Goldman Ups Its 2009 Car Sales ForecastBy Michelle Krebs April 23, 2009
Goldman Sachs has increased its forecast for 2009 new vehicle sales from 10 million to 11 million.
Goldman analyst Patrick Archambault said his optimism comes from the likelihood that Congress will pass a cash-for-clunkers bill, one that could add 750,000 to 1 million vehicle sales this year as consumers turn in their old cars for new new ones for a government rebate. Archambault also sees improvement in consumer confidence.
Goldman has not changed its sales forecasts beyond 2009. For 2010, the firm is sticking with 12 million sales, increasing to 13 million in 2011 and 14 million in 2012.
Goldman is upbeat on Ford and boosted its recommendation on Ford stock to "buy" from neutral. Ford has "sufficient liquidity to make it through 2010 without additional funding," Archambault wrote in his report released this week. He predicts Ford will increase profits by more than $9 billion from 2009 to 2012, thanks to $4.7 billion in labor cost savings, a higher capacity utilization rate at its plants and $2.6 billion in other cost reductions.