US auto deliveries
In this series, we’ve covered 1Q16 US vehicle sales data for the mainstream automakers. These automakers include General Motors (GM), Ford, Fiat Chrysler, and Tesla (TSLA). Now let’s look at how US auto sales data could produce optimism in the auto industry.
Expect higher margins
As we’ve already seen, pickup trucks and commercial vehicles tend to yield higher margins for automakers compared to lightweight vehicles and cars. The data compiled by Good Car Bad Car suggest a 6.5% year-over-year increase in US pickup truck sales in 1Q16 and a 24.1% year-over-year increase in commercial van sales volumes.
The top three brands in the US pickup truck segment are Ford’s F-series, General Motors’ (GM) Chevrolet Silverado, and Fiat Chrysler’s (FCAU) Ram. Higher sales of pickup trucks should continue to help these auto companies expand their margins.
Other key updates
With changing auto industry (VCR) dynamics, automakers are trying to explore ways to remain on top of the US auto market. Also, auto consumers and organizations around the world are becoming more aware of and concerned about the negative impact of global warming. In this scenario, it would be important for auto giants to develop vehicles based on environmentally friendly technology.
General Motors has already announced its upcoming mass electric vehicle, the Chevrolet Bolt. Likewise, in its 4Q15 earnings report, Ford stressed its plan to invest in electric vehicle development. So any updates on automakers’ electric and hybrid vehicles are likely to draw attention.
Auto industry’s 1Q16 earnings calendar
As you can see in the above chart, in the coming weeks, all major automakers (FXD) will release their 1Q16 earnings reports. Watch for our analyst consensus and post-earnings series for each of these companies so you can stay up-to-date on what to expect from these auto companies.