Auto dealers are now feeling the first big rain drops trickling down from the disaster in Japan (NYSE:EWJ). The WSJ is out with an article explaining how once positive expectations are now deflating with a new reality.
?Dealers of all sizes began this year expecting a surge in auto sales, and AutoNation (NYSE:AN), owner of 246 franchises in 15 states, was no different. But the quake, because it has hobbled production by Japanese auto makers, has put many dealers in a bind: They?re running short of Japanese-brand cars as demand is rising.?
Auto dealers are retailers. If they execute their business model well, they should be filling unmet demand with other comparable brands. This sets the stage for US, German, and Indian automakers ? Ford Motor Company (NYSE:F), General Motors (NYSE:GM), Volkswagen, Tata Motors Limited (NYSE:TTM), Tesla Motors Inc (NASDAQ:TSLA), etc?? to swoop in an get more units on the road while?Toyota Motor Corp. (NYSE:TM),?Honda Motor Co. (NYSE:HMC), and Nissan continue recovering.
AutoNation (NYSE:AN) is not the only dealer feeling the pain.?Group 1 Automotive, Inc. (NYSE:GPI) and CarMax, Inc (NYSE:KMX) are experiencing the same problem. Will one of them turn this misfortune into an advantage? If so, investors in the winner will be well positioned.
Off Wall Street, you can also check out how your favorite auto maker is doing with consumers in The Top 10 Best Selling Cars In America.
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Source: http://wallstcheatsheet.com/trading/investing-in-autos-heres-why-dealers-are-feeling-the-pain.html/
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