Automotive Sector - July 2024

Profitability Analysis:

1. General Motors - https://www.freep.com/story/money/cars/general-motors/2024/07/23/gm-37-percent-gain-q2-pretax-profits/74504739007/ 通用汽车
2. Ford - https://www.investors.com/news/ford-earnings-fall-ford-stock-plunges/ 福特
3. Stellantis - https://www.cnbc.com/2024/07/25/stellantis-h1-earnings-2024.html Stellantis
4. Toyota - https://www.marketwatch.com/story/toyota-reports-record-quarterly-profit-boosted-by-a-weak-yen-and-despite-a-certification-scandal-889c3b6f Toyota Motor Corporation
5. Nissan - https://www.reuters.com/business/autos-transportation/nissan-slashes-full-year-outlook-after-q1-profit-slumps-99-2024-07-25/ 日产

Challenges facing Automotive Sector

Over the last 7 days, the Auto Components industry has dropped 6.9%, driven by a pullback from Magna International of 6.9%. The industry has fallen 29% in the last year. Earnings are forecast to grow by 22% annually. 麦格纳国际

Source - https://simplywall.st/markets/ca/consumer-discretionary/auto-components

There are several key factors affecting the EV market and supply chains that are preventing EV production and adoption. BEVs remain costly, averaging at over 50% more than average vehicle prices in the US in 2023 and causing the US to fall short by 69,000 units and Europe by 224,000 of base case sales.??

Industrial protectionism continues to impact markets as subsidies, regulatory norms, and low-cost imports are reduced. Elevated interest rates are also hindering capital-intensive investments in electrification causing OEMs to shift to hybrids and delay EV targets due to market saturation. This year alone Ford delayed its 600,000 EV production goals and GM reduced its target by 50,000 units.??

One of the major constraints to EV adoption in the US and Europe is a lack of available charging infrastructure. In the US this is caused by high labour contracting requirements and stringent minimum operating standards, and in Europe by longer permitting timeframes and a lack of incentive in 80% of EU member states.??

Source - https://www.woodmac.com/news/opinion/electric-vehicle-and-battery-supply-chain-how-a-risked-ev-adoption-puts-5-million-sales-at-risk/

1. Lithium prices - https://asia.nikkei.com/Business/Markets/Commodities/Albemarle-cuts-back-lithium-processing-in-Australia-amid-price-slump Albemarle Corporation
2. Hybrid - https://www.thestreet.com/automotive/auto-industry-push-to-plug-in-hybrids-has-surprising-outcome
3. Tariffs - https://www.voanews.com/a/despite-tariffs-chinese-ev-makers-still-make-inroads/7726263.html
4. Market performance - https://finance.yahoo.com/sectors/consumer-cyclical/auto-manufacturers/
5. Fall of Fisker - https://techcrunch.com/2024/07/29/the-fall-of-ev-startup-fisker-a-comprehensive-timeline/ Fisker
6. Automotive technology - https://worldtrader24.de/driving-the-future-delving-deep-into-top-industry-trends-innovative-technologies-and-impactful-events-shaping-the-automotive-landscape/
7. ESG - https://www.audi.com/en/sustainability/iss-esg-rating-2024.html 奥迪
8. Startups - https://electrek.co/2024/08/02/rivian-ceo-r2-worlds-different-tesla-model-y/ Tesla or Rivian
9. Innovation - https://www.eenews.net/articles/china-is-matching-or-beating-us-in-ev-innovations-report/
10. Hybrid - https://www.fleetnews.co.uk/news/hybrids-play-vital-role-in-transition-towards-a-fully-electric-fleet

Paul is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industry and geographies for the past 8 years. Paul is a Financial Planning, Analysis, and Reporting SME working with data including integration of macro and micro indicators as part of the integrated business planning and reporting cycle.

[email protected]

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Monthly Reports – Australia United States Canada and Province of Ontario - https://www.dhirubhai.net/posts/paul-young-055632b_australia-canada-unitedstates-activity-7224703167886737408-QSu3?utm_source=share&utm_medium=member_desktop

?Stock Market – Canada and United States – August 2 2024 - https://www.dhirubhai.net/pulse/stock-market-united-states-canada-august-2-2024-paul-young-1rosc/

Stock Market – Australia – August 2 2024 - https://www.dhirubhai.net/pulse/stock-market-australia-august-2-2024-paul-young-2l6xc/

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