Sun, Sep. 13, 3:06 PM
- Negotiations between Detroit automakers and the UAW continued over the weekend as a Monday evening expiration of labor contracts looms large.
- Auto workers have a great deal more leverage in the talks this year with profit at General Motors (NYSE:GM), Ford (NYSE:F), and Fiat Chrysler Automobile (NYSE:FCAU) at a higher level than the last three negotiating rounds where concession where made.
- A major development to watch is if a pooled healthcare plan for all UAW workers can be hashed out.
- Updated: The UAW has announced Fiat Chrysler Automobiles will be its lead target in contract talks. Fiat has a higher percentage of Tier 2 workers (entry-level) than Ford or GM.
Sat, Sep. 12, 10:50 AM
- A self-proclaimed "kid in a candy store" in 2011, Lowes (NYSE:L) CIO Joe Rosenberg isn't as excited now as he was then, but he remains a long-term bull and sees a few particular pockets of value.
- Source: Barron's
- On oil, either OPEC and non-OPEC countries reach an agreement to cut production and the price spikes upward, or there isn't an agreement and the price collapses - wiping out a lot of production. Either way, the price moves higher, says Rosenberg, and energy stocks (XLE, OIH) have likely bottomed.
- Rosenberg doesn't think the dividend gets cut at Chevron (NYSE:CVX), noting board members like John Stumpf were buyers of the stock at much higher levels. "The probability of them then agreeing to a dividend cut seems somewhat remote." A similar case can be made for Shell (RDS.A, RDS.B) or ExxonMobile (NYSE:XOM).
- Catalysts for Johnson & Johnson (NYSE:JNJ) include a breakup into three companies, and better capital allocation - notably, getting far more aggressive with share repurchases. "JNJ could raise $50B in the bond market in a heartbeat and use that money to buy back stock." Don't rule out an activist investor if management doesn't get with it.
- Ford (NYSE:F) and General Motors (NYSE:GM) are "incredibly cheap," says Rosenberg. The strong sales pace is sustainable because the average age of cars on the road in the U.S. is about 11 years - they need to be replaced. "The stocks are discounting a very bearish scenario."
Fri, Sep. 11, 3:55 PM
- Ten automakers accounting for more than half of U.S. auto sales have committed to make automatic emergency braking standard on new U.S. vehicles, the U.S. Department of Transportation announces.
- The automakers are Audi (OTCPK:AUDVF), BMW (OTCPK:BAMXY), Ford (NYSE:F), General Motors (NYSE:GM), Mazda (OTCPK:MZDAY), Mercedes Benz (OTCPK:DDAIF), Tesla (NASDAQ:TSLA), Toyota (NYSE:TM), Volkswagen (OTCQX:VLKAY) and Volvo (OTCPK:VOLVY).
- The systems could prevent or mitigate 80% of the ~1.7M rear-end collisions that cause ~1,700 deaths and 500K injuries annually in the U.S., according to the National Transportation Safety Board.
- The announcement does not specify a timetable for implementing the change.
Fri, Sep. 11, 11:08 AM
Thu, Sep. 10, 8:28 AM
- Automobile sales in China fell 3% to 1.7M in August, according to an official tally from the China Association of Automobile Manufacturers. Tighter restrictions on pollution and the impact of a cooler China economy remain significant factors.
- The decline is an improvement over the 7.1% slide in July, but puts YTD sales growth flat compared to last year. A top official with CAAM warns negative sales growth for the full year is possible.
- Strong sales of SUVs in the nation couldn't offset weak demand for sedans during the month.
- Domestic brands took sales from global sellers in August, improving their market share by 50 bps to 39.4%. Japanese automakers have also gained ground over the last several months. The development hits German automakers and the Detroit Three particularly hard due to their investments in China.
- Some analysts think sales could be tepid until the Chinese New Year next February when demand is traditionally stoked.
- Related automaker stocks: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, OTCQX:VLKAY, OTCPK:BAMXY, GM, F, OTCPK:NSANY, HMC, TM, TSLA, FCAU.
Mon, Sep. 7, 11:13 AM
- Automobile sales remained under pressure in China in August as demand for higher-priced imports continues to fade.
- General Motors (NYSE:GM) reported a 4.8% drop in retail sales to 248,815 units through its joint ventures in the region. SUV models Buick Envision and Baojun 560 sold well during the month.
- Ford China (NYSE:F) sales declined 3% to 79,608 units.
- Nissan's (OTCPK:NSANY) sales in China were off 5.5% during the month.
- Mercedes-Benz (OTCPK:DDAIF) and Honda (NYSE:HMC) picked up market share in China during August with positive sales growth. Both automakers have introduced fresh models this year in key categories.
- Toyota (NYSE:TM) was the big winner during the month with a 20% Y/Y pop in sales to 94,200 units. YTD sales in China are up 13% for the Japanese automaker.
