Tuesday, February 2nd, 2010
Jump in Vehicle Sales Put Automakers in the Spotlight
Ford Motor Company (NYSE:F) and Nissan Motor Co., Ltd. (OTC:NSANY) moved higher on news of a 24% jump in auto sales, but Toyota Motor Corporation (NYSE:TM) trended lower amid continued concerns about its massive recall.
The automotive industry has been facing some tough times amid tight consumer credit and high unemployment rates. Meanwhile, the government’s “cash for clunkers” program has long expired, removing one of the key sales drivers that automakers relied on during the economic downturn. Fortunately, January has marked somewhat of a rebound for many in the industry.
Ford Motor Company (F, Free Analysis) announced that it kicked off 2010 with a 24% increase in sales and strong market share gains that it attributed to a successful product line-up. Meanwhile, the automaker estimates its total U.S. market share at 16%, which is up about 2% from January 2009 levels. This follows its first fully-year market share increase since 1995.
Nissan Motor Co., Ltd. (NSANY, Free Analysis) announced global sales of 6,085,058 units, a 0.09% drop versus its 2008 levels. The company experienced its largest drop in its Central and Eastern European Nissan division, where sales fell nearly 50%, while its Asia and Pacific sales jumped 25% amid a continuing focus on the Chinese automotive markets in particular.
Toyota Motor Corporation (TM, Free Analysis) announced January sales that fell 8.7% to 98.796 vehicles, as it also faces continued concern regarding its massive recall. On January 26th, the company suspended sales of the eight models involved in the accelerator pedal recall. These models combined to represent approximately 60% of the company’s overall inventory.
Overall, vehicle sales appear to be rebounding in the U.S., particularly for Ford Motor Company who led the rebound. Meanwhile, overseas companies like Nissan and Toyota continue to face pressure with top-line results and a massive safety recall.
Written by Simon Monger
