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General Motors (GM), Ford (F) Shares Lower as Key Market Shows Massive Growth Slowdown

July 11, 2011 1:41 PM EDT
General Motors (NYSE: GM) and Ford Motor (NYSE: F) shares are ticking lower Monday following disappointing June sales results in India.

While revenue hit a new all-time record, the number is only up 1.62 percent, the slowest pace seen since March 2009. The rate is down from growth of 7 percent in May and 13 percent in April.

Along with peers Toyota (NYSE: TM), Honda Motor (NYSE: HMC) and others, monthly sales in India were 143,370, compared to 141,086 in June of 2010.

The WSJ points to prolonged inflation which has lead to an increase in prices as raw material inputs escalate. A rise in crude oil prices can also be tied to the cooling of auto sales.

The Society of Automobile Manufacturers has reduced it's 2011 outlook for annual auto sales growth from 16 to 18 percent down to 10 to 12 percent.

Sales are going up against tougher comps, with growth at the end of India's fiscal 2011 increasing 30 percent, it's best rate since 1999 - 2000.

Ford shares are down 3.8 percent in mid-day trade, while shares of GM are off 2.4 percent.


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