Honda Motor Co., Ltd. (ADR)
The last several years have been rough for the American automakers with the recession and the ensuing auto bailout. The most successful one was Ford (NYSE: F), which managed to both avoid bankruptcy and a bailout. However, it still struggled quite a bit. Now, though, the tide is looking up with Ford just posting its strongest sales month since before the Recession.
Ford's May in America
Wide-moat companies invariably make the best long-term investments. Average companies come and go, but great businesses compound shareholder value year after year. Therefore, the best long-term risk-adjusted returns are found in wide-moat companies like Harley-Davidson (NYSE: HOG).
Harley-Davidson is the highest-regarded brand in motorcycles. Although many competitors, including Honda Motor (NYSE: HMC) and Polaris Industries (NYSE: PII) have caused it headaches through the years, Harley-Davidson is still the gold standard more »
Yes! Honda (NYSE: HMC) will be returning to Formula One again after a long absence. It will supply engines to its former F1 partner, McLaren Automotive. So racing fans can expect to witness the magic of the powerful Honda engines once again in 2015.
Now that Honda has delivered the good news to sports lovers, does it have some equally satisfying news for its investors? The company has certainly stepped more »
As the housing market recovery in the US appears more sustainable, US auto sales continue to gain steam. Low-end luxury is performing exceptionally well, as is the pickup segment—a likely result of the housing recovery.
Let’s take a look at results from the industry.
The auto industry is back!
Four years after the great recession vehicle sales are returning to normal levels. With reorganized operations, manufacturers are now more profitable than ever.
But the industry has a hidden source of profits.
Over the last decade, automakers and suppliers have managed to significantly reduce the cost of warranties on their vehicles. This has become a massive, little discussed source of shareholder returns.
Falling warranty costs more »
Ford Motor’s (NYSE: F) strategy of focusing on the hybrid car segment is working phenomenally for the company. The second largest US automaker hit record high hybrid sales back in 2010 by selling 35,496 units. However, it did not take very long for the auto giant to beat its own record. The Dearborn-based carmaker is estimated to sell approximately 37,000 hybrid cars through May. The company’s more »
Originally written for EDF Voices by Brad Copithorne, director of financial innovation for Environmental Defense Fund's energy group.
A few weeks ago, Honda announced an innovative financing partnership with Solar City, a major solar installer. (Full disclosure: My wife works for Solar City). Under the terms of the deal, the car maker will use $65 million its own money to pay for its customers and dealers more »
The world’s leading automaker, Toyota Motor (NYSE: TM), released its earnings a few weeks ago in which it reported a significant increase in annual income as sales rose, while the weak Yen gave a boost to the bottom line. Meanwhile, Toyota’s rival and the world’s third largest automaker, Honda Motor (NYSE: HMC), also reported its annual results in which its earnings rose due to similar reasons.
The more »
The automotive industry has been improving lately due to increasing auto sales. Ford Motor Co. (NYSE: F) and General Motors Company (NYSE: GM) were both profitable in the first quarter of 2013, and consequently they have rallied to new 52-week high levels. Japanese giant automakers Honda Motor Co., Ltd. (NYSE: HMC) and Toyota Motor Corporation (NYSE: TM) have also seen appreciation in their stock price. While I have no doubt more »
The Bank of Japan has been inflating its economy quite aggressively, with the Central Bank piling assets onto its balance sheet. As a result, Japanese American depositary receipts like Sony (NYSE: SNE), Toyota (NYSE: TM), and Honda (NYSE: HMC) have reported or will report inflated earnings.
Since the beginning of 2013, the Bank of Japan has increased its outstanding reserves by 48.85%. While this was more »
It’s not easy being a Japanese company these days. Last year, rough relations with China over islands in the East China Sea stirred up anti-Japanese sentiment and boycotts across the country. This resulted in everything from lower sales of Japanese goods to restaurants and shops outright banning Japanese customers from coming in. This year, even though the tensions are dying down between the two countries, car manufacturers like Toyota more »
Will the U.S. auto market rebound? Most likely, according to data from Edmunds.com. Edmunds reported that 14.5 million cars and light trucks were sold in 2012, and predicts 15 million will be sold in 2013. Trucks are selling very well, with light duty trucks seeing 11.3% YTD growth, while cars are seeing 3.1% growth.
The rebound in the construction industry is boosting demand for pickup more »
What does one need to do to become the talk of the town? Ask Tesla Motors (NASDAQ: TSLA). With a phenomenal performance in the recently ended first quarter of 2013, Tesla has become an investor’s delight. For the first time in a decade Tesla has reported a green bottom-line, courtesy Model S. Now, the company is getting ready to shift its gear and zoom ahead in its path to more »
The mid-size race in the US auto market is heating up. On one side we have the perennial favorites like Toyota's (NYSE: TM) Camry and Honda's (NYSE: HMC) Accord, while on the other side there are the new entrants like the Ford (NYSE: F) Fusion and the Nissan Altima. As the four sedans race each other for the top spot the question that comes up is who is more »
More than a few analysts have expressed concern that official austerity measures and a slowing economy could put the brakes on China’s high-speed auto sales. So far, however, they’re still rolling along at a decent clip. In response, automakers are doubling down there to make up for weakening demand in Europe.
China topped the U.S. in overall auto sales in 2009 and surpassed Europe in 2012. Although more »
On March 7 this year, I penned an article entitled "How Currency Exchange Rates Will Impact These Stocks." This outlined how currency exchange fluctuations impact economies, the new Japanese monetary policy, and the highly predictable results. For beginners, I highly encourage you to review that article. I advised readers to purchase major Japanese exporters based on my thesis.
That theses was and remains: Deliberate inflation policy (now at 2% annually more »
There have been articles covering major press publications over the past couple of days on how the Japanese car manufacturers are losing their edge. Could it really be that Ford (NYSE: F) and General Motors (NYSE: GM) are stealing the market from Honda Motor (NYSE: HMC) and Toyota Motor (NYSE: TM)?
Autodata compiled the statistics on midsize vehicle sales in the United States. You’re no doubt familiar more »
While automakers worldwide strive to keep their vehicles fuel efficient and affordable, there may be a shift in the type and size of the vehicle that is now most preferred by drivers around the globe. One area that has changed dramatically in terms of demand is the mid-size option. Yet, while Japanese automakers may be falling to U.S. car makers in this segment, they are continuing to pull in more »
This past January, I posted a hard look at one of the quintessential American Brands, Harley-Davidson (NYSE: HOG), and came to the conclusion that I wanted to see more from the fabled motorcycle maker and cultural icon before making a long-term call. The plain fact is that Harley has had a tough ride the past few years, nearly going bankrupt during the Great Recession. It's legacy business model was more »
Thanks to solid sales data and improving profitability, shares of Ford (NYSE: F) have been running at full speed lately. But the company´s product portfolio provides plenty of potential for growth in the middle term, and the stock is trading at attractive valuation levels. So fasten your seatbelt and keep your hands on the wheel, because Ford is running at full speed.
Pick up those profits
With its big more »
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