Fiat S.p.A. Torino is the holding company of the Fiat Group. Through its subsidiaries, Co. is engaged principally in the manufacture and sale of automobiles, commercial vehicles and agricultural and construction equipment. Co. is organized into operating sectors, divided in the two major... More
Thursday, Jan 22:40 AM
Thursday, Jan 22:40 AM| 4 Comments
- Fiat (FIATY) has agreed to pay $4.35B to acquire the 41.5% stake in Chrysler owned by the United Auto Workers Retiree Medical Benefits Trust.
- The deal ends a long-running dispute over the valuation of Chrysler - which is just over $10B under the agreement - and helps pave the way for the consolidation of the companies into a single global automaker with combined sales of 6M vehicles and 2012 revenue of €84B.
- The transaction also means that Chrysler's prospective IPO will probably be called off. (PR)
Tuesday, Dec 312013, 2:52 PM
Tuesday, Dec 312013, 2:52 PM| 16 Comments
- IHS Automotive is out with a forecast on self-driving cars which could prove to be provocative.
- The research firm thinks by the year 2035 close to 9% of all cars sold will be able to function without a human driver. The estimate is more aggressive than most covering the nascent technology.
- The anticipated benefits of autonomous cars include fewer accidents, less traffic congestion, and an easier way for the industry to keep emission pollution under control. Detractors say insurance liability and software concerns will plague growth rates
- What to watch: The engineers at Google X may have something to say about the direction of the self-driving car initiative. The company's purchase of Boston Dynamics, the advent of Google glasses, and the spins the company's early prototype has taken around Silicon Valley all point to more than a passing interest by the tech giant.
- Related stocks: GM, F, TM, FIATY, HMC, NSANY, TSLA, VLKAY, DDAIF, HYMLF, BAMXY, PEUGF, RNSDF, FUJHY.
Thursday, Dec 262013, 4:20 PM
Thursday, Dec 262013, 4:20 PM| 18 Comments
- Despite some recent concerns on the U.S. automobile industry - including high inventory at General Motors (GM) and pricing pressures at Ford (F) - the industry is in the best shape that it's been in years, say some analysts.
- On demand: The average age of vehicles in the U.S. has never been higher at 11.3 years. Some pent-up demand from the fall when government shutdown worries stalled sales is also still being unleashed.
- On profits: Though a high level of promotional activity in December helped to juice sales figures at the expense of profits, some underlying positive trends remain in place. The increased use of domestic production in supply chains and the early success of 2014 models at premium pricing bodes well for bottom lines in the sector.
- On leased cars: Analysts think the lease cycle sets up well for the industry in 2014.Toyota (TM) has aggressive leasing plans in place.
- On gas mileage: Consumers will be tempted to trade into new vehicles with vastly improved gas mileage ratings. Honda (HMC) tops the list while Ford's betting truck owners will go for a lighter F-150 in the future. In the luxury segment, Tesla (TSLA) and Mercedes-Benz (DDAIF) want to carve out more EV market share by reeling in middle-class buyers trading up while cutting down on gas costs.
- On brand reputation: Automakers such as Subaru (FUJHY) and Chrysler (FIATY) have seen consumer sentiment scores turn around as new models impress.
Thursday, Dec 262013, 3:12 PM
Thursday, Dec 262013, 3:12 PM| 1 Comment
- Sales of 2014 Jeep Cherokee vehicles are on their way to a second straight month of a strong performance, dealers tell Automotive News.
- The introduction of the new model has exceeded the expectation of analysts and could signal a market share grab for Chrysler (FIATY) in the profitable SUV segment.
- What to watch: Chrysler's large plant in Toledo, Ohio could run full out next year for the most time since 2007 to add a little more pressure on GM, Toyota, and Ford.
Thursday, Dec 262013, 8:13 AM
Thursday, Dec 262013, 8:13 AM| 2 Comments
- IHS Automotive forecasts light-vehicle sales in North America will top 16M in 2014.
- Though the sales prediction from the research firm looks strong, the outlook on pricing in the auto industry could be even more important.
- IHS thinks manufacturers will take their foot off the promotional pedal as sales gains become more closely associated with a strengthening U.S. economy - instead of incentives and deals.
- The level of promotional activity in the industry has been a growing concern, highlighted recently by a frank assessment from Ford execs,
- Related stocks: F, GM, HMC, TM, VLKAY, NSANY, FIATY.
Thursday, Dec 262013, 6:54 AM
Thursday, Dec 262013, 6:54 AM| 6 Comments
- Brazil's government indicates it plans to slowly roll back tax breaks on automobiles next year instead of a sudden shift back to the original tax rate of 7%.
- Automobile industry officials in Brazil are worried about the impact on demand in the nation of the tax hike.
- Related stocks: Fiat (FIATY), Volkswagen (VLKAY), General Motors (GM), and Ford (F).
Friday, Dec 202013, 1:01 PM
Friday, Dec 202013, 1:01 PM| 1 Comment
- Fiat (FIATY) CEO is back in the room with the UAW trust that holds the elusive 41.5% stake in Chrysler that the company would like to land.
