Thu, Jul. 7, 9:46 PM
- High-ranking Communist Party officials in China are exerting more influence on the daily operations of state-owned companies.
- The tighter grip comes at the direction of President Xi Jinping who calls state-owned enterprises a major force to protect the common interests of the people.
- In a sign of the increased intervention, several Chinese state-owned companies that partner with major automakers such as Volkswagen (OTCPK:VLKAY), Toyota (NYSE:TM), and General Motors (NYSE:GM) have changed their articles of incorporation to protect the goals of the Communist Party.
Thu, Jul. 7, 9:27 AM
- General Motors (NYSE:GM) reports it set a record with June and first half deliveries in China.
- June deliveries were up 11.2% to 273,563 units. The Cadillac brand stood out with a 34% Y/Y pop.
- Deliveries for the first six months of the year increased 5.3% to 1,810,476 units off of strong demand across the Buick, Baojun, and Wuling brands.
- GM China press release
- GM is trading flat in the premarket session at $28.38.
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.
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, 9:52 AM
- General Motors (GM +1.7%) June U.S. sales dropped 1.6%, to 255,210 vehicles, slightly worse than industry estimates for a 1.3% drop.
- Retail sales were up more than 1%, and retail share grew by 0.1 points (13 of last 14 months growing retail share).
- Retail sales gains paced by Chevrolet (3%), Buick (2%) and Cadillac (5%).
- Daily rental sales continued to drop as planned (less profitable), down 5,690 vehicles (-22%).
- “Our reduction in daily rental deliveries, disciplined incentive spending and well-managed inventories are showing real benefit in the residual values of our latest launched vehicles," says GM's Kurt McNeil.
Thu, Jun. 30, 12:30 PM| Thu, Jun. 30, 12:30 PM | 2 Comments
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.
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%).
Fri, Jun. 17, 9:07 AM
- Shares of Volkswagen (OTCPK:VLKAY) fell this week after the company outlined in broad strokes its EV strategy.
- Though the German automaker called the EV initiative its "biggest change process" in its history, analysts wanted more details. While 30 new EV models are expected over the next ten years, and a target of a 20% to 25% EV mix by 2025 was set by the company, management didn't dive into specifics on production, price points, and driving ranges.
- "There are worthy elements among the plans but it's probably also a marketing exercise by VW to tell the public that they have gotten the message," noted Commerzbank analyst Sascha Gommel.
- "Without any additional details on planned measures as well as on Dieselgate, we stick to our skeptical view on VW," DZ Bank analyst Michael Punzet wrote.
- Other automobile industry watchers think Volkswagen will need to move on its electrification talk rather quickly with the German government backing the EV industry with incentives and the mass-market Chevy Bolt (NYSE:GM) and Model 3 (NASDAQ:TSLA) aiming high. However, a serious disadvantage for Volkswagen in making a significant EV makeover is the high level of representation from labor on the board.
- Volkswagen ADRs are down about 7% for the week.
- Previously: The Germans roll forward with EV plans (June 11)
Thu, Jun. 16, 7:52 AM| Thu, Jun. 16, 7:52 AM | 68 Comments
Thu, Jun. 16, 7:38 AM
- Opel (NYSE:GM) car registrations +11.7% to 88,208 units in May, according to the European Automobile Manufacturers Association.
- Overall EU registrations +16% Y/Y to 1,288,220 units in May, led by +20% gains in Italy, France, and Spain. Registrations were up 12% in Germany and 3% in the U.K.
- Opel market share: 6.6% vs. 6.9% a year ago.
- Opel YTD registrations +10.0%.
- Results include the Opel, Vauxhall, Chevrolet, and other GM brands.
- EAMA release (.pdf)
Mon, Jun. 13, 11:22 AM
- General Motors (NYSE:GM) is up 1% to outpace broad market averages amid some untethered talk in trading circles about Toyota (TM -0.7%) making a bid.
- By U.S. market cap, Toyota is about 3.8 times bigger than GM.
- Though major consolidation is anticipated within the global automobile industry, speculation over a GM-Toyota combination is something new.
