Consumers are Buying More Cars than Normal

The car industry is expected to report its best sales month since the cash-for-clunkers program more than two years ago. Edmunds.com forecast a seasonally adjusted annual rate of sales, a closely watched measure referred to as SAAR by industry analysts, of 13.4 million vehicles. Sales were up from 12.2 million, a year ago.

Sales promotions helped improve the results. The industry average incentive spending is expected to reach $2,669 per vehicle in October 2011, TrueCar.com forecast. Chrysler spent the most on promotions per vehicle. Every other car maker, aside from Hyundai, spent more than they did in October 2010. Nissan Motors (NSANY) is on track to report the second-best improvement, seeing double-digits, while General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F) are seen coming in with single-digit gains.

Honda Motor Co. (NYSE:HMC) and Toyota Motor Corp. (NYSE:TM) seem to have mostly gotten a handle on their inventory woes, but October sales are still expected to have fallen 3% and 7%, respectively. Both, however, are seen taking back market share from last month,” according to MarketWatch.

  • General Motors Corporation (NYSE:GM): The shares recently traded at $25.85, down $0.6, or 2.27%. Its market capitalization is $40.37 billion. They have traded in a 52-week range of $19.05 to $39.48. Volume today was 8,853,422 shares versus a 3-month average volume of 14,958,900 shares. The company’s trailing P/E is 5.44, while trailing earnings are $4.75 per share. About the company: General Motors Co. manufactures and markets new cars and trucks. The Company offers features for special needs drivers, OnStar vehicle protection, service, parts, accessories, maintenance, XM satellite radio, features for commercial owners, and more. General Motors offers its vehicles and services worldwide.
  • Ford Motor Co. (NYSE:F): The shares recently traded at $11.68, down $0.32, or 2.67%. Its market capitalization is $44.38 billion. They have traded in a 52-week range of $9.05 to $18.97. Volume today was 41,641,375 shares versus a 3-month average volume of 76,258,100 shares. The company’s trailing P/E is 6.73, while trailing earnings are $1.74 per share. About the company: Ford Motor Company designs, manufactures, and services cars and trucks. The Company also provides vehicle-related financing, leasing, and insurance through its subsidiary.
  • Honda Motor Co., Ltd. (NYSE:HMC): The shares recently traded at $29.90, down $2.65, or 8.14%. Its market capitalization is $26.94 billion. They have traded in a 52-week range of $28.04 to $44.56. Volume today was 2,041,591 shares versus a 3-month average volume of 851,465 shares. The company’s trailing P/E is 6.97, while trailing earnings are $4.29 per share. The company pays a dividend of $0.71 per share for a dividend yield of 2.20%. About the company: HONDA MOTOR CO., LTD. develops, manufactures, and distributes motorcycles, automobiles, and power products such as generators and farm machinery. The Company also operates a financial credit business. Honda Motor has manufacturing facilities in the US, Canada, the UK, France, Italy, Spain, Brazil, Mexico, India, and Thailand.
  • Toyota Motor Corp. (NYSE:TM): The shares recently traded at $66.71, down $2.95, or 4.23%. Its market capitalization is $104.59 billion. They have traded in a 52-week range of $65.30 to $93.90. Volume today was 702,242 shares versus a 3-month average volume of 590,553 shares. The company’s trailing P/E is 36.26, while trailing earnings are $1.84 per share. About the company: TOYOTA MOTOR CORPORATION manufactures, sells, leases, and repairs passenger cars, trucks, buses, and their related parts worldwide. The Company also operates financing services through their subsidiaries. Toyota Motor builds homes, produces pleasure boats, and develops intelligent transportation systems including radar cruise control and electronic toll collection systems.

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