US March new auto sales fall short of market expectations

Posted April 05, 2017

A final industry tally comes out later Monday. While sales were ostensibly flat, the new Ford Escape saw its sales rise by 12%, good enough for its best March ever.

"Many automakers are looking for signs of market stability as consumers continue to head towards trucks and SUVs", said Jeff Conrad, senior vice president and general manager of the Honda Division, in a statement. For the next 5 years, General Motors Company is expecting Growth of -4.7% per annum, whereas in the past 5 years the growth was 22.72% per annum. The Dearborn, Michigan-based manufacturer sold 81,330 F-Series pickups, up 10% from March 2016.

US based company, Ford Motor Company (F)'s latest closing price distance was -4.51% from the average-price of 200 days while it maintained a distance from the 50 Day Moving Average at -5.96% and -4.45% compared with the 20 Day Moving Average. Ford Motor Company has a one year low of $11.07 and a one year high of $14.22. Ford is facing a number of regional challenges, including continued losses in South America and Brexit-related concerns.

In addition, GM's average transaction prices were approximately $34,000 in March, in line with last year's levels. Honda's sales also were off, by 2 percent.

Monaco was recently the sales manager of private and commercial vehicles in Turin, Italy, for Central Africa and finally became the sales manager of all brands of the company for Africa and the Middle East. Dealer stocks are growing because cars and trucks aren't moving off the lots as fast as they did in the past. If supply of vehicles heavily outweighs demand, incentives will spike and eat into automakers' profits.

The stock now has its Annual Dividend of $1.52 and an annual Dividend Yield of 4.45 Percent. Investors would like to see that gross stock trend lower throughout the stronger spring selling season. It has outperformed by 3.35% the S&P500.The move comes after 7 months negative chart setup for the $50.80 billion company.

Ford is under additional pressure to start the week since the company recalled 52,000 F-250 pickups over the weekend. Sales of the Accord midsize vehicle fell 12 percent, while the compact Civic was off 4 percent. Year to Date performance value (YTD perf) value is -0.92%.

The Model 3, which is expected to be available later this year, should cost about $35,000 - significantly less than the Model S sedan and Model X SUV.

Ultimately, sales are clearly peaking in the US but will likely remain near historical highs and very healthy levels.

Last week, Moody's warned that flattening USA auto sales pose a significant credit risk for auto lenders.

It's a tough time for auto companies to start 2017, but there's a chance that they will be able to bounce back before the year is over.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.

To analyze a stock, one should look for Upgrades and Downgrades of a stock. Indeed, the old-school Detroit icon may well be strong enough to keep GM stock buy-worthy even as the industry itself hits a wall. Norges Bank acquired a new stake in Ford Motor Company during the fourth quarter valued at about $277,396,000. In contrast, Fiat Chrysler (FCAU) and Tesla (TSLA) both have delivered impressive returns of about 19.8% and 30.2%, respectively, during the same period. The Motley Fool has a disclosure policy.