General Motors Company (NYSE:GM) was the biggest winner from a surge in auto sales in October, according to a Bloomberg report. The ending of the government shutdown was one of the biggest factors influencing the rise in sales of cars during the month. Other American car manufacturers like Ford Motor Company (NYSE:F) and Chrysler also did well in the period.
According to the report, General Motors Company (NYSE:GM) increased sales by 16% year on year in October. The gains beat the 7.9% that analysts were looking for from the company. Ford Motor Company (NYSE:F) recorded a 14% increase, below the 16% analysts were looking for. Stock in General Motors Company (NYSE:GM) rose by more than 2% this morning on the news.
General Motors sales
General Motors Company (NYSE:GM) saw the greatest increase in sales from its Buick brand. Buick sales rose by around 31% year on year in October. The company’s Sierra and Silverado pickup trucks rose by 13% and 10% respectively.
Ford saw the greatest increase in its sedan, the Ford Fusion. Sales of the model increased by a whopping 71% year on year for October. The company sold 21,740 Fusion sedans in the month. The firm’s Lincoln and F-150 brands also did well in October, gaining 38% and 13% respectively.
General Motors Company (NYSE:GM) released an earnings report earlier this week that beat analyst expectations. The company attributed the beat to better than expected demand for its latest range of redesigned cars. Shares in the firm have risen by more than 5% in the last five days of trading.
Auto sales boom
American car makers appear to be making the greatest advances as the auto market returns to health. 2013 is on pace to be the best year for car sales since 2007, and the market is sitting up and taking notice. Shares in General Motors Company (NYSE:GM) have gained more than 30% so far this year, while sales in Ford Motor Company (NYSE:F) have added a similar amount to their value.
There are always risks in the auto industry, however, and both manufacturers are trading at below average multiples as a result.Ford Motor Company (NYSE:F) is trading at around 11 times 2012 earnings, while General Motors Company (NYSE:GM) trades at close to 17 times last year’s income. The S&P 500 is trading at more than 18 times earnings.