Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

New Delhi, <keyword id="32870" type="General" weightage="20" keywordseo="auto" source="Orion">Auto</keyword> component maker Samvardhana <keyword id="135627" type="General" weightage="20" keywordseo="motherson" source="Orion">Motherson</keyword> International on Friday said it has inked a pact to fully acquire Bengaluru-based Rollon Hydraulics for an undisclosed amount. Rollon is engaged in manufacturing, assembly and supply of high-precision turned parts, spools, and other machined components with critical engineering applications for the agriculture and off- Highway segment from its two facilities based out of Bengaluru. "Our focus on being a solutions provider to our customers has been a driving force for this acquisition. We are getting access to a new industry segment of construction and material handling for our precision metal business," Motherson Chairman Vivek Chaand Sehgal said in a statement. The company believes this business is highly synergistic with Motherson's existing business and offers ample opportunities to grow this business in India, Mexico &amp; other geographies, he added. "This is our fifth acquisition in India in the past 12 months, reaffirming India's importance in our future plans," Sehgal noted.

Auto component maker Motherson to acquire Bengaluru-based Rollon Hydraulics

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://www.flickr.com/photos/jonbro/1189995100/">Flickr/Jonathan Brodsky</a>Sorry, no cars for you.</div></div></div>In the auto industry, they're called "fleet sales," and they're complicated.They can boost an automaker's sales numbers, but at the expense of profits, given that fleet sales are going to large organizations and rental-car agencies, and those folks don't pay full retail prices for the thousands of vehicles they buy.This year, General Motors has been making a concerted effort to reduce fleet sales, and as <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi3wuym0ozQAhXqhFQKHf9UABkQqQIIHTAA&amp;url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2016-11-03%2Ffiat-chrysler-dials-down-rental-car-sales-in-echo-of-gm-strategy&amp;usg=AFQjCNGCHNUphZjHRUxGc4p9Og07yp_lIA">Bloomberg's Jamie Butters reported</a>, the approach has been good for GM's bottom line - so much so that another Detroit carmaker is emulating the plan:As Butters wrote, another factor is influencing FCA's decision: the automaker is shifting away from passenger-cat production to focus on trucks and SUVs. That means it won't have as many sedans to sell to rental-car fleets, but will instead be concentrating on remaining competitive with pickups and crossovers, two of the industry's most profitable segments.It's worth noting that this strategy is fine while it lasts, but eventually fleet customers will want to buy additional cars. Ford, for example, took care of their fleet customers early in the year and has now shifted to the retail side of its business. Fleet sales, though lower margin, still represent millions in potential annual sales, and those buyers are reliable.But this trend is also a good example of how US automakers are rethinking their traditional approach to sales. Profitability is ruling the day, rather than market share. And with sales on a pace in 2016 to match 2015's record of 17.5 million, carmakers could be backing away from fleet sales for a while. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/ford-ceo-why-women-young-people-love-suvs-2016-3">FORD CEO: This is why women and young people love SUVs</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="9waHRiMjE6cd8BMRtTZgwrYl8QorHn7n" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Auto companies are bailing out on rental-car sales

Global auto companies such as <keyword id="46283" type="CITY" weightage="40" keywordseo="Nissan">Nissan</keyword>, Ford, <keyword id="6361865" type="CITY" weightage="20" keywordseo="Volkswagen">Volkswagen</keyword>, etc in India might be saddened by the domestic auto market but they are still making profits. 
 
Here’s how? If you look into the exports, that will unearth the secret. 
 
In the financial year ended March 31, the Indian units of these four global auto companies exported more vehicles than what they could sell in the Indian market. 
 
The exports of passenger vehicles from India went up by 5.2% in the last fiscal year to 6,53,889 units. 
 For instance, <keyword id="4581" type="CITY" weightage="40" keywordseo="general-motors">General Motors</keyword> reaped the maximum profits, approx a 17-fold jump, from the exports as it shipped more than 37,000 units of Beat model from India to overseas markets from April 2015 through March 2016. 
 
The American giant sold 32,540 vehicles in India in the past fiscal year. 
 <keyword id="106216" type="CITY" weightage="40" keywordseo="Ford-India">Ford India</keyword> shipped nearly 1.11 lakh units, or about 36% more than the year before, to foreign markets, in which EcoSport took the maximum chunk of the share. 
 
