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Archive for the ‘Monthly Results’ Category

China Car Sales Tumble for 10th Consecutive Month

Downturn comes as US trade war escalates, domestic economy slips.

by on May.13, 2019

Klaus Bischoff, VW design chief, shows off the SMV Concept at Auto Shanghai last month.

For much of the past two decades, China’s new vehicle market was the envy of the world, with routine double-digit annual growth approaching triple-digit gains on several occasions – but the numbers were down 14.6% in April, marking the 10th consecutive monthly decline.

At 1.98 million vehicles, China remains solidly in the lead as the world’s largest automotive market, but the downturn raises troubling issues for both foreign and domestically owned brands, such as General Motors, Volkswagen, Toyota, Geely and Great Wall, impacting industry earnings around the globe.

Global News!

With China locked in an escalating trade war with the United States and the country’s overall economy showing signs of weakness, industry analysts question how soon the car market will show a recovery. The downturn could force automakers to look for ways to export products from increasingly underutilized Chinese plants, according to observers.

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BMW Earnings Hit Big by Anti-Trust Probe

No plans to purchase stake in rival Daimler, says CEO.

by on May.07, 2019

BMW's earnings fell despite a global increase in sales.

BMW earnings tumbled 75% for the first quarter, its automotive earnings plunging into the red, due to a $1.6 billion set-aside to cover fines resulting from a European antitrust probe, as well as higher investments in autonomous and electrified vehicles.

BMW actually saw an increase in vehicle deliveries during the first quarter of the year, but revenues slipped 1% to 22.5 billion euros, or $25.1 billion. Meanwhile, the anticipated antitrust fine and other factors drove group earnings down to 561 million euros, or $627 million.

Breaking News!

Separately, the Bavarian automaker’s CEO Harald Kruger said he “can rule out” the possibility of taking even a small stake in its German rival Daimler, despite the two companies announcing a series of recent joint ventures, including one designed to share self-driving vehicle development efforts.

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Product Launches Hammer FCA’s Q1 Earnings

But Ram pickup sales provide a cushion.

by on May.03, 2019

CEO Mike Manley needs to prove he can maintain the pace set by his former boss, Sergio Marchionne.

Fiat Chrysler Automobiles reported profits dropped 41% in the first quarter as a slump in sales in key markets cut the company’s revenues by 5 percent.

The automaker attributed the decline to the normal production challenges related to an array of new product launches in North America, as well as pricing pressure in China and South America.

Financial News!

FCA CEO Mike Manley, however, reaffirmed the company’s guidance for the full year. “We expect earnings to grow in the following quarters,” he said as FCA completes the launch of the new Jeep Gladiator and the Ram Heavy Duty pickup truck.

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VW Earnings Strong Despite Hit from Diesel Scandal

Credit largely goes to higher-priced crossovers like VW Atlas.

by on May.02, 2019

VW's utility vehicles now account for 23% of group sales, with a target of 20% by late 2020.

Volkswagen’s earnings took a tumble during the first quarter, largely due to a 1 billion euro, or $1.1 billion, set-aside to cover legal costs related to its ongoing diesel emissions scandal.

But at 3.05 billion euros, or $3.41 billion, after-tax profits came in close to last year’s 3.30 billion euros figure from the January-March quarter, with profit margins actually rising across the company’s 12 different automotive brands.

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News You Can Trust!

It was a “very strong first quarter,” said Chief Financial Officer Frank Witter, and “to an extent better actually better than we expected.”

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April Sales Sag a Bit as Tough Conditions Continue

Sales hurt by higher interest rates and prices.

by on May.01, 2019

The 2020 Subaru Outback kept the automaker's consistent sales increases chugging along in April.

Nissan and Subaru posted sales increases during April, but Fiat Chrysler and Toyota sales fell in April as deliveries of new vehicles continued drop under pressure from rising prices and higher interest rates.

For Subaru of America, April was another solid month with a 7.7% increase compared with April 2018, and the best April in the history of the company. The automaker also reported year-to-date sales of 214,042, a 5.5% gain compared with the same period in 2018.

Sales News!

“April saw another Subaru monthly sales record and the reveal of our all-new 2020 Subaru Outback at the New York International Auto Show, both strong indicators of a record sales year to come,” said Thomas J. Doll, Subaru of America president. “And thanks to the amazing efforts of our retailers, both the current Outback and new Forester maintained a very strong sales pace in a highly competitive marketplace.” (more…)

Strong Sales of Pricey Pickups Help GM Beat Earnings Estimate

But sliding U.S. market share worries investors.

by on Apr.30, 2019

GM CEO Mary Barra shown in March announcing a major investment in battery-car production.

