Ford (F), GM (GM) Trade Lower on Mixed Auto News
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Ford (NYSE: F) and General Motors (NYSE: GM) are lower Monday, following mixed market news for the auto sector.
Ahead of the opening bell, Honda Motor (NYSE: HMC) reported results that had to make investors cringe. According to the company, revenue in the third-quarter fell 16.3 percent to about $24.604 billion, while operating income fell nearly 68 percent to $685 million.
While motorcycle sales increased 20 percent in the second-quarter for Honda, auto sales dropped 14 percent to 772 thousand units. Honda attributed the lower auto numbers to "decreased unit sales in the North America and Japan caused by supply-chain disruptions from the Earthquake."
Due to Thailand flooding, and operation disruptions there, Honda isn't going to guide fiscal 2012 results until full assessment of the situation is made.
On the flip side, Edmunds said October could be a "turning point" for U.S. auto sales. The firm stated that 2012 model year vehicle sales are strong, making up about 52.3 percent of all new car sales. In September, that number was 35 percent. Further, incentive spending fell about 11.5 percent in October to $2,158 per vehicle on average.
The average true cost of incentives (TCI) on Ford fell 13 percent to $2,728 for October, while GM saw a 5.9 percent decline to $3,024. Honda's TCI was 10. percent lower in October, to $1,260 per vehicle. Winning the overall drop though was Toyota (NYSE: TM), TCI falling 22.5 percent to $1,602.
Further, Edmunds reports days-to-turn is at the lowest point on record, with the industry average falling 2 days to 48 from the same period last year.
Ford is 1.6 percent lower, while GM is off 2 percent. Honda is leading the way, down 7.4 percent Monday.
Ahead of the opening bell, Honda Motor (NYSE: HMC) reported results that had to make investors cringe. According to the company, revenue in the third-quarter fell 16.3 percent to about $24.604 billion, while operating income fell nearly 68 percent to $685 million.
While motorcycle sales increased 20 percent in the second-quarter for Honda, auto sales dropped 14 percent to 772 thousand units. Honda attributed the lower auto numbers to "decreased unit sales in the North America and Japan caused by supply-chain disruptions from the Earthquake."
Due to Thailand flooding, and operation disruptions there, Honda isn't going to guide fiscal 2012 results until full assessment of the situation is made.
On the flip side, Edmunds said October could be a "turning point" for U.S. auto sales. The firm stated that 2012 model year vehicle sales are strong, making up about 52.3 percent of all new car sales. In September, that number was 35 percent. Further, incentive spending fell about 11.5 percent in October to $2,158 per vehicle on average.
The average true cost of incentives (TCI) on Ford fell 13 percent to $2,728 for October, while GM saw a 5.9 percent decline to $3,024. Honda's TCI was 10. percent lower in October, to $1,260 per vehicle. Winning the overall drop though was Toyota (NYSE: TM), TCI falling 22.5 percent to $1,602.
Further, Edmunds reports days-to-turn is at the lowest point on record, with the industry average falling 2 days to 48 from the same period last year.
Ford is 1.6 percent lower, while GM is off 2 percent. Honda is leading the way, down 7.4 percent Monday.
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