This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Detroit Auto Show: Confidence Reigns

DETROIT ( TheStreet) -- The Detroit Auto Show underscored a key fact for the U.S. economy: one of the country's most important industries is in a fully-fired recovery mode.

While the course of the economy and the markets are of course impossible to predict, it is equally impossible not to be swayed by the auto industry's optimism.

"It's pretty clear that a feeling of confidence is coming back to the industry," said Ford (F - Get Report) CFO Louis Booth, in an interview with TheStreet.

Meanwhile, GM (GM - Get Report) CFO Chris Liddell told reporters that the company wants to reduce its debt to zero and match pension asset income to pension asset liabilities, eliminating a drag on the company's value.

Liddell made clear his awareness that, in an intensely cyclical business, the current recovery is the time to buttress the recently-bankrupt company for the next downturn. "We're in an upswing now and we'll have a downswing," he said, His goals, he said, are to reduce GM's risk profile; to take advantage of strong market positions around the world, particularly in emerging markets, and to maintain an acceptable cost structure. "This can't be a one-off, bankruptcy induced" moment of prosperity for GM, he said.

>>4 Top Rollouts at the Detroit Auto Show

Meanwhile, Jim Lentz, president of Toyota (TM - Get Report) Motor Sales USA, said Toyota has a slightly less rosy view than Ford and GM, due to continued high unemployment and a weak housing market. Speaking to the Automotive News World Congress, Lentz said Toyota expects U.S. light vehicle sales to rise by about 9% to 12.5 million units, at the low end of industry estimates.

"For the first half of the year, we do see the U.S. economy improving, but at a slower rate than we would like or many analysts expect," Lentz said. "We expect a better year with the prospect of continuous improvement into 2012 and beyond."

-- Written by Ted Reed in Detroit .

>To contact the writer of this article, click here: Ted Reed


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $11.45 0.00%
GM $28.54 0.00%
TM $110.39 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs