Major automakers on Tuesday posted higher U.S. new vehicle sales in September as consumers in hurricane-hit parts of the country replaced flood-damaged cars, extending a rally in their shares that began when Hurricane Harvey hit southeast Texas in late August.
While U.S. sales rose beyond the storm zones, according to automakers and dealers, much of the September gains came after Hurricane Harvey hit Texas. Replacing cars during the recovery in southeast Texas and Florida will boost U.S. new and used auto sales through at least November, according to industry consultants.
General Motors Co stock rose more than 3 percent to its highest level since its 2010 post-bankruptcy initial public offering, and Ford Motor Co closed up more than 2 percent at $12.34.
While the hurricane recovery drove sales, “this will be a short-lived party,” said Michelle Krebs, executive analyst for online sales site Autotrader.
Up to 500,000 cars were damaged or destroyed during Harvey and another 200,000 cars during Irma, according to industry estimates.
Reference: Reuters
Thai
Eng