Automakers Lack Compelling Models to Lure Buyers: Street Wrap
Alert: HALISTER
Source: BFW (Bloomberg First Word)
Tickers
005380 KS (Hyundai Motor Co)
F US (Ford Motor Co)
FCAU US (Fiat Chrysler Automobiles NV)
GM US (General Motors Co)
7267 JP (Honda Motor Co Ltd)
People
Glenn Chin (Buckingham Research Group)
Jack Nerad (Kelley Blue Book)
James Albertine (Consumer Edge Research LLC)
Joseph Lavorgna (Deutsche Bank AG)
Joseph Spak (RBC Capital Markets)
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UUID: 7947283
(Bloomberg) -- U.S. auto sales failed to pick up pace in April after a disappointing show in March, leading analysts to worry about impending production cuts and a further rise in incentives. U.S. preliminary light vehicle sales at a seasonally adjusted annual rate (SAAR) reached 16.88 million, according to Autodata; that compares to 17.40 million in the same month last year, and analysts estimate of 17.10 million.
- GM shares fell as much as 4%, Ford dropped 4.6%, FCAU down 5.7%
- See GM supply chain; Ford supply chain; FCAU supply chain
- Kelley Blue Book (Jack Nerad): Notes car sales did not reach y/y levels despite high consumer confidence and wages showing an increase in April; “one explanation is the lack of compelling new models to prompt consumers to hit the showrooms”
- Says consumers are confronted with a vast array of vehicles, financing options and lease offers that leave many uninterested or “simply frozen in place”
- Consumer Edge (James Albertine): Sees the industry beginning to bring down 2017 SAAR estimates, leading to negative EPS revisions among automotive stocks leveraged to new vehicle sales
- Says certain carmakers will power through industry weakness with a strong mix of trucks and retail sales (GM and perhaps Ford), while others to suffer a bigger pull-back (those with higher car mix vs truck)
- RBC (Joseph Spak): Sees industry SAAR tracking ~16.8m vs RBC est. 17.3m; “This will add to investor angst and the belief that production cuts are needed”
- Buckingham (Glenn Chin): Remains concerned about GM earnings & automotive FCF generation as sees average transaction prices in North America to come under pressure
- Ford’s sales showed many pockets of demand weakness coupled with high inventories for cars, which should drive incentive levels higher, heading into the spring selling season
- Deutsche Bank (Joseph LaVorgna): Does not believe the recent weakness in motor vehicle sales is a “harbinger of a more serious downturn”
- Says some slowing was to be expected as auto sales have been strong during much of the current business cycle
- Big 3 U.S.:
- GM April U.S. Auto Sales Miss Estimates; Shares Fall 4%
- Ford April U.S. Light-Vehicle Sales Down 7.1%, Lags Estimates
- Fiat Chrysler April Sales Lag Estimates; Shares Fall 4.8%
- Big 3 Japan:
- American Honda April Sales Miss Estimates; ADRs Fall 0.9%
- Toyota April U.S. Auto Sales Down 4.4%, Est. Down 4.2%
- Nissan April U.S. Auto Sales Fall 1.5%, Est. Up 1.5%
- Others:
- Hyundai April Car Sales Fall 11.7%
- Volkswagen of America April sales up 1.6%
- NOTE: Earlier, Carmakers, Suppliers, Retailers Drop on Weak April Auto Sales
- May 1, PREVIEW U.S. APRIL AUTO SALES: Will Rebound Help Calm Concerns?
- April 3, Weak March Auto Sales Point to Production Cutbacks: Street Wrap
Alert: HALISTER
Source: BFW (Bloomberg First Word)
Tickers
005380 KS (Hyundai Motor Co)
F US (Ford Motor Co)
FCAU US (Fiat Chrysler Automobiles NV)
GM US (General Motors Co)
7267 JP (Honda Motor Co Ltd)
People
Glenn Chin (Buckingham Research Group)
Jack Nerad (Kelley Blue Book)
James Albertine (Consumer Edge Research LLC)
Joseph Lavorgna (Deutsche Bank AG)
Joseph Spak (RBC Capital Markets)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283