Fiat Chrysler: Undervalued Auto OEM With Multiple Catalysts On The Horizon
Paul Goncalves, CFA • 18 Comments
Paul Goncalves, CFA • 18 Comments
Wed, Mar. 16, 7:01 PM
- Major automakers will announce tomorrow that they have agreed to install automatic emergency braking systems in nearly all U.S. vehicles by September 2022, Reuters reports.
- The agreement reportedly includes automakers representing more than 99% of U.S. light vehicle sales, including GM, Ford (NYSE:F), Toyota (NYSE:TM), Honda (NYSE:HMC), Volkswagen (OTCPK:VLKAF, OTCPK:VLKAY) and Fiat Chrysler (NYSE:FCAU).
- The NHTSA announced in September a deal in principle with 10 automakers to eventually add the technology to prevent thousands of crashes a year; the final agreement includes additional automakers.
Wed, Mar. 16, 7:18 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) car registrations +22.4% to 80,963 units in February, according to the European Automobile Manufacturers Association.
- Overall EU registrations +14.3 Y/Y to 1,056,902 units in February, led by double-digit growth in Italy and Spain. Registrations in Germany were up 7.8%.
- Fiat market share: 7.4% vs. 6.9% a year ago.
- Fiat YTD registrations +18.5%.
- Results include the Fiat, Jeep, Lancia, Chrysler, and Alfa Romeo brands.
- EAMA release (.pdf)
Wed, Mar. 16, 3:24 AM
- Penalized by its emissions scandal, Volkswagen (OTCPK:VLKAY) continues to miss out on the booming European car market.
- Sales across the continent accelerated by 14.3% in February, although VW brand deliveries nudged up just 4.4%, according to the European carmakers' association. VW group sales, boosted by Audi and Skoda, grew by 8%, but market share eroded to 23.9%.
- That compares with double-digit expansion by mass-market and premium competitors alike, with Fiat Chrysler (NYSE:FCAU) showing the strongest growth at 23%.
Tue, Mar. 15, 1:04 PM
- Anxiety over subprime auto loans appears to be swaying sentiment on the Detroit Three automakers today.
- The growing story on the impact of higher delinquency rates and subprime auto loans has hung over the auto retailer sector and a large number of financial stocks this week.
- Ford (F -1.2%), General Motors (GM -1.3%), and Fiat Chrysler Automobiles (FCAU -3%) are all lower than broad market averages on the day.
- Previously: Subprime auto worry hits lenders (March 15)
- Previously: Subprime developments looking suboptimal for auto dealers (March 15)
Wed, Mar. 2, 1:30 PM
- Fiat Chrysler Automobiles (FCAU +1.4%) CEO Sergio Marchionne wants Apple to give serious consideration to making the company its manufacturing partner if it decides to build a car.
- The self-professed "Apple freak" has been a long-time proponent of consolidation and major manufacturing tie-ups in the industry.
- Marchionne's take on Apple building a car in-house: "If they have any urges to make a car, I’d advise them to lie down and wait until the feeling passes.”
- Previously: Fiat Chrysler Automobiles peers through the looking glass (April 30, 2015)
Tue, Mar. 1, 8:22 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) rode a record February for Ram sales to double-digit sales gains for the month. Overall, nine separate models set sales records for February.
- Brand sales growth: Fiat -9% to 2,993; Chrysler -26% to 21,056; Jeep +23% to 68,228; Dodge +12% to 47,251; Ram +27% to 43,302; Alfa Romeo 49.
- Model standouts: Compass +54% to 7,203 units; Ram P/U _23% to 38,555; ProMaster Van +83% to 2,983; Durango +22% to 5,855 units; Dodge Caravan +95% to 12,262 units.
- The automaker says it ended the month with 88 days supply of inventory vs. 81 days in January.
- Previously: Fiat Chrysler Automobiles February U.S. sales: +12% (Mar. 01 2016)
Tue, Mar. 1, 8:15 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) unit sales +11.8% to 182,879 units to outpace estimates from Kelley Blue Book (+11%) and Edmunds (+9%).
- Car sales flat -27%% Y/Y to 33,691 units.
- Truck sales increased +27% to 149,188 units.
- YTD 2016 U.S. sales +10% to 337,916 units.
Thu, Feb. 25, 3:19 PM
- Kelley Blue Book forecasts new car sales in the U.S. will increase 9.1% Y/Y in February to 1.37M units. Sales got a boost from an extra selling day and an increased level of incentives from manufacturers on top of some favorable macroeconomic factors.
- Forecasts by major manufacturers are posted below.
- General Motors (NYSE:GM): +8% Y/Y to 250K units, market share of 18.2%.
- Ford (NYSE:F): +12% to 202K, market share of 14.7%.
- Toyota (NYSE:TM): +7.5% to 194K units, market share 14.2%.
- Fiat Chrysler Automobiles (NYSE:FCAU): +11% to 181K units, market share of 13.2%.
- Honda (NYSE:HMC): +13% to 119K units, market share 8.7%.
- Nissan (OTCPK:NSANY): +9% to 129K units, market share 9.4%.
- Hyundai/Kia (OTC:HYMLF): +4% to 100K, market share 7.3%.
