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Automobile industry

Ford and General Motors Surge on Strong Auto Sales Forecast

Strategic Insights

— 2 min read

Auto sales are expected to see a significant boost in 2011, with a 12.9% increase from the estimated 11.5 million vehicles sold this year, according to Standard & Poor's analyst Ephraim Levy. This growth is attributed to the strong demand for light trucks and luxury cars, with China sales projected to rise by 1.5 million units to 18.6 million vehicles. Auto parts suppliers are likely to benefit from this surge in sales, with Levy specifically mentioning Johnson Controls, TRW, Magna International, and Superior Industries International as stocks to watch.

Key Takeaways:

  • Standard & Poor's analyst Ephraim Levy forecasts a 12.9% increase in domestic auto sales to around 13 million units in 2011, compared to an estimated 11.5 million vehicles sold this year.
  • Light trucks and luxury cars are leading the trend in increased auto sales, with China sales projected to grow by 1.5 million units to 18.6 million vehicles.
  • Rising auto sales will have a positive impact on auto parts suppliers, with Levy mentioning Johnson Controls, TRW, Magna International, and Superior Industries International as stocks to watch.
  • As of September 21, 2010, an uptrend was indicated for Ford (F) @ $12.63, Johnson Controls (JCI) @ $29.52, and Magna International (MGA) @ $35.89, according to the Comtex SmarTrend Alert system.
  • The stocks mentioned by Levy are already showing positive movement in afternoon trading, with Ford (F) up 0.06%, General Motors (GM) up 2.15%, Johnson Controls (JCI) up 1.18%, TRW up 1.98%, Magna International (MGA) up 0.85%, and Superior Industries International (SUP) up 0.09%.

Statistics:

  • Estimated auto sales in 2011: 13 million units (up 12.9% from 11.5 million units in 2010)
  • China sales projection: 18.6 million vehicles (up 1.5 million units from 2010)
  • Current prices for mentioned stocks: Ford (F) @ $16.74, General Motors (GM) @ $53.31, Johnson Controls (JCI) @ $31.16, TRW @ $32.78, Magna International (MGA) @ $36.34, and Superior Industries International (SUP) @ $8.02
  • Movement in afternoon trading: Ford (F) up 0.06%, General Motors (GM) up 2.15%, Johnson Controls (JCI) up 1.18%, TRW up 1.98%, Magna International (MGA) up 0.85%, and Superior Industries International (SUP) up 0.09%

Sources:

  • MidnightTrader.com, December 29, 2010
  • Comtex SmarTrend Alert, September 21, 2010
  • Comtex News Network, Inc., 2004-2010
  • Standard & Poor's, as cited by Ephraim Levy
  • Ford Motor Co. (F), General Motors (GM), Johnson Controls (JCI), TRW, Magna International (MGA), and Superior Industries International (SUP) financial reports

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