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Archive for the ‘Monthly Results’ Category

Toyota Earnings Jump, Despite Rising U.S. Incentives

Record R&D spending could hurt operating profit.

by on May.09, 2018

Toyota CEO Akio Toyoda is not only pushing for automotive sales growth, but leading the company into the emerging mobility sector.

Toyota saw earnings jump 21% between January and March, the final quarter of its fiscal year, despite having to sharply ramp up incentives in a slowing U.S. automotive market.

The automaker reported a profit of 480.8 billion yen, or $4.4 billion, up from 398 billion yen the year before. Toyota’s sales also rose 2% to 7.58 trillion yen, or $69 billion. For the full fiscal year, it earned 2.49 trillion yen, or $23 billion, a 36% increase, with sales rising 6%, to 29.38 trillion yen, or $268 billion.

Beyond the Numbers!

The strong performance helped highlight the cost-cutting efforts initiated by CEO and President Akio Toyoda, the grandson of Toyota’s founder declaring, “We’ve become a leaner, trimmer company … and in the past year we’ve developed our remaining fat into muscle, so that we’re in a strong position to be more competitive.”

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Car of the Year? Even Honda Accord Falls into a Black Hole as Sedan Sales Continue to Wither

Slumping sedan sales putting a chill on spring sales.

by on May.02, 2018

It may be new for 2018, but U.S. buyers have had only a tepid response to the latest Honda Accord.

Few recent product launches generated more buzz than the debut of the 2018 Honda Accord. Long one of the U.S. market’s best-selling nameplates, the 10th-generation sedan quickly racked up a slew of awards, including North American Car of the Year.

But despite all the rave reviews, Honda is struggling to retain momentum for the Accord. American motorists purchased just 21,751 of the sedans in April, a 19.3% year-over-year decline. And even when adjusting for the fact that April 2018 had two fewer sales days than the year before, the dip was 12.5 percent. And Honda isn’t alone. The completely redesigned 2018 Toyota  Camry, a Car of the Year runner-up, suffered a 5.0% drop in volume in April.

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“They’re both brand new vehicles and award winners, but I’m not sure that has any impact now,” said Joe Phillippi, head of AutoTrends Consulting. “Consumer tastes are changing. Everybody wants SUVs and CUVs.”

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Wall Street Waiting for Tesla Earnings as Automaker Burns Through Cash

The big question: will Tesla need a new cash infusion?

by on May.01, 2018

Tesla is losing about $6,500 a minute - or about as much as a Model 3 costs in the time it takes to read this story.

Whether you’re someone who sees the glass as half-full or half-empty, there’s plenty to ponder as Tesla prepares to reveal its first-quarter earnings on Wednesday.

The California battery-carmaker saw a big surge in production of its critical new Model 3 during the January to March period – but still fell 20% short of its target. Nonetheless, that was expected to have pushed revenues up 16.5% during the quarter, to $3.14 billion, according to Zacks Consensus Estimates. But with the automaker struggling to get things running smoothly at its Fremont, California assembly plant, quarterly earnings are expected to plunge 153.4%, year-over-year, with Tesla running a per-share deficit of $3.37.

Beyond the Headlines!

Short-sellers seem to be the ones with the biggest smiles these days, as Tesla’s worsening cash burn problem leaves investors wary and worried that the carmaker may soon have to beg Wall Street for money to keep its operations going.

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Automakers Trudge Through Tough April Sales

Rising gas prices, interest rates crimp sales.

by on May.01, 2018

Mark LaNeve, Ford vice president, said F-Series truck sales are still going strong.

New vehicle sales are feeling the pressure from a combination of rising interest rates and higher fuel prices as Ford, Toyota, Nissan and Honda all reported declining sales for April.

Only Fiat Chrysler and Volkswagen appeared to go against the prevailing trend in April, which was also the first month without a sales report from General Motors. The consensus was that GM sales dropped during April.

News You Can Trust!

FCA reported a 5% increase compared with sales in April 2017. Overall sales were pushed by the Jeep brand which reported record sales for April. Sales of the Ram brand dropped by 9%. (more…)

Carmakers Likely to Report April Sales Declines

Month has two fewer selling days, adding to the slide.

by on Apr.27, 2018

Sluggish sales in the U.S. are expected in April, which has two fewer selling days..

Analysts anticipate a drop in new vehicle sales when carmakers report their total deliveries for April next week.

U.S. new-vehicle sales in April are expected to fall 3.6% compared to April 2017, according to a forecast from Cox Automotive.

News You Can Trust!

Despite the expected volume decline, the sales pace in the U.S. remains strong, at a seasonally adjusted annual rate (SAAR) of 17.3 million units, above year-ago levels. In April 2017, the SAAR was 17.0 million, Cox analysts noted. (more…)

Ford Suffers, GM Coasts in March Sales in China

Volkswagen posts a sales increased in March.

by on Apr.17, 2018

Strong Malibu sales in March helped GM to a small sales gain of 2%.

