Over the first six months of 2016, the US automotive industry reported strong growth amid solid national gross domestic product (GDP) picking up by 1.2% in the second quarter of 2016, compared with 1.1% in the previous quarter, due to strong consumer spending and increasing demand abroad. The Big Three — General Motors (GM) (NYSE: GM), Ford (NYSE: F) and Fiat Chrysler (NYSE: FCAU) — beat their first half estimates, leading to a strong finish in the first half of 2016 with more than three million vehicle sales.
As sales escalated, investor interest was piqued. Consequently, the stock prices for all three automakers rose over the first eight months of 2016. In August, the Big Three were led by Fiat with an 8.06% gain to US$6.84, while GM’s stock rose 1.63% from US$31.3 to US$31.81. Amid the improved market conditions, both GM and Ford executives announced that that they would continue to implement their business plans and eventually expected their stock prices to increase for the remaining months of 2016.