GM, Ford Canadian auto sales accelerated in November

GM, Ford Canadian auto sales accelerated in November

Along with General Motors, Ford Motor also managed to beat the expectations as it registered a rise of 5.1% in sales.

"All economic indicators show significantly improved optimism about the US economy including consumer and business sentiment, which continue to drive a very healthy USA auto industry", said Mustafa Mohatarem, General Motor Co's GM.N chief economist.

SUV sales for Ford were also up 20 percent, accounting for almost a third of all vehicle sales last month. Lincoln sales increased 19 percent, with sales totaling 9,429 vehicles. Sales through October were 0.3 % behind their year-earlier pace after three straight monthly declines. So far this year, the annual sales rate is running about 17.5 million, GM said, or about equal to 2015's record total.

General Motors' chief economist, Mustafa Mohatarem, commented that "All economic indicators show significantly improved optimism about the USA economy including consumer and business sentiment, which continue to drive a very healthy US auto industry". "We believe the USA auto industry is well-positioned for sales to continue at or near record levels into 2017". Even after the IPO, they may have a continuing relationship with the firm or own a noteworthy amount of the firm's stock. Despite new-vehicle sales peaking, there's nothing to suggest that total industry sales won't remain near record levels - investors can consider that an early Christmas present. "With election jitters, people had delayed big purchases".

Ford's gain ended a four-month sales skid and marked the first monthly market share increase since June.

General Motors Company (NYSE:GM) has joined its competitor, Ford Motor Company (NYSE:F), in reversing the falling trend to report sales gain in November. On a 1 to 5 base where 3 is a hold, 1 is a Strong Buy while 5 gives Strong Sell signal, the stock is ranked 2.69 based on 13 recommendations.

Wall Street analysts expect Fiat Chrysler Automobiles NV (MI:) (N:) to fare the poorest among major automakers, with some forecasting a 14 percent drop from last November.

The buoyancy in the outlook of Ford Motor Company (F) is getting weaker by the somewhat negative sentiment (2.70 on a 5-point scale) that sell-side analysts have provided concerning it. Brokerage firms on the average advocate the company shares as Neutral. If the industry manages to eke out an annual gain, 2016 would mark the first time in a century that US sales topped year-earlier levels for seven straight years.

GM's Cadillac Escalade sales jumped 25 percent and Chevrolet Tahoe deliveries surged by 31 percent.

Fiat Chrysler's sales fell 14% to 160,827, better than the Edmunds forecast for 159,551. A bright spot was a jump for Ram brand pickups and work vans.

F-series sales jumped 11% - to their best November sales since 2001 - while SUVs logged 20% growth.

Toyota Motor was down 0.30 percent at $118.17. Corolla sales topped both the midsize Camry and the RAV4 crossover.

Macquarie assumed coverage on shares of General Motors Co. The results were hurt by a decline at its car-heavy Acura luxury line.

Volkswagen, meanwhile, reported a 24 percent sales increase compared to the previous November, when the company was bearing the brunt of the scandal over its diesel emissions.

The auto industry has joined the holiday fun, as Black Friday deals lifted November sales after a sleepy start to the fall.

Toyota Motor Corp (ADR) (NYSE: TM) lived up to the performance of its USA peers with a 4.3 percent increase in sales to 197,645 units in November.

Incentives are now at a level where they can't really spur much more demand without stronger GDP growth, said Jeff Schuster of LMC Automotive.



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