Automakers and parts suppliers got back on the recovery track in the second quarter but retailers remained in the doldrums. This came in the wake of poor first-quarter performances by all three stock groups followed by the Automotive News Europe/PricewaterhouseCoopers Transaction Services Shareholder Value Index.
With five out of seven automakers recording double-digit gains, the sector achieved overall growth of 13.9 percent in the second quarter of 2012. Partsmakers achieved exactly the same growth of 13.9 percent in Q2. Retailers, however, saw a further fall in value, even though the 0.5 percent rate of decline in Q2 was an improvement on the first quarter's 3.4 percent drop. Within this group, however, some companies still managed good gains.
The strong performances in two of the three automotive categories was in marked contrast to that of leading stock exchanges. A 4.8 percent rise in the German DAX 30 and a 2.9 percent rise in the French CAC 40 were the best performances stock markets could manage in the quarter.
"The auto industry has overcome a number of the factors which affected consumer sentiment in a negative way the first three months of this year," commented Jason Wakelam, leader of PwC UK's Automotive Transaction Services. "However, retailers as a whole continue to lag well behind, as they have done for the last three years."