- Volkswagen/Audi (OTCPK:VLKAY): +4% to 42K, market share 3.1%.
Tue, Feb. 23, 3:24 PM
- Consumer Reports is out with its list of best 2016 cars.
- Best subcompact car: Honda Fit (NYSE:HMC)
- Best compact car: Subaru Impreza (OTCPK:FUJHY)
- Best midsized car: Toyota Camry (NYSE:TM)
- Best small SUV: Subaru Forester
- Best luxury SUV: Lexus RX
- Best sports car (sub-$40K): Mazda MX-5 Miata (OTCPK:MZDAY)
- Best large car: Chevrolet Impala (NYSE:GM)
- Best midsized SUV: Kia Sorento (OTC:HYMLF)
- Best pickup truck: Ford F-150 (NYSE:F)
- Best minivan: Toyota Sienna
- Audi (OTCPK:VLKAY) won the award for top overall brand, while Fiat (NYSE:FCAU) came in last. Ford was selected as the top U.S. brand and Buick surprised with a strong 7th place ranking.
- The Tesla Model S (NASDAQ:TSLA) didn't get a chance to three-peat as the best overall car after CR pulled the award.
Mon, Feb. 22, 10:19 AM
- Shipping stocks are on the move after the large jump in crude oil prices eases some anxiety over demand.
- Notable gainers include Diana Shipping (DSX +12.1%), Navios Maritime Partners (NMM +6.5%), Frontline (FRO +6.6%), and Scorpo Bulkers (SALT +5.9%).
- The trucking sector is also ahead of broad market averages off the oil news. ArcBest (ARCB +4.4%), Swift Transportation (SWFT +1.6%), Celadon Group (CGI +2%), and Knight Transportation (KNX +2.6%) (also upgraded) are on the rise.
- Railroad industry players CSX (CSX +3.8%) and Genesee & Wyoming (GWR +3.7%) are up sharply.
- On the vehicle manufacturing/supplier side, solid gainers include Meritor (MTOR +6.7%), Dana Holding (DAN +2.7%), Westport Innovations (WPRT +3.9%), Oshkosh (OSK +3.8%), Navistar (NAV +5.4%), and PACCAR (PCAR +2.3%).
- The Detroit Three are all in rally mode as well. Ford (NYSE:F) and GM (NYSE:GM) are up 2%, while Fiat Chrysler Automobiles (NYSE:FCAU) is 3.3% higher.
- Previously: Oil prices rebound, WTI heads back above $30 (Feb. 22 2016)
Wed, Feb. 10, 9:15 AM
Mon, Feb. 8, 5:58 PM
- Fiat Chrysler (NYSE:FCAU) fell 7.6% to a 52-week low after the NHTSA released documents over the weekend that suggested a broader examination of claims that some of its vehicles can roll away when a driver thanks the transmission has been set to park.
- The safety regulator's investigation now covers 856K vehicles, and 121 incidents have led to crashes, with 30 leading to injuries.
- Most of the complaints involved 2014-15 models of the Jeep Grand Cherokee, and other models involved were the Chrylser 300 and Dodge Charger.
- The inquiry expands a probe opened in August addressing 14 complaints that 2014-15 Grand Cherokees had rolled away after a driver intended to park them.
Mon, Feb. 8, 9:19 AM
Tue, Feb. 2, 8:20 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) unit sales +7% to 155,037 units to smash the estimate of most research firms which called for flat to negative year-over-year growth.
- Car sales flat fell 24% Y/Y to 30,157 units.
- Truck sales increased 19% to 124,880 units.
- Models with +10% sales gains included the Jeep Compass, Chrysler Town & Country, Dodge Caravan, and Dodge Charger.
Wed, Jan. 27, 2:56 PM
- Fiat Chrysler Automobiles (FCAU -1.7%) said it will shift capacity at several plants in order to increase production of Jeeps and Ram pickup trucks. The plan could mean a higher mix of manufacturing in the U.S.
- Global production of Jeep vehicles is expected to reach 2M through 2018. New diesel and hybrid electric version of the Jeep Wrangler will be available by 2018.
- The automaker also disclosed it will make profit-sharing payments of up to $4K to UAW workers in the U.S. The amount is tied to the company's EBIT tally from last year.
- New financial targets include revenue of €136B ($148.2M) and operating profit of €8.7B-€9.8B ($9.48B-$10.7B) were unveiled.
- Previously: Fiat Chrysler beats on revenue (Jan. 27 2016)
- Previously: Fiat Chrysler sets 2016 guidance, major shakeup to be announced (Jan. 27 2016)
- Fiat Chrysler conference call webcast
Wed, Jan. 27, 7:12 AM
- Fiat Chrysler Automobiles (NYSE:FCAU) reports it ended 2015 with a total of 4.6M units shipped.
- Revenue of €113B ($123B) during the year beat analyst expectations Adjusted EBIT was up 40% to €5.3B ($5.8B).
- The company expects revenue of €110B in 2016 and adjusted EBIT of €5.0B.
- Fiat is expected to announce a major shakeup later today when it updates its business plan.
- Previously: Fiat Chrysler beats on revenue (Jan. 27 2016)
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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