Tag: profits

By on October 21, 2021

With automobile prices ballooning to egregiously high levels, one might assume that the industry would be in rough shape. But they’d be dead wrong. Supply chain disruptions have actually created a captive market where consumers are desperate to lay their hands on whatever products are available. In the automotive realm, this has allowed retailers to set ludicrous prices and rake in larger profits per transaction. While inflation may eventually catch up to these entities, the gravy train is currently parked at the station and dousing big business with its warm, brown effluence.

Nobody knows this better than the folks at AutoNation. Because the company just released a quarterly profit report that blew its rosiest projections out of the water. Net income its ongoing operations was $361.7 million for Q3 2021, double the $182.6 million witnessed in Q3 of 2020, while revenue rose 18 percent to $6.4 billion.  (Read More…)

By on September 13, 2021

With supply chain hiccups crippling the automotive industry’s ability to conduct business as normal, resulting in rolling production stalls and skyrocketing vehicle prices, manufacturers looked to be in serious trouble throughout the pandemic. But we learned that wasn’t to be the case by the summer. Automakers were posting “surprise profits” because people still needed cars. We also found out there’s been a growing appetite for expensive (see: highly profitable) models and the industry saved itself a bundle by not needing to pay for office space or line workers, as COVID restrictions kept everyone at home.

Having considered the above, most automakers are seriously considering how they can further leverage this new modality. German manufacturers have even said they’re not that interested in going back to the normal way of doing things — instead electing to intentionally limit volumes and focus on high-end models that will yield the greatest return on investment. But it’s not quite the curveball it seems, as some companies were already ditching the volume approach.  (Read More…)

By on August 19, 2021

Despite being one of the only manufacturers not to incur heavy production losses over the global semiconductor shortage, Toyota has announced that its luck has finally run out. The automaker is estimating that it will need to cut assembly by 40 percent this September.

It’s not alone. Both Ford and General Motors have announced they’re also stifling production this week to account for a deficit of chips. Even Volkswagen Group has been cautioning that it might schedule more downtime going into the fall. But that’s basically been the story for all of 2021. Toyota just happens to be the newest inductee.  (Read More…)

By on August 2, 2021

While the tech industry does have firms pushing useful applications and products, it’s quite possibly the most disingenuous business sector of the modern age. Companies selling literally nothing more than false promises routinely see multi-billion-dollar valuations. The necessary hardware is always just “years away” and sold to investors who haven’t realized it was never real in the first place. A significant portion of the industry is also little more than reorganizing payment structures or access to services for the sake of convivence, making sure you’re locked into a plan that keeps your financial and personal details perpetually on file. But sometimes this actually results in worthwhile solutions which may (or may not) be capable of turning a legitimate profit.

Ride-hailing firms are probably one of the earliest and best examples of all the above. Uber and Lyft both lost a lot of money in 2020 but both remain convinced that profitability is just over the next hill. But there are plenty of obstacles littering the incline.  (Read More…)

By on August 3, 2020

Jaguar Land Rover has increased its savings target for the year to $3.3 billion (£2.5 billion) following a $540 million (£413 million) pre-tax loss for the quarter ending in June. Losses are hardly uncommon within an industry shaken by the pandemic, but JLR went into this year already confronting an uphill battle.

In 2019, the company was deep in the midst of a restructuring plan aiming at $2.5 billion in life-sustaining savings. Unfortunately, the move required the elimination of thousands of positions as it tried to imagine the effects of Brexit and contend with falling sales in its largest markets. That includes China, which the firm assumed would offer continued growth in the months leading up to coronavirus’ big debut and increasing political tensions between the Communist Party of China and United Kingdom. (Read More…)

By on July 16, 2020

Nissan’s all-important turnaround has been complicated immensely by the coronavirus pandemic. Supply chains fell into in shambles as countless factories temporarily closed as a countermeasure, harming profits as demand came to a screeching halt. Now there’s a looming recession that many economists fear may surpass the Great Depression — though this was a concern years before the COVID response hit the accelerator, thanks to growing debt and the way finance has been allowed to operate for decades.

Seeing the writing on the wall, many automakers have tamped down expectations for 2020. Being in the peculiar position of restructuring before the pandemic hit — which isn’t all that unique within the industry, truth be told — Nissan is reportedly plotting a 30 percent year-on-year cut in global production.  (Read More…)

By on March 17, 2020

As we attempt to wean ourselves off endless discussions the new coronavirus, we’ve noticed there’s not exactly a glut of alternative news out there. Trade shows are being delayed, factories are being idled, and the whole world seems to be in standby mode as we attempt to stall the spread of COVID-19 following its migration out of China.

Regional quarantines in Asia were already doing a number on supply chains, and it wasn’t long before manufacturers around the world began idling production to further slow the virus’s spread. By the beginning of March, it was becoming quite clear that auto sales would suffer significant impacts as people spent the next several weeks isolated in their own homes. Now, the push is on to assess just how much this whole ordeal will impact an OEM’s bottom line.  (Read More…)

By on November 12, 2019

Fulfilling earlier promises that the company had hit a wall and might require several years to recover, Nissan reported a 70-percent decline in quarterly operating profit on Tuesday. It also pulled back its full-year operating profit forecast by 35 percent to 150 billion yen, representing the automaker’s worst annual performance in 11 years. The business now expects to see global retail volume somewhere around 5.2 million vehicles (down from estimates 5.5 million).

“We are revisiting all our assumptions, and as you can see that is why we revised down our forecast for sales volume for the full year,” incoming CFO Stephen Ma explained to Reuters after releasing its first-half results for 2019 (ending September 30th). That was swiftly followed by the announcement of an extraordinary shareholders meeting to decide on proposals for current directors leaving their positions (Hiroto Saikawa, Yasuhiro Yamauchi, Thierry Bolloré) and the new director nominees.  (Read More…)

By on August 21, 2019

China’s Geely Automobile Holdings Ltd said on Wednesday that its first-half net profit slipped 40 percent due to the extended economic downturn impacting in the region. According to Reuters, the manufacturer posted a net profit of 4.01 billion yuan ($568.5 million) during the most recent half vs the 6.67 billion yuan it made over the same period a year earlier.

Sales growth is also down. Between January and June, Geely sold 651,680 vehicles — roughly 15 percent less than in the same period in 2018. Finding something to attribute that to will be easy, however. China’s automotive market has been on a downhill slope for 13 consecutive months and we know of at least two reasons why.  (Read More…)

By on August 6, 2019

Maserati posted an ugly financial report for the second quarter of 2019. Revenue was down 40 percent, resulting in a loss of $132 million before interest and taxes. The good news, according to Fiat Chrysler Automobiles, is that the brand will become profitable once new product hits the ground.

The bad news? None of those vehicles are scheduled to arrive until after 2020, meaning Maserati probably won’t see any improvements until sometime afterward. FCA CEO Mike Manley has already said the rest of 2019 will be ugly for the brand, though he remains hopeful that the 10 new or refreshed vehicles the premium nameplate had in the works would help it turn a corner.  (Read More…)

By on July 31, 2019


Keen to expand into new segments and redefine itself as an auto brand, Aston Marin is now a publicly traded company with a crossover vehicle on the horizon. The plan, established by CEO Andy Palmer and about as novel as dirt, was due for a checkup last week. Sadly, the automaker was not released with a clean bill of health. Aston reported a pre-tax loss of £78.8 million ($92 million) in the six months ending in June.

Speaking with the media, Palmer argued that the company had done well in the first quarter but claimed economic conditions and dwindling dealer interest had hurt the business in Europe, the Middle East and Africa. The United States performed comparatively better — possibly due to the marque bringing on Tom Brady as a brand ambassador, even though at least two of the cars built with the athlete’s name on them have already passed through the secondhand market $100,000 below sticker. Unfortunately, minor victories weren’t nearly enough to keep the firm’s share price from tumbling downward like an allegedly deflated football. (Read More…)

By on May 24, 2019

Save for one article about adorable baby ducks, we’ve dumped on Nissan all week. Circumstances being what they are, there wasn’t much of an alternative.

Between a dismal earnings report showcasing a 45 percent decline in annual operating profit for the year ending in March, a forecasted 28 percent drop in profits for this year, corporate strife between the automaker and top shareholder Renault SA, and the ongoing legal troubles with former chairman Carlos Ghosn, it’s been a bad few months.

Nissan’s share price is also in decline for some strange reason, and, following a negative outlook from S&P, Moody’s downgraded the automaker’s credit rating from an A2 to an A3. That’s right, one entire notch lower. That clinches it. Nissan is officially done forever. If the 2008 financial crisis has taught us anything, it’s that you can absolutely trust rating agencies to be arbiters of the future.  (Read More…)

By on May 13, 2019

Ford badge emblem logo

Having already announced plans to cut thousands of jobs in Europe in an effort to stem the region’s ongoing cash hemorrhage, Ford has reportedly begun re-examining the United Kingdom. Initially, the automaker’s restructuring plan involved ending production at a transmission plant in France, killing the C-Max in Germany, and dissolving its Ford-Sollers joint venture in Russia.

While Ford hoped to shed as many employees as possible through voluntary retirement, it acknowledged it would have to fire at least 5,000 people in Germany and an unspecified number of U.K. citizens in March. The company hasn’t settled on a figure, though inside sources claim it should be no more than 550 jobs — all of which should be of the non-manufacturing variety.  (Read More…)

By on May 12, 2019

Subaru Legacy 2018 Logo Emblem Grille

Subaru may be getting too big for its britches. Despite seeming like it was positioned for nearly incalculable growth at the start of last year, the automaker’s latest financial report showed the period was actually plagued with problems. Over the full fiscal year, which ends on March 31st for Subaru, the company basically showed that its operating profit had been cut in half.

How could this have happened? Subaru’s commitment to all-wheel drive has given its sales a shot in the arm as the crossover craze has escalated and it has one of the best reputations in the business. Seriously, ask any automotive layperson what they think of the brand and they will almost always have something positive to say. However, for all of its presumed advantages, the company is reporting a 48.5-percent decline in operating profit (to 195.5 billion yen) and a 6.3-precent loss of global sales volume.  (Read More…)

By on April 30, 2019

General Motors’ first-quarter earnings report revealed turmoil in international markets and a shrinking presence in North America, but net income rose to $2.1 billion, up from $1.1 billion a year ago, and adjusted earnings per share ($1.41) beat out estimates of $1.11. Still, that wasn’t enough to stop its stock from sliding in pre-market trading, as revenue of $34.9 billion undercut analyst estimates of $35.28 billion. Pre-tax earnings fell 11 percent.

In its report, GM wanted to talk about trucks. You know the ones — the revamped 2019 Silverado and Sierra 1500 crew cabs, now featured in half of the pop-up ads on your author’s computer and phone, advertising 0% financing. (Read More…)

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