Thu, Oct. 8, 1:34 PM
- Strong demand for shares of Ferrari (RACE) could push valuation on the company up to €10B to €11B ($11.29B - $12.42B), sources tell Bloomberg.
- The luxury automaker is expected to release its pricing range as early as tomorrow.
- Fiat Chrysler Automobiles (NYSE:FCAU) is slicing off 10% of Ferrari in order to raise funds for expansion.
- Previously: Sizzling demand reported for Ferrari IPO shares (Sep. 30 2015)
Thu, Oct. 8, 2:05 AM
- The United Auto Workers union has reached a tentative deal with Fiat Chrysler Automobiles (NYSE:FCAU) on a new four-year contract, averting a strike of the automaker's U.S. operations.
- Local UAW leaders will gather in Detroit on Friday to hear the details of the deal, while Fiat Chrysler's 40K union workers will have to vote again to finalize the agreement.
- If the pact is ratified, the UAW will likely use it as a template for negotiations with General Motors (NYSE:GM) and Ford (NYSE:F).
- Previously: Fiat Chrysler works against the clock to prevent strike (Oct. 07 2015)
Wed, Oct. 7, 1:50 PM
- Representatives from Fiat Chrysler Automobiles (FCAU +3.2%) are still meeting with the UAW union just hours ahead of a 11:59 p.m. deadline before a strike is expected.
- If Fiat workers go on strike, it will be the first major walkout since 2007. The Detroit Free Press reports close to half of all UAW have never taken part in a strike.
- Though the Detroit automaker could lose an estimated $40M in operating profit a week during the strike, investors seem unfazed as Fiat shares continue to gain amid a strong automaker rally.
- Previously: Quiet rally continues for Detroit Three (Oct. 06 2015)
- Previously: UAW to target key Jeep complex with strike (Oct. 07 2015)
- Previously: Investors rush back into automaker stocks (Oct. 07 2015)
Wed, Oct. 7, 10:22 AM
- Automaker stocks are higher again as investors reset expectations on the group with the major implications of the Volkswagen scandal appearing to be limited to Germany. A positive view on the impact of the Trans-Pacific Partnership on the industry is also a significant factor.
- Gainers include Honda (HMC +5%), Tata Motors (TTM +5.2%), Fiat Chrysler Automobiles (FCAU +3.3%), Toyota (TM +1.9%), and Ford (F +2.8%).
- A scan of the broader auto industry shows Kandi Technologies (KNDI +4.4%), Navistar (NAV +11.7%), Federal-Mogul (FDML +3.7%), and Delphi Automotive (DLPH +2.2%) are also notably higher.
- Previously: Quiet rally continues for Detroit Three (Oct. 06 2015)
Tue, Oct. 6, 3:00 PM
- Shares of General Motors (NYSE:GM), Fiat Chrysler Automobiles (NYSE:FCAU), and Ford (NYSE:F) have put quietly put together a string of good sessions.
- GM and Fiat Chrysler are both up 9.8% over the last five trading days, while Ford is 6.1% higher. Those marks are much higher than broad market averages over the same time period, and top the returns of Japanese and German automakers.
- The gains were struck even with the UAW gearing up for a labor battle and the Volkswagen scandal hanging heavy over the sector. Investors appear to be focusing on the strong U.S. sales reports delivered by the Detroit Three on October 1.
- Previously: Strong U.S. auto sales tally helps investors shake off VW anxiety (Oct. 01 2015)
Tue, Oct. 6, 12:54 PM| Tue, Oct. 6, 12:54 PM | 5 Comments
Mon, Oct. 5, 1:53 PM
- Fiat Chrysler Automobiles (NYSE:FCAU) is aggressively going after Volkswagen customers in Italy with rebates and discounts for any trade-in of VW brand car.
- It's a little bit of payback for CEO Sergio Marchionne who has a long history of complaining about some of the policies of the German company.
- Shares of Fiat are up over 14% for the last week.
Sat, Oct. 3, 10:52 AM
- Incoming Volkswagen (OTCQX:VLKAY) chairman Hans Dieter Poetsch called the crisis surrounding the company as "existence-threatening" in an interview with a German publication, although he still thinks VW will survive.
- One of the biggest challenges for Poetsch and the VW board is how deeply to cut into Volkswagen's investment budget in order to try to stave off credit agency downgrades. Number-crunching on the benefit of lower debt costs against missed R&D opportunities is expected to hit overdrive.
- There's also been some speculation that Volkswagen might consider asset sales (Bugatti, Ducati, Man, Seat, Lamborghini) in order to improve its balance sheet in the face of emissions scandal costs. A smaller Volkswagen runs counter to Fiat Chrysler (NYSE:FCAU) CEO Sergio Marchionne's thesis (Confessions of a Capital Junkie) that major manufacturers need to scale up off of shared platforms, but could also create some intriguing M&A potential.
- Previously: Spurned Fiat Chrysler to wait for right merger deal (July 15)
Thu, Oct. 1, 3:39 PM
- U.S. auto sales sizzled in September as the combination of low gas prices and subdued auto loan rates motivated consumers to make a move. The monthly tally was influence a bit by an extra selling day and a comparison to last year when part of the Labor Day weekend was in August.
