- Kelley Blue Book expects U.S. auto sales to fall 3.6% in June to 1.46M units. "With manufacturers continuing to announce production cuts at their plants following weaker consumer demand, it all but solidifies 2017 as a down year," notes KBB analyst Tim Fleming.
- The LMC Automotive/J.D. Power forecast is for a 2.3% drop during the month to 1.48M units, although the overall diagnosis is equally cautious. "While the retail selling rate has declined in four of the first six months, the broader concern remains the negative health indicators behind the sales results," notes J.D.'s Deirdre Borrego.
- During a conference call yesterday with analysts, GM CFO Chuck Stevens said the company expects U.S. light vehicle sales to be in the low 17M unit range for the year, a downward revision from the autmaker's original forecast for a 17.55M unit mark. Stevens highlighted the "very very conservative" pricing in the industry and "rational" stance on incentives.
- The common theme from insiders and analysts is that automakers are now focused on profitability over volume and market share. Recent actions from the Detroit Three support that assertion.
- Also in the mix for the industry is the rapid pace of partnerships between auto players and tech giants. Yesterday, the Avis-Waymo and Hertz-Apple deals were small in nature, but giant in implications for investors. The GM-Lyft partnership is already in second gear, while Tesla, BMW, Volkswagen (DE:VOWG_p) and Toyota all have tech/mobility initiatives revving up.
- Automobile industry stocks: LEA, TEN, BWA, DAN, MPAA, CPS, DLPH, AXL, TOWR, ACW, FENX, MTOR, THRM, SMP, ALV, MOD, SRI, GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BMWYY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, TSLA, OTC:HYMLF, OTCPK:FUJHY, RACE, AN, KMX, LAD, JCI, VC, DAN, THRM, LDL, GPI, CRMT, PAG, SAH.
- Related ETF: CARZ.
- Now read: Mazda's New Growth Engine, Literally: Diesel
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Original article