April Showers May Bring New Car Drivers?

US Auto Sales Rebound In April

Preliminary sales data indicates that good times for major auto manufacturers--with a few exceptions--returned in April as analysts forecast a 5% sales increase for the overall industry over the past month.

“Following a disappointing March, we expect sales to get back on track in April with SAAR in the mid-17 million range,” Tim Fleming, analyst for Kelley Blue Book, said in an email. “Increased fleet sales and rising incentive spending among automakers remain the factors to watch, but retail demand appears to be holding steady, signaling the industry’s strong run isn’t over quite yet.”

Fiat/Chrysler posted a 4.6% gain, Nissan posted a 13% increase, Honda sales were up 12%, Toyota had a 4.8% pick up, and Ford saw a 4.5% leap in April sales.

On the other hand, Volkswagen is in trouble in the US due to the continued fallout from their emissions-cheating scandal. GM once again lagged their competitors with a decline of 2.3% overall despite an increase in sales on the retail end for several of its brands. Fleet sales hampered them overall. And of course, trouble-wracked VW trailed all competitors with a decline of 2.6%.

Credit seems to be driving these strong sales figures, as low interest rates and favorable, long-term financing deals are causing customers to finance cars for even longer periods of time. Some consumers are now taking out seven-year car loans! We also see some warning signs from sub-prime car loans, with more delinquencies there.

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

1-M Forecast Retn

1-Yr Forecast Retn

P/E Ratio

Country Code

DDAIF

DAIMLER AG

70.55

-16.68%

-27.51%

0.07%

0.86%

7.95

DEU

F

FORD MOTOR CO

13.62

-11.09%

-13.85%

0.38%

4.55%

6.16

USA

FCAU

FIAT CHRYSLER

8.21

N/A

-43.96%

N/A

N/A

4.64

GBR

GM

GENERAL MOTORS

31.75

-13.63%

-10.36%

0.54%

6.48%

5.76

USA

HMC

HONDA MOTOR

27.11

-4.49%

-20.78%

0.05%

0.57%

10.99

JPN

ISUZY

ISUZU MOTORS

10.52

N/A

-21.14%

N/A

N/A

9.91

JPN

NSANY

NISSAN ADR

17.86

-13.46%

-14.13%

0.35%

4.24%

7.95

JPN

TM

TOYOTA MOTOR CP

102.47

-16.03%

-26.79%

0.06%

0.73%

8.73

JPN

TSLA

TESLA MOTORS

241.8

17.24%

6.98%

-0.08%

-1.00%

N/A

USA

VLKAY

VOLKSWAGEN-ADR

31.72

N/A

-36.88%

N/A

N/A

7.13

DEU

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Disclosure: None.

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