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

Auto Sales Remain Strong as Mid-Sized Cars Shine

DETROIT -- ( TheStreet) -- September auto sales numbers, due out Tuesday, are expected to show that auto sales remain a bright spot in the U.S. economy. And no auto segment is brighter than mid-sized sedans, an area where nearly every major manufacturer has a hot new car.

In fact, several cars in the segment are so new that their full impact will not be seen in the September numbers, which are expected to rise about 9% from September 2011 levels, according to The seasonally adjusted annual light vehicle sales rate is expected to total 14.4 million, just behind the 14.5 million SAAR in August.

September saw "a sharp rebound in consumer sentiment (reflecting) an equity market rally and an improvement in housing, driving a wealth effect" in auto sales," said Jefferies analyst Peter Nesvold, on a Jefferies/Edmunds conference call with auto reporters on Friday. The return of non-primer borrowers provides a tailwind in a market driven by demand for replacement vehicles as the U.S. fleet ages, he said.

Strong September pickup sales are expected, fueled by seasonal factors as well as the emerging recovery in housing, Edmunds said.

Among mid-sized autos, the cars are so compelling that they are luring traditional buyers of both larger and smaller cars, Edmunds said.

"As boomers move to retirement mode, you may see even more people shifting from luxury and full-size," said Edmunds economist Lacey Plache. Meanwhile, compact cars' historic fuel efficiency advantage is being challenged by the fuel efficiency in the mid-sized segment.

Referring to a chart listing the nine top cars in the segment, Edmunds analyst Jessica Caldwell noted "there's not a horrible vehicle on this chart," nor are there any aged models. "Sonata, the industry darling for the past few years, is the old man on this chart," Caldwell said.

Leading the segment is the new Toyota (LCC) Camry, which came to market a year ago: sales through August are up 37%. Honda (LCC) rolled out its new Accord last month, while Nissan just launched the new Altima. So far this year, Camry and Accord are the nation's second and fourth best-selling this year, while Nissan Altima is fifth.
1 of 2

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 $13.26 -1.30%
GM $30.54 -2.30%
HMC $26.58 -0.67%
TM $101.26 -0.19%
AAPL $94.16 -1.10%


Chart of I:DJI
DOW 17,667.29 -83.62 -0.47%
S&P 500 2,052.95 -10.42 -0.51%
NASDAQ 4,733.5580 -29.6660 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs