American automakers reported their August sales numbers, with gains topping expectations as auto sales continue a slow and steady recovery.
General Motors saw sales increase by 10% from the prior year to 240,520 vehicles. Higher gas prices helped drive higher sales of GM’s Cruze model as well as other compact cars.
Ford posted a 13% increase to 197,249 vehicles with record sales for its Escape crossover and Fusion sedan. The F-Series pickup, with a renewed focus on fuel economy, posted its best sales month all year.
Finally, Chrysler’s sales rose 14% to 148,472 vehicles.
Canaccord Genuity North American Portfolio Strategist Martin Roberge continues to remain bullish on the auto industry, particularly auto component companies, as the average age of a vehicle in the U.S. has crept over 10 years, representing a source of pent up demand. Additionally, interest rates have dropped below 5%, bringing affordability to all-time lows.
He notes that while there have been concerns regarding macroeconomic issues, and possible inventory stuffing by dealers, while GDP grew by 1.5% in Q2/12, new orders for vehicles and parts jumped by 7%.
General Motors (GM : NYSE : US$21.31), Net Change: -0.04, % Change: -0.19%, Volume: 7,467,355 Ford Motor (F : NYSE : US$9.41), Net Change: 0.07, % Change: 0.75%, Volume: 37,860,431