Volkswagen’s, which posted a nearly 9% drop in local sales in fiscal 2015-2016 as it was hit by a scandal, exports grew 17% from the year before to nearly 76,000 units. 
 
“There are a few factors that are fuelling these. One, of course, is the slow domestic market. The second factor is the increasing price competitiveness of the products in the global market due to higher local (India) content," Rakesh Batra, partner and national leader-auto sector, at EY, told ET. 
 
The Japanese auto-maker Nissan exported 1.12 lakh units exported, but this was a drop. 
 
(Image: Thinkstock)

This is how global auto companies in India are yielding profits despite sluggish market

<ul class="summary-list"><li><a target="_blank" href="https://www.businessinsider.com/china-auto-sales-tech-features-leaving-american-automakers-behind-2023-7">Chinese automakers</a> have their sights set on world domination.</li><li>That's bad news for European automakers like Volkswagen, Mercedes-Benz, and BMW.</li></ul>Chinese automakers have their sights set on world domination. With their recent push into Europe, experts say companies like Volkswagen, Mercedes-Benz, and BMW should be nervous.The Chinese auto industry has been booming in recent years. Chinese EV companies are expected to outsell foreign brands there, including Ford, GM, and others, for the first time this year. As <a target="_blank" href="https://www.businessinsider.com/china-auto-sales-automakers-ford-gm-making-losing-market-share-2023-4">other global automakers' market share falls in China</a>, homegrown players are expected to continue an upward trajectory for the foreseeable future.That's despite recent signs of an <a target="_blank" href="https://www.businessinsider.com/chinese-automakers-market-share-competing-tesla-global-expansion-2023-8">easing EV market in China</a>. Even with some lessening demand, Chinese manufacturers are pushing full speed ahead in their global expansion, with <a target="_blank" href="https://www.bloomberg.com/news/articles/2023-09-05/rise-of-china-s-ev-makers-threatens-western-firms-ubs-says?sref=LspfQlRv">Europe top of mind</a>.This is worrying executives at some <a target="_blank" href="https://www.nytimes.com/2023/09/05/world/europe/chinese-automakers-iaa-mobility-german-auto-show.html">major legacy auto companies</a>, according to several <a target="_blank" href="https://www.nytimes.com/2023/09/05/world/europe/chinese-automakers-iaa-mobility-german-auto-show.html">reports </a>out of the Munich auto show. Chinese firms took the spotlight at the show, which historically put German manufacturers at center stage.Instead, this year, show goers and industry leaders saw major news from several of China's biggest auto players. BYD is <a target="_blank" href="https://europe.autonews.com/munich-auto-show/byd-takes-tesla-vw-europe-wont-set-sales-targets">bringing a midsize sedan and midsize SUV to Europe</a> later this year. XPeng already operates in four European markets, and just announced plans to start selling in Germany in the coming months. Leapmotor, too, is planning a European expansion in 2024.Germany is "losing our competitiveness," Hildegard Mueller, president of the German Association of the Automotive Industry, said in a <a target="_blank" href="https://www.reuters.com/business/autos-transportation/munich-car-show-shines-spotlight-china-competition-ev-race-2023-09-04/">Reuters report out of the auto show</a>.<h2>Chinese automakers have a lot working in their favor</h2>Any <a target="_blank" href="https://www.cnbc.com/2023/09/05/chinas-electric-carmakers-byd-xpeng-ramp-up-push-overseas.html">lag in EV development</a> that European automakers have gotten away with is now catching up to them. Consulting firm KPMG estimates <a target="_blank" href="https://www.ft.com/content/fddc1c5b-7494-4f0c-94cd-0409d7e9df70">Chinese companies could account for 15% of market share in Europe</a> within just two years.Some experts say that's because China's electric vehicle players are far <a target="_blank" href="https://www.businessinsider.com/china-auto-sales-tech-features-leaving-american-automakers-behind-2023-7">more technologically savvy</a> than many other industry leaders, and they have their fingers on the pulse of consumer demand.As the global auto industry electrifies, China also <a target="_blank" href="https://www.businessinsider.com/china-united-states-electric-vehicle-market-share-auto-brands-pricing-2023-1">already has longstanding advantage</a> with its EV battery supply chain and production, as it controls a large portion of crucial battery development.Chinese EV companies also have an edge against rivals <a target="_blank" href="https://www.businessinsider.com/cheap-chinese-electric-cars-will-upend-the-us-vehicle-market-2023-5">in producing EVs at bigger scale and lower costs</a>, a crucial measure of any electric car companies' future success.With China's automakers undercutting each other and rivals on pricing, "The base car market segment will either vanish or will not be done by European manufacturers," said Oliver Zipse, BMW CEO, per Reuters.<h2>Chinese auto companies are also come for the US</h2>Though the European auto market may have fewer barriers to entry than the US, eventually, these companies are likely to stake their claim in the American car-buying market, too."In our view, China will shift from being an importer to exporter of cars," Morgan Stanley analysts said in an August note. Companies there <a target="_blank" href="https://techcrunch.com/2023/08/08/powered-by-electric-vehicle-growth-china-overtakes-japan-as-biggest-auto-exporter/">recently overtook Japanese automakers</a> in vehicle exports globally.

