US Car Manufacturers Hit Highest Premium in 12 Years
U.S. automakers General Motors (NYSE:GM) and Ford (NYSE:F) are smiling. On the heels of last month’s blockbuster auto sales comes news that imported cars are now priced at a substantial premium to domestically produced vehicles. The premium is the biggest the industry has seen in almost 12 years.
This has given a boost to domestic automakers in their drive to reclaim market share from foreign manufacturers. Companies such as Japan’s Toyota (NYSE:TM) and Honda (NYSE:HMC) are hamstrung by the weak dollar/strong yen, causing imports of their vehicles to become more expensive.
Foreign automakers are also facing a resurgent emphasis on quality — making the competition that much tougher. The Japanese are also unlikely to unleash year-end discounts this year due to the strong yen (NYSE:FXY).
GM (NYSE:GM) is trading at $23.49 today, down 0.21%. The stock’s trading range for the year is between $19.05 and $39.48.