The beginning of 2015 was mixed for automakers as favorable news updates failed to lift stock prices. General Motors Co. (GM) stood out with a 2.7% gain, driven by its strong U.S. and China sales figures, which offset the negativity that its annual recalls data brought. Most other automakers also reported favorable sales figures.
Toyota Motor Corp. (TM) was in a generous mood as it decided to allow royalty-free use of its fuel cell vehicle (FCVs) related patents. Meanwhile, Lear Corp. (LEA) and Thor Industries Inc. (THO) started the New Year with acquisitions.
(Read last to last week’s recap here: Auto Stock Roundup for Jan 2, 2015)
Recap of the Most Important Stories
1. The trend of rising U.S. light-vehicle sales continued for the fifth consecutive year in 2014 as sales increased 6% year over year to 16.53 million units. The strong results were driven by record high sales by 13 brands. Among the six major American and Japanese automakers, FCA US (formerly Chrysler Group) recorded the maximum year-over-year improvement, while General Motors led in absolute figures (read more: U.S. Auto Sales Rise 6% in 2014, Poised to Grow Further).
2. Most automakers reported their China sales figures for 2014. General Motors was leading in terms of sales in the world’s largest automobile market, with annual sales of 3.5 million vehicles, up 12% over 2013. Ford Motor Co. (F) reported a 19% year-over-year improvement to 1.11 million vehicles, comfortably meeting its target of 1 million. However, Toyota missed its target of 1.1 million units as it sold around 1.03 million vehicles in China in 2014, up 12.5% over 2013.
3. Toyota has decided to share nearly 5,680 of its FCV-related patented technologies (including those with pending applications) royalty free, in an effort to popularize these vehicles. These include 1,970 patent licenses related to fuel cell stacks, 290 patent licenses related to high-pressure hydrogen tanks and 3,350 patent licenses related to fuel cell system control technology. Additionally, Toyota will allow royalty-free usage of 70 hydrogen station-related patent licenses by energy companies interested in installing and operating hydrogen stations (read more: Toyota to Allow Royalty-Free Usage of FCV Patents).
4. A couple of acquisitions were also in the news during the week. Lear Corp. completed the acquisition of Eagle Ottawa, the largest global supplier of premium automotive leather (read more: Lear Corp. Completes Eagle Ottawa Purchase, Shares Down). Meanwhile, Thor Industries’ subsidiary Heartland Recreational Vehicles, LLC acquired Cruiser RV, a towable recreational vehicle manufacturer, and DRV, a luxury fifth wheel recreational vehicle manufacturer.
5. General Motors reported that it had announced an astounding 84 safety recalls in North America last year, covering a total of 30.4 million vehicles (including exports). Of these, almost 27 million vehicles were from the U.S. (read more: General Motors: Safety Recalls Add Up to 84 in 2014).
Performance
Share price of most of the auto stocks declined in the last one-week period as the impact of the weakness in the market weighed on them. Tesla Motors, Inc. (TSLA) recorded the largest decline due to the impact of falling oil and gas prices.
General Motors was the only auto stock to record a significant gain over the past week. Meanwhile, Honda Motor Co., Ltd. (HMC) recorded the maximum loss in the last six months and Advance Auto Parts Inc. remained the top gainer.
|
Company |
Last 1-Week Period |
Last 6 Months |
|
GM |
+2.7% |
-4.6% |
|
F |
-3.0% |
-12.1% |
|
TSLA |
-5.2% |
-3.7% |
|
TM |
-0.2% |
+4.1% |
|
HMC |
-1.4% |
-16.8% |
|
HOG |
-1.7% |
-5.2% |
|
AAP |
+0.3% |
+20.8% |
|
AZO |
-1.9% |
+13.5% |
What’s Next in the Auto Space?
Following the U.S. and China sales data, automakers should also release their December and full-year sales figures for Europe and India in the next few days. Additionally, Thor Industries will pay a regular quarterly dividend of 27 cents per share on Jan 13, to shareholders of record as of Dec 23, 2014.
The global debut of Honda Motor Company’s Acura NSX supercar will take place at the 2015 North American International Auto Show on Jan 12. The Honda FCV Concept, which was displayed in Japan in Nov 2014, will also make its North American debut at the auto show on the same day.
Further, Toyota will showcase its Lexus GS F sports sedan at the auto show from Jan 12 to Jan 25. Additionally, Lear Corp. will reveal the guidance for 2015 next week at the auto show.
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