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Auto Roundup: STLA Steals the Spotlight With a Slew of Updates
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Last week, auto biggies reported second quarter US vehicle sales numbers. Most automakers experienced year-over-year sales growth, thanks to improving inventory levels. The demand for automobiles remains strong, indicating that the rise in interest rates has not yet significantly affected purchasing decisions.The seasonally adjusted annualized sales rate for June 2023 was 15.7-15.8 million vehicles, up from 15.1 million vehicles in May 2023 and 12.9 million units in June 2022. Per Cox Automotive, new vehicle sales in the second quarter of 2023 topped 4 million units, up 15% year over year and 13% sequentially.
U.S. auto giant General Motors (GM - Free Report) successfully retained its position as the largest automaker in the country during the January-June period. Close peer Ford (F - Free Report) continued its hot streak as America’s #1 brand for six consecutive months this year, driven by the success of its trucks, electric vehicles and new vehicle introductions. Germany-based auto biggie Volkswagen (VWAGY - Free Report) hit the gas pedal on its autonomous future, kicking off trials in Austin.
Last but not the least, Italian American automaker Stellantis (STLA - Free Report) ruled last week’s headlines with several updates. Revolutionizing the EV market, the company unveiled the 600e SUV— a blend of classic charm and cutting-edge technology. It also announced that its Stellantis' (STLA - Free Report) Mirafiori Site in Italy is set to become the next 'grEEn-campus' location. The transformation is part of the company's Dare Forward Strategy to reach carbon net zero by 2038. Additionally, the automaker unveiled its STLA Medium platform, marking a significant step forward in Stellantis' commitment to sustainable mobility.
Last Week’s Top Stories
1. General Motors reported a rise of 19% in U.S. vehicle sales in the second quarter of 2023 from the year-ago quarter’s levels. During the second quarter, GM sold 691,978 new vehicles, up from 582,401 vehicles during the second quarter of 2022 and 600,000 vehicles during the first quarter of 2023.During the first half of the year, General Motors sold 1,295,186 new vehicles. Its retail sales increased by 15%, whereas its GM Envolve business moved north by 30%. GM also retained its top spot as the country’s largest auto manufacturer for the first half of the year. Year over year, sales of GM’s Chevrolet, Cadillac, Buick and GMC increased by 17%, 15%, 48% and 18%, respectively.
During the first half of 2023, GM reported EV sales of 36,300 units or only 2.8% of total sales. The automaker anticipated producing 50,000 EVs during the first six months of the year and expects to produce 100,000 during the last six months. The Chevrolet Bolt models that contributed to nearly 93% of total EV sales in the first half of the year will be discontinued later this year. During the next half of 2023, GM is set to launch new EV models, including Chevrolet Silverado EV Work Truck, Chevrolet Silverado EV RST First Edition, Chevrolet Blazer EV, Chevrolet Equinox EV, Cadillac CELESTIQ EV and Cadillac ESCALADE IQ EV.
2. Ford recorded sales growth of 11.2% during the second quarter of 2023. The F-Series once again became America’s top-selling truck, with a 34% rise in sales in the reported quarter. During the first half of 2023, F-Series sales went up by 27.9%, giving it an edge over General Motors’ Silverado by over 118,000 trucks. Ford truck sales gained momentum in the second quarter due to the strong performance of the new Super Duty and improved inventory flow. In the first half of 2023, Ford truck sales totaled 549,625, greater than GM’s truck and van sales by nearly 61,000 trucks.
In the second quarter, F-150 Lightning sales went up by 119% compared with the year-ago quarter. Ford’s EV sales rose 11.9% year-to-date. Maverick sales increased by 7.8% in the second quarter. The combined sales of F-Series, Ranger and Maverick increased 26.7% compared with the year-ago quarter. With sales of 32,031, Transit retained the crown of America’s best-selling truck. Ford E-Series van sales rose 63.7% in the reported quarter and rose 55.7% during the first half of 2023. Navigator’s Q2 sales increased by 20.1%, while new Lincoln Corsair sales rallied 27% in June. Nautilus sales also saw a rise of 58.5% in June. BlueCruise, driver assistance technology by Ford, has now surpassed 90 million hands-free driven miles cumulatively.
3. Volkswagen announced that it would commence testing autonomous electric vehicles in Austin, TX. Following the decision to wind down its investment in Argo AI — once a leader in self-driving tech, which was dissolved in 2022 due to mounting costs and strategic disagreements between its main investors Volkswagen and Ford — VWAGY has been actively revamping its self-driving strategy.
In collaboration with technology firm Mobileye, Volkswagen developed autonomous driving capabilities for its ID Buzz electric vans. VWAGY plans to deploy about 10 of its ID Buzz electric vans, fitted with autonomous driving systems developed in association with MBLY, by the end of 2023. The first pair of these vans, equipped with lidar, radar and camera systems, are already on the U.S. soil. Testing is set to begin before the end of July. Initial tests will have human safety drivers onboard.
