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.
Wed, Aug. 12, 2:36 PM| Wed, Aug. 12, 2:36 PM | 43 Comments
Tue, Aug. 11, 8:46 AM| Tue, Aug. 11, 8:46 AM | 13 Comments
Fri, Aug. 7, 4:53 PM
- Ford (NYSE:F) has hired Tower International (NYSE:TOWR) as a second supplier to provide steel frames for its best-selling F-150 truck, hoping to better meet delivery demands amid a parts shortage from its current supplier, WSJ reports.
- Ford is struggling to get as many F-150s on dealer lots as originally planned because its supplier, Mexico-based Metalsa, is having trouble building enough frames to keep pace with production needs, according to the report.
- Meanwhile, Ford is said to be shipping frames to its factories by truck rather than rail to get them there faster but at a higher cost.
Mon, Aug. 3, 9:29 AM
- Ford (NYSE:F) reported momentum for F-Series sales in July with both volume and pricing strong.
- SUV sales rose 11% during the month.
- Sales growth by brand: Ford +4.3% to 213,915; Lincoln +21.3% to 9,536.
- Sales growth by model: Ford Focus -3.9% to 17,027; Ford Fusion +4.9% to 25,105; Ford C-MAX -35.9% to 1,918; Ford Mustang +29.2% to 8,482; Ford F-Series +4.8% to 66,288; Ford Explorer +27.2% to 21,361; Ford Transit 8,025 (new); Ford Edge +17% to 10,020; Lincoln MKX +27% to 2,519; Lincoln MKC +60% to 2,455.
- Van sales were up 14% to 16,090 units.
- Ford YTD U.S. sales +2.3% to 1,516,352 units.
- Previously: Ford July U.S. sales: +4.9%
- F +1.18% premarket to $15.00.
Mon, Aug. 3, 9:20 AM
Fri, Jul. 31, 1:50 PM
- The NHTSA is investigating if other automakers are at risk of hacking attacks after 1.4M Fiat Chrysler automobiles were recalled last week due to an exposure highlighted in Wired magazine.
- The regulator plans to focus on if wireless components supplied to Fiat are also used in other vehicles on the road in a way that isn't fully secure from remote access.
- The U.S. Copyright Office is also a major player in the hacking drama. This fall the government body will rule on if third-party researchers can access components and software to check for vulnerabilities. The open source vs. proprietary debate will be familiar to tech investors.
- Previously: Automakers start to tackle hacking issue (Jul. 23 2015)
- Previously: More security flaws seen in connected vehicles (Jul. 31 2015)
- Previously: Hacking demo leads to recall of 1.4M Fiat Chrysler vehicles (Jul. 24 2015)
- Automaker stocks: GM, F, TM, HMC, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:MMTOF, TTM, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:GELYF, FCAU, OTCPK:NSANY, OTCPK:DDAIF, OTCPK:MZDAY, TSLA.
Thu, Jul. 30, 7:49 AM
- The new aluminum-bodied Ford (NYSE:F) F-150 was put to the safety test by the insurance industry.
- The four-door Super Crew F-150 version (83% of sales) earned high ratings, while the Super Cab version didn't earn the top safety award.
- Repair costs for the new F-150 were found to be 26% higher than those for older models.
- Perhaps the most important revelation from the testing is aluminum was found to be strong and performed as well as steel.
- F-150 peers will be tested by the IIHS later this fall.
Tue, Jul. 28, 7:22 AM
- Ford (NYSE:F) grew pretax profit by 10% to $2.9B in Q2. Operating margin was up 60 bps to 7.2%.
- Wholesale volume was up 2% during the period, pushing up Ford's global market share by 10 bps to 7.6%.
- North America: Revenue $23.3B, operating margin -50 bps to 11.1%, volume and pricing strong, record profit level for the quarter.
- South America: Revenue $1.5B, operating margin +160 bps to -12.4%, strong demand for the Ka model.
- Europe: Revenue -14% to $7.0B due in part to F/X, operating margin -40 bps to -0.2%.
- Middle East/Africa: Revenue $0.9B, operating margin -710 bps to -5.1%, wholesale volume down 10%.
- Asia Pacific: Revenue $2.4B, operating margin +230 bps to 7.8%.
- Previously: Ford Motor beats by $0.10, beats on revenue
- F +1.58% premarket to $14.80.
