Even though March was a decent Month for auto makers when compared to last year, Ford (NYSE:F), General Motors (NYSE:GM), Toyota (NYSE:TM) and Honda (NYSE:HMC), among others are facing even more of a challenge because of those decent performances than they had if it has been slower.
The major problem is March isn't the typical big month in Auto sales, so while percentages of growth are a legitimate barometer of growth, it's not when measured against more important sales months like April.
So the success in March will probably become disaster in April, as parts shortage and skyrocketing gas prices are going to be challenges they may not be able to successfully navigate.
For example, even though parts were an issue in March, it wasn't as much as it'll be in April, as parts were already in process of being delivered in March when the earthquake hit Japan. April should see more slowdowns and cutbacks in production as a result, as evidenced by Ford shutting two of its plants down for a week each.
What is unknown is whether or not the American consumer will choose to use their tax refunds to acquire new vehicles in the midst of the type of high gas price environment we face.
Add to that the uncertainty concerning parts and April is a big question mark for the industry even with it having decent sales in March.
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