Automakers see huge sales gains in January
Americans had no problems buying cars last month, even as consumer confidence waned and paychecks got a bit smaller.
Auto sales were on fire for all of 2012, and haven't slowed one bit in the new year.
Automakers saw double-digit sales growth in January, even though consumer confidence waned and paychecks grew smaller as payroll taxes increased.
But several factors were working in automakers' favor. Cars on U.S. roads are nearly 11 years old, on average, and drivers need to replace their clunkers. Automakers have also released some interesting models with a renewed focus on fuel efficiency. Dealerships offered buyers a number of discounts and other incentives. And finally, consumer credit is getting better, interest rates are still low and financing a purchase has become easier.
"The biggest driver of this year’s story is going to be replacement," Ford exec Ken Czubay said Friday on a conference call, according to Bloomberg. "The age of the fleet has continued to get little bit older."
General Motors (GM) and Ford (F) saw their respective stock prices rise Friday as they reported gains of 16% and 22% from a year earlier. GM shares were up 1% in afternoon trading to $28.38, and Ford shares rose less than 1% to $13.05.
Chrysler also saw sales growth of 16% for the month. Overall, analysts think U.S. sales will rise 15% to an annualized rate of about 15 million to 15.5 million, up from 14.5 million last year.
The overall industry came in about even with expectations for the month, with the seasonally adjusted annual rate for light vehicles at 15.29 million units, according to industry tracking firm Autodata. That's a 14% increase from a year earlier and a 23% decrease from December 2012.
Toyota (TM) led the industry with gains of 27%. The company ended 2012 as the world's largest automaker, taking the title back from GM. Still, the race is extremely close. Toyota sold 9.75 million vehicles last year compared with 9.29 million for GM. Toyota's U.S. shares were up 3% Friday to $98.23.
More on moneyNOW
Wow , 40,000 dollar pick-up trucks selling like gangbusters, the economy must be exploding !
This is all BS and you must be entirely not into other than promotion. This economy stinks pure and simple. Forget the nonsense in some derivation to suit. Guess, the Hispanics are 'buying" us....trucks!
Get a clue. I see these trucks all over, here. Yeah, "easy credit" .. you think I am kidding...nope. All this is "manufactured BS, period.
WHITEY WITH A .45 ACP:I know the far right doesn`t want to hear facts, but here goes:
I have a college degree and a growing limo service.We`re boooked the entire week
of Valentine`s week, by the way.
If you were smart,you`ld buy stocks, instead of guns.If you were smart.
Auto sales are up there,housing is improving,the stock market is near record high
and 6 million jobs have been added in 4 years.The far right hates positive news.They
want to hear depression,guns,war,school shootings and smash mouth football.
Let`s go back to be glory Bush years.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +10.50. U.S. equity futures hover near their pre-market highs amid upbeat action overseas. The S&P 500 futures trade less than a point above fair value.
Reviewing overnight developments:
- Asian markets ended mixed. Japan's Nikkei -0.1%, China's Shanghai Composite +0.1%, and Hong Kong's Hang Seng +0.8%
- In economic data:
- Australia's CPI rose 0.5% ... More
- In economic data:
More Market News
The company plans to close stores and lay off employees, and says it needs to make some deeper changes.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'