North American Auto Production Update

Includes: F, HMC, MZDAF, NSANY, TM
by: Derastone

North American auto-production output in June was 1.093m units (up 99% YoY). Re-stocking of inventories is still going on in the economy, but we are due for a slowdown unless we see an uptick in employment and consumer confidence. These macro-indicators will probably lead unit sales in the future.

In terms of Japanese car companies, we expect a deterioration in earnings for Toyota (NYSE:TM) given the strength of the yen and the end of government subsidies. Nissan (OTCPK:NSANY) and Honda appear (NYSE:HMC) to us as the best value in this environment.


Source: Autodata

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