How Foreign Auto Giants Are Faring in September



Foreign auto giants in the United States

According to Autodata, US auto sales have fallen 2.7% year-over-year in the first eight months of 2017, which has hurt auto stocks. While US auto companies (IYK) have been focusing on improving their retail sales in 2017, the competition among foreign automakers is also getting tougher. According to 2016 US auto sales, Toyota Motor (TM) rose to third place in the US auto market. It replaced Fiat Chrysler Automobiles (FCAU), which was third in 2015.

Honda Motor (HMC) is also a key player in the US auto industry. It was able to demonstrate solid growth in its US truck segment sales in the first half of 2017, which had a positive effect on its profitability.

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Foreign automakers on Wall Street

Fiat Chrysler is an Italian-American auto giant that was formed after the merger of Detroit-based Chrysler and Italian legacy automaker Fiat in 2014. As of September 6, 2017, Fiat Chrysler stock has risen 80.5%, while Toyota’s ADR (American depositary receipt) has fallen 3.0% on a YTD (year-to-date) basis. The ADR for Honda has fallen ~3.8% YTD.

By comparison, the largest US automaker, General Motors (GM), has risen 8.1% YTD, and Ford (F) has fallen 5.2% YTD.

FCAU’s strengthening profit margins and improving debt position, along with recent acquisition reports, could be the key reasons for its stellar YTD gains.

In the next part, we’ll look at Fiat Chrysler’s US sales data for August 2017.


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