Ford Motor Co. saw its sales in China, the world’s largest automotive market, drop by 11% during March, while General Motors eked out a 2% gain as its sales continue to grow.

GM, which will now report its China sales quarterly rather than monthly in the future, said its joint ventures in China delivered a March record of 352,346 vehicles. Buick and Cadillac enjoyed record deliveries in March, while Chevrolet grew 35% from a year earlier, GM said.

Industry News!

Sales in the first three months of 2018 increased 8% on an annual basis to 986,052 units. (more…)

Caddy Triggers Battle of the Behemoths with $10,000 Escalade Discounts

Fighting off the new Lincoln Navigator.

by on Apr.16, 2018

A Cadillac Escalade Platinum can top $100,000.

If you’re looking for one of the biggest, baddest luxury utes on the market, Cadillac is hoping to lure you into one of its U.S. showrooms. Aiming to shore itself up against an assault by Lincoln’s newly updated Navigator SUV, Caddy is firing back with discounts of up to $10,000 on its own Escalade model.

GM has traditionally dominated the full-size SUV segment, both mainstream and luxury, and it gained significant traction when it introduced an all-new version of the ‘Slade for the 2014 model-year. But that’s a lifetime ago in today’s hotly competitive market and Lincoln has been building momentum fast with the all-new version of the Navigator it launched last year.

News You Can Trust!

While the two models don’t generate a lot of volume they serve up substantial profits for their respective manufacturers, providing plenty of room to load up the incentives. The question is whether Lincoln will now fire back with big givebacks of its own.

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Lincoln Planning Five New Models for China in Bid to Catch Rivals

China destined to become brand’s top market, said new Lincoln chief.

by on Apr.12, 2018

The Lincoln Aviator made its U.S. debut last month and should reach China by 2019 or 2020.

Struggling to catch up with rivals now dominating the world’s largest luxury car market, Lincoln plans to start building five new models in China by 2022, according to a report by the Reuters news service.

That’s in line with comments made to TheDetroitBureau.com by Lincoln’s new boss, Joy Falotico, who said she expects China to soon become the brand’s largest market, much as has happened for other luxury marques, including Detroit-based rival Cadillac.

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Global News!

It appears that the new models Lincoln will build in China will also be produced and marketed in other countries, including the U.S. During a backgrounder on the new Aviator SUV prior to its debut at the New York International Auto Show late last month, Falotico revealed that Lincoln plans to launch two new SUVs by 2020, “followed closely by four more vehicles.”

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Cadillac Exposed!

Here's how brand boss de Nysschen plans to use a new fleet of cars, crossovers and EVs to double U.S. and Chinese sales and even – finally – crash Europe. Exclusively on TheDetroitBureau.com.

by on Apr.06, 2018

Cadillac President John de Nysschen had two big intros in NY, including the CT6 V-Sport.

Cadillac is covering both ends of the spectrum at this month’s New York International Auto Show, offering up both the new entry-luxury XT4 sport-utility vehicle, as well as a high-performance version of its flagship sedan, the new CT6 V-Sport.

The two mark the start of an unprecedented product roll-out that, Cadillac President Johan de Nysschen announced during a NYIAS news briefing, will add 11 models to the brand’s line-up by 2021. But that’s only a glimpse at what’s actually coming, the South African-born executive revealed in an exclusive interview with TheDetroitBureau.com.

The Last Word!

Long positioned as “the standard of the world,” Cadillac fell off its perch in the 1990s, dethroned by high-line European and Asian imports like Lexus, BMW and Mercedes-Benz. It’s had a few false starts in its bid to regain its former glory. But de Nysschen has put in place a do-or-die strategy that is aimed at more than doubling Caddy’s global volume with a mix of new products, advanced powertrains and a new approach to sales and service. Much will depend on the booming Chinese luxury market, but the Caddy chief is also determined to take on key rivals in their home, European market.

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3 Familiar Models May Vanish as Sales Shift to SUVs

Ford Taurus exiting for a second time, along with Fiesta and Chevy Sonic.

by on Apr.05, 2018

The Taurus is one of two Ford models that are expected to be dropped over the next few years.

March saw an even bigger surge in demand for SUVs, CUVs and other light trucks but, according to industry data, sales of sedans, coupes and hatchbacks continued to decline – an ongoing trend that is expected to lead to the demise of a number of once-popular passenger car models, including Ford’s big Taurus and subcompact Fiesta, as well as the little Chevrolet Sonic.

And even more passenger car models could be on the way out, according to industry sources, even as manufacturers move to expand their light truck portfolios to take advantage of one of the biggest market shifts in decades.

Product News!

“I think we’re going to see some contraction in passenger car nameplates,” said Stephanie Brinley, principle automotive analyst at IHS Automotive. “That’s not to say they’ll go away. Some people still like them….but there’ll be some rationalization over time.”

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