Asian-News.net is your go-to online destination for comprehensive coverage of major news across Asia. From politics and business to culture and technology, we bring you the latest updates, deep analyses, and critical insights from every corner of the continent. Featuring exclusive interviews, high-quality photos, and engaging videos, we keep you informed on the breaking news and significant events shaping Asia. Stay connected with us to get a 24/7 update on the most important stories and trends. Our daily updates ensure that you never miss a beat on the happenings in Asia's diverse nations. Whether it's a political shift in China, economic development in India, technological advancements in Japan, or cultural events in Southeast Asia, Asian-News.net has it covered. Dive into the world of Asian news with us and stay ahead in understanding this dynamic and vibrant region.

Contacts

  • Owner: SNOWLAND s.r.o.
  • Registration certificate 06691200
  • 16200, Na okraji 381/41, Veleslavín, 162 00 Praha 6
  • Czech Republic

Ford, GM, Stellantis face a daunting second half of 2024

DETROIT – The last time shares of Ford Motor dropped by more than 18% in a day, as they did last week, the U.S. automotive industry was on the brink of bankruptcy during the Great Recession.

Ford, which avoided bankruptcy in 2008-2009, is far from any sort of such disaster, but the freefall in shares after the company missed Wall Street's earnings expectations is the leading example of the uphill battle automakers face for the remainder of the year.

The U.S. market – a profit engine for most automakers – is normalizing after years of record high prices, low vehicle inventories and resilient demand. Inventories, especially for the Detroit automakers, are rising, and vehicle pricing is slowly declining.

Wall Street has been waiting for that set of circumstances for some time, with the cyclical nature of the auto industry ushering in a down period.

"Investors who think autos can outperform on + earnings beats and buybacks should think again. Auto fundamentals may be peaking (see rising incentives and delinquencies). Eventually this can catalyze lower spending and" mergers and acquisitions, Morgan Stanley analyst Adam Jonas said Friday in an investor note.

Jonas' comments came after the firm downgraded GM from overweight to equal weight last week, adding "auto remains one of the more challenged industries in the world in terms of competition, excess capacity, cyclical and secular risks."

The industry challenges add to individual issues for each automaker as well as uncertainty around the adoption of all-electric vehicles, which automakers have invested billions of dollars in and which largely remain unprofitable.

Shares of Ford had their worst week since March 2020, down 20% to close Friday at $11.19. GM was down 8.7% last week to

Read more on cnbc.com
DMCA