Wednesday, February 16, 2011

Ford (NYSE:F), GM (NYSE:GM) Look for Growth in Emerging Markets

With sales in North American and European markets looking to level or decline, Ford (NYSE:F), GM (NYSE:GM) and other automakers are looking emerging markets for growth.

GM has as its priority market China, while Ford has been doing well in Russia, Eastern Europe and Turkey.

General Motors continues to be the market leader in China, where they sold a record 2.35 million vehicles in 2010.

Calling China its "Crown Jewel," GM CEO Dan Akerson added, "GM will continue to make China one of our priorities. We plan to introduce more than 20 new and upgraded models over the next two years."

If new projections by J.D. Power are accurate, global auto sales in 2011 could set a new record, with light vehicle sales projected to reach 76.5 million for the year.

John Humphrey, senior vice president of automotive operations at J.D. Power said, "Overall growth in the world economy has been supporting further recovery in auto sales. We're seeing signals of stability and increased consumer demand for new vehicles as economic optimism increases."

In 2010 auto sales were driven by North and South America and Asia. U.S. sales jumped 11 percent, although sales in Europe were down, especially Western Europe, where sales fell 4 percent in 2010.

China sales surged by close to 30 percent, with 17.2 million vehicles sold, while India vehicle sales also rose by 30 percent to 2.7 million vehicles sold.

In 2010, for the first time emerging markets generated over half of all light vehicle sales, accounting for 51 percent overall.

Ford closed Tuesday at $16.10, up $0.01, or 0.06 percent. General Motors closed at $36.11, losing $0.18, or 0.50 percent.

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