As the sales of cars in the United States top out, the American manufacturers need to look to the European Union and China for improvement. Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) had a tough time of it in Europe during August. Each underperformed the growth of the entire market.
Sales of cars in the EU hit 819,126, up 10% from the same month last year. Based on the figure, the EU market is well ahead of the U.S. market in terms of growth.
Ford’s sales rose 7.8% to 53,734. GM’s sales (primarily under the Opel and Vauxhall brands) rose 5.2% to 53,952.
The primary problem GM and Ford have in the EU is their tiny market shares. Ford has 6.6% of the market, the same as GM. The top of the market is controlled by Volkswagen, which has held the place by a wide margin despite the diesel scandal. Its sales, however, were not exactly robust, rising 6.9% to 212,004. VW has 25.9% of the market, much higher than GM, the top car seller in the United States. GM’s American market share usually lingers around 18%.
Ford’s shares are down 14% to $12.14 this year. GM’s are off 10% to $30.71, while the S&P is up 4%. The market believes, despite their self-driving and electric cars, that the top two U.S. car makers are barely growing in America and are lagging in Europe.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
