The collapse of the global economy proved to be a devastating blow to the automobile industry. Nevertheless, the auto industry persevered, and the increases in auto sales may soon stimulate other markets and exchange traded funds (ETFs).
General Motors’ sale of a 1% stake in its main venture in China, along with a new India venture with its Chinese partner, should provide $400 million, reports Keith Bradsher for The New York Times. The weakened automaker is collecting cash to restructure and expand some key overseas operations. For example, restructuring G.M.’s European operations is estimated to cost $3 billion.
G.M. and its Chinese partner, Shanghai Automotive Industry Corporation, will collaborate to develop and make commercial vehicles for India and export to other emerging markets, write Fan Yan and Soyoung Kim for Reuters. Aided by Beijing’s stimulus measures, the auto market in China has been booming on higher consumer confidence and G.M.’s passenger car brands has seen some popular demand in China’s markets.
Daimler AG (NYSE: DAI), maker of Mercedes-Benz Cars, says luxury vehicle demand is on the rise, according to ChattahBox. Joachim Schmidt, head of sales for Mercedes, recently stated, “we further expanded our position and gained additional market share.” The CEO of Daimler AG, Dieter Zetsche, plans on providing smaller and faster cars that are eco-friendly.
Top sales analyst for General Moters, Mike DiGiovanni, stated that auto sales in China rose 93% in November compared to the same period last year while sales rose 6.7% in western Europe, 5% in Latin America and 2.7% in the United States, report John Kell, Doug Cameron and Jeff Bennett for The Wall Street Journal. Honda Motor Co. (NYSE: HMC) sales decreased 2.9%. Hyundai Motor Co. reported a sales increase of 46% from a year ago. In the States, Ford Motors (NYSE: F) and Toyota Motor (NYSE: TM) reported single-digit improvements, but G.M. and Chrysler Group reported declines.