2011 was a tough year for automakers. General Motors’, American leading automaker company, stocks have dropped down by 50% from its higher position of $39.48. Current PE is barely 4.3 with EPS of 4.5.
Fluctuating market along with recession caused an unusual hike in gas price that affected automotive market decreasing its sale rate.
However, company totally depended on its SUVs and trucks and hence it is expecting 2012 to be a good year.
Not only GM but Ford, another US based Automaker Company, also suffered recession by loosing its stock from $18.97 high. And Ford is also expecting 2011 to be a good year for their sales and credit division, same as GM.
Ford is running strong in its sales side but credit division is performing poor compared to last year.
News Source: Seekingalpha
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December 24, 2011
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