Final week, the European Vehicle Producers Affiliation (“ACEA”) launched information for passenger automotive registrations made in June 2021. New automotive registrations rose 10.4% 12 months over 12 months to 1,048,143 models. Whereas key markets particularly Germany, Spain and Italy registered double-digit proportion features in June, France witnessed a gross sales decline. Registrations in Spain, Germany and Italy soared 17.1%, 24.5% and 12.6%, respectively. Passenger gross sales in France tumbled 14.7% 12 months over 12 months. For first-half 2021, demand for automobiles within the European Union (EU) area elevated 25.2% 12 months over 12 months to five.4 million models. Nonetheless, gross sales quantity was nonetheless 21.7% decrease than the pre-COVID degree.
Amid heightening local weather issues, the EU proposed to part out fossil-fuel automobiles by 2035. The laws, if handed, would require automakers to slash carbon emissions from new automobiles by 55% inside 2030 versus the present goal of a 37.5% discount by 2030. The European Fee additional proposed a 100% lower in carbon emissions by 2035, which might successfully ban the sale of recent gasoline and even hybrid automobiles.
In the meantime, the second-quarter 2021 earnings season kicked off for the auto business final week, with Autoliv (ALV – Free Report) reporting weaker-than-expected results on Jul 16. Shares of the corporate slid 4.8% on Friday, because the agency not simply reported earnings and income miss but in addition lowered its 2021 steering amid shortfall of semiconductor provide.
Final Week’s Prime Tales
Penske Automotive (PAG – Free Report) reported stellar second-quarter 2021 preliminary figures, pushed by progress throughout all segments of the enterprise. Sturdy quantity and product margins, reopening of the U.Ok. market, its second largest market, the increasing Class 8 industrial truck market, breakthrough efficiency at Penske Transportation Options in addition to steady cost-containment initiatives aided the outcomes. Penske anticipates earnings earlier than taxes to be greater than $450 million, earnings from persevering with operations to exceed $325 million and associated earnings per share to be greater than $4, every marking a whopping soar of greater than 600% from the year-ago interval.
Volkswagen (VWAGY – Free Report) issued an replace on its long-term technique for 2030 underneath the title of “New Auto”, pivoting on electrical and driverless targets. It expects electrical automobiles to account for half of its international car gross sales by 2030. The Germany-based automaker initiatives 100% of its new automobiles in main markets to be carbon free by 2040. The agency plans to have six battery cell manufacturing gigafactories working within the continent by 2030, that are to supply unit battery cells for its personal use. It additionally expects software program to be one other income stream by 2025. The corporate has put aside 73 billion euros ($86.4 billion) for the event of future applied sciences by 2025, accounting for 50% of whole investments. It additionally intends to seize a distinct segment market within the autonomous driving sector, with private automobiles to be outfitted with degree 4 autonomous driving by 2025.
Cummins (CMI – Free Report) commenced testing of a hydrogen-fueled inner combustion engine. The proof-of-concept check will assist increase the corporate’s current expertise dominance in gaseous-fuel functions and powertrain. It additionally introduced a MoU with Chevron to discover commercially possible enterprise prospects in hydrogen and different various power sources. In the meantime, the board accepted a quarterly money dividend of $1.45 per share, marking a 7% improve from the earlier determine of $1.35 per share. This suggests the twelfth consecutive 12 months of dividend improve for Cummins. The dividend is payable on Sep 2, to shareholders of report on Aug 20, 2021.
Basic Motors (GM – Free Report) notified that it could be suspending operations at 4 of its factories in North America amid the worldwide chip crunch. The factories — together with San Luis Potosi and Ramos Meeting in Mexico, Lansing Delta Township in Michigan and Spring Hill Meeting in Tennessee — will likely be shuttered for 2 weeks beginning right now. In the meantime, the U.S. auto big additionally introduced an funding of greater than $71 million for establishing a brand new three-building campus in Northeast Pasadena, CA. The campus will likely be used for working the corporate’s Superior Design and Know-how Centre. Basic Motors presently sports activities a Zacks Rank #1 (Robust Purchase). You’ll be able to see the complete list of today’s Zacks #1 Rank stocks here.
Ford (F – Free Report) introduced its choice to discontinue using the turbodiesel Energy Stroke V-6 engine possibility in Ford F-150 pickup vehicles. In the meantime, the U.S. auto bigwig issued three safety-related remembers overlaying 850,630 SUVs and pick-up vehicles offered primarily within the North American market.The biggest recall consists of 774,696 Ford Explorer SUVs pertaining to the mannequin years 2013-2017. The second recall includes 34,939 Ford F-350 Tremendous Responsibility pick-up vehicles built-in having a 6.7-liter engine and a single rear wheel axle. The third recall consists of 40,995 2020-2021 Lincoln Aviators outfitted with 3.0-liter gasoline engine.
The next desk reveals the value motion of a few of the main auto gamers over the previous week and six-month interval.
Picture Supply: Zacks Funding Analysis
Up to now six months, all shares have elevated, aside from Tesla and Basic Motors. Up to now week, all shares have declined aside from Toyota and AutoZone.
What’s Subsequent within the Auto House?
Business watchers will hold a tab on industrial car registrations for the month of June, that are to be launched by the ACEA this week. Additionally, keep tuned for quarterly experiences of auto companies together with AutoNation, Harley-Davidson, Lithia Motors, Real Components and Gentex Corp., that are set to report this week.