Thu, Sep. 3, 2:26 PM
Thu, Sep. 3, 9:38 AM
- The timetable by Tesla Motors (NASDAQ:TSLA) to introduce its mass-market Model 3 in two years appears to give the Chevrolet Bolt EV a head start with EV buyers in the $30K-$35K range.
- Though development on the Bolt has been quieter than the news coming out of Fremont, Reno, and Elon Musk's twitter account - GM is reported to have hand-built protypes up and running and sales to consumers planned for 2017. Early review for the Bolt could be important with Tesla having a solid track record of dazzling reviewers with performance on the EV high-end.
- Nissan (OTCPK:NSANY) is also player in the mass-market EV market with a new long-range Leaf in the works.
- Ford (NYSE:F) has denied reports it's working on a long-range EV. If the Los Angeles Auto Show comes and goes in late November with no official announcement from Ford, then it may indicate the Detroit automaker will sit out the initial battle.
- Toyota (NYSE:TM) isn't a pure EV player, but is busy with its hydrogen-powered Mirai introduction and has the well-established Prius program cycling along.
- EV sales watch: InsideEVs.com 2015 sales scorecard
Wed, Sep. 2, 2:14 PM| Wed, Sep. 2, 2:14 PM | 45 Comments
Wed, Sep. 2, 8:05 AM
- Kelley Blue Book estimates that prices on new cars in the U.S. rose 3.4% Y/Y in August.
- Ford (NYSE:F) showed the largest gain of the major automakers with a 5.3% jump in average transaction price to $34,584.
- The Detroit automaker benefited from a higher mix of F-Series sales as it topped 70K for the first time this year in August. Ford expects the F-Series to continue to gain momentum through the end of the year.
- F +1.20% premarket to $13.90.
Tue, Sep. 1, 9:30 AM
- Ford (NYSE:F) knocked out its best month of U.S. sales for August over the last nine years on double-digit growth for utilities and trucks.
- SUV sales were up 12% during the month, while van sales exploded with a 70% Y/Y pop as the new Transit sold well.
- Sales growth by brand: Ford +5.4% to 225,601; Lincoln +6.0% to 8,636.
- Sales growth by model: Ford Focus -26% to 16,321; Ford Fusion -4% to 28,270; Ford C-MAX -37% to 2,224; Ford Mustang +70% to 9,997; Ford F-Series +4.7% to 71,332; Ford Explorer +22% to 21,658; Ford Transit 10,263 (new); Ford Edge +36% to 11,832; Lincoln MKX -14% to 1,763 Lincoln MKC +37% to 2,411.
- Ford YTD U.S. sales +2.7% to 1,750,589 units.
- Previously: Ford August U.S. sales: +5.4%
Tue, Sep. 1, 9:20 AM| Tue, Sep. 1, 9:20 AM | 54 Comments
Wed, Aug. 26, 10:13 AM
- Ford (F +1.3%) is mulling over returning production of the Bronco sport utility vehicle and Ranger compact vehicle to Michigan, sources tell Bloomberg.
- The automaker has faced some criticism over considering assembling Focus and C-Max vehicles in Mexico.
- Ford is in active negotiations with the UAW which is likely to influence some its manufacturing decisions.
Mon, Aug. 24, 10:47 AM
- Home Depot (HD -2.2%) and Ford (F -3.7%) have recovered from breath-taking drops in initial trading after the bell.
- Shares of Home Depot were down 22% at their lows, while Ford traded 15% lower. Traders are uncertain as to why the two stocks fell sharper than some peers in the consumer/services sector.
Mon, Aug. 24, 9:45 AM
- Automaker stocks are one of the hardest hit sectors in early trading.
- Concerns over demand in China and ambitious capacity growth in the automobile industry have been raised to a new level.
- Notable decliners include General Motors (GM -5.4%), Ford (F -5.6%), Toyota (TM -6%), Honda (HMC -5.9%), and Tesla Motors (TSLA -6.1%).
Fri, Aug. 14, 11:43 AM
- Automobile industry labor issues have been teed up as a political topic with most 2016 Presidential candidates delicately walking a tightrope over the issue.
- The UAW is in the process of negotiating critical new contracts with Detroit automakers which involves tough talk on both sides as well as the Big Three (F, GM, FCAU) using the leverage of potentially moving more production to Mexico or Canada.
- One candidate making a lot of noise about automakers is Donald Trump. The GOP front-runner in the polls believes opening up more U.S. states for auto manufacturing would lead to lower wages across the board and take Mexico out of the equation. It's a position the UAW will challenge vociferously, and as pointed out in the Detroit Free Press, may backfire in the long run.
- Trump also promises a tougher stance on Japanese automakers (OTCPK:NSANY, TM, HMC, OTCPK:MZDAY, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:MMTOF) - a populist stance that some other GOP candidates will be hesitant to match due to trade implications.
- Analysts think the spotlight on wages this summer could hurt negotiations for automakers.
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