Chinese car companies are coming for Europe. VW and Mercedes should be nervous.

<ul class="summary-list"><li>Auto companies could forgo stock buybacks to pay for the costly union demands, an analyst said.</li><li>Strikers have pointed out the billions of dollars companies have poured towards buybacks and dividends.</li></ul>However the UAW's strike is resolved, addressing the union's demands is unlikely to come cheap for the Big Three automakers.Think about the ask: a 36% general wage increase over a four-year contract and a return to traditional pensions, among other things. And that's drawn attention to the billions of dollars the companies have paid to shareholders.According to SEC filings, GM spent $2.5 billion on buybacks in 2022, while Ford spent $484 million. And since 2010, GM has said it repurchased $14.2 billion in stock, while Ford bought back $3.5 billion in shares from 2012 to 2022, according to <a href="https://www.bloomberg.com/news/articles/2023-09-26/investors-would-trade-gm-ford-stellantis-buybacks-to-end-uaw-strike" target="_blank" rel="noopener">data from Bloomberg</a>, which noted that Ford prefers to pay dividends.Stock buybacks are usually a good sign for investors, raising share prices and signaling strong financial health. But for the UAW, it's a sign of sharing more profits with shareholders than workers. In fact, one of the union's demands has been to pay $2 per worker for every $1 million companies spend in buybacks and dividends."We believe the companies could sacrifice some of their buybacks in the near-term (for instance a quarter). Once a contract is completed, there will likely be payments made for signing bonuses, etc.," Edward Jones analyst Jeff Windau told Insider. "These types of near-term hits to cash may require the sacrifice of a buyback."He also pointed out that buybacks and dividends are a use of cash that's available after companies invest in their businesses. If expenses go up significantly and don't allow for buybacks, then companies could be pressured during challenging economic environments, he added.Some investors seem ready to sacrifice stock buybacks."There is probably a happy medium where you maybe can stop share buybacks for some time and share that equity with labor and not just shareholders," Brian Mulberry, a client portfolio manager at Zacks Investment Management, which owns Ford shares and manages $15 billion in assets, told <a href="https://www.bloomberg.com/news/articles/2023-09-26/investors-would-trade-gm-ford-stellantis-buybacks-to-end-uaw-strike" target="_blank" rel="noopener">Bloomberg last week</a>.But Patrick Kaser, a portfolio manager for Brandywine Global, which has a stake in GM as part of its $54 billion in assets under management, seemed unwilling to accept lower dividends."A dividend cut will be a very bad sign. Stopping or cutting them will really be a statement that the companies don't have extra cash," he told Bloomberg. Stellantis declined a request for comment. Ford and General Motors did not immediately respond to a request for comment.Meanwhile, the strike's cost to carmakers is mounting. The first two weeks have seen a total economic cost $3.95 billion, including direct wages, manufacturing losses, and supplier losses, according to the Anderson Economic Group consulting firm.And if the rolling strike expands to all UAW members, that could cost companies billions of dollars every week."You could be talking 50,000 to 60,000 vehicles per week if they went out on a full strike," said Windau. "That translates to a couple billion dollars per week of sales, $2 [billion] to $3 billion dollars, potentially. Those are all items that have been impacting the overall performance of the stock."Ford's stock has fallen 3.7% since the strike began, and GM has dropped 4.6%. Stellantis is up 0.1% as expanded strikes didn't target any of its plants."The issues of the UAW strike are already affecting investors," said Patrick Anderson, founder of the Anderson Economic Group. "No company can stay in business over a long period of time, without earning enough money to pay all of its costs including its labor costs. And the auto industry is highly competitive."