- The Detroit Three led the way with strong sales volume and solid pricing in a development that takes some of the sting off the Volkswagen scandal which rocked the sector.
- The industry-wide run rate for the month is estimated to be 18.7M annual sale to match the highest level of activity since 2005.
- Fiat Chrysler Automobiles (FCAU +1.9%) is the only major automaker putting in a strong gain on the day, although most automaker stocks are ahead of the DJIA.
- A large number of auto parts stocks are also beating market averages on enthusiasm over the strong numbers. Lydall (NYSE:LDL), Delphi Automotive (NYSE:DLPH), Modine Manufacturing (NYSE:MOD), and Tenneco (NYSE:TEN) are leading the mini-charge.
Thu, Oct. 1, 12:13 PM
- New car prices rose 2.0% Y/Y to an average transaction price of $33,730, according to Kelley Blue Book.
- Prices were 0.5% from the level seen in August.
- The Detroit Three (GM, F, FCAU) led the way on pricing gains to make their impressive sales growth reported earlier today look even stronger. GM's average price was up 3.7% to $38,656. Ford came in with a 3.8% rise to $36,803. Fiat Chrysler's ATP was up 4.1% to $34,809.
- A higher mix of passenger cars impacted pricing at Toyota. ATP +0.6% to $30,733.
- Volkswagen (OTCQX:VLKAY) was the only major automaker with a drop in ATP, presumably impacted at the end of the month with its emissions cheating scandal. Next month could be even dicier for the German automaker.
- Previously: Strong Jeep demand paces Fiat Chrysler in Sep. (Oct. 01 2015)
- Previously: GM higher after powerhouse month of U.S. sales (Oct. 01 2015)
- Previously: Ford swoops up U.S. market share in Sep. (Oct. 01 2015)
Thu, Oct. 1, 8:31 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) rode a strong month by the Jeep brand to its 66th straight month of positive sales growth.
- Brand sales growth: Fiat +1% to 3,398; Chrysler -5% to 27,250; Jeep +40% to 77,201; Dodge +3% to 45,170; Ram +4% to 39,946; Alfa Romeo 54 (new).
- Model sales growth: Jeep Patriot -6% to 8,533; Jeep Wrangler +26% to 17,583; Jeep Cherokee +38% to 20,224; Chrysler 200 +3% to 11,364; Dodge Journey +45% to 10,457; Ram P/U flat at 36,598; Chrysler Town & Country -30% to 9,163; Fiat 500 -30% to 1,926; Alfa Romeo 4C (new) 54.
- The automaker says it ended the month with 76 days supply of inventory vs. 74 days in August.
- YTD Fiat Chrysler U.S. automobile sales +6% to 1.654M units.
Thu, Oct. 1, 8:24 AM
Thu, Oct. 1, 7:45 AM
- United Auto Workers union members reject a tentative contract offered by Fiat Chrysler (NYSE:FCAU), the first time a tentative national labor contract has been rejected by UAW members in 30 years.
- UAW President Dennis Williams is scheduled to meet with hundreds of UAW local officials today in Warren, Mich., to discuss the union's next step and whether issues such as two-tier pay structure can be resolved if he were to return to bargaining with FCAU CEO Sergio Marchionne.
- Williams had hoped to use a contract to wring higher payouts from the financially stronger Ford (NYSE:F) and GM, who already balked at the FCAU contract.
Wed, Sep. 30, 3:12 PM
- The upcoming Ferrari (Pending:RACE) IPO is on track to meet expectations, sources tell Bloomberg.
- Early demand for shares of the luxury automaker appears strong enough to help the company reach the €10B ($11.2B) valuation mark promised by Fiat Chrysler Automobiles (NYSE:FCAU) EO Sergio Marchionne.
- The Ferrari spinoff will help Fiat reduce its heavy debt load.
- Previously: CNBC: Ferrari IPO could launch on Friday, price on Oct. 12 (Sep. 29 2015)
Wed, Sep. 30, 11:32 AM
- UAW workers at Fiat Chrysler Automobiles (NYSE:FCAU) appear likely to reject the new four-year agreement hashed out with labor reps earlier this month.
- Sources tell The Detroit Free Press that the voting came in strongly against ratifying the deal at key plants in Toledo and Sterling Heights. Not all the separate UAW votes have been counted yet.
- If the UAW goes back to the negotiating table with Fiat, it will push talks with Ford (NYSE:F) and GM (NYSE:GM) further down the calendar.
Tue, Sep. 29, 4:47 PM
- CNBC reports Ferrari's (Pending:RACE) anticipated IPO could launch as soon as Friday before pricing in two weeks. The iconic sports car brand is reportedly looking to raise ~$1B, a figure that could imply a $10B+ IPO valuation.
- Ferrari had 2014 revenue of $3.09B (flat Y/Y), and net income of $263M. 1H15 revenue totaled $1.55B (+3% Y/Y), and net income $158M.
- Fiat Chrysler (NYSE:FCAU) expects to have an 80%-81% post-IPO stake - Piero Ferrari will own 10%, and public investors 9%-10%. Fiat plans to fully distribute its Ferrari stake to shareholders in early 2016.
- FCAU +2.4% after hours to $12.50.
- Prior Ferrari coverage
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