Fiat Chrysler: Undervalued Auto OEM With Multiple Catalysts On The Horizon
Paul Goncalves, CFA • 18 Comments
Paul Goncalves, CFA • 18 Comments
Fri, Jul. 8, 11:16 AM
- A thoughtful piece in Scientific American take a look at the technological challenges in delivering automated driving services.
- An electrical engineer at Carnegie-Mellon notes that the vision systems of today's automated test cars are imperfect by a "very good" margin. A mobility expert at the University of California concurs, while adding that drivers may be overestimating their car's automated capabilities due to the use of terms such as "autopilot" and "self-driving." A refined system of cameras, sensors, and radar is still believed by some engineers to be a few years off.
- Alphabet's (GOOG, [[GOOGL]) top exec in charge of the company's self-driving initiative seemed to back the view of the scientists in his recent testimony to Congress. "We saw in our own testing that the human drivers can’t always be trusted to dip in and out of the task of driving when the car is encouraging them to sit back and relax," he stated.
- Related stocks: OTCPK:BAMXY, GM, OTCPK:DDAIF, MBLY, FCAU, TSLA, F, OTCPK:NSANY, TM, HMC.
Wed, Jul. 6, 9:28 AM
- It's another shocking breach of trust in the automobile sector after PSA Group (OTCPK:PEUGF, OTC:PUGOF, OTC:PUGOF) confirms that advertised fuel economy ratings on Peugeot and Citroen models don't match up with reality (off by 44% on average). Bloomberg reports that it's the first time a major automaker has confirmed a discrepancy between lab results and actual road tests across a broad range of cars.
- Official PSA lab results
- Recent failures in the automobile industry include inflated mileage claims from the South Korean automakers, the Takata disaster which deeply impacted Japanese cars, GM's costly ignition switch recall, and the topper in terms of subterfuge - Volkswagen's emissions cheating saga.
- Some automobile industry analysts have suggested that buyers are scandal-weary and are unlikely to factor in the reputation hits in their buying decisions.
- Related stocks: GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BAMXY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, OTCPK:FUJHY, OTCPK:SZKMY, TSLA, OTCPK:MMTOF, OTC:HYMLF.
Tue, Jul. 5, 12:00 PM
Tue, Jul. 5, 9:47 AM
- U.S. auto sales may have plateaued in June by volume, but pricing and mix remained favorable for some manufactures. TrueCar reports automakers increased revenue by $3.5B during June, led by the crossover segment.
- Average transaction prices were estimated to have risen 1.9% Y/Y, although the ratio of incentive spending to ATP was stretched to 9.5% from 8.9% a year ago. Fiat Chrysler Automobiles (NYSE:FCAU) had the highest incentive spending to ATP ratio of major automakers with a 12.3% mark, while Subaru (OTCPK:FUJHY) was the leanest at 2.3%. All the major automakers ended the month with a higher ATP, except South Korean manufacturers Kia and Hyundai (OTC:HYMLF).
- "The hefty year-over-year increases are narrowing, which is expected after this unprecedented long stretch of gains," says AutoTrader.com analyst Michelle Krebs.
Tue, Jul. 5, 9:15 AM
Fri, Jul. 1, 6:11 PM
- A series of record-June announcements from automakers today added up to U.S. auto sales marking an overall record for the first six months of the year.
- Sales were up 1.5% to 8.65M units vs. a year-ago 8.5M. June sales rose 2.5% to make up for a May disappointment.
- Most automakers posted gains -- including Ford Motor (F +1.2%), Fiat Chrysler (FCAU +2%), Nissan (OTCPK:NSANY +0.5%), Honda (HMC -0.8%), Hyundai (OTC:HYMLF) and Subaru (OTCPK:FUJHY -1.7%) -- and many set records. Meanwhile, Volkswagen (OTCPK:VLKAY +3.4%), Toyota (TM -0.4%) and General Motors (GM +2.1%) saw declines.
- Overall sales are starting to flatten out after six years of growth, but low gas prices and interest rates are presaging that automakers can hold this level of success for some time.
Fri, Jul. 1, 10:36 AM
- Fiat Chrysler Automobiles (FCAU +2.5%) posted unit sales +6.5%, short of Edmunds' forecast for 6.7% gains.
- Jeep brand had its best June sales ever (up 17%) and Ram Truck sales were up 14% in its best June in a decade.
- Car sales fell 13%, to 54,707 units.
- Utility vehicles: up 17%, 101,129 units.
- Trucks up 14% to 41,236.
- YTD U.S. sales are up 6% to 1,152,259 units (cars -9%, utilities +16%, trucks +11%).
Fri, Jun. 24, 12:00 PM
Fri, Jun. 24, 9:11 AM
- Gainers: AAU +20%. VGZ +18%. MUX +13%. AKG +12%. GPL +13%. GORO +12%. GFI +12%. EMES +12%. GOLD +12%. AU +12%. SBGL +11%. EXK +11%. KGC +10%. HMY +11%. SAND +10%. ABX +10%. EGO +9%. SA +7%. IAG +9%. AUY +9%. CDE 9%. NGD 9%. AEM 8%. NEM 8%. GG 8%. NG 8%. FSM 7%.
