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How Foreign Auto Companies Performed in November

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Foreign auto companies in the United States

According to Autodata, US auto sales fell 1.3% YoY (year-over-year) in November 2017. At a time when US auto sales are softening, US legacy auto giants (IYK) are focusing on improving their profitability and retail market share. Competition from foreign automakers has also intensified. According to 2016 US auto volumes, Toyota Motor (TM) rose to third place in the US market. Toyota replaced Fiat Chrysler (FCAU), which was in third place in 2015.

Other than FCAU and TM, Honda Motor (HMC) is one of the key players in the United States. Honda demonstrated solid positive growth in its US truck sales in the first half of 2017, which contributed to its profitability.

Foreign auto companies in November

Fiat Chrysler is an Italian-American auto giant that was formed after the merger of Detroit-based Chrysler and Italian giant Fiat Group in 2014. In November 2017, Fiat Chrysler stock continued to trade on a weak note for the second month in a row. It fell 1.4% last month. The ADR (American depositary receipt) for Toyota and Honda rose 1.9% and 7.2%, respectively. In November, the S&P 500 Index (SPY) (SPX-INDEX) rose 2.8%.

By comparison, the largest US automakers General Motors (GM) and Ford (F) rose 0.3% and 2%, respectively, last month.

Despite a consistent weakness in total US sales, Fiat Chrysler stock was still maintaining 86.6% YTD (year-to-date) gains as of December 6, which was much higher than its peers. FCAU’s expanding profitability and improving debt position could be two key reasons for its impressive YTD gains.

Next, let’s look at Fiat Chrysler’s US sales data for November 2017.

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