This development is part of Volkswagen's recent strategic shifts to bolster its self-driving vision, including a strengthened partnership with Mobileye and fresh investments in MOIA, its European ride-sharing arm. Though the firm is aiming to launch a robotaxi service in Europe, it currently doesn't intend to initiate its ride-sharing platform in the United States. Instead, the company plans to market autonomous ID Buzz vans and fleet management capabilities to other businesses offering ride-sharing or delivery services.
4. Stellantis announced that its Mirafiori Site, located in Turin, Italy, has joined the grEEn-campus workplace transformation program. The program aims to enhance the company’s automotive design, research and development and central operations through inventive, environment-friendly and collaborative designs. Along with Mirafiori, sites in Poissy, France and Rüsselsheim, Germany, are also part of Stellantis’ grEEn-campus program. The program supports the company’s Dare Forward 2030 strategy of achieving carbon net zero by 2038. The Mirafiori project is expected to be completed by 2025.
In another development, Stellantis unveiled its newest EV, the Fiat 600e, marking a significant addition to its portfolio and the brand's return to the B-segment. The model follows the legacy of its predecessor, the Fiat 600 from the 1950s, mirroring its commitment to family-friendly features but supercharging it with state-of-the-art technology and design upgrades.With a starting price below $40,000 (€36,490), Fiat 600e is part of the fiercely competitive crossover market and directly competes with upcoming models like the Volvo EX30. By leveraging its affordable price, impressive range and spacious interior, Fiat aims to attract customers seeking a compact electric SUV that combines style and practicality.
In yet another news, Stellantis unveiled STLA Medium platform. Two years ago, the company announced its plans to introduce four global EV platforms, the STLA Small, Medium, Large and Frame. The STLA Medium platform will be the first of the four to hit production, beginning in Europe, later this year. Designed with several propulsion configurations, it is built to accommodate a variety of dimensions, suspensions and wheelbases, thus demonstrating its modular nature. As a fully-electric setup, the STLA Medium can offer a standard range of over 500 km, which can be extended to 700 km with a “performance pack.”The STLA Medium platform is instrumental in Stellantis' strategic plan, Dare Forward 2030, which targets a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% mix in the United States by 2030.
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What's Next in the Auto Space?
The second-quarter 2023 earnings season for the auto sector kicks off next week. Investors are keenly awaiting Tesla’s results, set to be released on Jul 19. Other auto stocks like Autoliv, Genuine Parts and AutoNation will also be reporting next week. Industry watchers will also track China vehicle sales data for June 2023, which will be released by the China Association of Automobile Manufacturers.
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Auto Roundup: STLA Steals the Spotlight With a Slew of Updates
Last week, auto biggies reported second quarter US vehicle sales numbers. Most automakers experienced year-over-year sales growth, thanks to improving inventory levels. The demand for automobiles remains strong, indicating that the rise in interest rates has not yet significantly affected purchasing decisions.The seasonally adjusted annualized sales rate for June 2023 was 15.7-15.8 million vehicles, up from 15.1 million vehicles in May 2023 and 12.9 million units in June 2022. Per Cox Automotive, new vehicle sales in the second quarter of 2023 topped 4 million units, up 15% year over year and 13% sequentially.
U.S. auto giant General Motors (GM - Free Report) successfully retained its position as the largest automaker in the country during the January-June period. Close peer Ford (F - Free Report) continued its hot streak as America’s #1 brand for six consecutive months this year, driven by the success of its trucks, electric vehicles and new vehicle introductions. Germany-based auto biggie Volkswagen (VWAGY - Free Report) hit the gas pedal on its autonomous future, kicking off trials in Austin.
Last but not the least, Italian American automaker Stellantis (STLA - Free Report) ruled last week’s headlines with several updates. Revolutionizing the EV market, the company unveiled the 600e SUV— a blend of classic charm and cutting-edge technology. It also announced that its Stellantis' (STLA - Free Report) Mirafiori Site in Italy is set to become the next 'grEEn-campus' location. The transformation is part of the company's Dare Forward Strategy to reach carbon net zero by 2038. Additionally, the automaker unveiled its STLA Medium platform, marking a significant step forward in Stellantis' commitment to sustainable mobility.
Last Week’s Top Stories
1. General Motors reported a rise of 19% in U.S. vehicle sales in the second quarter of 2023 from the year-ago quarter’s levels. During the second quarter, GM sold 691,978 new vehicles, up from 582,401 vehicles during the second quarter of 2022 and 600,000 vehicles during the first quarter of 2023.During the first half of the year, General Motors sold 1,295,186 new vehicles. Its retail sales increased by 15%, whereas its GM Envolve business moved north by 30%. GM also retained its top spot as the country’s largest auto manufacturer for the first half of the year. Year over year, sales of GM’s Chevrolet, Cadillac, Buick and GMC increased by 17%, 15%, 48% and 18%, respectively.
