Leading Automakers Seen Delivering Strong May 2012 Sales: Watch Ford, GM And Toyota

May 30, 2012 12:05 PM ETF, TM, GM1 Comment
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Summary: The leading automakers are scheduled to report monthly auto sales on Friday, June 1. The top sales data and analytics providers suggest that the major auto manufacturers are poised to deliver the best month in more than a year thanks to a broad economic recovery, ease of credit, pent-up demand for newer vehicles, and reduced incentives. Toyota Motor (TM) is expected to show the biggest y/y increase as more of its plants in Japan return to full capacity following the March 2011 earthquake and tsunami.

  • A report from Edmunds.com shows demand for light vehicles was robust in May, with approximately 1.391 mln cars sold during the month, up 17.5% from the previous month and a year-over-year increase of 31.1%.
  • Truecar.com estimates that all major auto manufactures will deliver double-digit sales growth for May.
  • According to a report on Kelley Blue Book, May 2012 sales are seen growing 30% y/y, the biggest one-month gain in more than 12 months, thanks to a recovery in economic growth, demand for new automobiles, and improved access to credit.

Ford Motor (F) Expected Release Time: 9:30 a.m. EST

Overview: Ford is scheduled to report May sales at approximately 9:30 a.m. EST. While the company is seen posting robust year-over year double-digit increases, market share is seen slipping as Japanese competitors Toyota and Honda return to production levels not seen since the March, 2011 earthquake.

Technical Review: Since trading at a recent high of $12.75 (early April), Ford recently completed a bullish "Double-Bottom" using the May 2012 and December 2011 lows near $10. The shares are now sitting on support at the 20-Day SMA near $10.50. Resistance is at the recent highs near $10.80, followed by $11.00. (Chart courtesy of StockCharts.com)

Estimates

TrueCar.com: 10.5% (Source: Truecar.com)

Edmunds.com: 16.3% (Source: Edmunds.com)

Kelley Blue Book: 9.40% (Source:

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