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Auto Stock Roundup: HOG's EU Tariff Update, Ford-SK Innovation JV & More
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Last week, the European Automobile Manufacturers Association (“ACEA”) released data for passenger car registrations made in April 2021. New car registrations skyrocketed 218.6% year over year to 862,226 units. Barring Spain, Italy and Ireland that witnessed four-digit percentage rise, all other regions reported double- and triple-digit percentage gains in passenger car sales for the last month. Registrations in major markets like Spain, Germany, France and Italy soared a whopping 1,787.9%, 90%, 568.8% and 3,276.8%, respectively. The upside was a result of COVID-induced demand slump in the year-ago period. Nonetheless, coronavirus woes are far from over as last month’s sales were nearly 300,000 units lower than April 2019 levels.
Meanwhile, disruption caused in the auto market owing to the global chip shortage does not seem to abate. Amid the semiconductor shortfall, U.S. auto giant Ford (F - Free Report) announced that it would suspend production at eight North American plants for different time periods through June. Popular models including Ford Mustang, Escape, F-150 pickup and Bronco Sport SUV are to be affected. Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Top Stories
Harley-Davidson (HOG - Free Report) made big headlines after it released a statement on European Union (EU) tariff update on its motorcycles. To Harley-Davidson’s relief, the EU suspended the planned hike of retaliatory tariffs to 56% for up to six months, as part of a trade truce reached with the United States. Resultantly, the Milwaukee-based motorcycle maker’s bikes are now subject to a 25% retaliatory duty, hiking the overall duty on its bikes imported to the EU to 31%. For Harley-Davidson, Europe is its second largest market after the United States, which will help drive the company’s turnaround strategy. Harley-Davidson wholeheartedly embraced the truce as it would prevent tariff escalation on its bikes. (Harley-Davidson Breathes Sigh of Relief on EU's Trade Truce)
Toyota (TM - Free Report) picked German Tier 1 supplier ZF and Mobileye for the development of Advanced Driver Assistance Systems to meet global safety regulations for use in the upcoming Toyota vehicles. As part of the collaboration, ZF and Mobileye will jointly work to produce advanced camera technology integrated with ZF radar technology to power advanced driver assistance platforms in Toyota vehicles. Mobileye’s EyeQ 4 will be merged with ZF’s Gen21 mid-range radar technology to comprehend the environment around Toyota vehicles. For Toyota, this agreement is a victorious deal as ZF and Mobileye are considered an undefeatable combination for safety technology. (Toyota Nominates ZF & Mobileye for Advanced Safety Technology)
Copart, Inc. (CPRT - Free Report) reported third-quarter fiscal 2021 (ended Apr 30, 2021) adjusted earnings per share of $1.09, surpassing the Zacks Consensus Estimate of 80 cents. The bottom line also surged 87.9% year over year from 58 cents reported in the prior-year quarter. Total revenues came in at $733.9 million, beating the Zacks Consensus Estimate of $637 million. Moreover, the top line increased from the year-ago reported figure of $550.4 million. The online auto auction leader had cash and long-term debt of $911.9 million and $397.6 million, respectively, as of Apr 30, 2021. (Copart'sQ3 Earnings & Sales Beat Estimates, Rise Y/Y)
Ford recently entered into a memorandum of understanding with South Korea-based SK Innovation to form a joint venture (JV) — named BlueOvalSK — to manufacture battery cells and array modules in the United States. The new venture will approximately produce 60 gigawatt hours (GWh) annually starting mid-decade, subject to regulatory approvals. The JV would allow Ford and SK Innovation to collectively mass produce battery cells that are customized to efficiently add value for customers. (Ford Partners SK Innovation, EV Game Gains Traction)
Autoliv (ALV - Free Report) announced plans to build a new steering wheel manufacturing plant in Mexico. Construction of the new facility is expected to commence in June and the plant is set to become operational by January 2022. The project will expand capacity and aid in the optimization of manufacturing processes. It will also enhance the firm’s digitization and automation strategy, involving state-of-the art manufacturing processes.
Price Performance
The following table shows the price movement of some of the major auto players over the past week and six-month period.
In the past six months, all stocks have increased, with Ford being the maximum gainer. The past week displayed a mixed price trend, with Ford gaining the most and Harley-Davidson registering maximum losses.
What’s Next in the Auto Space?
