April auto sales seen up but quake effects loom (Reuters)

Monday, May 2, 2011 11:01 AM By dwi

DETROIT (Reuters) – U.S. machine income are cod to exhibit a 16 proportionality process for April, as the income crunch dealt by the Asian seism and tsunami is not cod to exhibit up in new machine purchases until May, automakers and analysts said.

Auto income are an primeval indicator each period of U.S. consumer demand. Automakers module release their Apr U.S. income figures on Tuesday.

The cipher prognosticate of 40 economists surveyed by Reuters was 13 meg vehicles on a seasonally keyed annualized basis, which would be a 16 proportionality uprise from terminal year's 11.2 meg evaluate and on par with March.

"April looks a lot like March," author Motor Co (F.N) income shrink martyr Pipas said on Monday, adding that author expects a income evaluate for the period in the range of low- to mid-13 million.

First-quarter results of major U.S. automakers author and Chrysler Group LLC (FIA.MI) as substantially as machine parts suppliers and concern groups exhibit that consumer obligation is rising.

However, those same dealer groups warned that the real hit on U.S. machine income module become in May and June -- a actuation backed by Edmunds.com shrink Jessica Caldwell.

"As inventories rapidly deteriorate, Apr could be the terminal period that we'll wager strong income drawing until New season or primeval fall," she said.

"May and June are traditionally high-volume months, and with anticipated cater constraints -- especially on fuel-efficient vehicles that hit been in higher obligation with alcoholic pedal prices -- inventories module be exhausted further," author added.

J.P. moneyman shrink Himanshu Patel said in a research state that the U.S. income evaluate could sequentially start 5 proportionality to 10 proportionality in May and June.

But Pipas said author does not organisation to edit its income outlook for the year.

Most publically traded dealer groups are inclined toward Asian and dweller import brands, although most groups hit warmed to the idea of expanding their income of city brands.

AutoNation Inc (AN.N) and Group 1 Automotive (GPI.N) both said that they expect income of Toyota Motor Corp (7203.T), Honda Motor Co (7267.T) and Nissan Motor Co (7201.T) to modify in May and June cod to the lack of inventory.

The Asian automakers are not cod to return to normal production levels until the end of the year.

DETROIT OPPORTUNITIES

As the sort of fuel-efficient cars from Nihon declines, U.S. brands from General Motors Co (GM.N) and author are seen as the most probable to gain, analysts said. Chrysler is still nonindustrial its small-car lineup.

This was to be the assemblage that Toyota overcame the perverse message of its more than 17 meg worldwide country recalls -- most in the United States -- starting in New 2009.

But the seism in Nihon has broken that wish as Edmunds expects Toyota's Apr income to uprise only 2.4 proportionality from terminal year, when it relied on incentives to lure consumers backwards to showrooms.

Truecar.com expects Toyota income to uprise only 1.2 percent, patch its mart deal in the period slips to 14 percent, downbound from 16.1 proportionality terminal year.

Some analysts wager author as the important beneficiary of Toyota's struggles.

"This benefits author over GM," Wall Street Strategies shrink David Silver said. "I don't conceive GM has the roster to cipher on higher render costs. author has a crowning garner in every portion of the business, from small cars to SUVs and trucks."

J.P. Morgan's Patel, who also sees a 13 meg income evaluate for April, said author is more probable to goodness on a pricing take as its cater of Fiesta and Focus cars is dripless as well. He also expects a "notable" fall in incentives offered by the automakers cod to the small supplies of cars.

Truecar estimated the industry's cipher incentive spending in Apr module be about $2,386 per vehicle, downbound 4 proportionality from March and 11 proportionality from Apr 2010. Truecar expects an Apr income evaluate of 13.05 million.

Ford's Pipas said the way of higher prices and modify incentives module continue.

Barclays Capital shrink Brian Johnson, who expects a income evaluate in Apr of 13.2 million, sees the reinforced pricing develop shown by the business continuing finished the summer.

(Reporting by Bernie Woodall and Ben Klayman in Detroit, redaction by Matthew Lewis)


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