Deutsche Bank Comments On November U.S. Auto Sales, GM Still Market Share Leader

Rod Lache of Deutsche Bank commented in a note on Monday that U.S. Seasonally Adjusted Annual Rate (SAAR) is tracking at 16.6 million units so far in November, representing a 5.8 percent improvement in absolute units from a year ago, despite fewer selling days. Lache adds that his November projections are roughly in-line with the third quarter SAAR of 16.7 million. “While sales seem to be moving along at a decent pace, we'd note that the month is heavily dependent on the Thanksgiving weekend and could approach the 16.9 million to 17.0 million range,” Lache wrote. The analyst adds that the industry continues to see a “balanced” demand/supply conditions for light trucks while the passenger car category is seeing “intense” competition. Lache is projecting

adjusted sales will be 7.1 percent higher than it was in the same month last year while

adjusted sales will be 1.1 percent lower. General Motors is expected to maintain its market share leadership with a 17.4 percent market share (versus 17.8 percent a year ago) while Ford holds on to the second spot with a 14.0 percent market share (versus 14.8 percent a year ago.) The analyst notes that Ford's performance continues to be “soft” while the automaker continues to experience downtime for the changeover to the new F-150 truck. Shares of General Motors are Hold rated with a $39 price target while shares of Ford are Buy rated with a $16 price target.