Cost-cutting and pricey pickups. That was the formula for General Motors as it managed to beat Wall Street’s earnings expectations for the first quarter of 2019 with adjusted earnings of $1.41 a share, 30 cents better than the consensus forecast.

But that wasn’t enough to satisfy investors who have been driving down GM shares in morning trading, the market appearing to react to weak sales and the automaker’s home market share decline from 16.9% during the fourth quarter of 2018 to 15.6% during the most recent three-month period.

Earnings News!

“GM’s first-quarter operating results were in line with expectations we shared in January,” CEO and Chairman Mary Barra said during a conference call with analysts and the media Tuesday morning. “My confidence in the year ahead remains strong, driven by our all-new full-size truck launch and our ongoing business transformation.”

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Tesla Loses $522M in Q1 Despite 3% Model 3 Production Jump

EV Maker produced roughly 63,000 Model 3 vehicles in Q1.

by on Apr.24, 2019

Tesla CEO Elon Musk said delivering Model 3s to Europe was a logistical challenge unlike anything he'd seen before.

(This story has been updated with new information from the Q&A session during the company’s earnings call.)

Tesla posted a $522 million operating loss on revenue of $3.7 billion during the first quarter of 2019. The loss came despite a 3% increase in Model 3 production, accounting for about 63,000 vehicles.

This improvement in production rate was modest mainly due to changes to the production process for the introduction of new variants of Model 3, fewer working days and a supplier limitation, the automaker noted.

Sales News!

CEO Elon Musk noted that the company struggled with a massive increase in the delivery of Model 3 sedans to Europe. In fact, the completed half of the deliveries during the last 10 days of the quarter, he noted during the earnings call. (more…)

Tough to Find a Good Deal on a New Vehicle? Here’s a few

Best deals on sport-utilities right now.

by on Apr.05, 2019

Looking for a good deal this month: The 2019 Jaguar I-Pace tops the list.

U.S. new car sales fell 5% in March, following the trend for the rest of the first quarter, in part due to rising interest rates on loans paired with falling incentives. In short, buyers can’t find a good deal on a new car, truck or sport-utility.

Fortunately, U.S. News & World Report offers up its monthly “best deals” list, and despite the less-than-ideal conditions buyers are currently dealing with, there are some good deals to be found in April, the editors note.

The Last Word!

“There are some mixed conditions out there for car shoppers,” said Jamie Page Deaton, executive editor of U.S. News Best Cars.  (more…)

Fiat Chrysler Settles False Filings Antitrust Lawsuit

Terms of the deal were not disclosed.

by on Apr.05, 2019

Fiat Chrysler reached a settlement with the U.S. Justice Department about filing false sales reports. The terms of the deal weren't disclosed.

The U.S. Justice Department and Fiat Chrysler Automobiles NV reached a settlement in an antitrust lawsuit about claims the automaker forced dealers to report false sales numbers, hoping to bolster the company’s stock price.

Those allegations spurred a separate federal investigation to determine if information filed with the  Securities and Exchange Commission gave shareholders an overly rosy impression of FCA’s financial situation. Those investigations are ongoing, FCA said. The settlement terms are confidential.

Business News!

The lawsuit, which was filed in federal court in Chicago in January 2016, alleged racketeering, violations of antitrust laws and breach of contract. FCA twice won dismissal of the racketeering claim, but the rest of the charges are headed to trial this year, Bloomberg reported. (more…)

Ford Q1 Sales Fall 1.6% Due to Passenger Car Freefall

Trucks and SUVs stem 23% drop in car sales.

by on Apr.04, 2019

Ford has already upped the production run of the new Ranger due to its popularity. It made a difference in sales during the first quarter.

Ford Motor Co saw sales decline by 1.6% in the first quarter.

But the drop was not as large as those experienced by rivals General Motors and Fiat Chrysler Automobiles N.V. and was concentrated in the passenger car segment, which are continuing to fade in consumer interest.

News You Can Trust!

“As we transition out of passenger cars we expect to see some volatility,” said Mark LaNeve, Ford vice president of sales, service and marketing. “I’m optimistic the year will strengthen.” (more…)