GM on Track to Be August's Car Sales Winner

GM (GM) is expected to show a sales increase of 15.3% from a year ago when it posts August numbers later this week. That would be an improvement of 30,000 cars and light trucks and would eclipse the unit gains of its smaller rivals.

Edmunds, the auto industry research firm, which posts monthly sales estimates, says the entire industry struggled in August. Total domestic unit sales are estimated to have risen just 4.8% from last year -- an increase of only 62,000 cars and light trucks. Edmunds adjusts its numbers based on sales days each month compared to the same period a year ago: August 2011 had 26 sales days, while August 2010 had 25, Edmunds notes. The research firm attributes the relative weakness to the still sluggish economy.

The most notable data in this month's report concerns the surge for GM compared to sales trouble at Ford (F). The No. 2 U.S. automaker is forecast to have a sales increase of 9.7%. Ford has grown more quickly than GM for most of the last three years. GM's Chapter 11 filing hampered whatever success it might have had in 2010. Ford stayed out of bankruptcy, which allowed it to spend aggressively on new models, but GM appears to have trumped Ford in terms of the popularity of its latest vehicles so far this year.

Wall Street isn't showing much confidence in either Ford or GM under the shadow of a possibly looming double-dip recession. Ford closed Monday trading at $10.93, near its 52-week low, and far below its 52-week high of $18.97. GM's stock, too, was trading near its 52 week low at $23.79, compared to a 52-week high of $39.48

Edmunds expects the largest Japanese car companies will report continued struggles as they try to restore production to levels that prevailed before March's devastating earthquake in Japan. Toyota's (TM) August sales numbers are expected to be off 14.4% year over year. Honda's (HMC) are forecast to be down by 25%.

The third of Detroit's car companies -- Chrysler -- is expected to post a gain of 16.6%, but its unit sales will only be a little more than half of GM's.

The domestic car industry which appeared to be recovering nicely in the spring, is no longer recovering at all.



Increase your money and finance knowledge from home

Bonds for Beginners

Learn about fixed income investments.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum

59 Comments

Filter by:
shiloh1388

The Chrysler 200 is a much better car than the auto test magazines report. Also, the Dodge Caliber, so maligned also drives well, rides well, and handles nicely with a lot of room and carrying capacity, but has substantially slower acceleration than a BMW 3 series. Duhh. The Caliber is a speciality subcompact, and the BMW 3 series their Buick Electra in Deutchland. Like comparing a Valiant 200 in 1961 with a Ford Thunderbird. No comparison except their both cars. Thinking back fifty years is a pretty good deal. The chances are that in 50 years most Americans may have lost the privilege to drive, since they were brainwashed by people who hate the United States to begin with.

August 30 2011 at 4:23 PM Report abuse +1 rate up rate down Reply
notawhackjob

O'Bammy is using taxpayer money to subsidize charge stations for the Government Motors Volt.Gotta love it.

August 30 2011 at 2:22 PM Report abuse rate up rate down Reply
1 reply to notawhackjob's comment
richard

I think your a wackjob.

August 30 2011 at 10:07 PM Report abuse rate up rate down Reply
1 reply to richard's comment
notawhackjob

You can't think,you're in an OBAMA TRANCE.

August 31 2011 at 7:43 AM Report abuse -1 rate up rate down
notawhackjob

Good thing George Bush bailed out GM huh? But of course O'Bammy will take all the credit. If they fail it will be George Bush's fault. Look up rule #1 in the Com/Lib handbook.

August 30 2011 at 1:17 PM Report abuse rate up rate down Reply
Michael

Bought a -71 pickup truck...awful experience. So Bought another one ...knowing that it had to be better than the first one!
Engine broke on second one after 33K miles. What a joke. Have had a Tundra since 2003...hasn't coughed.

August 30 2011 at 1:17 PM Report abuse rate up rate down Reply
notawhackjob

GM will come out with the new Obamalac ,It with drive the next four generations straight to the poor house.

August 30 2011 at 1:14 PM Report abuse +1 rate up rate down Reply
notawhackjob

Hey Turdmachine are you a GM salesman? ..........LMAO

August 30 2011 at 1:11 PM Report abuse +1 rate up rate down Reply
stevechengmead

Chevy volt sold 24 cars in July 2011 and guess who bought most of them ( yes, the U.S. govt.). Now if the great GM will PAY BACK the tax payers in FULL. I'm tired of our govt. leaking that GM won't be able to pay us back in full , then read articles like this. Union paybacks make me ill, PAY US BACK GM !

August 30 2011 at 12:48 PM Report abuse -1 rate up rate down Reply
3 replies to stevechengmead's comment
rich

Thank god for the Chevy VOLT. It is saving GM and possibly the entire industry.

August 30 2011 at 12:30 PM Report abuse +3 rate up rate down Reply
3 replies to rich's comment
sseary

Yeah, and these dam republicans were aganist(of course they are aganist everything that will help the country), baling out GM.

August 30 2011 at 11:38 AM Report abuse -1 rate up rate down Reply
3 replies to sseary's comment
txswalker

PS yes buy american

August 30 2011 at 11:16 AM Report abuse +3 rate up rate down Reply
2 replies to txswalker's comment
tmachine2

I think Americans are slowly understanding that we need to buy American and keep the profits, taxes, and jobs here in the U.S. Also, buying American lowers trade deficits.

August 30 2011 at 11:28 AM Report abuse +3 rate up rate down Reply
3 replies to tmachine2's comment
fjludu

Good idea when you can. Is your TV, DVD player, and camera American. Bet not? Is a lot of what you buy in retail stores American? Bet not.

August 30 2011 at 11:46 AM Report abuse +2 rate up rate down Reply
2 replies to fjludu's comment
tmachine2

Americans can still buy American-made cars, tools, appliances, bikes, motorcycles, canopies, clothes, perishables, furniture/mattresses toiletries, and many other products we use everyday. It's an excuse when we say everything is made overseas. If you do your research, you can find American companies manufacturing in the U.S. I bet you never check the labels?

August 30 2011 at 12:55 PM Report abuse rate up rate down
notawhackjob

American label ,foreign made peal the sticker back a little.

August 30 2011 at 1:06 PM Report abuse -1 rate up rate down