Auto Companies to Hire More as Sales Increase

Business Planning

The US auto industry is now showing positive trends after struggling for many years during recession. This is also evident with the increase in hiring by the auto companies. Sinece 2009, the employment in the industry has increased from 6,32,000 to 7,00,000 people. The industry reports say that, this growth in the overall industry is due to good performance of individual companies.

As on first quarter ending on March 31, 2011, the sales of General Motors were $36.19 billion, a 15% increase from last year, Ford Motor sales were $33.11 billion, a 5% increase from last year. In 2010, Ford Motors accounted for 19% of the company’s sales.

Investors who want to invest in the US auto industry are focusing on companies like GM and Ford. GM has a trialling P/E of 7.4 and a forward P/E of 6.42. Whereas, Ford has a trialling P/E of 7.77 and a forward P/E of 6.91. Both the companies are trading at reasonable valuations, as the sales are growing.

This increase in car sales also lead for the growth of hiring in the auto industry. In America alone 10.4 million cars and trucks were sold in 2009 and 11.6 million in 2010. This year, the sales are expected to increase 13 million or more. Auto companies are taking extra effort to meet the demand.