How Are Foreign Automakers Looking in August 2017?
Foreign auto companies in the US
In the first seven months of 2017, US auto sales have signaled tough times ahead for automakers. While US auto companies (IYK) have been focusing on improving their retail sales in 2017, the competition from foreign automakers is getting tougher. According to 2016 US auto sales volumes, Toyota Motor (TM) jumped into third place in the US auto industry. Toyota replaced Fiat Chrysler (FCAU), which was in third place last year.
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Honda Motor (HMC) is another key player in the US auto market. Honda was able to showcase strong growth in its truck segment sales in 1H17, which also helped it to improve its profit margins.
Foreign automakers on Wall Street
Fiat Chrysler is an Italian-American auto giant that was formed after the merger of Italian legacy automaker Fiat and Detroit-based Chrysler in 2014. As of August 10, 2017, FCAU’s stock has risen about 28.2%, while Toyota’s ADR (American depository receipt) has lost about 4.1% on a YTD (year-to-date) basis. Honda’s ADR was down ~5.5% on a YTD basis.
In comparison, the largest US automaker, General Motors (GM), was trading flat with marginal gains of 0.1%, and Ford (F) has lost about 11.2% YTD.
FCAU’s strengthening profit margins and improving debt position could be the primary reason for its outperformance on Wall Street in 2017 so far.
Continue to the next part to learn about Fiat Chrysler’s US sales data in July 2017.