A nice little jump in consumer sentiment bodes well for automobile companies, according to...


A nice little jump in consumer sentiment bodes well for automobile companies, according to CNBC's Phil LeBeau. The outlook for the industry looks extremely good with fresh models from automakers (F, GM, TM, FIATY.PK, HMC, NSANY.OB, VLKAY.PK) coinciding with structural pent-up demand and the uptick in sentiment.
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Comments (4)
  • KJP712
    , contributor
    Comments (469) | Send Message
     
    Single-handedly,Phil LeBeau keeps hope alive for the Auto Market.
    17 May 2013, 11:10 AM Reply Like
  • harryjack
    , contributor
    Comments (568) | Send Message
     
    Re: auto industry stocks:! I work in industry, worry point is ability of suppliers to keep up with demand. Note $BWA $65 to $85 price action year to date. Common denominator companies will do as well. $TM is in full swing and although having massive onshore move, will benefit from strong Yen as they take profits home
    17 May 2013, 12:00 PM Reply Like
  • Tdot
    , contributor
    Comments (8675) | Send Message
     
    That is an interesting point. The US automakers severely cut back on production capacity, including closing many assembly and component plants, and in paring back the Supplier base to a minimum, in order to be profitable in the US in the next Recession down to 10M units per year.

     

    Now that the SAAR suggests we may be headed back to 16-17M units sooner than later, due to pent-up demand as cars and trucks on the road are now aging into their teens on average, the US automakers are stretching the limits of mass production just to keep up with demand, with little to no incentive discounts. It may present the Asians with a grand opportunity to flood the US market with replacement vehicles, imported and/or domestic transplants.
    17 May 2013, 12:11 PM Reply Like
  • Left Banker
    , contributor
    Comments (3588) | Send Message
     
    VW reported today a 9.9% increase in European sales in April. Huge uptick in the continent's depressed market. Volkswagen (VLKAY.PK) is the value buy of the industry right now, and as demand is released in Europe, where it's number one in car sales) its stock should soar (http://bit.ly/YOHgnu).
    17 May 2013, 12:03 PM Reply Like
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