While all of the news surrounding June auto sales will not be known for another day, Ford (NYSE:F) has gotten the ball rolling with some positive results. The company announced sales of 194,114 units, up 14% from last year, and above the 192,000 sold last month. For Ford it would appear that the sales slump came to an end in May. The company recently gave indication that sales in the second half of the year will increase, which bodes well for Sirius XM Satellite Radio (NASDAQ:SIRI).
One thing that satellite radio investors always need to be sensitive to is the news cycle of the auto manufacturing channel. With close ties to the auto industry, Sirius XM will always be impacted by the news releases about car sales and production. By example, while the headlines for Ford are good, the headline for Honda is a warning that they expect to sell 36% less cars this summer when compared to last year.
Position - Long Sirius XM Radio, Long Ford