GM to Ford Lead U.S. Sales Gains on Post-Shutdown Rebound
By Craig Trudell - Nov 1, 2013
General Motors Co. (GM) and Ford Motor Co. (F) reported U.S. sales gains for October as demand recovered following the 16-day government shutdown and remained on pace for the best year since 2007.
Sales of cars and light trucks rose 16 percent at GM and 14 percent at Ford, while Chrysler Group LLC reported an 11 percent increase. The results compared with analysts’ average estimates for gains of 7.9 percent for GM, 16 percent for Ford and 14 percent for Chrysler in a survey by Bloomberg News. Toyota Motor Corp. (7203) and Nissan Motor Co. (7201) rose while trailing estimates.
Showroom traffic and sales accelerated after Congress and President Barack Obama agreed to fund the government and lift the debt limit Oct. 17, automakers said. Analysts’ average estimate called for a 7.3 percent gain in industrywide October sales, putting the U.S. market over the 13 million mark through the year’s first 10 months. Annual sales failed to cross that threshold in the three years through 2011.
“We’re seeing the resiliency of the consumer yet again,” Michelle Krebs, an analyst at auto researcher Edmunds.com, said in a telephone interview. “While we saw a little bit of slowdown during the shutdown, it picked right back up. We’re expecting a strong close and then a strong 2014.”
Sales of cars and light trucks probably climbed to 1.22 million in October, the average of nine estimates in the Bloomberg survey. The annualized industry sales rate, adjusted for seasonal trends, may rise to 15.4 million, the average of 14 estimates, from 14.4 million a year earlier.
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http://www.bloomberg.com/news/2013-11-01/chrysler-u-s-sales-rise-as-ron-burgundy-boosts-durango.html