In past decades, a downturn usually hammered the car companies and their stock prices every three or four years. Chrysler Corp. was up 18.2 percent. General Motors Corp. was up 11.5 percent. In contrast, the Dow Jones industrial average, an index of 30 top-flight corporations, rose 11.3 percent. Factors that influence car and truck sales remain satisfactory.
Job growth remains high, while unemployment and inflation are relatively low.
A recent dip in interest rates spurred a wave of mortgage refinancing that cut the cost of monthly house notes for many families. Whether investor confidence in the Big Three will continue remains to be seen. Under heavy competition, the companies haven't been able to raise prices in North America. And their overseas sales are slow. Auto analysts expect Chrysler and GM will have little or no growth in first-quarter earnings, while Ford profits should rise on the strength of truck sales.