GM Expects Sales Slide, Nissan Cuts Forecast

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Includes: GM, NSANY
by: David Jackson

Excerpt from today's One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):

GM Expects Its Sales To Slide for June and July

  • Summary: GM issued a disappointing sales forecast for June and July, and acknowledged that the overall sales-comparison numbers will look "brutal" compared to last year's sales which were boosted by incentives. "The auto makers' cost of incentives, including rebates as well as interest-rate offers and leasing deals, amounted in May to $3,668 per vehicle for Chrysler, $3,209 for Ford Motor Co., $2,761 for GM and $886 for Toyota Motor Corp., according to Edmunds.com, an auto-shopping Web site."
  • Comment on related stocks/ETFs: GM's stock (NYSE:GM) fell 6.7% yesterday on the news, so this is now priced-in.

Nissan May Miss Target in Japan, But Global Sales Goal Is Affirmed

  • Summary: CEO Carlos Ghosn warned that Nissan's sales in Japan for the fiscal year ending March 2007 may be 800,000-846,000 vehicles, potentially lower than its prior forecast of 846,000. May sales in Japan fell for the 8th straight month and were down 12% year over year, and exports also fell, causing Nissan to cut output by 25%. Raw materials costs are now expected to exceed prior estimates by $430 million.
  • Comment on related stocks/ETFs: Nissan (ADR: NSANY) is lanuching 8 of its 9 new models in the second half of the year. The question for investors is whether the current shortfall results from outdated models and is therefore a buying opportunity.

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Tagged: , Auto Manufacturers - Major
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