Thu, Apr. 21, 8:14 AM
- General Motors (NYSE:GM) more than doubled its profit in Q1 from a year ago as improvements in Europe start to hit the bottom line. Total sales were up 4.5% Y/Y.
- The North America segment delivered EBIT-adjusted $2.3B, while GM Europe was a win with a break-even EBIT-adjusted tally. Once again, strong demand for trucks, SUVs, and crossovers more than offset some weakness with passenger cars.
- GM gave investors plenty to chew on its quarterly report with EBIT-adjusted margin up 130 bps to 7.1%. Return on invested capital was up nine full percentage points to 28.5%.
- GM +3.42% premarket to $33.30.
- Now read Are Ford And GM Still Attractive Investments?
Thu, Apr. 21, 7:31 AM
Wed, Apr. 20, 5:30 PM
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Wed, Apr. 20, 10:32 AM
Sun, Apr. 17, 8:02 AM
- Tesla's (NASDAQ:TSLA) biggest challenge is still to come, Barron's says this weekend. While Model 3 presales have reached a stunning 325K, CEO Elon Musk has had difficulty mastering the skill of building and delivering cars at scale.
- Tesla has delivered just 120K cars in its 13-year existence. Product launches have been plagued by delays.
- In describing a recent parts shortage, Tesla laid out the challenge: "The parts in question were only half a dozen out of more than 8,000 unique parts; nonetheless, missing even one part means a car cannot be delivered. Tesla is addressing [the] root causes to ensure that these mistakes are not repeated with the Model 3 launch." Barron's: "Time will tell. Tesla has promised its initial Model 3 deliveries by late 2017, but it could take years to deliver all of the preorders."
- Meanwhile, with less bombast, GM's (NYSE:GM) Chevrolet unit unveiled a similar car in January. Bolts will be widely available by early 2017. "Tesla has made a lot of noise and created passion," says Karl Brauer, a senior analyst for Kelley Blue Book and veteran industry observer. "But Chevy and GM will crack the real-world electric vehicle first. Theirs will be available not just months, but years, before Tesla's."
- Now read Why Tesla Revealed The Model 3 So Early »
Sun, Apr. 17, 7:29 AM
- Sales at Ford (NYSE:F) and GM (NYSE:GM) are booming, but you wouldn't know it from their share prices, Barron's says in a bullish cover piece this weekend.
- Key concerns include a drop from Q1's torrid sales pace (both slid when March sales came in at a mere 16.56M (annualized)); weaker China growth; rising buyer incentives; and subprime loans.
- But investors fail to appreciate the degree to which the two have achieved efficiencies since the last cycle. "That means it can sustain profitability - and show good profitability - late in the sales cycle," Annie Rosen, manager of the Fidelity Select Automotive Portfolio, says.
- Ford trades for 6.6x 2016 earnings and 3.9x projected cash flow; GM fetches 5.6x and 3.4x.
- Barron's thinks shares have 25% upside in the coming year, not including dividends of 4.9% for GM and 4.6% for Ford.
- Now read Are Hydrogen Cars A Threat To The Electric Vehicle? »
Fri, Apr. 15, 11:18 AM
- General Motors (GM -0.4%) announces a recall of 1.04M cars to address an issue with seat belts.
- The recall action covers 2014-2016 Chevrolet Silverados and GME Sierra 1500 vehicles, with most being in the U.S. and Canada.
- The automaker discovered the problem by analyzing warranty data.
- GM's warranty reserve is expected to cover the costs of adding an extra bracket to cable tensioners to the affected pickup trucks.
Fri, Apr. 15, 7:25 AM
- Opel (NYSE:GM) car registrations +6.2% to 126,307 units in March, according to the European Automobile Manufacturers Association.
- Overall EU registrations +6.0 Y/Y to 1,700,683 units in March, led by strong growth in Italy and France. Registrations in Germany were down slightly.
- Opel market share: 7.2% vs. 7.2% a year ago.
- Opel YTD registrations +10.7%.
- Results include the Opel, Vauxhall, Chevrolet, and other GM brands.
- EAMA release (.pdf)
Thu, Apr. 14, 8:26 AM
- Motor Trend issues an exhaustive look at what an Apple Car might look like and feature in a freshly-posted story. The focus is on guesswork, not concrete details from Cupertino.
- A panel of experts concludes that the BMW (OTCPK:BAMXY) i3 isn't there yet and Tesla Motors (NASDAQ:TSLA) is "kinda there" in terms of creating the electric vehicle that is the true game changer.
- Their vision of the Apple Car sounds pretty much like what major automakers such as Ford (NYSE:F) and General Motors (NYSE:GM) are already talking about with the focus on mobility, simplicity, autonomous features, and connected options,
- Even if Apple's Project Titan is ultimately canceled, the Motor Trend panel still thinks some Apple features such as augmented reality windshields could survive.
- Now read Tesla Makes A Crucial Move
Wed, Apr. 13, 2:55 PM
- A series of tweets blasted out today by Motor Trend is stirring up talk of Apple entering the car industry.
