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Consumers bought 1.2M new automobiles (+4.3% Y/Y, +15% M/M) in the U.S. during February,...

Consumers bought 1.2M new automobiles (+4.3% Y/Y, +15% M/M) in the U.S. during February, according to analysts. Though it's an excellent sign that average transaction prices rose and the level of incentives in the industry were moderate, inventory levels will be watched closely to ensure automakers aren't getting too far in front of demand. Of the pack, Ford (F) is forecast to have the largest yearly jump in sales for the month with Chrysler (FIATY.PK), Toyota (TM) and General Motors (GM) also strong - while Honda (HMC) and Nissan (NSANY.OB) are likely to report a decline in sales.
Comments (7)
  • No recession, and screw the confidence numbers.
    25 Feb 2013, 08:18 AM Reply Like
  • The next collapse?
    General Motors has flooded financial markets with auto-backed securities in an effort to offload its risky subprime loans onto banks, a strategy industry insiders say could produce a bubble.

     

    High production costs and falling profit-per-car have led auto manufacturers to turn to financing to earn higher profits. Automakers have capitalized on lending by not only loaning money to customers but also packaging and selling those loans to investors in a manner similar to the sale of mortgage-backed securities that created the housing bubble.

     

    The dramatic increase in securitization has coincided with GM’s acquisition of AmeriCredit, one of the nation’s largest subprime auto lenders, which it renamed GM Financial (GMF).

     

    http://bit.ly/125KlTv
    25 Feb 2013, 08:51 AM Reply Like
  • ... soooo, is any of that good or bad for GM shareholders? What about Ford, who has a healthy and highly disciplined in-house automotive financing arm? What about the other automakers?

     

    Or are you just throwing around random drive-by conspiracy theories that you read somewhere on the internet, because they cannot put anything on the internet that isn't true, according to the internet.
    25 Feb 2013, 09:43 AM Reply Like
  • How much of this was financed with subprime auto loans?
    25 Feb 2013, 11:38 AM Reply Like
  • I must admit to being naive and ignorant of the stock market. I just don't understand how F can have so much going these last couple years or so and the market reacts negatively, especially these last few weeks.
    25 Feb 2013, 01:14 PM Reply Like
  • long F; the market will catch up to it
    25 Feb 2013, 01:40 PM Reply Like
  • Management , I think , is the key and yes the market will catch up very soon. Now, all we need are cars that can run on CNG; so, F what about it. I'm long and know that we all will be rewarded for a long time.jpmj4847
    25 Feb 2013, 06:35 PM Reply Like
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