- Losers: LYG -27%. BCS -26%. SAN -24%. RBS -23%. AV -23%. BBVA -22%. DB -18%. ING -18%. BT -18%. VNR -11%. TEF -17%. CS -16%. PUK -15%. MT -15%. AEG -14%. RYAAY -13%. UBS -12%. FCAU -12%. GNCA -12%. NOK -12%. BBL -11%. IPI -11%. TOT -11%. ANFI -11%. MNKD -10%. BCEI -8%. VMEM -10%.
Fri, Jun. 24, 4:56 AM
- Jeep Grand Cherokee owners are hitting Fiat Chrysler (NYSE:FCAU) with a lawsuit over the design defect that is suspected in the death of Star Trek actor Anton Yelchin.
- The class-action complaint alleges the company "fraudulently concealed and failed to remedy a gear shifter design defect affecting 811K vehicles."
Thu, Jun. 23, 2:07 AM
- Fiat Chrysler (NYSE:FCAU) is speeding up its software fix for 1.1M recalled vehicles for rollaway risks like the recalled Jeep Grand Cherokee involved in the recent death of actor Anton Yelchin.
- The changes will cause vehicles to automatically shift into park mode when the driver's door opens and the shifter is in neutral, drive or the reverse position.
Wed, Jun. 22, 6:25 PM
- Kia Motors (OTC:KIMTF) topped J.D. Power's annual U.S. survey of vehicle quality, the first time in 27 years that a non-luxury brand scored the top ranking.
- Kia ranked first among 33 car brands in the study, moving up from second place a year ago. Porsche, the sports luxury brand owned by Volkswagen (OTCPK:VLKAF, OTCPK:VLKAY), came in second after finishing first last year.
- U.S. brands scored better marks collectively than their foreign counterparts for only the second time in the study's 30-year history; brands at GM, Ford (NYSE:F) and Fiat Chrysler's (NYSE:FCAU) U.S. arm improved quality scores 10% from 2015, double the improvement rate of foreign brands.
- The survey also showed that for the first time in a decade, owners of vehicles from non-premium brands reported fewer problems than those who own the more expensive cars, SUVs and pickup trucks.
Tue, Jun. 21, 12:37 PM
- Fiat Chrysler Automobiles (FCAU +0.1%) says it will stop producing vehicles with Takata air bags that don't have a key drying agent.
- The company will makes the change in North America by next week and globally by the middle of September.
- Fiat has been under fire in the U.S. for continuing to sell cars with a Takata recall hanging over them.
Mon, Jun. 20, 3:37 PM
- Fiat Chrysler Automobiles (FCAU +4.7%) says it will investigate the accident that killed Star Trek actor Anton Yelchin over the weekend.
- The actor was killed when his SUV rolled down an incline unexpectedly and pinned him against a brick pillar.
- Yelchin's Jeep Grand Cherokee was one of the 1.1M vehicles recalled by Fiat in April due to a gear selector problem.
- In ordering the recall, the NHTSA said that operation of the Grand Cherokee's gear shift wasn't intuitive and gave "poor tactile and visual feedback" to the driver.
Mon, Jun. 20, 10:31 AM
- Automaker stocks are taking news of increased support for the U.K. staying in the EU extremely well. The sector is considered sensitive to F/X disruptions due to the large footprint of the major manufacturers.
- This year has seen strong demand in Europe and better-than-anticipated volume numbers from China support aggressive plans for capacity in the industry and far-reaching R&D initiatives. Despite some bottom-line improvement, Detroit automaker Ford (F +2%) and General Motors (GM +2.2%) still trail the S&P 500 Index for the year and trade with single-digit PE ratios.
- Gainers today include Fiat Chrysler Automobiles (FCAU +5%), BMW (OTCPK:BAMXY) +5.1%, Daimler (OTCPK:DDAIF) +3.9%, Toyota (TM +3.6%), Tata Motors (TTM +3%), and Nissan (OTCPK:NSANY +3.2%).
Sat, Jun. 18, 4:01 PM
- Fiat Chrysler Automobiles (NYSE:FCAU) is now making more noise about developing electric vehicles in a development that follows shortly after a major electrification pledge from Volkswagen.
- The automaker is considering selling an electric city car for the European market and adding more hybrids to its portfolio.
- CEO Sergio Marchionne also teased that an electric version of the Maserati Alfieri sports car could be in the mix.
- "I've always thought the economic model that supports Tesla is something that Fiat Chrysler could replicate as we have the brand and the vehicles to do it," noted Marchionne to Bloomberg.
- Previously: Huge talk from Volkswagen on EVs (June 17)
Fiat Chrysler Automobiles NV engages in the automobile business, which designs, engineers, manufactures, distributes and sells vehicles, components and production systems. The company's activities are carried out through six reportable segments: four regional mass-market vehicle segments, a... More
Sector: Consumer Goods
Industry: Auto Manufacturers - Major
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