Ford Sales Up; Best March in 8 years

GM CEO Mary Barra begins two days of testimony.
3:00 | 04/01/14

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Transcript for Ford Sales Up; Best March in 8 years
-- New York as the financial markets -- Tuesday April 1 this -- story stuck. And today looking at Ford motors thanks to strong sales numbers in March Ford stock rose 5% today. Rick Newman of Yahoo! finance -- in the driver's seat to explain at all. 5%. Stock gain in perspective the today. That's a good day for forward. Two isn't going on -- I think Michelle first sales were good. And that tells investors -- doing okay but I think even more importantly that the overall. Auto market is bouncing back from some very weak numbers in January -- the big question there was. Is this really. Whether that is depressing sales -- could there be something bigger and worse and more persistent going on sorry to look like it was whether which means people are coming on spending money. Secondly Ford may get a little bit of benefit from what's happening with General Motors. A lot of people do what the unit in the industry that call cross shop they compare to brands and if you're interstate and a General Motors product in your feel a little. Hesitant about that Ford is probably the next -- are gonna check out especially with regard to trucks and suvs so there's some. Belief I guess that while GM is struggling with this big recall problem Ford might be beneficiary. Well let's talk about fort a little bit more here it tells us that sales of its fusion model set an all time monthly record for the company delivering nearly 33000. Of them. Hot car hot stocks is that -- that. Means -- that's -- that's a real success story for Ford and here's why here's one reason that's really important. A lot of times when a car is brand new. Eight. It's it's just doing terrifically for -- to hold up. That strongly. -- is really competing well with Toyota and Honda and Nissan which are really the markets British family sedan that's a really important segment. Lot of volume of those cars aren't the sexiest cars on the road but they sell a lot of them and the profit margins are a lot better than four the smaller cars about took that as a great success. -- for Ford and -- you mentioned that the overall health of the auto industry might be getting a boost for wasn't the only carmaker with a good month. Toyota sales were up 5% year -- year from march Chrysler up 13%. What's behind this march Ron on cars -- up. Yeah while it is like I said before expects sales were weak. In January February with the pace of sales in March. Was more than sixteen million and that is all if they would if we're to sustain that for the year that would be almost back to the high levels before the recession I don't think we're gonna see that for the rest of the year I think they'll settle back down. Closer to sixteen million maybe for the rest here pretzel to lower than that. But this is good news -- auto makers are much more efficient than they used to be so. If you know if big spending and consumer spending keeps up like this but the auto makers almost all really all of them we'll have a -- year. So perhaps a little cabin fever and also consumer confidence but not all the news was good for car companies today. GM CEO Mary Barra had some rough going before house house panel investigating how GM mishandled a safety recall. General Motors says it's recalling some 2.5 million. Cars because of this ignition faulty ignition recalled do you expect this kind of black -- -- hurt the future. Of GM's sales how much. Is is going to damage the reputation going forward. That's really the whole question. GM is pretty much covered financially in terms of liability for -- any legal settlements they have they. That is not to they'll have they'll have some -- but that is not gonna really hit the company that hard the question is will people start to hear bad things about GM. A lot of times people don't distinguish between. What exactly is -- that's in the news how -- noted it happen and does this affect the car that's in the that the cars that are in the show rooms right now that's the concern. GA GM CEO Mary Barr is clearly doing everything she can to be forthright about it try to get this fixed as quickly as possible but on the other hand. You know these recalls just keep getting deeper they keep discovering more problems adding to the adding to the number cars in the recall. The cost is then going up and it's these continual drip drip drip of news so at some point GM Walt sort of bottom out on this and you know we'll sort of know all there all areas to know they'll just start fixing the problem in dealing with that. But we're we're not at that point yet there's more information to come on this and I think -- GM investors are going to be pretty -- until we get to that sort of bottoming out period. Yeah the first round of hearings still ongoing -- -- of Yahoo! finance thank you for joining us. Yet even watching stories -- stay with for your latest headlines I'm Michelle Franzen and New York.

This transcript has been automatically generated and may not be 100% accurate.

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