Thu, Apr. 30, 11:08 AM
- A 25-page thesis from Fiat Chrysler Automobiles titled "Confessions of Capital Junkie" presents the case that automakers need to consider consolidating through mergers.
- The automobile industry is set up for failure unless costs from R&D and regulatory changes can be shared on a larger scale, according to the company.
- "Capital consumption rate by OEMs is unacceptable—it is duplicative, does not deliver real value to consumers and is pure economic waste," reads the presentation.
- There's even a slide with a quote from Alice in Wonderland to hammer home the automaker's main points on the need for M&A.
- Today, Ford CEO Mark Fields told CNBC the company isn't looking for a merger within the auto space. Similar comments have been made by execs with General Motors, Nissan, and Toyota in the recent past.
- FCA's industry analysis (.pdf)
- Automaker stocks: GM, F, TM, HMC, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:MMTOF, TTM, OTCPK:SZKMY, OTCPK:FUJHY, OTCPK:GELYF, FCAU, OTCPK:NSANY, OTCPK:DDAIF, OTCPK:MZDAY, TSLA.
Wed, Apr. 29, 9:08 AM
- Ford (NYSE:F) issues four new recalls in North America.
- 22.6K 2015 Lincoln MKZ vehicles are recalled over an issue with park lamps.
- 91 2015 F-150 trucks are pulled back to address an issue with a heat shield.
- 50K 2014 Ford Focus, Edge, Escape, and Transit Connect vehicles are recalled to work on a fuel pump issue.
- The largest recall of the bunch is an action on 520K 2013-15 Ford Fusion, Lincoln MKZ, and Ford Edge vehicles due to a steering gear motor attachment problem.
- F -1.25% premarket to $15.86.
Tue, Apr. 28, 11:42 AM
- Execs with Ford (F -0.2%) indicated the back-half of the year should be stronger than the first half during the company's earnings call today.
- Increased production levels of the F-150 and profitability in Asia are two trends to watch.
- Profitability in South America and Europe will continue to be pressured by F/X, although it's noted there is some relief on costs for the bottom line due to the swings.
- Ford's outlook for its 2015 profit margin in North America is raised to +8.5% to +9.5% from +8% to +9% prior.
- Strong pricing is expected to be a benefit as volume ramps up in the region.
- Inventory is at targeted levels, notes management.
- Previously: Ford Motor misses by $0.03, revenue in-line (Apr. 28 2015)
- Previously: Lower volume and F/X clip Ford's Q1 results (Apr. 28 2015)
- Earnings call webcast
Tue, Apr. 28, 7:29 AM
- Ford (NYSE:F) reports pre-tax profit rose 17% Y/Y to $1.4B in Q1.
- Operating margin for the automotive part of the business was up 20 bps to 3.6%.
- Automotive revenue by segment: North America -2% to $20B, South America -20% to $1.5B, Europe -11% to $6.9B, Middle East & Africa $1.1B, Asia Pacific -14% to $2.3B
- Automotive operating-related cash flow ended the quarter at $500M.
- The financial services business saw pre-tax profit of $483M, essentially flat from a year ago.
- Ford reconfirms 2015 pre-tax profit guidance of $8.5B to $9.5B.
- Ford Q1 press release (.pdf)
- F -1.64% premarket.
Tue, Apr. 28, 7:11 AM
Mon, Apr. 27, 5:30 PM
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Mon, Apr. 27, 12:57 PM
- TrueCar estimates U.S. car sales will rise 6.1% Y/Y in April to 1.475M units.
- Strong demand is expected to be reported in the crossover, SUV, and pickup truck segments. Incentive spending is seen increasing 0.6% Y/Y to $2,601 per unit. April U.S. forecasts from TrueCar by automaker are listed below.
- Fiat Chrysler Automobiles (NYSE:FCAU): +10.6% to 198.6K units, market share +60 bps Y/Y to 13.5%.
- Ford (NYSE:F): +6.2% to 223.3K units, market share flat at 15.1%.
- General Motors (NYSE:GM): +5.9% to 269.1K units, market share -10 bps Y/Y to 18.3%.
- Honda (NYSE:HMC): +1.9% to 135K units, market share -30 bps Y/Y to 9.2%.
- Hyundai (OTC:HYMLF): -5.8% to 62.3K units, market share -60 bps to 4.2%.
- Kia (OTC:HYMLF): +7.9% to 57.9K units, market share flat at 3.9%.
- Nissan (OTCPK:NSANY): +8.7% to 113K units, market share +20 bps Y/Y to 7.7%.
- Subaru (OTCPK:FUJHY): +23.5% to 49.5K units, market share +50 bps Y/Y to 3.4%.
- Toyota (NYSE:TM): +3.4% to 206.4K units, market share -40 bps Y/Y to 14.0%.
- Volkswagen (OTCQX:VLKAY): -4.7% to 48.4K units, market share -40 bps Y/Y to 3.3%.
