Trading Technology

01:53 PM
Connect Directly
Facebook
LinkedIn
RSS
E-Mail
50%
50%

Gaining Speed: Auto Markets Improving

Both American and European automobile markets are seeing stronger sales, signaling good health for the industry and a rebound from the crisis a few years ago.

The U.S. Auto market has hit a high note for sales in August. Production has been increased by just about every automaker. With estimates bringing the month's sales near 1.5 million units, the volume of sales is at its highest level for any month since 2007. The majority of retailers are seeing double-digit sales increases from a year ago, with the Honda US leading the way, boasting an estimated 17% jump in year on year sales. In fact total sales could top the 16 million annual mark, a significant barometer for the health of the U.S. Auto industry.

This is especially impressive when you consider that during 2009, the crisis kept buyers out of the marketplace, with only 10.4 million vehicles moving all year. The US industry has gotten so hot that sales are at China's robust mark, a developing auto market many figured the US could not compete with in terms of growth.

[Trading Algo Patents: Will Firms Seek More Protection? ]

August is typically a strong month for back-to-school shopping, but apparel sales have been abysmal and well-known teen retailers such as Abercrombie & Fitch and Aeropostale have seen their shares sliced by up to half in the last few weeks. Yet, the consumer has been spending away when it comes to auto, a trend that certainly defies common sense logic. Low financing rates coupled with a few years of repressed demand maybe the culprits for the auto renaissance. But, we are a few years out of the crisis and sales have continued to gain steam.

Even Europe's Auto market seems to be improving, Ford's Western European chief executive said on August 26th that European sales had hit a bottom and were now moving at a stable pace. This is a great improvement over the consistent drops in sales European automakers were seeing earlier in the year.

[To hear from keynote speaker William Murphy, Chief Technology Officer, Head of Blackstone Innovations and Infrastructure, register for Interop here. Murphy’s presentation, “Is IT Irrelevant?” will take place during Interop from September 30 through October 4 in NYC.]

Alexander Fleiss serves as Chairman and Chief Investment Officer of Rebellion Research Partners LP, a Global Macro hedge fund and financial advisory that invests across all asset classes and is based in New York. Mr. Fleiss also oversees the firm's institutional research ... View Full Bio
Comment  | 
Print  | 
More Insights
More Commentary
Business Continuity 2.0: We’re Gonna Need a Bigger Boat
What would happen with a long-term outage to financial systems or the nation’s critical infrastructure? Businesses aren’t even close to being prepared.
Using RPA in Banking to Streamline Development
As the returns on outsourcing decline, firms are looking for other ways to increase efficiency and reduce costs in the IT organization. Robotic Process Automation may help.
SEC Vote Is Drama for the Masses, With No Happily Ever After
All of them hoped it would never come to this.
Driving Information Security, From Silicon Valley to Detroit
As software interacts with more and more of our daily lives, technology providers may be liable for more damages than they have in the recent past.
Big Data's Challenge: Matching Business Needs With Technology
All those bits and bytes only add up to something when they’re organized, arranged, and made coherent.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - July 2014
In addition to regular audits, the SEC will start to scrutinize the cyber-security preparedness of market participants.
Video
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.