If you were going to buy a new vehicle what kind would you buy or lease? There are a variety of options to choose from and most of us still need not just want a vehicle. Do you buy an internal combustion vehicle, an electric vehicle, a hybrid, besides the make and color of the vehicle.
In an article by Aishwarya Nair of Reuters, the US automakers reported the quarterly sales in early April and they were good. (auto dealers seem to be enjoying themselves at a Las Vegas convention). The sales were lower than a year ago but sales of electric and hybrid were up.
GM reported 1st quarter sales of cars and light trucks would fall to 14.1 million annually from 16.8 million a year ago. In terms of trucks and SUVs, sales were up as compared to last year.
In France, sales of electric and hybrid vehicles took 40% of the market, which is the first time they were higher than conventional gasoline models.
Toyota, which in 2021 over took GM as the top selling automaker in the US, continued its position with increased sales of Lexus hybrid and electric models. Jack Hollis, senior VP of automotive operations at Toyota North America does not expect America to shift from 3/4’s of the market is trucks and SUVS.
GM is seeing high demand but because of the strong job market and the supply system including computer chips is getting better. GM expectations is an ordinary a good jobs market should translate into light vehicle sales in the 17 million range.
Linking to dividend paying stocks, for your investment is good to know what the normal expected range of sales is. If the company delivers for the sales as expected, you can be contented and ask different questions about why and how. For auto makers we know the market will change in the future to more electric and hybrid, how fast the consumer changes is a different story which the automakers have to adjust to meet reality.
There are more questions than answers, till the next time – to raising questions.