January auto sales preview: Modest sales gains as profitability takes center stage


Kelley Blue Book forecasts new auto sales will rise 1.6% Y/Y to 1.06M units in January.

Nissan (NSANY) is expected to have the strongest pace of sales growth at 7.5%, while Ford (F) and Toyota (TM) are forecast to see a drop from last year's sales level with their biggest model introductions for 2014 set to come down the road. Honda (HMC) and Hyundai (HYMLF) are also

Between them, General Motors (GM) and Ford (F) should account for a third of all sales in the U.S. in January.

What to watch: As profitability takes center stage in the industry, the levels of incentives used by automakers will be closely watched. KBB thinks GM will reduce incentives on the all-new Chevrolet Silverado and GMC Sierra.

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Comments (7)
  • jmjjmj1
    , contributor
    Comments (183) | Send Message
     
    profitability yes, save for TSLA
    23 Jan 2014, 02:59 PM Reply Like
  • cbroncos
    , contributor
    Comments (2975) | Send Message
     
    I would hope that before anyone trades in this information is that they look at the previous prediction which have been very wrong. KBB has missed the mark badly in past months.
    23 Jan 2014, 04:39 PM Reply Like
  • Rich Hamlin
    , contributor
    Comments (27) | Send Message
     
    Too much snow and cold for people to want to buy a new car. New car sales will stink for Jan.
    24 Jan 2014, 08:14 AM Reply Like
  • Momintn
    , contributor
    Comments (6073) | Send Message
     
    Perhaps but most cars are over 10 years old and tend to have trouble in cold weather.
    24 Jan 2014, 09:52 AM Reply Like
  • Tdot
    , contributor
    Comments (8916) | Send Message
     
    Then Sears Auto Centers must be making out like bandits in the Diehard Battery replacement business. About every five years, I think they recommend?
    24 Jan 2014, 08:54 PM Reply Like
  • User 11395051
    , contributor
    Comment (1) | Send Message
     
    Ford, will beat 4q earnings and will raise the divided early next year. again! Europe will turn around and china's new production facilities will mostly come online... Latin-America is a toss up but not very relevant. people need cars, affordable cars.
    26 Jan 2014, 09:03 AM Reply Like
  • Tdot
    , contributor
    Comments (8916) | Send Message
     
    Investors and Shareholders can only hope.

     

    "Affordable cars", by definition, are not very profitable though. It is the expensive luxury-laden models that run up profits and make the "affordable" versions affordable. Takes a LOT of base Fiestas or Foci selling at list price to match the profits from one pickup truck or SUV. Of course Ford makes their automotive revenues and profits at the wholesale level sale to the dealerships, not directly from retail sales to consumers, but still the margins on small "affordable" cars are tiny at any level.
    26 Jan 2014, 11:26 AM Reply Like
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