Across the US, Europe and Asia car companies are seeing shares rise as consumers enjoy lower fuel prices.
US data released yesterday from the Bureau of Economic Analysis put car sales up from 7.97 million to 8.18 million. All Truck Sales (Nov) were up to 9.02 million from 8.49 million. Domestic Car Sales up to 6.08 million from 5.88 million. And the Total Vehicle Sales were a solid 17.20 million up from 16.46 million and up on expectations of 16.50 million.
Car companies across the board are benefitting from the lowest oil prices in 5 years. Sales are up and shares are following suit.
In the US, General Motors customers are gaining confidence in dropping fuel prices and buying the larger SUVs that lost out when oil was above $100 dollars a barrel. Now prices at the pumps are down 23.7 percent from late June to today’s $2.78, according to the US Energy Information Administration, taking the average U.S. price for a gallon of regular gasoline below $3 last week for the first time since 2010. General Motors are reporting figures on their Cadillac Escalade SUV being up 91.5 percent on the same period last year, and the Ford’s Navigator SUV rising by 88 percent. Shares on GM have risen in the last quarter from mid-October from 28.71 up to 33.45.
In Japan, Toyota is faring well not only with low fuel prices but also with the falling yen giving exports a boost. Since mid-October, Toyota shares have increased from 108.36 up to 126.43.
In Europe, car makers from the luxury to the compact are reaping rewards of the lower euro and fuel price drops. In the last quarter, shares have risen on the following stocks:
Volkswagen up from 148.381 to 180.800
Daimler up from 55.290 to 67.685
BMW up from 74.705 to 92.391
Peugeot up from 8.195 to 10.338
Fiat up from 6.5298 to 10.6850
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