By Dave Kansas
- Zuma Press
- This GM Chevy had a winning run on Sunday.
Automakers release monthly sales data tomorrow and expectations are for sales to come in at an annualized rate of about 12.5 million, up from 10.5 million one year ago, according to a UBS survey of dealers.
UBS says that its survey found higher floor traffic and an improving financing environment among most dealers. Inventories are considered at an “appropriate” level, with equal numbers of dealers saying stocks are either too high or too low.
Optimism is highest among Chrysler, GM and import dealers. This runs a bit counter to UBS’ ratings, which peg Ford as a buy, GM a neutral.
One intriguing item in the survey: 57% of dealers believe that a price war is “probable” this year. Such a price war, of course, would undercut profitability and put pressure on auto stocks. UBS believes that a price war is less likely, noting that a number of auto companies have set goals for making prices stick.
To that end, Ford reported earlier today that its average vehicle sale price is 3% higher compared with January and February one year ago, according to Dow Jones.
Ford is edging 0.2% lower, GM is up 0.5%, Toyota is up 1.7% and Honda is up 0.6%.
I don’t care what G.M. has done, I am a buyer because they are going up, they have half the share’s outstanding as Ford and buy owning G.M. I feel I can get some of the tax dollars back when they move on up. I own both F and G.M.
remember ford didn’t cost the American tax payer a dime. How soon we forget.
Ford smoked the other auto’s in 2010 and I believe they will do the same in 2011. Their debt has been cut in half. Their product line has been upgraded big time and is now rolling out to the dealers. the current negativity will not last much longer. Their profit was excellant last year and this year should be much stronger.
Hey Bob – how long are you going to hold onto the GM grudge? 10, 15, 20 years? Get over it.
Oh, by the way – if you’re going to get paid to professionally gripe about Obama policies (as anonymous member of John Q. Public, I might add), you should at least try to come up with something topical and current.
But lets forget that GM is offering higher incentives to push out the door products recently found to be amongst the nations lowest rating in satisfaction (per C.R.). And lets not also forget that as a stockholder with Ford, Ford’s lower incentive makes for higher dollars per unit, and lastly, the billions STILL owed to the U.S. & Candian Govt. But sure, we’ll throw a little confetti for GM’s lack luster recovery …….good job / whatever. When people wake up & realize GM’s IPO is grosly overinflated, just maybe some sense will return to Wall St. (we’ll see).