February auto sales are in, and like the past several months, there is more bad news than good. The trend in auto sales has now begun to hit the production line. Ford and GM have both announced production cuts to their truck and SUV lines. This news hurts twice as bad because in many cases, the SUV and truck lines represent the most profitable segment for automakers.
The question that SDARS investors should be more worried about is the penetration into the car lines. While production does take it's toll on SDARS, it has largely been offset by bigger rates of installation across more models. This deeper penetration may help SDARS weather the OEM sales woes, but it can not last forever.
The data presented in this article represents car sales, their comparison to the previous year and the SDARS company that is affiliated with the manufacturer. The numbers presented do not represent satellite radio installations. It should be noted that some manufactures conduct far more installations than others, so the relative "shares" of the market are not indicative of which company is seeing more installations. The data also does not deal with the costs of the various OEM deals. Each OEM deal has differing structures. Some OEM subscribers are "more valuable" than others.
Position - Long Sirius, Long XM - No Position OEM Sector