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
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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!