- The automaker has been rejected twice by the UAW group, but could still strike a deal that would be more attractive than watching Chrysler go public before buying it.
- Reports indicate the gap between the two sides has narrowed to under a billion dollars. The trust wants $5B and Fiat is pitching $4.2B.
Thursday, Dec 192013, 2:51 PM
Thursday, Dec 192013, 2:51 PM| 6 Comments
- Forecasts for 2014 automobile sales in the U.S. are starting to pour in as the industry looks to top what was a very good year in 2013 and see the first +16M unit selling year since 2007.
- Kelley Blue Book thinks the industry can improve sales by 4.3% to 16.3M units next year.
- Edmunds is already in the books with an outlook for 16.4M vehicles on its view the lease return cycle sets up well for the industry.
- A tad more conservative is IHS Automotive with its projection for sales of 16.03M units.
- What to watch: Automakers tapped to see strong gains include Subaru (FUJHY), Ford (F), Chrysler (FIATY), and Hyundai (HYMLF) - while Toyota (TM), Volkswagen (VLKAY) and Honda (HMC) hope to reverse this year's drop in market share.
Tuesday, Dec 172013, 1:29 PM
Tuesday, Dec 172013, 1:29 PM| 33 Comments
- The UAW would like to see the two-tier system in which new hires are paid just half of what veteran workers earn reworked.
- Detroit automakers (GM, F, FIATY) prefer having the entry-level wage scale because it allows them to compete with Japanese, South Korean, and German counterparts. Time is on the group's side with the UAW labor contract not set to expire until 2015.
Tuesday, Dec 172013, 7:15 AM
Tuesday, Dec 172013, 7:15 AM| 3 Comments
- European car registrations rose 1.2% Y/Y in November to put together a third consecutive month of gains on the continent.
- By regions, the U.K. and Greece were strong while registrations in Germany slipped 2% during the month.
- Monthly growth by manufacturer: General Motors (GM) -3.8%; Volkswagen (VLKAY) +3.2%; Daimler (DDAIF) -1.6%; BMW (BAMXY) -6.8%; Fiat (FIATY) -5.8%; Renault (RNSDF) +8.9%; Peugeot (PEUGY) -1.2%; Ford (F) -1.8%; Honda (HMC) -4.0%; Hyundai (HYMLF) -7.3%; Toyota (TM) +7.3%; Jaguar Land Rover (TTM) +1.3%; Suzuki (SZKMY) +15.8%; Nissan (NSANY) flat.
Tuesday, Dec 172013, 6:58 AM
Tuesday, Dec 172013, 6:58 AM| 1 Comment
- IHS forecasts the global automobile industry will produce 85M sales in 2014, up 3.7% from this year's level.
- Based on the same trend of strong growth in China and the U.S., Deutsche Bank has an even higher estimate for 2014 sales of 87.4M to rep 4% growth.
- Related stocks: GM, F, VLKAY, NSANY, HMC, TM, FIATY, HYMLF, DDAIF, BAMXY.
Monday, Dec 162013, 6:57 AM
Monday, Dec 162013, 6:57 AM| Comment!
- The succession plan at Fiat-Chrysler (FIATY) is back in the spotlight in the automobile industry after GM named its new top exec.
- Though a few obvious internal candidates exist, Chrysler won't comment on the issue as it remains in a quiet period due to its upcoming IPO.
- In an interview last year, CEO Sergio Marchionne said he wouldn't stay on at Fiat past 2015.
Monday, Dec 92013, 6:57 AM|Monday, Dec 92013, 6:57 AM| Comment!
Friday, Dec 62013, 2:57 PM
Tuesday, Dec 32013, 8:43 AM
Tuesday, Dec 32013, 8:43 AM| Comment!
- Chrysler's (FIATY) performance in the U.S. was strong in November as the automaker saw new models perform well. Truck sales during the month rose 26% to 108,308 units while car sales fell 7% to 33,967.
- Brand sales growth: Ram +25%; Chrysler +12%; Dodge +4%; Fiat -15%; Jeep +30%.
- The automaker saw broad sales increases with Jeep as the Grand Cherokee, Wrangler, Patriot, and Compass models each knocked out Y/Y gains. The Town & Country minivan was also a hot seller during the month, up 70% Y/Y to 11,288 units.
- An inventory level of 91 days supply hasn't gone unnoticed by analysts as Chrysler now has more pressure to either sell like mad in December and January or trim late-year production.
Tuesday, Dec 32013, 8:21 AM
Tuesday, Dec 32013, 8:21 AM| 5 Comments
- Chrysler's (FIATY) unit sales +16% to 142,275, to mark the best sales haul for the month since 2007.
- The automaker's sales total bested estimates calling for a 10%-14% gain, but the late-month level of promotions used to spur buying will be closely watched by analysts.
- The Jeep Cherokee SUV came in strong during the month with sales of 10,169 units.
- The automaker cites a 91-day supply of vehicles.