Fiat Chrysler Automobiles NVNYSE
Fiat Chrysler: Undervalued Auto OEM With Multiple Catalysts On The Horizon
Paul Goncalves, CFA • 18 Comments
Paul Goncalves, CFA • 18 Comments
Yesterday, 12:41 PM
- TrueCar estimates new U.S. vehicles sales will fall 6.6% in October to 1.36M units.
- The forecast doesn't adjust for the two fewer selling days in the period this year. Hurricane Matthew was also a negative factor on sales during the month.
- Rather suddenly, one of the more common words in the automobile sector in relation to sales growth has been "plateau" or variations of the noun. "As retail demand plateaus automakers will be forced to make the critical decision to cut vehicle production or increase incentives,' notes TrueCar analyst Eric Lyman.
- Incentive spending is forecast to increase 16% Y/Y during October.
- TrueCar's sales forecasts by automaker are posted below.
- BMW (OTCPK:BMWYY) -10.7% to 30K units, market share 2.2% vs. 2.1% last month.
- Daimler (OTCPK:DDAIF) +0.1% to 32.5K units, market share 2.4% vs. 2.3% last month.
- FCA (NYSE:FCAU) -11.0% to 175K units, market share 12.9% vs. 13.5% last month.
- Ford (NYSE:F) -9.9% to 192K units, market share 14.1% vs. 14.2% last month.
- General Motors (NYSE:GM) -8.9% to 239.5K units, market share 17.6% vs. 17.4% last month.
- Honda (NYSE:HMC) -2.8% to 128K units, market share 9.4% vs. 9.3% last month.
- Hyundai (OTC:HYMLF) -7.0% to 55.8K units, market share 4.1% vs. 4.6% last month.
- Kia (HYUMLF) -2.1% to 49K units, market share 3.6% vs. 3.4% last month.
- Nissan (OTCPK:NSANY) -2.6% to 113K units, market share 8.3% vs. 8.9% last month.
- Subaru (OTCPK:FUJHY) +0.7% to 52K units, market share 3.8% vs. 3.8% last month.
- Toyota (NYSE:TM) -1.5% to 201K units, market share 14.8% vs. 13.7% last month.
- Volkswagen (OTCPK:VLKAY) -16.9% to 43.5K units, 3.2% vs. 3.2% last month.
- Research firms are likely to include Tesla Motors (NASDAQ:TSLA) in their monthly forecasts in the future as the EV automaker scales up with increased production of the Model S, Model X and the Model 3 in due time.
Tue, Oct. 25, 7:24 AM
Mon, Oct. 24, 5:30 PM
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Mon, Oct. 24, 1:04 PM
- Toyota (NYSE:TM) and Lexus topped the annual car reliability survey from Consumer Reports once again. Responses from owners, track testing and safety data were all factored in to generate the Consumer Reports rankings.
- Buick (NYSE:GM) surprised with a jump up to the third spot on the list, while Audi (OTCPK:VLKAY) dropped a spot to fourth. Infiniti (OTCPK:NSANY) shot up 16 spots to land at eighth.
- Brands ranking near the bottom of the CR survey included GMC (GM), Tesla (NASDAQ:TSLA), Dodge, Chrysler (NYSE:FCAU), Fiat, and Ram.
- Model standouts: Toyota Prius, Lexus CT 200h, Infiniti Q70, Audi Q3, Lexus GX, Mercedes-Benz GLC.
- CR brand reliability survey
Wed, Oct. 19, 12:07 PM
- Fiat Chrysler Automobiles (FCAU +0.8%) recalls 310.8K vehicles in separate recall actions.
- 225K Jeep Wrangles SUVs from the models years 2016 and 2017 are being recalled due to faulty sensor wiring.
- The automaker is also recalling about 86K Ram pickup trucks (2500/3500/45/99/5500) from model years 2007 to 2013 and Dodge Chargers from model years 2011 to 2014 on concerns over alternator wear.
Wed, Oct. 19, 11:35 AM
- The focus on Apple's (AAPL -0.2%) influence in the automobile sector has shifted away from straight manufacturing to ways the tech company could integrate software, information systems, or automated driving capabilities into next-gen models.
- The recent developments with Project Titan also raise the stakes on which automakers strike a significant partnership with Apple if the venture makes it past 2017 (the reported AAPL deadline).
- While many auto industry watchers think major automakers won't convert to the Apple ecosystem across their portfolio, high-end "Applefied" models are seen as a realistic possibility.
- "A luxury automobile with 'Apple Inside'? That could be hit, and a profitable one yet," writes Los Angeles Times columnist Michael Hiltzik.
- SA contributor Bret Kenwell also dug into the Project Titan issue earlier this week.
- Related stocks: GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BMWYY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, TSLA, OTC:HYMLF, OTCPK:FUJHY, RACE, TTM, MBLY.
- Previously: Bloomberg: Apple scales down automotive strategy, plans to build car postponed (Oct. 17)
Fri, Oct. 14, 7:49 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) car registrations +14.2% to 90,848 units in September, according to the European Automobile Manufacturers Association.
- Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
- Fiat market share: 6.1% vs. 5.7% a year ago.
- Fiat YTD registrations +15.3%.
- Results include the Fiat, Jeep, Lancia, Chrysler and Alfa Romeo brands.
- EAMA release (.pdf)
Tue, Oct. 11, 10:28 AM
- There's a donnybrook breaking out between Fiat Chrysler Automobiles (FCAU +0.3%) and Cummins (CMI +1.8%) over recall costs for 130K Ram trucks with emissions problems.
- Fiat filed a lawsuit to recover $60M in costs for repairs it made on the Cummins engines. Cummins countered with a suit of its own.
- The dispute is giving an inside look at some of the some of the costs automakers take on with large recalls.
- Cummins is higher today after Goldman Sachs weighed in.
- Previously: Caterpillar and Cummins log gains after being touched by Goldman (Oct. 11)
Tue, Oct. 11, 2:28 AM
- Fiat Chrysler (NYSE:FCAU) has reached a tentative deal with unionized workers in Canada by agreeing to make more than C$400M ($301M) in investments in local operations.
- The pact was announced just minutes ahead of a midnight strike deadline that could have sent more than 9,000 workers off the job.
- Union members will vote on the accord at ratification meetings on October 16.
Mon, Oct. 10, 4:28 AM
- Negotiators from Unifor and Fiat Chrysler (NYSE:FCAU) will not be with their families today celebrating Canadian Thanksgiving.
- The union has set a strike deadline of midnight for its 9,750 members employed by the automaker, and is looking for a contract similar to the one it signed last month with General Motors Canada.
- Among other things, that deal traded pension benefits for shortening the time it takes newly hired employees to reach full wage rates.
Tue, Oct. 4, 5:22 PM
- Fiat Chrysler’s (NYSE:FCAU) U.S. unit fails to persuade a federal judge to throw out an antitrust lawsuit claiming it pushed dealers to submit fraudulent sales numbers.
- While rejecting Fiat’s motion to dismiss antitrust and other claims, including allegations of price discrimination, the judge did toss the racketeering claim brought by Napleton’s Arlington Heights Motors in Illinois in a lawsuit filed earlier this year.
- Napleton provided enough evidence that Fiat’s incentives and subsidies “injured competition,’’ bolstering the antitrust claim, according to the judge's order.
Mon, Oct. 3, 3:54 PM
- Several major automakers posted lower sales in September in another sign that a peak in demand may have been reached. Ford (NYSE:F), Fiat Chrysler Automobiles (NYSE:FCAU), and Volkswagen (OTCPK:VLKAY) all saw volume drops, while Nissan (OTCPK:NSANY), Toyota (NYSE:TM), and Subaru (OTCPK:FUJHY) gained some market share during the month.
- Once again, pickup sales were strong in the U.S. Ram pickups stood out with a 29% increase over last year's mark.
- Average transaction prices rose by about 2.5% in September, according to an estimate from Kelley Blue Book.
- The industry could still have a record year if demand is strong in Q4, although some analysts are warning on the impact of the higher level of discounting on profit.
Mon, Oct. 3, 10:00 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) leaned on its Ram brand to keep it within striking distance of peers in September.
- Retail sales accounted for 76% of total sales.
- Brand sales growth: Fiat -30% to 2,913; Chrysler -27% to 18,797; Jeep +12% to 86,468; Dodge -6% to 42,935; Ram +27% to 51,866; Alfa Romeo 41.
- Notable model sales: Compass -16% to 6,482 units; Renegade -13% to 6,776 units; Ram P/U +29% to 47,792 units; ProMaster Van +17% to 3,218; Durango -9% to 4,274 units; Dodge Caravan -18% to 8,179 units; Pacific minivan (new) 9,172 units.
Mon, Oct. 3, 9:53 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) unit sales -1% to 192,883. Kelley Blue Book forecast a decrease of 1.6% for the month.
- Car sales fell -17% Y/Y to 47,482 units.
- Utility sales -3% to 93,535 units.
- Truck sales rose +27% to 51,866 units.
- YTD 2016 U.S. sales +4% to 1,714,360 units.
Sun, Sep. 25, 8:41 AM
- Canada's Unifor union has set a tentative strike deadline of midnight Oct. 10 for talks with Fiat Chrysler (NYSE:FCAU), as the labor group prepares to vote on a related deal with General Motors.
- Under a process called patterned bargaining, the agreement with GM - if ratified by members - would be used as a template for talks with other automakers, which are expected to agree to similar terms.
Fri, Sep. 23, 4:44 AM
- Unifor said the next company in its contract negotiations with the Detroit Three automakers will be Fiat Chrysler (NYSE:FCAU), pending ratification of a tentative agreement with General Motors.
- The union, which represents about 23,000 autoworkers in Canada, reached a four-year agreement earlier this week with GM, averting a possible strike.