Bloomberg Sees 2012 Auto Sales Down 2% to Up 3%
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Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: -0.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: -0.7%
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Although many auto companies around the world have recently announced record growth or plans to expand production for 2012 as the auto industry seems to be picking back up, Bloomberg’s Shannon Pettypiece states 2012 may not prove not to be all that promising.
A piece from Pettypiece Thursday suggests auto sales may increase as much as 3 percent in 2012 or fall as much as 2 percent depending on market conditions in Europe and the valuation of the euro. A consensus of analysts expect European auto sales to decline by about 5 percent during 2012. General Motors (NYSE: GM) has already announced its European segment looks to be unprofitable in 2012.
Emerging markets have been helping automakers such as Ford (NYSE: F) and General Motors keep afloat over the past few years as auto demand in North America and Europe lagged. While China has been a strong market for General Motors in the past, some analysts are beginning to suspect sales growth may be slowing within the country. Early estimates predict vehicle sales may increase as much as 10 percent in China during 2012, while more recent checks highlight slightly weaker growth.
In North America, Asian-based auto companies such as Toyota Motors (NYSE: TM) and Honda Motors (NYSE: HMC) have already announced plans to increase production and build new assembly plants. Both of the companies earnings for the year were severely affected from the Japanese earthquake/tsunami back in the spring, and more recently the flooding in Thailand. North American sales may grow as much as 6.5 percent in 2012, but Pettypiece believes the number is largely based on the assumption people with vehicles over 11 years old will purchase a new one.
A piece from Pettypiece Thursday suggests auto sales may increase as much as 3 percent in 2012 or fall as much as 2 percent depending on market conditions in Europe and the valuation of the euro. A consensus of analysts expect European auto sales to decline by about 5 percent during 2012. General Motors (NYSE: GM) has already announced its European segment looks to be unprofitable in 2012.
Emerging markets have been helping automakers such as Ford (NYSE: F) and General Motors keep afloat over the past few years as auto demand in North America and Europe lagged. While China has been a strong market for General Motors in the past, some analysts are beginning to suspect sales growth may be slowing within the country. Early estimates predict vehicle sales may increase as much as 10 percent in China during 2012, while more recent checks highlight slightly weaker growth.
In North America, Asian-based auto companies such as Toyota Motors (NYSE: TM) and Honda Motors (NYSE: HMC) have already announced plans to increase production and build new assembly plants. Both of the companies earnings for the year were severely affected from the Japanese earthquake/tsunami back in the spring, and more recently the flooding in Thailand. North American sales may grow as much as 6.5 percent in 2012, but Pettypiece believes the number is largely based on the assumption people with vehicles over 11 years old will purchase a new one.
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