Auto parts maker Magna International Inc (MG.TO) (MGA.N) reported a 12.5% rise in profit on strong performance in its North American business, and raised its full-year sales forecast.
The fortunes of auto parts makers are tightly tied to the Detroit Three and the health of the U.S. vehicle market. The steady recovery by Ford Motor Co (F.N), General Motors Co (GM.N) and Fiat SpA’s Chrysler (FIA.MI) from their recession-induced slump bode well for Canadian auto parts makers.
China auto makers are having a tough go competing with the likes of U.S. and German brands. And even though there are a lot more of them then there are foreign brands, the reputable big auto makers dominate the roads in China.
Chrysler Canada says it’s enjoying the longest auto sales growth streak in its history.
The resurgent automaker, rescued by U.S. and Canadian government loans after filing for U.S. bankruptcy protection in 2009, says January had the 38th consecutive month of year-over-year sales growth in Canada.
Overall, the company says it sold 17,013 vehicles in Canada last month, up three per cent from 16,584 vehicles sold in January 2012.
Chrysler says those figures mean it’s starting the year as the No. 1 seller of vehicles in Canada.
Mark Reuss, president of North America for General Motors Co., is unconcerned about the automaker’s declining market share in Canada and in the U.S., and remains focused instead on building a profitable base for GM to grow.
Last year was difficult for GM in North America. Its U.S. market share fell to 18% from 19.6% in 2011; in Canada, it fell to its lowest in more than a century at roughly 13.5%, down from 15.3% a year earlier, after its sales fell by 6.6%.
US and other auto manufacturers banking on increased car sales in China for 2012 have three reasons to be concerned.
Blistering growth in Chinese auto sales is expected to plunge
China is taking efforts to dampen foreign investment in autos
The Wall Street Journal reports
Shares in the auto industry have been among the leading performers over the past year, with the Dow Jones US Automobiles & Parts Index advancing 140%.Given the massive run-up in auto equities, is there money still to be made in these stocks?I believe the answer is yes.