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Auto Earnings Week: FCA(27th),GM(25th),and Ford(26th)

Discussion in 'Mopar News' started by Alexbucks, Jul 23, 2017.

  1. Prabhjot

    Prabhjot Active Member

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    Addendum:

    Marchionne, in an interesting turn of phrase, said he found "in decreasing order of painfulness" (in terms of investment demands/needs/compulsions):

    (1) electric powertrain stuff

    (2) stuff/model-proposals that they "reject at top product-deciding commitee level, which is more than they approve", essential for the "longterm survival of fca" for them to not make expensive mistakes by over-approving all-new models, given brand-identities-equities and market-changes-afoot in the usa and europe (my paraphrasing)

    (3) Alfa and Maserati (more Richard Palmer than Marchionne who said the Alfa platform and engine investments would yield net, final profits only around 2020)

    (4) anything for Jeep and Ram, BOTH of them understood on a global/'globalization' basis. (note: They seem serious about taking Ram international, at least as a brand, presumably including rebadged FIAT Professional and FIAT utility vehicles.)

    He also said that there is NOTHING on the IP, manufacturing, logistics, factories and workforces side of things at fca that would impede a spinoff of some brands (such as Jeep or Maserati+Alfa or Ram) IF that were financially lucrative/necessary (in terms of overall valuations, given that it is widely accepted that the total valuations of a splitup fca (mm seperated, Jeep seperated, alfa+maserati seperated etc) would be vastly higher than of fca-as-the-current-whole, which he said it may or may not be.

    ....that he is saying nothing further about the likelihood or not of any such moves until the early 2018 investor meet for the post-Marchionne financial-plan period of 2019-2022. Though the Magneti Marelli+-Comau one seems pretty certain by now, it seems.
     
    #61 Prabhjot, Jul 28, 2017
    Last edited: Jul 28, 2017
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  2. Alexbucks

    Alexbucks Guest

    #62 Alexbucks, Jul 28, 2017
    Last edited by a moderator: Jul 28, 2017
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  3. somber

    somber 370,000 miles
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    I love seeing the debt go down, but it looks like the cash on hand dropped the same amount. I hope this debt reduction is sustainable - I'd love to see FCA become cash rich so it can afford more development of new models.
     
  4. Prabhjot

    Prabhjot Active Member

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    imo "Cash rich" is a very very relative term @somber when you consider:

    -- the imperative of 'returning something to shareholders' who've recieved little indeed (beyond the recent share price 80-100% rise) in 8 years: no dividends etc

    -- the huge investment-for-dim-if-any-returns that is entailed via the 'electrification' compulsions, complulsions that will not go away just because say the usa epa etc dilutes standards come the early 2020's, since the rest of the world is clearly (esp China, Europe, japan? and probably India too?) making them far tougher/more expensive-for-car-makers-if-not-also-carbuyers

    -- the inevitability of usa automotive marketplace and/or more generalized (global?) macroeconomic slowdown, recession or even next-financial/etc crises. Soon enough: by 2019? 2020?

    -- Marchionne is 'interested' in (economic metaphor that!) brands NOT in product. Brands with focus, 'authenticity', 'style' and 'distinction' yield usp-s and pricing-power/margins.

    ergo, imo fewer all-new models than we might imagine or than they're developing at fca internally, through this period, post-Marchionne (2019-2022+) Albeit that the ones 'insiders' have signalled for us on allpar do seem sure bets, mostly?: the Alfa-s, Maserati-s, Dodges, Rams and Jeeps, esp, maybe less so the FIATs (europe or latam) and even less so the Chryslers let alone lancia.

    Why? because that is the current order of brands along those lines of 'It is the brands' identity, focus and distinction, stupid! Not product/models/very full lineups.' First Jeep+Ram. then maserati. Then Alfa+Dodge, Only then....although mefeels FIAT Latam and FIAT uv-s and even FIAT europe's 2 lines (emotional versus functional) as well as Chrysler will benefit the most and the maximum from any merger-type/cost-sharing/scale-enhancing and/or purely investment or financial-engineering-type deal(s), deals that he has hinted at theoretically again in this latest concall. Since as he has claimed and many analysts agree, as do I personally: Jeep+Ram+Maserati+Alfa/Dodge are fine and self-supporting/sustaining, not so FIAT or Chrysler+lancia (speaking only financially, in 'margins through whole down-up-down- business cycles terms.)
     
  5. somber

    somber 370,000 miles
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    It's my view that the number one shortcoming for FCA in the US market has been the lack of a competitive 4 cylinder engine. I believe that had sufficient cash been available to spend, Hurricane could have been available years earlier, leading to better market share today. Maybe I'm wrong, but it looks like FCA had a long list of "want-to-do's", and not enough money to fund more than one or two of these at a time. I like seeing the debt go down, and hope for better times ahead - and I hope the times ahead do NOT involve any kind of merger.
     
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  6. Prabhjot

    Prabhjot Active Member

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    Fun facts, for whatever they are 'worth', as of right now, today:

    FCA stock up and holding steady (all else in the market being equal): above 12$ on the nyse. Plus, and this is od no slight relevance: ferrari shares continue their staggeringly elevated performance: 109$ a share, up (just like fca itself) 80odd % i think over the last year.

    FORD's down post-financial-quarter report (which was ostensibly a 'beat' of the 'consensus' estimates): below 11$. And staying there: sticky.

    GM share prices are going nowhere, either: nevermind a very frothy overall share market. DESPTE: (a) sale of OPEL (b) withdrawal from another large market, namely India (c) another ostensible 'beat' of estimates, sunny guidance from management, etc.
     

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