During the first half of 2023, GM reported EV sales of 36,300 units or only 2.8% of total sales. The automaker anticipated producing 50,000 EVs during the first six months of the year and expects to produce 100,000 during the last six months. The Chevrolet Bolt models that contributed to nearly 93% of total EV sales in the first half of the year will be discontinued later this year. During the next half of 2023, GM is set to launch new EV models, including Chevrolet Silverado EV Work Truck, Chevrolet Silverado EV RST First Edition, Chevrolet Blazer EV, Chevrolet Equinox EV, Cadillac CELESTIQ EV and Cadillac ESCALADE IQ EV.
2. Ford recorded sales growth of 11.2% during the second quarter of 2023. The F-Series once again became America’s top-selling truck, with a 34% rise in sales in the reported quarter. During the first half of 2023, F-Series sales went up by 27.9%, giving it an edge over General Motors’ Silverado by over 118,000 trucks. Ford truck sales gained momentum in the second quarter due to the strong performance of the new Super Duty and improved inventory flow. In the first half of 2023, Ford truck sales totaled 549,625, greater than GM’s truck and van sales by nearly 61,000 trucks.
In the second quarter, F-150 Lightning sales went up by 119% compared with the year-ago quarter. Ford’s EV sales rose 11.9% year-to-date. Maverick sales increased by 7.8% in the second quarter. The combined sales of F-Series, Ranger and Maverick increased 26.7% compared with the year-ago quarter. With sales of 32,031, Transit retained the crown of America’s best-selling truck. Ford E-Series van sales rose 63.7% in the reported quarter and rose 55.7% during the first half of 2023. Navigator’s Q2 sales increased by 20.1%, while new Lincoln Corsair sales rallied 27% in June. Nautilus sales also saw a rise of 58.5% in June. BlueCruise, driver assistance technology by Ford, has now surpassed 90 million hands-free driven miles cumulatively.
3. Volkswagen announced that it would commence testing autonomous electric vehicles in Austin, TX. Following the decision to wind down its investment in Argo AI — once a leader in self-driving tech, which was dissolved in 2022 due to mounting costs and strategic disagreements between its main investors Volkswagen and Ford — VWAGY has been actively revamping its self-driving strategy.
In collaboration with technology firm Mobileye, Volkswagen developed autonomous driving capabilities for its ID Buzz electric vans. VWAGY plans to deploy about 10 of its ID Buzz electric vans, fitted with autonomous driving systems developed in association with MBLY, by the end of 2023. The first pair of these vans, equipped with lidar, radar and camera systems, are already on the U.S. soil. Testing is set to begin before the end of July. Initial tests will have human safety drivers onboard.
This development is part of Volkswagen's recent strategic shifts to bolster its self-driving vision, including a strengthened partnership with Mobileye and fresh investments in MOIA, its European ride-sharing arm. Though the firm is aiming to launch a robotaxi service in Europe, it currently doesn't intend to initiate its ride-sharing platform in the United States. Instead, the company plans to market autonomous ID Buzz vans and fleet management capabilities to other businesses offering ride-sharing or delivery services.
4. Stellantis announced that its Mirafiori Site, located in Turin, Italy, has joined the grEEn-campus workplace transformation program. The program aims to enhance the company’s automotive design, research and development and central operations through inventive, environment-friendly and collaborative designs. Along with Mirafiori, sites in Poissy, France and Rüsselsheim, Germany, are also part of Stellantis’ grEEn-campus program. The program supports the company’s Dare Forward 2030 strategy of achieving carbon net zero by 2038. The Mirafiori project is expected to be completed by 2025.
In another development, Stellantis unveiled its newest EV, the Fiat 600e, marking a significant addition to its portfolio and the brand's return to the B-segment. The model follows the legacy of its predecessor, the Fiat 600 from the 1950s, mirroring its commitment to family-friendly features but supercharging it with state-of-the-art technology and design upgrades.With a starting price below $40,000 (€36,490), Fiat 600e is part of the fiercely competitive crossover market and directly competes with upcoming models like the Volvo EX30. By leveraging its affordable price, impressive range and spacious interior, Fiat aims to attract customers seeking a compact electric SUV that combines style and practicality.
In yet another news, Stellantis unveiled STLA Medium platform. Two years ago, the company announced its plans to introduce four global EV platforms, the STLA Small, Medium, Large and Frame. The STLA Medium platform will be the first of the four to hit production, beginning in Europe, later this year. Designed with several propulsion configurations, it is built to accommodate a variety of dimensions, suspensions and wheelbases, thus demonstrating its modular nature. As a fully-electric setup, the STLA Medium can offer a standard range of over 500 km, which can be extended to 700 km with a “performance pack.”The STLA Medium platform is instrumental in Stellantis' strategic plan, Dare Forward 2030, which targets a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% mix in the United States by 2030.
Stellantis currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What's Next in the Auto Space?
The second-quarter 2023 earnings season for the auto sector kicks off next week. Investors are keenly awaiting Tesla’s results, set to be released on Jul 19. Other auto stocks like Autoliv, Genuine Parts and AutoNation will also be reporting next week. Industry watchers will also track China vehicle sales data for June 2023, which will be released by the China Association of Automobile Manufacturers.