Gloom begins to lift in US auto sector ...............Clutch Auto...cmp..68.65& Bharat Gears cmp..Rs 70.65

BILL VLASIC Detroit, 14 August After a dismal period of huge losses and deep cuts that culminated in the Obama administrations bailout of General Motors and Chrysler, the gloom over the American auto industry is starting to lift.
Jobs are growing. Factory workers are anticipating their first healthy profit-sharing cheques in years. Sales are rebounding, with the commerce department reporting Friday that automobiles were a bright spot in Julys mostly disappointing retail sales.
The nascent comeback is far from a finished product. Foreign competitors are leaner and stronger, accounting for more than half of all car sales in this country. The sputtering economic rebound is spooking investors and consumers alike, threatening to derail some of Detroits gains. And talks next year on anew contract with the United Automobile Workers could revive old hostilities.
Still, the improving mood here reflects real changes in how Detroit is doing business —and a growing sense that the changes are turning the Big Three around, according to industry executives and analysts tracking the recovery.
Ford made more money in the first six months of this year than in the previous five years combined. GM is profitable and preparing for one of the biggest public stock offerings in American history. Even Chrysler, the automaker thought least likely to survive the recession, is hiring new workers.
Many of the excesses of the past — overproduction, bloated vehicle lineups, expensive rebates — are gone. All three carmakers have shed workers, plants and brands. And a new breed of top management — the three chief executives are outsiders to Detroit, as is the newly named GM chief executive — says it is determined to keep the Big Three lean, agile and focused on building better cars that earn a profit.
"What weve come out of this with," said Sergio Marchionne, who runs both Chrysler and its Italian owner Fiat, "are much more rational, more grounded players making moves for the long term." The proof is emerging in dealer showrooms, where customers are buying more of Detroits cars and paying higher prices. In July, GM, Ford and Chrysler sold their vehicles at an average price of $30,400 — $1,350 more than a year ago and higher than an overall industry gain of $1,100, according to the auto research web site Edmunds.com.
With fewer factories churning out products, inventories are smaller and sales incentives like rebates and low-interest financing are gradually declining. "They were nibbling at these issues before, a little bit here and a little bit there," said Jeremy Anwyl, Edmunds chief executive. "Its just different now that they are in fighting shape." Detroit has vowed to change before, slimming down when sales slumped or pouring resources into vehicle quality to catch up to foreign competitors. Those efforts stalled or failed. But many auto analysts say the current makeover has a more permanent feel, largely because of the presence of the outsiders at the top and the lessons learned from the neardeath experience of last years bankruptcies at GM and Chrysler. Fords chief executive, Alan R Mulally, broke the mould four years ago when he came from Boeing and set out to streamline Fords bureaucracy and integrate its worldwide operations. At GM, Edward E Whitacre Jr, a former AT&T chief, has replaced dozens of top officials with outsiders and younger executives, and driven the company to make decisions faster.

Conclusion:
The first sector to show the sign is Auto sector coming up for any economy turning around and that US Auto sector showing sign of recovery is a great news for the world.
If Auto sector is going to revive in USA and in India Auto sector booming in big way , I am bullish on this sector perticularly on Auto Anciallary sector and all knows my picks in this sector....
1)Rico Auto
2)Hitech Gear
3) Lumax Ind
4) Jamna Auto
I would like to mention Clutch Auto & Bharat Gears  here. Both are  10 paid up share and making profit available at Rs 68.65 & 70.65 respectively  are going cheap along with Jamna Auto and Hitech Gear. All 4 are still worth buying and should give multibagger returns from here on as well.Rico Auto will also start moving once the things start looking up ...like coming in profit....