler may have slightly missed analyst expectation, but still saw a decent month.  In fact this was the company’s best January in the last 5 years. It enjoyed a 16% sales growth by selling about 117,700 units against a forecast of 121,000 vehicles.

Even the foreign automakers experienced remarkable growth in sales as the pent-up demand and discounts on a few segments continued attracting customers.

The foreign counterparts
The Japanese counterpart Toyota Motor Corporation (NYSE:TM) continued to deliver solid growth with sales rising 26.6% to 157,724 vehicles compared to the prior year figures. The sales of Tundra were up 27%, while Corolla saw a 32% increase over the previous year. Toyota’s recovery has been remarkable considering the supply chain disruption is suffered when its production units got hit by Tsunami.

The German automaker Volkswagen saw its best January since 1974. The automaker’s sales increased 6.7% to 29,018 vehicles. Jonathan Browning, the Chief Executive and President of Volkswagen Group of America, is very positive about the momentum of the automaker and expects its growth to outrun the industry this year.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!