Archive for the ‘Sales’ Category

Despite Record Loss, Investors See Silver Lining Pockets in Tesla’s Q1 Earnings

Revenues beat expectation, loss narrower than forecast – but troubles remain.

by on May.02, 2018

Tesla CEO Elon Musk has taken to sleeping at the Fremont plant hoping to drive improvements in quality and production levels.

Tesla managed to beat Wall Street expectation on Wednesday, even as it reported the biggest loss in the company’s history.

But revenues exceeded expectations and the loss was actually less than anticipated, while the Silicon Valley automaker noted that production of the critical Model 3 battery-sedan reached 2,270 in the week prior to a temporary shutdown of the Fremont, California assembly plant last month. That’s up from barely 2,000 at the end of the first quarter.

Dig Deeper!

“The thing I’m most excited about is the rapid increase in output,” said Musk during a Wednesday afternoon conference call with analysts and reporters. “Production is improving dramatically, exponentially, in fact.”

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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…)

Daimler Profits Drop Double Digits Despite Car Sales

Strong results from Mercedes-Benz can't halt slide.

by on Apr.27, 2018

Daimler AG's Dieter Zetsche said that despite the drop in profits, the company was on track with its plans.

Daimler AG saw net income drop by double digits in the first quarter despite an increase in revenue in and record unit sales by Mercedes-Benz Cars.

The Daimler Group reported net profit for the first quarter of 2018 of 2.4 billion euros or 2.12 euros per share was 11% below the prior-year figure of 2.7 billion euros or 2.39 euros per share. First-quarter of earnings before interest and taxes of 3.335 billion euros was 13% below its prior-year EBIT of 3.8 billion euros.

Financial News!

“We are sustainably continuing along our profitable growth course and sold more vehicles in a first quarter than ever before,” said Dieter Zetsche, Daimler CEO and chairman of the board of management. (more…)

Honda Profits Soar 72% in 2018; Maker Predicts 2019 Drop

Declining sedan sales, stronger yen and dollar to crimp 2019.

by on Apr.27, 2018

Honda's concerned about the falling sales of sedans in North America, and it predicted falling profits in 2019.

Honda Motor Co. gaveth with its fourth-quarter and full-year earnings report and it tooketh away with its 2019 forecast. The Japanese automaker reported a 12% jump in its quarterly profit while its full year profits soared 72% due to changes in U.S. tax policy.

For the final quarter, Honda reported a profit of 107.7 billion yen, or $988 million, up from 95.9 billion yen a year earlier. Revenue for Q4 was 3.9 trillion yen, or $36 billion, an improvement of 4%. For the full year, the company saw profits of 1.06 trillion yen, or $9.7 billion, on revenue of 15.3 trillion yen.

News Now!

The company sold nearly 5.2 million vehicles around the world for the fiscal year, up from 5 million the previous fiscal year. The result was just slightly short of its forecast of 5.22 million vehicles. (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…)

Earnings Down, GM Still Beats Q1 Forecast

Automaker plans “significantly lower investments” in passenger car models.

by on Apr.26, 2018

"We are on plan to deliver another strong year," says GM CEO Mary Barra.

General  Motors net earnings dipped 60% to $1.05 billion during the first quarter but still managed to beat Wall Street expectations thanks to strong demand for its North American light truck line-up.

The announcement by the nation’s largest automaker came less than a day after Ford Motor Co. also topped earnings forecasts by riding a wave of demand for pickups, SUVs and CUVs. Ford yesterday said it was going to all but abandon traditional passenger cars in North America and GM is also expected to trim its sedan line-up, though not nearly as drastically as its cross-town rival.

Breaking News!

“Results this quarter were in line with our expectations with planned, lower production in North America related to the transition to our all-new Chevrolet Silverado and GMC Sierra,” General Motors CEO Mary Barra said in a statement accompanying the earnings report. “We are on plan to deliver another strong year in 2018.”

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Tesla Model 3: How Can Such a Good Car Be So Bad

Teardown of battery-electric vehicle reveals many surprises.

by on Apr.25, 2018

"You can see the gaps from the moon" on the body of a Tesla Model 3, according to Sandy Munro.

With apologies to Charles Dickens, think of it as two tales of a car, suggests Sandy Munro, head of the suburban Detroit competitive analysis firm, Munro and Associates. How can such a breakthrough vehicle also have so many problems, he asks, during a lengthy look at what’s under the skin of the Tesla Model 3.

Over the years, Munro’s firm has vivisected hundreds of automobiles, including a number of new battery-electric vehicles, such as the BMW i3 and Chevrolet Bolt EV. But few teardowns, he suggested, have been more eye-opening than Tesla’s first mainstream offering. In terms of its battery-based drivetrain technology, the Model 3 readily sets a benchmark, but it’s another matter entirely with many of the things an owner more readily sees, including a body with massive quality and fit-and-finish problems.

Dig Deeper!

“It’s the best of (cars) and the worst of (cars),” Munro said, during a special meeting of the Detroit Automotive Press Association held at his Auburn Hills facility. “Some stuff gets a six, on a scale of one to five, others a one.”

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Lexus Betting Big on All-New ES

Gen-7 sedan expected to remain key model in luxury line-up.

by on Apr.25, 2018

The seventh-generation 2019 Lexus ES.

For those who haven’t been watching, the 2019 Lexus line-up won’t have much in common with the model mix of just five years ago. Where sedans once dominated the brand’s product portfolio, crossovers like the new UX and NX, as well as the long-popular RX, have overwhelmed traditional Lexus sedans such as the LS and GS.

So, it might come as a surprise to see the big deal Lexus is making over the launch of the all-new 2019 ES sedan, going so far as to stage simultaneous previews in both Los Angeles and the Beijing Motor Show.

Global News!

“We’re acutely aware there’s a robust SUV market in the U.S., and Lexus is playing a part in that,” said Cooper Ericksen, the brand’s U.S. marketing chief, said during the L.A. ES unveiling. “We understand the importance of SUVs, but we also understand the importance of great sedans.”

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Japanese Surge Reveals Broader Jump in Auto Imports

Rising numbers from Japan, Mexico, Korea, China challenge Trump 

by on Apr.20, 2018

Demand for the latest version of Nissan's Rogue has contributed to an increase in imports from Japan.

When Toyota and Mazda open a new assembly plant in Alabama in 2021, it will become the latest in a growing array of automotive plants Japanese manufacturers have set up in the U.S. since the mid-1980s – yet despite investing billions in their American operations, Japanese manufacturers have also been increasing exports to the U.S. from their home market factories.

The number of Japanese-made vehicles imported into the U.S. rose almost 10% during the first quarter of 2018. And Japan wasn’t alone.  Auto imports, as a whole have actually been on the rise, whether from Korea, Europe or Mexico, the latter country shipping about 7.5% more vehicles to the U.S. in March than the year before – despite Pres. Donald Trump’s high-profile push to bring more auto production back to the States.

Trade News!

“Japan sends us million and millions of cars, and we tax them virtually not at all. And we don’t send so much product because we have trade barriers and lots of other things,” the president complained during a news conference this week while standing alongside Japanese Prime Minister Shinzo Abe.

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