Seeking Alpha

Here comes the reality check for automakers

  • The Ford (F -2.4%) hangover is building today as shares continue to fail to find traction following the automaker's blunt assessment of its North American business.
  • General Motors (GM -2.4%), Toyota (TM -1.9%), Honda (HMC -1.6%), and Nissan (NSANY) are all lower on the day as investors conclude Ford's reality check could be contagious.
  • The issue isnt' that demand for 2014 doesn't look strong (forecasts), but centers on worries that the pricing environment and capacity ramp up could seriously crimp profits.
  • Morgan Stanley on the auto predicament: "The market is clearly moving from a 'need to replace' to a 'can’t afford to pass up a great deal' consumer mindset."
Comments (12)
  • Vico Confino
    , contributor
    Comments (204) | Send Message
     
    Vico Confino Tesla 85 owner since 12/21/2012

     

    Wouldn't the auto manufacturers mentioned in this article be glad to have a backlog of orders as Tesla does.
    While the naysayer commenter s continue to pan Tesla's ever increasing success, the Tesla customer deposits keep taking more buyers of the ICE autos out of the market.
    There is no substitute for a well run company that can keep it's promises than auto companies that keep making the same mistakes year after year. Supply and demand will always prevail.
    nuff sed,
    Vico Confino
    19 Dec 2013, 04:01 PM Reply Like
  • dsruggles
    , contributor
    Comments (14) | Send Message
     
    Yea, the big OEMs would love to have a backlog like Tesla they could wipe out in a day or two. Actually, Tesla would like to have the problem of consecutive profitable quarters. Get real. 20K in a year vs. 5 million in a year and you think Tesla is in a better position than GM? :)
    19 Dec 2013, 08:28 PM Reply Like
  • hound1965
    , contributor
    Comments (52) | Send Message
     
    Right now Tesla is an in-town car. Forget taking it on the road. There isn't enough infrastructure and the range isn't good enough to overcome that shortcoming.

     

    They're beautiful cars, but they're not for everyone.
    19 Dec 2013, 08:59 PM Reply Like
  • petergrt
    , contributor
    Comments (340) | Send Message
     
    I can drive my Volt around the US - no problem.

     

    How far can you get with the Tesla . . . .?
    20 Dec 2013, 02:03 AM Reply Like
  • fan of the underdog
    , contributor
    Comments (668) | Send Message
     
    Vico. I agree. I love my Leaf, but I know it pales in comparison to the model S. With all the media coverage on Tesla, people are becoming aware of another type of vehicle out there. One that doesn't have all the maintenance and refueling hassles. As soon as I get my model E (or off-lease model S), I'll be driving all over the country.

     

    I will NEVER buy another ICE again.
    20 Dec 2013, 12:28 PM Reply Like
  • bama30
    , contributor
    Comments (2) | Send Message
     
    How about winnebago? Over a 13% drop today with a 3 month backlog! Is it a buy?
    19 Dec 2013, 04:31 PM Reply Like
  • mikemcgovern
    , contributor
    Comments (30) | Send Message
     
    WGO came too far, too fast. PE is still at 24x, and beta is very high.
    19 Dec 2013, 08:10 PM Reply Like
  • bama30
    , contributor
    Comments (2) | Send Message
     
    Thanks for the input on Winnebago!
    20 Dec 2013, 08:26 AM Reply Like
  • gofergold
    , contributor
    Comments (5) | Send Message
     
    Don't know if many have looked for a Fusion or Focus hybrids lately--the dealers didn't have any to sell or test drive. I think F lost sales because they didn't have product, IMHO.

     

    Having cars to show customers is requisite to getting the sale. Telling the customer she's got one at another dealer is often a deal breaker.
    19 Dec 2013, 08:16 PM Reply Like
  • bfreiw
    , contributor
    Comments (7) | Send Message
     
    Here's a reality check for the man from Ford….and microsoft.

     

    What the heck are you all trying to do with your dance orchestrated by Microsoft with the CEO as a participant, sabotage Ford?

     

    If this is professionalism, please spare me. Absolutely asinine and then some.

     

    If you are leaving, leave. If you are not, tell Microsoft the music. Declare yourself.
    20 Dec 2013, 12:09 AM Reply Like
  • bgold1955
    , contributor
    Comments (2004) | Send Message
     
    bfr..... I'm buying more F if it gets into the 14's. Stock is in a temporary downside but not for long. Probably goes sideways for a bit before, IMO, moving well into the 20's.
    20 Dec 2013, 08:40 AM Reply Like
  • petergrt
    , contributor
    Comments (340) | Send Message
     
    "Morgan Stanley on the auto predicament: "The market is clearly moving from a 'need to replace' to a 'can’t afford to pass up a great deal' consumer mindset.""

     

    With average age of American car being 11-years . . .?
    20 Dec 2013, 02:01 AM Reply Like
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