- The teasers include a picture, a sketch, and the vexing question to be answered tomorrow on what it all means. There's plenty of skepticism on if Motor Trend has actually pulled off a major coup with its reporting.
- If anything serious does develop from the upcoming Motor Trend story it could be of interest to Tesla Motors (TSLA +2%) and General Motors (GM +3.6%) as they plot mass-market strategy.
Tue, Apr. 12, 11:19 AM
- The SAE 2016 World Congress is underway in Detroit with a large number of automakers and suppliers in attendance.
- An early theme from the event is the widespread acceptance of electric cars as an inevitability in the future.
- General Motors (GM -0.4%) R&D chief Larry Burns presented a slide showing the "New Automotive DNA" of electric drive, electric motors, and diverse energy sources (Twitter picture of slide). He also noted that the company expects driverless cars to be cheaper due to the lower cost parts. Self-driving cars are seen having some commercial applications even if broad acceptance is far-fetched.
- The powertrain manager at Toyota (TM +3.3%) said the automaker sees EVs, fuel cells, and hybrids "dominating" the industry. Strong words from the world's largest seller of cars.
- What to watch: Upcoming talks at the conference on cybersecurity take on added significance with nearly every automaker hyping its connected car concept.
- Ward's Auto is covering the event on its Twitter feed.
- Related stocks: F, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:DDAIF, OTCPK:BAMXY, TSLA.
- Now read The First Trust Nasdaq Global Auto Index ETF: Road To Success?
Thu, Apr. 7, 6:48 PM
- GM settles a lawsuit that would have been the third case to go to trial over the faulty ignition switch linked to nearly 400 injuries and deaths.
- The deal comes a week after GM scored a win in the first case to reach a verdict in a series of six test trials scheduled over the ignition switch; while GM convinced the jury in last week's trial that the ignition switch was not responsible for the accident in the case, the jury did conclude the switch was defective.
- Unlike the prior two trials - the first trial ended in January without a verdict after allegations that the plaintiff gave misleading testimony - today's case involved a death rather than alleged injuries.
- GM has reached settlements totaling more than $2B with the Justice Department, shareholders and thousands of consumers.
- Now read Don't bet against General Motors just yet
Mon, Apr. 4, 11:37 AM
- Ford (F -2.2%), General Motors (GM -1.9%), and Toyota (TM -2.4%) are all down for a second straight day after overall U.S. sales came in below expectations for March.
- There's also a bit of a Tesla overhang over the major automakers as the weekend's strong tally of Model 3 pre-orders is the one of the first concrete indications that the EV automaker could be a market share disrupter. If even half of Tesla's early round of orders comes to fruition, about $5B in consumer spending on automobiles is going in a different direction than Detroit or Tokyo. Naturally, Tesla enthusiasts think the number will be much higher.
- Daimler (OTCPK:DDAIF -1.4%) and BMW (OTCPK:BAMXY -1.4%) are also weak on the day amid the OEM gloom.
- Now read Tesla Model 3: Existential Crisis For The Auto Industry
Fri, Apr. 1, 6:25 PM
- March U.S. auto sales rose 3% Y/Y but a disappointing adjusted annual rate of 16.57M vehicles came in well below analyst expectations and the 17.5M clip the industry enjoyed in February.
- Ford (NYSE:F), GM and Chrysler (NYSE:FCAU) each reported sales gains but their results missed expectations, sending shares lower (I, II, III).
- The sales report “plays into the idea that with 2015 being a record year, maybe we’re set up to start peaking a little bit in terms of consumer demand," Bloomberg's Kevin Tynan says.
- However, historically-low gasoline prices and interest rates continue to lure consumers to dealer showrooms, setting the stage for car sales this year to remain near 2015’s record 17.5M, says Barclays analyst Brian Johnson, who adds that some automakers will need to “cough up incentives to keep it there."
- Now read U.S. auto sales forecast to increase 8% in March
Fri, Apr. 1, 10:02 AM
- General Motors (GM -2.9%) lost some market share in March to peers as it maintains a sharper focus on inventory levels
- New versions of the Volt, Camaro, and Spark contributed positively to help up make for a slide in larger sedan sales across brands.
- Sales by brand: Chevrolet +1.4% to 176,283 units; GMC +6.9% to 44,585; Buick -11% to 18,207; Cadillac -5.1% at 13,053.
- Sales by model: Buick Encore +14% to 6,426; Chevrolet Cruze -58% to 9,881; Chevrolet Equinox -12% at 21,480; Chevrolet Silverado-C/K Pickup +6% to 47,966; Chevrolet Spark -30% to 2,273; Chevrolet Sonic -4% to 4,708; Chevrolet Traverse -3% to 10,747; GMC Sierra +24% to 21,548; GMC Yukon +28% to 3,394.
- GM's average transaction price increased 2.9 Y/Y to $38,005 (via Kelley Blue Book).
- Previously: General Motors March U.S. sales: +0.9% (April 1)
Fri, Apr. 1, 9:51 AM
- General Motors (GM -2.9%) unit sales +0.9% to 252,128 units vs. +6% expected by Kelley Blue Book.
- GM ended the month with 71 days supply, compared to 67 days supply a month ago.
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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