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Garnry: How to be in the driving seat of the auto revival
As car sales in the US reach the highest level since before the financial crisis, Saxo Bank's peter Garnry says there's potential for even more growth. The industry's annual
US sales pace reached 16.41 million vehicles in November, according to industry
research firm Autodata.
Peter says: "If you compare it to the population growth, then the
potential is for sales between 18-19 million, so there is a 15% upside to
auto sales, and that is one of the key reasons why we’re positive on autos."
He thinks that when it comes to investing in the auto industry, it's best to look for companies that have a large exposure to china. Baring that in mind, his top picks are BMW and Ford. He adds that both companies are "priced at a fair level, they
have good growth, stable margins".
Ford said the mid-size
car segment accounted for 14.5 percent of the industry last month, down one
percentage point from November 2012.
US vehicle sales bottomed in 2009
at 10.4 million. They rose to 14.5 million last year, and GM has said US auto
sales would likely finish at 15.6 million this year.
01:56 minutes
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