Here is some good news, the auto sector has not driven over a fiscal cliff and January auto sales seem to be off to a good start. Last year January auto Sales came in at 914,000. Yes, that number is low, but this is January and as such is traditionally a slow sales month for new cars. According to Edmunds January of 2013 is currently pacing to deliver about 1 million in new car sales. That would put the SAAR at about 15.5 million and start off the year with a decent 10% pop over last year.
If new car sales can come in above 1 million it is quite possible that the entire year will be above that number as well. Last year January was the weakest month followed by October. Analysts are expecting full year auto sales to come in somewhere between 15 million and 15.5 million. In 2012 the sales total was just shy of 14.5 million.
For SiriusXM the news is good. Increased auto sales help to deliver more promotional subscribers for the company. The downside is that new cars are now more capable than ever and that means audio entertainment competitors are getting into the dashboard more as well. SiriusXM still carries a distinct advantage, but the company will need to stay on its "A" game to keep it.
SiriusBuzz keeps a monthly tally on the auto sector and a mid-month update as it relates to SiriusXM.