Why GM, Chrysler are riding high

Strong sales in November kept a strong year on course, and solid profit margins helped as well.

By MSN Money Partner Dec 5, 2013 11:31AM

‘Tis the season of uncertainty, as many retailers are expecting a rough holiday season. Automakers, though, are bursting with joy.

 

Both Chrysler and General Motors (GM) reported robust November sales, with deliveries of cars and light-duty trucks jumping by 16% at Chrysler and 14% at GM as consumers flocked to dealerships to replace their old wheels. The results were better than analysts expected, and experts now see the companies ending 2013 on a high note.

 

(Post continues after video.)


Other automakers such as Ford (F) and Hyundai also posted strong results, though not nearly as good as Chrysler and GM. Ford gained 7.1%, thanks largely to continued strength in the F-150 pickup, the industry's No. 1 seller. Hyundai and its affiliate Kia posted a 7.3% increase.

 

Overall auto sales climbed 8.9% in November to almost 1.25 million vehicles sold, which beat analysts' projections. What’s even more amazing is that automakers have kept incentive spending under control, enabling them to maintain profit margins.

 

Consumers, though, may tap the brakes next year. After 2013's projected sales of 15.7 million, analysts expect next year's pace to be 16.1 million, the smallest annual gain since 2009, according to Bloomberg. Still, that would extend the industry's winning streak to five years for the first time since World War II.

176Comments
Dec 5, 2013 1:32PM
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I would be profitable too if the government discharged all my debts and let me keep my assets.
Dec 5, 2013 1:39PM
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If I had been given $50 billion in taxpayer bailout money like GM, I'd be doing pretty good too. The gov't only lost $10 billion in the process. What a deal! Anyone here naive enough to think GM will pay us back?
Dec 5, 2013 1:35PM
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GM is doing great, but somehow the government lost money on the stock buy they made during the bail out.
Dec 5, 2013 1:42PM
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When is Obama going to go after GM and Chrysler and raise their taxes because there are profits are too high?
Dec 5, 2013 1:29PM
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what city was  gm located in years ago and could not  make it  moved most plants out of US AND IS BOOMING  WHAT IS WRONG WITH THIS PICTURE 
Dec 5, 2013 2:11PM
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Toyota and Honda get government subsidies ever year and limit American Vehicles imported into Japan.

Wake up America...Stop the Trans-Pacific Partnership! It is being fast tracked by the President and the republicans. What do you think Biden has been doing in Asia? Selling us out!

Dec 5, 2013 2:57PM
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Didn't GM & Chrysler have operations in the now bankrupt Detroit?

Didn't the American taxpayers take a haircut (more like a head/body shaving) on the GM stock?

Didn't the American taxpayers give generous credit terms to these clowns in 2008?

Didn't GM lay off a ton of workers in Detroit that are now on the public dole?

Do the American taxpayers get to share in the turn arounds we financed by sacrificing our dollars and jobs?

Dec 5, 2013 1:52PM
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If they are riding so high, why did they pocket 10 billion dollars of taxpayer money?  Pull up the GM earnings and financials.... ya, they've been doing great slowly writing off the 60 billion and investing overseas.  Sales are still down against quotas, and production is still outsourced to cheap labor around the world. 
Dec 5, 2013 1:44PM
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People still buying their vehicles? Like they need more handouts. I know some that said they would not buy from them anymore after taking the bailout money. Ford survived without the money,
Dec 5, 2013 3:09PM
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if gm is so profitable then pay back the debt they owe
Dec 5, 2013 2:23PM
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Its time that we the working class, DEMAND that all of these companies pay their fair share of taxes.
Dec 5, 2013 1:57PM
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Amazing that GM is so profitable?  Hey Obama sold out the American taxpayer, who lost a lot of money on GM stock so that his Wall Street buddies would make millions and he'd get "campaign" donations.
Dec 5, 2013 2:37PM
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Nothing like billions of taxpayer dollars to make you look good.
Dec 5, 2013 2:29PM
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"solid profit margins helped as well."

This is generally the result, for a while, of stiffing your investors, cheating all your vendors, pocketing 10's of billion$ of taxpayer money and paying it all back with worthless paper.
Dec 5, 2013 1:39PM
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Well this is simple enough, ...they are being towed through the doldrums by Ford.
Dec 5, 2013 2:32PM
Dec 5, 2013 3:04PM
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Great news for GM.  Now, seeing as how the good old federal gov't. under one illustrious Barack Obama bailed GM out, and the taxpayer got stuck with a $20 billion loss on the deal when the gov't sold the last of the stock the taxpayers owned.   I would like GM to write me a check for $66 and change.  That's $20 billion divided by the 300 million people in the US.  That was a bunch of crap.  Democrats and the UAW bitched at Republicans and Romney for suggesting they just let GM file for bankruptcy, reorganize, shed old debt and get rid of unprofitable and inefficient manufacturing lines.  Along comes Obama with 'oh no, we can't let that happen'.  The jerk gets elected and GM goes through bankruptcy proceedings anyway, only this time, the taxpayer gets stuck with the check.  BULL X%3T!!!!!
Dec 5, 2013 2:17PM
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Ford never got bailout money, but it did get a $5.9 billion loan in 2009 to build "green" cars.  They owe a first payment this year or next. Chrysler owes $1.9 billion, having paid back most of the loan.  I think GM owes around $20 billion, and its stock would have to reach about $53 a share for the government to break even.
Dec 5, 2013 1:56PM
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with everything made overseas, how can you buy a USA car or truck?

we are consumer based and we make other country's rich! they are now buying up as much as they can! no change in the way we buy and we are sinking fast.

Dec 5, 2013 2:02PM
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With the aid of that taxpayer loan and a well-timed bank loan of $23 billion, Ford managed to tiptoe past the graveyard and avoid bankruptcy.
So yea they got some money as well!
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