Sat, Jun. 11, 9:34 AM
- Electric vehicles remain in focus with German automakers as the Volkswagen scandal continues to throw a spotlight on diesel emissions. There's also a touch more of reality on an EV future after German Chancellor Angela Merkel’s government backed a joint deal with automakers to invest heavily in incentives.
- Daimler (OTCPK:DDAIF) plans to unveil its long-range Mercedes-Benz electric vehicle at the Paris Auto Show in October. Sales of the Mercedes EV are expected to start in 2019.
- Audi aims to introduce a new EV model every year beginning in 2018. Electric crossovers and SUVs are a major part of Audi's strategy.
- A new all-electric flagship sedan is expected out of BMW (OTCPK:BAMXY) in 2021. In the meantime, BMW stepped up the driving range of its i3 with the 2017 model (114 miles). A two-pronged attack from BMW has the company investing heavily in self-driving car technology and mulling over partnerships.
- Porsche has the dreamy Mission E Electric sports car in the works. The concept version boasted nearly-Ludicrous stats (zero-to-62 mph in less than 3.5 seconds, 310 miles all-electric range, and 600 horsepower to all four wheels)
- The Volkswagen (OTCPK:VLKAY) brand is also making a major commitment to electric cars as part of its broad emissions-cheating mea culpa. Earlier this week, InsideEVs reported that the company is considering a second dedicated electric car platform that will bring larger models into the picture.
- Beyond all the EV developments in Germany aimed at the higher-price points - there's still Tesla Motors (NASDAQ:TSLA), Apple (see MacRumors' rundown), GM's (NYSE:GM) mass-market Bolt, and dramatic self-driving car partnerships involving Uber (Private:UBER), Lyft (Private:LYFT), Toyota (NYSE:TM), Google, and Fiat Chrysler (NYSE:FCAU) in the mix.
- Some analysts have suggested the best play on the EV production ramp is a bet on key suppliers. Now who has a sleeper pick to share?
Fri, Jun. 10, 10:07 AM
- Piper Jaffray launches coverage on Tesla Motors (TSLA -1.5%) with a Neutral rating and $223 price target.
- The investment firm shows some preference for Detroit automakers as both Ford (F -0.9%) and General Motors (GM -1.1%) are initiated at Overweight with generous PTs of $17 and $41, respectively. The rather run-of-the-mill write-ups on Ford and GM from Piper focus on improved balance sheets and dividend payouts, while the Tesla take points to Model 3 delivery date concerns.
- PJ suggests Mobileye might be the automobile industry disruptor to bet on (Overweight/$50 PT).
Thu, Jun. 9, 8:06 AM
- General Motors (NYSE:GM) is going right after the Ford F-150 pickup in a new marketing campaign for the Silverado line.
- The automaker plans to highlight lab tests which show that the Chevy's steel bed holds up better in rigorous trials than the F-150 aluminum bed.
- Surveys of Ford F-150 owners have indicated a high level of satisfaction with the new aluminum style.
- At the crux of the matter, F-150 sales are up 7% YTD (324K) in the U.S. vs. a slight dip in Silverado sales (224K).
Tue, Jun. 7, 1:00 PM
- Profit over sales volume was a major theme at the General Motors (GM +1.2%) annual shareholder meeting in Detroit today. GM's U.S. market share of 16.6% is a post-WWII low, but execs reiterated that a sales mix with a lower contribution from rental companies will help the company show margin improvement. Mary Barra noted that residual values will also hold up better for GM cars.
- All twelve of the company's candidates to the board were elected by shareholders. In a largely symbolic vote, 38% of GM shareholders rejected a compensation plan at the automaker.
- The bold investments in Lyft and Cruise Automation were highlighted as the focus stayed on the future instead of looking back at costly recalls or other issues.
- A question on buybacks was skirted, but it was pretty clear that boosting share price is a top goal in the C-suite.
- Jesse Jackson made an appearance to push GM for more African-American representation with dealership ownership.
- General Motors annual meeting webcast
General Motors Co. engages in the business of design, manufacturing and sale of cars, trucks and automobile parts worldwide. It operates through four segments: GM North America, GM Europe, GM International Operations and GM South America. The GM North America segment sells vehicles under the... More
Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Country: United States
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