Industry watchers will keep a tab on commercial vehicle registrations for the month of April, which is to be released by the ACEA this week. Investors are awaiting the quarterly results of AutoZone (AZO - Free Report) , scheduled to be out tomorrow. Also, watch out for any updates related to chip crunch-related disruptions in the auto market.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Auto Stock Roundup: HOG's EU Tariff Update, Ford-SK Innovation JV & More
Last week, the European Automobile Manufacturers Association (“ACEA”) released data for passenger car registrations made in April 2021. New car registrations skyrocketed 218.6% year over year to 862,226 units. Barring Spain, Italy and Ireland that witnessed four-digit percentage rise, all other regions reported double- and triple-digit percentage gains in passenger car sales for the last month. Registrations in major markets like Spain, Germany, France and Italy soared a whopping 1,787.9%, 90%, 568.8% and 3,276.8%, respectively. The upside was a result of COVID-induced demand slump in the year-ago period. Nonetheless, coronavirus woes are far from over as last month’s sales were nearly 300,000 units lower than April 2019 levels.
Meanwhile, disruption caused in the auto market owing to the global chip shortage does not seem to abate. Amid the semiconductor shortfall, U.S. auto giant Ford (F - Free Report) announced that it would suspend production at eight North American plants for different time periods through June. Popular models including Ford Mustang, Escape, F-150 pickup and Bronco Sport SUV are to be affected. Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Top Stories
Harley-Davidson (HOG - Free Report) made big headlines after it released a statement on European Union (EU) tariff update on its motorcycles. To Harley-Davidson’s relief, the EU suspended the planned hike of retaliatory tariffs to 56% for up to six months, as part of a trade truce reached with the United States. Resultantly, the Milwaukee-based motorcycle maker’s bikes are now subject to a 25% retaliatory duty, hiking the overall duty on its bikes imported to the EU to 31%. For Harley-Davidson, Europe is its second largest market after the United States, which will help drive the company’s turnaround strategy. Harley-Davidson wholeheartedly embraced the truce as it would prevent tariff escalation on its bikes. (Harley-Davidson Breathes Sigh of Relief on EU's Trade Truce)
Toyota (TM - Free Report) picked German Tier 1 supplier ZF and Mobileye for the development of Advanced Driver Assistance Systems to meet global safety regulations for use in the upcoming Toyota vehicles. As part of the collaboration, ZF and Mobileye will jointly work to produce advanced camera technology integrated with ZF radar technology to power advanced driver assistance platforms in Toyota vehicles. Mobileye’s EyeQ 4 will be merged with ZF’s Gen21 mid-range radar technology to comprehend the environment around Toyota vehicles. For Toyota, this agreement is a victorious deal as ZF and Mobileye are considered an undefeatable combination for safety technology. (Toyota Nominates ZF & Mobileye for Advanced Safety Technology)
Copart, Inc. (CPRT - Free Report) reported third-quarter fiscal 2021 (ended Apr 30, 2021) adjusted earnings per share of $1.09, surpassing the Zacks Consensus Estimate of 80 cents. The bottom line also surged 87.9% year over year from 58 cents reported in the prior-year quarter. Total revenues came in at $733.9 million, beating the Zacks Consensus Estimate of $637 million. Moreover, the top line increased from the year-ago reported figure of $550.4 million. The online auto auction leader had cash and long-term debt of $911.9 million and $397.6 million, respectively, as of Apr 30, 2021. (Copart'sQ3 Earnings & Sales Beat Estimates, Rise Y/Y)
Ford recently entered into a memorandum of understanding with South Korea-based SK Innovation to form a joint venture (JV) — named BlueOvalSK — to manufacture battery cells and array modules in the United States. The new venture will approximately produce 60 gigawatt hours (GWh) annually starting mid-decade, subject to regulatory approvals. The JV would allow Ford and SK Innovation to collectively mass produce battery cells that are customized to efficiently add value for customers. (Ford Partners SK Innovation, EV Game Gains Traction)
Autoliv (ALV - Free Report) announced plans to build a new steering wheel manufacturing plant in Mexico. Construction of the new facility is expected to commence in June and the plant is set to become operational by January 2022. The project will expand capacity and aid in the optimization of manufacturing processes. It will also enhance the firm’s digitization and automation strategy, involving state-of-the art manufacturing processes.
Price Performance
The following table shows the price movement of some of the major auto players over the past week and six-month period.
In the past six months, all stocks have increased, with Ford being the maximum gainer. The past week displayed a mixed price trend, with Ford gaining the most and Harley-Davidson registering maximum losses.
What’s Next in the Auto Space?
Industry watchers will keep a tab on commercial vehicle registrations for the month of April, which is to be released by the ACEA this week. Investors are awaiting the quarterly results of AutoZone (AZO - Free Report) , scheduled to be out tomorrow. Also, watch out for any updates related to chip crunch-related disruptions in the auto market.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>