Categories LATEST, U.S. Markets News

Auto sector stays resilient in times of tariffs and oil spike

Last month’s positive sales data came as a relief to automakers in the US, amidst apprehensions that the latest import tariffs would dampen the prospects of the sector. In June, most companies withstood the pressure from the used-vehicle market and rising interest rates while benefitting from the strong job market and tax cuts.  It is expected that besides political tensions, rising oil prices and the saturated market will drag sales in the coming months.

Among the leaders, Ford Motor (F), Fiat Chrysler (FCAU), Toyota (TM) and Honda (HMC) posted better-than-expected sales for June. Meanwhile, Nissan defied the estimates for a decline by registering modest growth. Sales of General Motors (GM), the largest American automaker which no more provides monthly figures, moved up in the second quarter aided by strong demand for trucks and newly launched crossovers.

Meanwhile, the stocks including those of GM and Ford remained in the red on Tuesday, reflecting the downbeat market sentiment triggered by tariff woes.  The biggest loser was Tesla (TSLA), which failed to elicit investor confidence despite ramping up Model 3 production.

It is expected that besides political tensions, rising oil prices and the saturated market will drag sales in the coming months

Tesla (TSLA), which has been in the spotlight for the fuss over production deadlines, achieved more than 50% production growth in the second quarter for its mid-sized sedan Model 3, with output rising to 5,000 units per week towards the end of the quarter.

General Motors shipped a total of 758,376 vehicles during the quarter, marking a 4.6% increase from last year, on the strength of trucks and SUVs. Another contributor to GM’s growth was the Bolt electric car.

RELATED: GM mulls IPO for Cruise

With a market value that is second only to GM, Ford (F) surprised both investors and market watchers by posting a 1.2% growth in June sales to 230,635 units, contrary to expectations for a decline. As in the case of GM, trucks and SUVs did the magic for Ford.

Fiat Chrysler owes its above-consensus sales growth mostly to the company’s flagship brand Jeep. Overall, the Dodge maker sold 202,264 units in June, up 8% compared to last year.

The US sales of Japanese carmakers Toyota Motor (TM) and Honda (HMC) grew 3.6% and 4.8% respectively during June, while Nissan settled for a modest gain of just above 1%.

RELATED: Auto stocks suffer

Most Popular

Infographic: How Macy’s (M) performed in Q4 2023 financial results

Macy’s, Inc. (NYSE: M) reported fourth quarter 2023 earnings results today. Net sales were $8.1 billion, down 1.7% versus the same period a year ago. Total revenue dropped to $8.37

AZO Earnings: AutoZone’s Q2 2024 earnings rise on higher sales

AutoZone, Inc. (NYSE: AZO) announced financial results for the second quarter of 2024, reporting higher sales and net profit. The company had a total of 7,191 stores open at the end

SJM Earnings: Key quarterly highlights from J.M. Smucker’s Q3 2024 financial results

The J.M. Smucker Co. (NYSE: SJM) reported third quarter 2024 earnings results today. Net sales increased 1% year-over-year to $2.23 billion. Comparable sales increased 6%. Net income decreased 42% to

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top