Tue, Jul. 28, 7:06 AM
Mon, Jul. 27, 5:30 PM
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Fri, Jul. 24, 1:24 PM
- Kelley Blue Book forecasts new car sales in the U.S. will increase 2.6% Y/Y in July to 1.47M units, led by a 13.4% jump in the compact SUV/crossover segment.
- Forecasts by major manufacturers are posted below.
- General Motors (NYSE:GM): +0.7% Y/Y to 258K units, market share of 17.6%.
- Ford (NYSE:F): +0.8% to 214K, market share of 14.6%.
- Fiat Chrysler Automobiles (NYSE:FCAU): +4.4% to 175K units, market share of 11.9%.
- Toyota (NYSE:TM): -0.4% to 215K units, market share 14.6%.
- Honda (NYSE:HMC): +2.3% to 139K units, market share 9.5%.
- Nissan (OTCPK:NSANY): +4.6% to 127K units, market share 8.6%.
- Hyundai/Kia (OTC:HYMLF): -0.3% to 119K, market share 8.1%.
- Volkswagen (OTCQX:VLKAY): +5.1% to 52K, market share 3.5%.
Thu, Jul. 23, 1:19 PM
- Ford (F +1.6%) began negotiating with the UAW today in Michigan on a new labor contract.
- The talks began with the status of production on Focus and C-Max cars unclear and both sides facing pressure.
- The UAW hopes to narrow the gap between entry-level workers ($16/hr-$19.28/hr) and veterans (+$28/hr), while Ford wants to keep labor costs as in-line as possible with foreign automakers assembling in the U.S.
- Ford exceeded the hiring tally promised during the last round of negotiations.
Thu, Jul. 23, 9:35 AM
- GM (NYSE:GM) opens up 7.2% after a lush three months in North America helped to prop up results for Q2.
- Strong demand for light trucks and SUVs globally along with better-than-forecast profit in China helped stoke the bottom line.
- The automaker also lapped a period where recall costs were high.
- Pretax profit is expected to improve even more in the second half.
- Previously: GM higher after North American profit sizzles
- Previously: General Motors beats by $0.21, misses on revenue
- Rival Ford (NYSE:F) is up 2.74%. Ford dishes out Q2 numbers next week.
Tue, Jul. 21, 8:04 AM
- Ford (NYSE:F) unveils an updated luxury version of the F-150 Limited that will go on sale this winter.
- The Limited model will sit above the Platinum and King Ranch models in the F-150 model lineup.
- The new version will include interior refinements, exterior enhancements, and additional equipment.
- While F-150 sales volume has been lower this year than some forecasts, the contribution of the model to Ford's operating margin is significant with F-150 prices on the rise.
- "We still haven’t found a ceiling for light-duty luxury trucks," a Ford Trucks spokesman tells Car and Driver.
Sun, Jul. 19, 9:43 AM
- Major automakers face pressure from a drop in demand in China amid economic weakness. Deliveries turned negative in June for the first time since February of 2013 and the China Association of Automobile Manufacturers now expects industry sales growth of 3% vs. a prior forecast of 7%. Vehicle sales were up 1.4% to 11.85M units during 1H.
- Volkswagen (OTCQX:VLKAY) relies on China for half of its net profit and 71% of free cash flow. Credit Suisse notes the China factor gives the German automaker the punch to make a dividend possible.
- General Motors (NYSE:GM) churned up 40% of its new income and 20% to 30% of its operating cash flow from China, according to an estimate from Barclay tied to its downgrade of GM earlier in the week. Goldman Sachs and Buckingham Research have also recently cut profit estimates on GM.
- Ford (NYSE:F) cut its sales outlook for the China auto market to 24M-26M vehicles after Q1. The company could revise the broad forecast lower again with its Q2 report on July 28 and reset its own sales expectations.
- There's been some pricing cuts by the Japanese automakers (OTCPK:NSANY, TM, HMC, OTCPK:MZDAY, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:MMTOF) and German high-end sellers (OTCPK:BAMXY, OTCPK:DDAIF) as they adjust to the "new normal" in China.
- Tesla Motors (NASDAQ:TSLA) is still trying to get out of first gear in China. The reception to the Model X debut next year and the impact of EV subsidies are key factors.
- Domestic automakers (OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, OTCPK:DNFGY, OTCPK:DNFGF) have increased market share in China this year in key segments, but are feeling the same pinch from the drop in expected overall demand.
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