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

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

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

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

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

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!