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.