Jul. 18, 2014, 2:43 PM
- Buried inside an economic report from the Richmond Federal Reserve this week is an interesting tidbit on the auto industry.
- As part of its scan of the economic horizon for the Beige Book, the bank noted the massive wave of automobile industry recalls has only had a "slight adverse" impact on sales. Customer traffic was still up and new car sales strong on solid pricing.
- The read from Richmond is consistent with recent U.S. sales reports from major automakers, although with a slight disconnect existing between a "sale" and a "delivery" in the industry the confirmation is noteworthy.
- Chaos theory: Some industry analysts think recalls can actually spur sales as safety is teed up as a consumer issue and older cars replaced.
- Related auto stocks: GM, F, TM, OTCPK:FIATY, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, TTM, TSLA, AN, KMX, SONC.
Jul. 17, 2014, 7:35 AM
- Ford (NYSE:F) aims to grow quickly in Africa and the Middle East through the introduction of 25 new models in the next two years.
- The automaker forecasts industrywide sales in Africa will shoot up 40% to 2.1M vehicles in the next six years.
- Ford earned a profit of $54M for the Africa and Middle East region in Q1, a mark some analysts see doubling by next year.
Jul. 15, 2014, 5:57 PM
- GM is seeing strong results on the sales floor, and with a rock-bottom valuation and 3.3% yield, shares could rise 30%, according to a Barron's profile.
- Investors who look beyond the recall headlines will find much to like in GM, Jack Hough writes: U.S. light vehicle sales are the strongest since summer 2006, Europe's besieged car market has begun to recover with nine straight months of growth, and overall market share rose to 18.9% in June from 17.8% in May thanks to strong sales of SUVs and crossovers.
- GM will struggle to top $3 in EPS this year after recall costs and other expenses, but next year it could earn $5, with two-thirds of the increase coming from simply moving past one-time costs, Sterne Agee says; if that's right, GM now trades at 7.5x next year's earnings, an 18% discount to Ford (NYSE:F) and a 50% discount to the market.
Jul. 11, 2014, 10:52 AM
- The NHTSA says it will investigate Ford (F +0.8%) over a potential problem which could impact steering on older vehicles.
- The issue affects close to 500K Crown Victoria, Grand Marquis, and Marauder vehicles from the 2004-2007 model years.
- Even amid the onset of recall fatigue in the industry, the high vehicle count for the latest probe stands out.
Jul. 10, 2014, 11:20 AM
Jul. 8, 2014, 8:09 AM
Jul. 7, 2014, 9:53 AM
Jul. 3, 2014, 8:33 AM
- Subaru (FUJHY) recalls 660K vehicles due to the risk that brake line corrosion could lead to a loss of performance.
- The Japanese automaker's Outback, Legacy, Impreza, and Forester models are all included in the recall action.
- What to watch: Recalls involving issues with rust have been a hot topic this year in the industry with Toyota (TM), Ford (F), and Mazda (MZDAY) all in the books with rust recalls of over 100K. Some industry analysts say the rust recall is a slippery slope that could lead to even more massive recall tallies.
Jul. 2, 2014, 10:20 AM
Jul. 1, 2014, 1:10 PM
- The average transaction price for a vehicle sold in the U.S. fell 2.2% M/M and 0.8% Y/Y in June, according to Truecar.com.
- Perhaps a surprise given the overload of recall news, but General Motors (GM) was the automaker which showed the biggest increase in average transaction price over the last year (partially due to mix). Ford (F) and Toyota (TM) also scratched out gains, while Nissan (NSANY) and Volkswagen (VLKAY) went in the other direction.
- GM's level of incentive spending was also 11.9% lower than a year ago.
- Hyundau (HYMLF) increased incentive spending by 43% to over $2K per vehicle in an effort to defend market share.
Jul. 1, 2014, 9:47 AM
- Ford (F -0.8%) saw car sales drop 1.4% in June to 81,198 while truck sales fell 8.6% to 78,081.
- Sales growth by brand: Ford -5.9% to 214,793; Lincoln -2.7% to 7,271.
- Sales growth by model: Ford Fusion +13.5% to 27,604; Ford Fiesta -31.1% to 6,450; Ford F-Series -11% to 60.560; Ford Escape -12.5% to 25,110; Lincoln MKZ -6.0% to 2,990.
Jul. 1, 2014, 9:41 AM
Jun. 25, 2014, 3:18 PM
- Cars.com sees May's seasonally adjusted annualized new car sales at 16.1M, up 4.1% from a year ago and the highest May SAAR since 2007.
- Chrysler (FIATY -0.8%) had the best performance, says Car.com analyst Jesse Toprak, with a 15% Y/Y increase in sales, but GM (GM +1.4%) - amid big recalls - saw less impressive gains and lost 1.3% of its U.S. market share.
- In other news, MKM's chief technician Jonathan Krinsky says Ford (F +1.5%) may be the best of the bunch. He notes the stock has been above its 200-day moving average for about a month and the 200 DMA has just begun turning higher - a bullish development in the medium-term. He's targeting the $23-$24 price range over the next 6-12 months, but would re-consider any bullish thesis if the stock can't hold $16.
Jun. 25, 2014, 10:44 AM
Jun. 24, 2014, 9:58 AM
- Ford (F +1.1%) exec Joe Hinrichs says the launch of the aluminum F-150 is on schedule.
- The statement could allay some fears raised by Morgan Stanley of a slow roll-out of the new F-150.
- Production of the aluminum-bodied pickup starts this summer.
- What to watch: Early testing of the F-150 has gone well, according to the automaker. If outside reviews go as favorably on durability and ruggedness, the F-150 could sell well due to the improved fuel economy it will offer consumers.
Jun. 24, 2014, 7:37 AM
- Alan Mulally says he will remain close to Ford (F) even after he leaves the company next month.
- Analysts note the exec's close relationship with new CEO Mark Fields has set a reassuring tone with the investment community over the transition.
- Mulally is still mum on his post-Ford plans, although his latest comments seem to indicate another post within the automobile industry is unlikely.
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