AUTO SALES AND THE GM STOCK OFFERING
Auto and light trucks sales rose from 11.76 million to 12.26 million in October, a 4.25% gain.
Since the bottom auto sales have been rising at a 10% to 12% annual rate — depending on if you calculate the trend as a linear or an exponential trend and October sales were right on this trend line.
The biggest impact of the auto bailout was to force GM to reduce its capacity to a level where it could be profitable with domestic auto sales of around 10 to 12 million — this figure used to be 16 million. Moreover, Ford has managed the same cut in capacity. So at this level of sales and profits GM should be able to manage its stock offering with no major problems.
Domestic sales are based on zero down, zero interest rate, 72 month contracts while Asian and European models tout lease lease and lease. Auto sales illusion created by the myth of excessive credit creation.
Spencer,
I find it unfortunate when a post about automobile sales doesn’t draw much attention.
I recommend including information from the first two of the following sources in future posts. The WSJ summary is timely and excellent for this type of a discussion.
The second two links provide info that might have spurred a good discussion about GM’s stock IPO.
I started to write a number of comments about the following information, but I’m not confident that AB readers are paying much attention to many of the comment threads at this point. I think more detailed info needs to be discussed in the main posts in order to generate a broader response.
Auto Sales and Share of Total Market by Manufacturer
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesE
October Auto Sales
Updated 04-Nov-10
http://www.briefing.com/Investor/Public/Calendars/EconomicReleases/auto.htm
GM Said to Have Disagreed With Treasury Over IPO Price Range
November 04, 2010
http://www.businessweek.com/news/2010-11-04/gm-said-to-have-disagreed-with-treasury-over-ipo-price-range.html
General Motors to Repurchase Treasury Preferred Stock:
Cumulative Return to Taxpayers Reaches $9.5 Billion
October 28, 2010
http://www.treas.gov/press/releases/tg930.htm
Spencer,
I find it unfortunate when a post about automobile sales doesn’t draw much attention.
Perhaps this will help. I recommend including information from the first two of the following sources in future posts. The WSJ summary is timely and excellent for this type of a discussion.
The second two links provide info that might have spurred a good discussion about GM’s stock IPO.
I started to write a number of comments about the following information, but I’m not confident that AB readers are paying much attention to many of the comment threads at this point. I think more detailed info needs to be discussed in the main posts in order to generate a broader response.
Auto Sales and Share of Total Market by Manufacturer
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesE
October Auto Sales
Updated 04-Nov-10
http://www.briefing.com/Investor/Public/Calendars/EconomicReleases/auto.htm
GM Said to Have Disagreed With Treasury Over IPO Price Range
November 04, 2010
http://www.businessweek.com/news/2010-11-04/gm-said-to-have-disagreed-with-treasury-over-ipo-price-range.html
General Motors to Repurchase Treasury Preferred Stock:
Cumulative Return to Taxpayers Reaches $9.5 Billion
October 28, 2010
http://www.treas.gov/press/releases/tg930.htm
Spencer,
I find it unfortunate when a post about automobile sales doesn’t draw much attention.
Perhaps this will help. I recommend including information from the first two of the following sources in future posts. The monthly WSJ summary is very timely and outstanding for this type of discussion. It’s the fleshing out of the macro picture.
The second two links provide info that might have spurred a good discussion about GM’s stock IPO.
I started to write a number of comments about the following information, but I’m not confident that AB readers are paying much attention to many of the comment threads at this point. I think more detailed info needs to be discussed in the main posts in order to generate a broader response.
Auto Sales and Share of Total Market by Manufacturer
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesE
October Auto Sales
Updated 04-Nov-10
http://www.briefing.com/Investor/Public/Calendars/EconomicReleases/auto.htm
GM Said to Have Disagreed With Treasury Over IPO Price Range
November 04, 2010
http://www.businessweek.com/news/2010-11-04/gm-said-to-have-disagreed-with-treasury-over-ipo-price-range.html
General Motors to Repurchase Treasury Preferred Stock:
Cumulative Return to Taxpayers Reaches $9.5 Billion
October 28, 2010
http://www.treas.gov/press/releases/tg930.htm