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Tuesday, March 29, 2011

March Auto Sales (F) (GM) (TM) Expected to Rise

March auto sales in the U.S. are expected to be up for March, as major automakers like Ford Motor (NYSE:F), General Motors (NYSE:GM) and Toyota (NYSE:TM) benefit from the turnaround story of the industry.

Concerns are starting to rise though on the impact the rising costs of oil and gas will have on sales, which are estimated to come in overall for the month at a growth rate of 12 percent over last year.

Supply and production problems resulting from the earthquake in Japan remains a major factor as well, with much uncertainty as to the long-term effects on the sector.

Growth for March is also expected to be lower than expected because of the cutting back of incentives by most of the automakers so they could boost margins and earnings, although that will be at the expense of revenue; not a bad thing.

The auto companies will report sales for March on Friday.

Ford was trading at $14.84, falling $0.02, 0.17 percent, as of 2:47 PM EDT. General Motors was at $31.04, gaining $0.19, or 0.62 percent. Toyota was trading at $79.84, down $0.71, or 0.88 percent.

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