Auto companies could sacrifice stock buybacks to help pay for union demands, analyst says

<ul class="summary-list"><li>There wasn't much for bears to latch onto in <keyword id="107096" type="COMPANY" weightage="60" keywordseo="Tesla">Tesla</keyword>'s second-quarter <keyword id="6357061" type="SPONSORED" weightage="60" keywordseo="earnings">earnings</keyword>, Morgan Stanley analysts wrote in a recent note to clients.</li><li>The analysts highlighted three key takeaways from its earnings, including that increased production in China has led to positive margins for Tesla.</li><li>Tesla's "outstanding" cash-flow management in the quarter was also noted.</li></ul>Tesla bears are going to be hard-pressed to find any compellingly negative takeaways in the electric car company's recent quarterly earnings, according to Morgan Stanley analysts."In our opinion, bears really would have to nit pick at the release to construct a materially negative narrative here," analysts wrote in a note released by Morgan Stanley that examined three key takeaways following Tesla's <a href="https://www.businessinsider.com/tesla-second-quarter-q2-earnings-profit-revenue-sales-elon-musk-2020-7">fourth consecutive profitable quarter</a> which was detailed in its Q2 earnings on July 22.While the analysts acknowledged there were critiques to be made, including its lower sequential average sales price, lower-than-expected fixed costs that wouldn't remain, and the outsized role that sales of regulatory credits played in driving its revenue, they largely highlighted the overall strength of the quarterly results.The first takeaway: more production in China equates to a positive for Tesla's margins. The second quarter "marked a step change where Giga Shanghai accounted for a sharply higher proportion of global production and deliveries, magnifying the benefit to marginal profitability despite lower sequential ASPs," the research note said.Secondly, the analysts noted Tesla's "outstanding" cash-flow management, which was $418 million for the quarter and exceeded analysts' expectations.The analyst's final point was that comparing Tesla's second-quarter performance of positive profit and positive FCF to other auto companies "further makes comparisons between high EV players and established ICE players less and less meaningful."The research note published by Morgan Stanley ranked Tesla's stock rating as underweight with a price target of $740.Tesla topped Wall Street's expectations on Wednesday after the American electric vehicle and clean energy company posted its longest-ever profitable streak.Tesla's earnings per share (adjusted) <a href="https://www.businessinsider.com/tesla-second-quarter-q2-earnings-profit-revenue-sales-elon-musk-2020-7">came out to</a> $2.18 versus an expected loss of $0.15, while posting a second quarter revenue of $6.04 billion versus an expected $5.2 billion. "We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020," Tesla <a href="https://ir.tesla.com/static-files/f41f4254-f1cc-4929-a0b6-6623b00475a6">said</a> in a press release. "Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously."On July 22, Tesla's CEO and product architect Elon Musk also <a href="https://www.businessinsider.com/elon-musk-tesla-launching-insurance-company-nationwide-hiring-2020-7">announced</a> that the company plans to grow its California insurance offering into a "major insurance company" nationwide. Tesla plans to use the data from its cars' computers to determine insurance rates for drivers based on how aggressively they drive.

You Searched For "auto companies" and got 6 results

Auto component maker Motherson to acquire Bengaluru-based Rollon Hydraulics

PTI

Auto companies are bailing out on rental-car sales

Matthew DeBord

This is how global auto companies in India are yielding profits despite sluggish market

BI India Bureau

Chinese car companies are coming for Europe. VW and Mercedes should be nervous.

Alexa St. John

Auto companies could sacrifice stock buybacks to help pay for union demands, analyst says

Aruni Soni

Tesla bears will be hard-pressed to find a negative narrative around the company's recent earnings, according to Morgan Stanley analysts

Evan Sully

Popular Keywords

Buying Guides