Edmunds.com predicted new auto sales in the U.S. would jump 11% in June from the prior year, as gains from Detroit’s Big Three and Nissan Motor Co. (NSANY, 7201.TO) should offset declines from Japan’s other top manufacturers.
Japanese auto makers Toyota Motor Corp. (TM, 7203.TO) and Honda Motor Co. (HMC, 7267.TO) continue to be stung by inventory shortages in the wake of an earthquake and tsunami that struck Japan in March. Honda’s sales are seen dropping 17%, while Toyota’s decline is projected to be 15%.
Nissan earlier Thursday said that the disaster wouldn’t be disruptive enough to prevent its global vehicle sales from growing this fiscal year. It was the only top Japanese car maker to report improved earnings for the January-March quarter.
Edmunds expects Nissan will report a 25% jump in sales, which would make it one of the stronger performers in June. Analyst Michelle Krebs said the company is well positioned for higher gas prices by offering a number of small vehicles, including the Versa, Sentra and Rogue. The all-electric Leaf has also generated buzz in the U.S., according to Krebs.
General Motors Co. (GM), Ford Motor Co. (F) and Chrysler Group LLC are each expected to post a double-digit increase in sales, with the strongest growth, a 26% jump, expected from Chrysler. After overtaking Toyota to take third place in market share last month, Chrysler will drop back to fourth place in June, Edmunds predicts.
June’s sales are expected to result in a seasonally adjusted annualized rate of 11.9 million in June, according to Edmunds. Despite the choppy results in recent months, the auto industry has benefited from a broad economic recovery after suffering greatly during the recession. Higher gasoline prices remain a top concern, and consumers have recently moved to purchase more smaller-margin cars in response to commodity concerns.
June had 26 selling days, one more than a year ago.
$F sold off this week (along with almost everything else) so we added to our holdings at $12.71 as I feel the thesis for Ford is unchanged and its current valuation is too low for both is current results and what I feel trey will be going forward.