Mon, Apr. 27, 7:44 AM
- In his "We Are Full of Bull" note this morning, Morgan Stanley's Adam Parker says the economy will accelerate in Q2 and Q3, bringing stocks along for the ride. If investors are gun-shy thanks to record levels for the averages, Parker suggests looking for names with decent long-term earnings forecasts trading at a discount to the market.
- The ten largest U.S. stocks trading at a discount, but with above-average expected growth rates: Apple (NASDAQ:AAPL), Citigroup (NYSE:C), Gilead (NASDAQ:GILD), Union Pacific (NYSE:UNP), Actavis (NYSE:ACT), Twenty-First Century Fox (NASDAQ:FOXA), Time Warner (NYSE:TWX), Ford (NYSE:F), BlackRock (NYSE:BLK).
- Conversely, one might want to avoid those stocks selling for substantial premiums. The ten largest stocks trading at a premium to the market while growing at a below-average rate: Exxon (NYSE:XOM), Procter & Gamble (NYSE:PG), Chevron (NYSE:CVX), Coca-Cola (NYSE:KO), Pepsico (NYSE:PEP), Schlumberger (NYSE:SLB), MMM, McDonald's (NYSE:MCD), UPS, Nike (NYSE:NKE).
- Source: Bloomberg
Fri, Apr. 24, 4:01 PM
- Ford (F) issues a recall for 390K vehicles under both the Ford and Lincoln brand.
- The issue is with faulty door latches that could lead to an unsafe driving condition.
- The recall covers 2012- 2014 Ford Fiesta, Ford Fusion, and Lincoln MKZ vehicles made in Mexico.
- The last little part is sure to catch the attention of the UAW.
- Related: UAW reacts to production shift to Mexico (Apr. 23 2015)
Wed, Apr. 22, 2:29 PM
- 22% of hybrid and electric car owners making a trade-in this year opted to go for a SUV, according to data from Edmunds.com
- The mark stood at 18.8% a year ago and 11.9% three years ago.
- The rate at which hybrid and EV car owners bought another green car fell below 50%.
- Edmunds.com connects the dots to conclude that the level of gas prices in the U.S. was a primary factor in the trade-in trend.
- The break-even point for higher-priced EVs lengthens as gas prices fall.
- Automobile industry analysts think the trend could snap back just as quick with an energy market shock.
- YTD U.S. plug-in sales are up ~2.9%.
- Related stocks: OTCPK:NSANY, TM, HMC, GM, F, TSLA.
Fri, Apr. 17, 2:10 PM
- Ford (F -1.3%) confirms it will invest $2.5B in engine and transmission plants in Mexico.
- Expansion at two existing plans and the development of a third new facility will create about 3.8K new jobs.
- The automaker manufactures conventional and hybrid Ford Fiesta, Ford Fusion, and Lincoln MKZ models in the region.
- Previously: Toyota to open first Mexico passenger car plant (April 14)
- Previously: Ford expected to invest $2.5B in Mexico plants (April 14)
Wed, Apr. 15, 8:26 AM
- Ford (NYSE:F) reports sales increased 14.4% Y/Y in March to 168,400 units.
- The automaker says it grabbed another 20 bps of market share to take it to 9.1%.
- Ford's Q1 sales in Europe ended up 12.5% higher at 335,100 units.
- Ford Europe sales by model in March: Ka 7.2K, Fiesta 47.5K, Focus 32.2K, C-Max 10.3K, Kuga 12.2K, Mondeo 9.2K, Transit Custom 13.7K, Transit Connect 5.2K.
Tue, Apr. 14, 12:39 PM
- Ford (F +0.9%) is poised to announce a $2.5B investment in Mexico, sources tell Reuters.
- The automaker is expected to disclose on Friday a plan to expand a diesel engine plant in Chihuahua and a transmission plant in Guanajuato.
- Several major automaker have set plans to expand capacity and add jobs in Mexico to meet the expected rise of auto sales in North and South America.
- Related ETFs: EWW, UMX, SMK, DBMX, QMEX.
Fri, Apr. 10, 9:56 AM
Fri, Apr. 10, 8:16 AM
- Ford (NYSE:F) continues to be one of the major automakers most confident sales will pick up again in Russia.
- The automaker started production on the Mondeo model today at a Vsevolohsk plant in St. Petersburg.
- Ford has plans to launch four models in Russia this year, even with its YTD sales down 71% through March.
- Ford operates in Russia through local partner Sollers.
Thu, Apr. 9, 9:19 AM
- Execs with Alcoa gave an inside look at automobile industry demand trends during the firm's earnings call yesterday.
- The company sees pent-up demand in the U.S. and lower gas prices backing a seasonally adjusted selling rate of over 17M units.
- The average fleet age in the U.S. is still over the historic average and inventories are down, they noted.
- Alcoa CEO Klaus Kleinfeld pointed out that China has about 9M vehicles in the road that don't comply with the Clean Air Act and sees upside for Western Europe.
- Alcoa earnings call transcript
- Related stocks: GM, F, FCAU, TM, HMC, OTCPK:NSANY, OTC:HYMLF, OTCQX:VLKAY.
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