Auto Suppliers Rise as 'Cash for Clunkers' Gets Refreshed, Ford Posts Monthly Sales Increase (AXL, DAN, TRW, more)

The auto supplier group is seeing upside today amid news late last week that the very popular 'Cash for Clunkers' plan will get a fresh $2 billion in funding. The plans initial limit of just $1 billion was exhausted just one week after it was initiated.

Also affecting the volatile group today, Ford (NYSE: F) issued its first monthly sales gain in over two years, certainly suggesting that a bottom in auto sales could already be in place.

Leading the sector higher is the embattled American Axle (NYSE: AXL). As news of the replenished 'Cash for Clunkers' program hit wires late Friday (after 1pm ET), shares of American Axle began spiking, adding more than 30% by the close. Today the stock is adding another 20% of upside, now trading around $2.67. As expected, the stock is seeing extremely heavy volume, already more than doubling its average daily volume of about 4.25 million shares.

Elsewhere in the sector:

• Dana Holding (NYSE: DAN) up 18%
  
• Park-Ohio Holdings (Nasdaq: PKOH) up 10.3%
  
• TRW Automotive (NYSE: TRW) up 4.5%
  
• BorgWarner (NYSE: BWA) up 1.1%
  
• Visteon (OTC: VSTN) up 7.3%

You May Also Be Interested In

• Buyout firm Vista explores $3B sale of private markets data provider Allvue - Reuters
• Winnebago Industries extends $350M credit facility to 2031
• TMCR raises $165M to acquire additional Mesabi iron ore royalty