General Motors Company (GM), Toyota Motor Corporation (ADR) (TM), Honda Motor Co Ltd (ADR) (HMC): An Update On The U.S. Auto Market

Import auto sales from these companies have fallen, while domestically-made Toyota Motor Corporation (ADR) (NYSE:TM) and Honda Motor Co Ltd (ADR) (NYSE:HMC) cars and trucks have gone up. Import auto sales are down 10.6% and 26.3%, respectively, and domestically-made autos are up 9.1% and 14.9%, respectively. This is great news for our manufacturing base and for the patriots (like me) out there who want to see “Made in America” again.

Both players are seeing strong pickup sales growth, but their offerings aren’t as robust as the American players, so they are missing out on the growth. This is similar to when Honda Motor Co Ltd (ADR) (NYSE:HMC) and Toyota Motor Corporation (ADR) (NYSE:TM) offered better small and mid-sized cars a few years ago and stole away domestic market share from the Big Three.

Market share

The gains in the pickup industry have boosted the market share of the Big Three, at the expense of Toyota Motor Corporation (ADR) (NYSE:TM) and Honda. Ford Motor Company (NYSE:F)’s market share increased from 15.2% to 16.5%, General Motors Company (NYSE:GM)’s increased from 18% to 18.5%, Chrysler’s increased from 11.9% to 12.2%, but Toyota Motor Corporation (ADR) (NYSE:TM)’s decreased from 15% to 13.7%, and Honda’s decreased from 10.3% to 10.2%.

Why? This was because of pickup sales, with each of the Big Three notching 0.4%-0.7% gains in market share in the truck market. As the construction industry continues to rebound, expect larger market share gains from the Big Three, at the expense of the now smaller Big Two (Toyota and Honda).

Final thoughts

The naysayers, doomsayers, and “Debbie Downers” are all crying foul about the Big Three because of their exposure to Europe. But, look at the upside – U.S. auto sales are up, construction could be on the rebound, and the Big Three are gaining market share, while foreign auto makers are selling more domestically-made cars. Sometimes, the cup is half empty, but I see it half full.

The article An Update On The U.S. Auto Market originally appeared on Fool.com and is written by Callum Turcan.

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