New York City, New York -- Auto sales in the U.S. have been rising since last year. Meanwhile, a rebound in Chinese economy is expected to boost auto sales in the world’s second largest economy. As a result, automakers are expected to boost vehicle production in 2013, which should benefit the auto parts industry. For companies such as Gentex Corp. (NASDAQ: GNTX) and Meritor Inc. (NYSE: MTR), the U.S. and China will be key growth drivers in 2013. However, Europe remains a concern for the auto parts industry. A recent report showed that auto sales in the U.S. rose 3.7% on a year-over-year basis to 1.19 million vehicles in February. While the sales figure was short of expectations, it is still robust. Access our free reports onGentex Corp. and Meritor Inc.Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
Auto sales in the U.S. have been gaining momentum since last year, driven by cheap financing, improving construction market and substantial pent-up demand. These trends are expected to continue to drive growth in vehicle sales in 2013. Automakers are expected to boost their vehicle production as auto sales outlook in the U.S. remains bullish. This augurs well for the auto parts industry.
The slowdown in Chinese economy last year had raised concerns over a hard landing. However, the Chinese economy has shown signs of picking up pace since the start of this year. Earlier this week, China’s outgoing premier Wen Jiabao pledged to take actions to ensure that the Chinese economy grows at 7.5%. If the Chinese economy continues to grow at a robust pace then auto sales will receive a boost.
China is already a major market for automakers such as General Motors Company (NYSE: GM) and Ford Motor Company. According to recent data from the China Association of Automobile Manufacturers (CAAM), vehicle sales in the country rose 46.4% to 2.03 million units in January this year. CAAM expects auto sales to rise 7% to over 20 million vehicles in 2013. Given the robust outlook for auto sales, China will be key growth driver for the auto parts industry.
While U.S. and China are expected to be the main growth drivers for the auto parts industry, Europe remains a cause of concern. Although woes over the Eurozone debt crisis have eased significantly since last year, the region is still not growing.
Gentex Corporation, which is engaged in the manufacturing of automatic-dimming rearview mirrors and camera-based lighting and driver-assist systems for the automotive industry, reported its fourth quarter results in January this year. The company posted net sales of $260.3 million for the fourth quarter ended December 31, 2012. Our free research report onGentex Corp.can be downloaded upon registration at
Fred Bauer, CEO of Gentex Corporation, noted that the company is demonstrating continued positive efficiencies it is experiencing within its operating expenses.
Meritor Inc. reported its first quarter results in January. The Troy, Michigan-based company reported sales of $891 million for the first quarter ended December 31, 2012, down 23% on a year-over-year basis.Meritor Inc.free research is available today at
Chip McClure, CEO of Meritor Inc., noted that the company’s performance in the first quarter was slightly below its expectations driven primarily by weaker-than-expected market conditions outside North America.
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