Early indications are that December auto sales should shape up to be on a pace that represents a positive for SiriusXM. Edmunds has compiled a mid month estimate that outlines the real potential for December 2012 auto sales to be in the neighborhood of 1,360,000 units. This would place overall 2012 sales right in the neighborhood of 14.5 million! That is great news for SiriusXM. It would make December the second largest month of the year and the SAAR would still be over 15 million, an indication that there is traction in the auto sector.
Another positive for SiriusXM is the sales mix. It appears that GM will see an 11% gain, and GM supplies subscribers to SiriusXM in the current quarter! Bear in mind that the bulk of December sales come late in the month, so there are some assumptions being made in the Edmunds analysis. Even if we were to assign a conservative though process to December sales, the results come up all roses from the perspective of SiriusXM.