This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

August Should Be Best Auto Sales Month in Six Years

Stocks in this article: F GM HMC TM

DETROIT ( TheStreet) -- August is shaping up to be the best month for auto sales in more than six years as the auto industry continues to provide one of the brightest spots in the recovering economy.

Experts expect sales gains ranging from 12%, the LMC Automotive estimate, to 13.6%, the Kelley Blue Book estimate. LMC said estimated unit sales of 1.5 million vehicles would be the most since May 2007.

A portion of the sales gain reflects the inclusion of Aug. 30, the first day of the Labor Day weekend, in August sales. Sales of pickup trucks and compact crossovers are leading the industry, with both segments up about 22% in August, according to Kelley Blue Book.

Both firms now expect light-vehicle sales of 15.6 million this year, up from 14.5 million in 2012. Light-vehicle sales have increased by at least 1.2 million every year since 2009, when the total was 10.3 million. LMC estimated July's seasonally adjusted annual sales rate at 16 million, while Kelley Blue Book's estimate is 15.6 million.

"U.S. auto recovery seems to be operating on auto pilot, a welcome stage of stability at a higher pace," said LMC analyst Jeff Schuster, in a prepared statement. "We do expect to see a lower selling rate in September as Labor Day is counted in August sales, but upside potential still outweighs downside risk in 2013 and well into 2014."

The weak link in August sales is the mid-size car segment, which has been hurt by a shortage of Ford (F) Fusions and disappointing sales for GM's (GM) Chevrolet Malibu.

"The mid-size car segment, which had many redesigned models introduced last year, is expected to be down nearly 2% in market share and is being challenged by compact cars for the top segment, while both the large truck and compact crossover segments are seeing the most improvement, up nearly 1%," said Kelley Blue Book analyst Tim Fleming, in a prepared statement.

"The launch of the new Toyota (TM) Corolla next month could provide the necessary sales for compact cars to become the leading segment in the industry," Fleming said. In August, mid-size cars had 15.8% of the market, compact cars had 15.4%, and compact crossovers and full-sized pickup trucks both had 12.7%, the firm said.

"Encouragingly, pickup truck sales appear to be outperforming again," wrote Citigroup analyst Itay Michaeli, in a recent report. "Specifically, GM's full-size pickup truck average transaction prices appear to be tracking nearly $400 higher than July's already strong results and well over $2,000 year-over-year."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs