Fri, 26th May 2017

Anirudh Sethi Report


Archives of “renault” Tag

Nikkei 225 closes down -0.34% at 19,454.33

Softer tones again to Japanese Nikkei  225 equities 6 Jan

  • broader based Topix closed -0.2% to 1,553.32
  • USDJPY 115.81 after fdailking to holf above 166.00 again. Expect some offers res around 116.00 then 116.20 Some support/bids at 116.50 again with larger into 115.00 still

Trumps threats to tax Toyota’s car imported to US if made in Mexico caused slippage in the auto sector. At one point Toyota shares were down 3% but recovered to -1.7%. Honda fell 1.9%, Nissan 2.2%

Overnight US Market :Dow closed + 60 points.Now 58 points away to kiss 20k

Stocks climbed Wednesday as Wall Street posted a second straight day of gains in the new year and the Dow once again approached the 20,000 milestone.

The Dow Jones industrial average ended up 60 points, or 0.3%, to 19,942.16. The blue-chip index rose has come close to topping 20,000 several times in recent weeks but each time it gets near has pulled back. The Standard & Poor’s 500 index rose 0.6% and the Nasdaq composite index gained 0.9%. Both the S&P 500 and Nasdaq are near their record closing highs.

Stocks maintained their gains following the release of the minutes from the latest Federal Reserve meeting that provided clues to why policymakers raised interest rates in December for only the second time since 2006 and forecast three rate hikes in 2017 instead of the two moves previously anticipated.

Fed officials said they might have to raise interest rates faster than anticipated to prevent rapidly falling unemployment and President-elect Donald Trump’s proposed fiscal stimulus from fueling excessive inflation, according to minutes of the Fed’s December 13-14 meeting.

Benchmark U.S. crude was up 1.8% to $53.24 a barrel in New York. It lost $1.39 on Tuesday.

Is US Auto Sales Data Fabricated: FBI Investigating Chrysler For Falsifying Monthly Sales Reports

Ever wonder how car sales have been so remarkably strong over the past 7 years as the economy has seemingly stagnated?  Sure, a massive subprime auto lending bubble has helped fuel auto sales as $0 cash down, 0% interest and 70 month terms have become the norm for people looking to “manage” monthly payments…though we’re sure that buyers making $30k a year really can afford that new $80,000 vehicle.  And, of course, government programs like “cash for clunkers” has also helped to fuel the recovery. 

But, as Bloomberg points out today, there might be a little more to the story, at least at Fiat Chrysler.  It seems that the FBI has become interested in whether or not Fiat Chrysler forced dealers to falsify vehicles purchases in order to manage monthly sales figures.  Apparently, all fraudulent activities were handled through Fiat Chrysler’s “Department of ‘unnatural acts.'”  Per Bloomberg:  

Investigators are examining whether Fiat Chrysler improperly adjusted monthly numbers to show growth over the prior year, a person familiar with the matter said. They are looking into allegations the company ordered dealers to create false vehicle purchases, some of which were made in the names of friends and relatives of salespeople, including underage family members, the person said.

The allegations get even stranger. Investigators are probing calls from Fiat Chrysler officials to dealers saying its department of “unnatural acts” was open for business, the person familiar said. The question is whether those calls had any relationship to allegations that company officials were urging dealers to falsify sales to meet reporting targets, the person said.

China Car Sales Suffer Biggest Crash On Record To Start 2016

The dream of transition to a ‘consuming’ economy just crashed into the wall of excess debt and leverage. 2016 has started with a 44% collapse in China passenger car sales. This is the biggest sequential crash and is 50% larger than any other plunge in history.

While there is a seasonal effect here obviously, the sheer scale of this 2-month drop – which removes the new year holiday affect – indicates something is terribly wrong in China.

Coming at a time when vehicle inventories are near record highs relative to sales with a mal-investment-driven excess inventory-to-sales at levels only seen once before in 24 years…

Volkswagen UK car sales plunge 20% in November

Volkswagen’s UK car sales plunged 20 per cent year-on-year in November to 12,958, after declining 9.8 per cent in October.

Overall UK car sales rose 4 per cent in November, after declining in October for the first time in 44 months, show data from the Society of Motor Manufacturers and Traders.

The German carmaker is feeling the impact of the emissions fixing scandal, which erupted in September and cost chief executive Martin Winterkorn his job.

VW’s market share fell to 7.24 per cent from 9.4 per cent at the same time last year.

While VW sales slumped, the most popular carmakers in the UK, Ford and Vauxhall, enjoyed a hefty jump in November sales. Vauxhall sales leapt 25.8 per cent to 20,945, while Ford sales rose 12.7 per cent to 21,597. Ford’s market share rose to 12.1 per cent from 11.1 per cent, while Vauxhall’s climbed to 11.7 per cent from 9.7 per cent.

But while the diesel emissions-fixing scandal seems to have impacted Volkswagen sales, overall sales of diesel cars have continued to grow. Registrations of diesel cars rose 3.6 per cent in November, while petrol cars enjoyed slightly quicker growth of 3.8 per cent.

More from the SMMT here.

US auto sales may have record November – rate at 18.3M

American consumers are revving their engines. Car-information site Edmunds.com is forecasting a record November for US new car and truck sales.

The company reckons 1.3m new cars and trucks will be sold in November, with sales hitting a seasonally-adjusted annualized pace of 18.3m. That would top a previous record for the month set in 2001.

The monthly tally will, however, fall short of the 1.5m sales logged in October.

November, which used to be a notoriously slow month for auto sales has recently become more important as auto dealers have followed other retailers in offering Black Friday promotions, according to Jessica Caldwell, Edmunds’s director of industry analysis.

Edmunds sees year-over-year advances from the so-called Big Three automakers – General Motors, Ford and Chrysler. Meanwhile, Volkswagen sales are forecast to lag the broader industry, tumbling 14.4 per cent from the same month in 2014, amid an ongoing drag from its emissions-rigging scandal.

It has been a strong year for auto sales, with October’s pace striking a decade high, according to Barclays’ estimates.

European auto sales grow at slowest pace since May

Slowing sales at Europe’s biggest automakers – including scandal-hit Volkswagen – took the pace off growth in the region’s car market last month, as registrations expanded at their slowest rate since May.

Passenger car registrations in the European Union rose 2.9 per cent in October to 1.1m units, meaning sales have risen more than 8 per cent in the year to date

The sub-3 per cent growth rate was slower than the 9 per cent or more recorded in the prior four months.

Slowing growth has partly been blamed on VW, which has been left reeling by a string of revelations over its compliance with global emissions test standards.

Europe’s biggest carmaker, which accounts for about one in four car sales in the EU, admitted in September to cheating on US tests for nitrogen oxides, and said last week that an internal investigation had also turned up issues with CO2 testing in 800,000 cars in Europe, including almost 100,000 petrol models.

VW group’s October sales were down 0.5 per cent year-on-year, as the namesake passenger car brand declined by 0.2 per cent. The struggling Spanish Seat nameplate, also owned by VW, fell 11 per cent, but premium badge Audi rose 4.1 per cent.

Analysts say the 12-brand VW group has yet to feel the full commercial impact of the emissions scandal, since deliveries occur several weeks after purchases are made.

VW’s performance was not out of step with Europe’s other leading manufacturers in October, with Peugeot, Renault and Opel – owned by General Motors of the US – all posting declines. Ford, however, bucked the trend, with a small gain last month.

Volkswagen taken down a notch by S&P

Volkswagen, the German carmaker at the centre of an emissions rigging scandal, has had its credit rating cut by agency Standard & Poor’s.

The company’s rating was taken down one notch to ‘A-‘ from ‘A’, S&P said on Monday, as it warned that Volkswagen could yet feel the fallout on its pricing power and sales volume.

Volkswagen, one of the largest carmakers, has been in turmoil since admitting it used software to manipulate the results of emission tests administered by US authorities.

Explaining the downgrade, S&P said the move:

Reflects our assessment that VW has demonstrated material deficiencies in its management and governance and general risk management framework.

Elon Musk Slams Apple: ‘Tesla Graveyard’ Only Hires Engineers He’s Fired

You’ve got to hand it to Elon Musk — he may be the one person out there with the cajones to start a flame war with Apple, and for good reason too. 

Musk has been engaged in a hiring battle, pitting Tesla against Apple, as the latter has plans to throw its hat into the automotive industry and create its own electric car. Reports have surfaced, claiming Apple has been poaching Tesla engineers with signing bonuses over $250K and 60% bumps in salary.

Musk isn’t worried, though. Not even one bit. In fact, Tesla has not had to deal with the problem in any serious way, as Tesla is the top recruiter in talent.

The bombshell:

If you don’t make it at Tesla, you go work at Apple. I’m not kidding,” Musk emphatically says.

Musk and company at Tesla noted that they jokingly call Apple the “Tesla Graveyard,” and that Apple only hires the engineers Tesla fired.

All jokes aside, Musk says it’s a good thing that Apple will be competitive:

China’s auto market growth may halve to 7 percent this year: industry body head

Growth in China’s auto market, the world’s biggest, will halve to 7 percent this year weighed down by a slowing economy, the head of an industry body said on Saturday.

“Personally, I think growth this year can reach 7 percent,” Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM), told reporters on the sidelines of an industry conference in Shanghai.

“The economy is slowing. The auto industry would reflect that but typically lags the economic cycle by a bit.”

CAAM had forecast China’s auto market, which grew by 13.9 percent last year, to expand at 8.3 percent in 2014. Dong said CAAM will not make any official revisions to its forecast.

Carlos Ghosn, head of Japanese carmaker Nissan Motor Co Ltd (7201.T) and its French alliance partner Renault SA (RENA.PA), told the same conference he was still optimistic about China’s outlook.