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Detroit Three (F, GM, FCAU) Automaker Stocks Slip on Weak April Sales
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Shares of the “Detroit Three” automakers—Ford (F - Free Report) , General Motors (GM - Free Report) , and Fiat Chrysler —plunged on Tuesday morning after the companies announced year-over-year April sales declines, underscoring fears that the U.S. car market is in a slump.
Shares of Fiat Chrysler took the biggest hit, slipping more than 5.1% in morning trading. The company said that sales in the month of April fell 6.6% to 177,441 vehicles.
GM stock dipped as much as 3.3% in Tuesday morning trading. The carmaker reported April sales of 244,506 vehicles, down about 5.8% from the year-ago period. GM placed some of the blame on having one fewer selling day in April than last year.
Shares of Ford dipped nearly 4% in morning trading. Ford said that it sold 214,695 vehicles in April, a roughly 7.2% drop. Interestingly, the carmaker saw a 1.2% gain in SUV sales and a slight 0.9% drop in sales of its luxury Lincoln brand.
“Strong demand for high-series Super Duty trucks and diesel powertrains drove a $1,900 increase in Ford’s transaction pricing versus an industry increase of just $210,” said Ford VP Mark LaNeve in the company’s statement. “F-150 customers equipped nearly 70 percent of their trucks with EcoBoost engines last month, with dealers seeing strong demand for our new Raptor.”
Nevertheless, Ford’s truck sales were down about 4.2% in April. What’s more, the company saw a 21.2% drop in car sales, confirming an industry-wide trend away from cars.
“We see crossovers becoming an even bigger part of the industry and GM sales over the next five years, said GM VP Kurt McNeil. “Just five years ago, about one in four GM sales were crossovers. Today, they account for almost one-third of our deliveries and we see more growth ahead.”
Despite a weak start to the year, analysts are still calling for full-year vehicle sales of roughly 17 million. Automakers moved a record 17.55 million vehicles last year.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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Detroit Three (F, GM, FCAU) Automaker Stocks Slip on Weak April Sales
Shares of the “Detroit Three” automakers—Ford (F - Free Report) , General Motors (GM - Free Report) , and Fiat Chrysler —plunged on Tuesday morning after the companies announced year-over-year April sales declines, underscoring fears that the U.S. car market is in a slump.
Shares of Fiat Chrysler took the biggest hit, slipping more than 5.1% in morning trading. The company said that sales in the month of April fell 6.6% to 177,441 vehicles.
GM stock dipped as much as 3.3% in Tuesday morning trading. The carmaker reported April sales of 244,506 vehicles, down about 5.8% from the year-ago period. GM placed some of the blame on having one fewer selling day in April than last year.
Shares of Ford dipped nearly 4% in morning trading. Ford said that it sold 214,695 vehicles in April, a roughly 7.2% drop. Interestingly, the carmaker saw a 1.2% gain in SUV sales and a slight 0.9% drop in sales of its luxury Lincoln brand.
“Strong demand for high-series Super Duty trucks and diesel powertrains drove a $1,900 increase in Ford’s transaction pricing versus an industry increase of just $210,” said Ford VP Mark LaNeve in the company’s statement. “F-150 customers equipped nearly 70 percent of their trucks with EcoBoost engines last month, with dealers seeing strong demand for our new Raptor.”
Nevertheless, Ford’s truck sales were down about 4.2% in April. What’s more, the company saw a 21.2% drop in car sales, confirming an industry-wide trend away from cars.
“We see crossovers becoming an even bigger part of the industry and GM sales over the next five years, said GM VP Kurt McNeil. “Just five years ago, about one in four GM sales were crossovers. Today, they account for almost one-third of our deliveries and we see more growth ahead.”
Despite a weak start to the year, analysts are still calling for full-year vehicle sales of roughly 17 million. Automakers moved a record 17.55 million vehicles last year.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>