Automobile Industry 01 (Aug 08 - Sep 15)

[winston]

SUBPRIME AUTO NATION

Have you heard the news? Auto sales are booming.

Total sales for the month of August were 1,285,202 vehicles, according to Autodata Corp, the highest monthly sales figure for any August since 2007, when 1.47 million autos were sold in the United States. Year to date auto sales have totaled 9.7 million and are on track to reach 14.5 million.

Between 2006 and 2007, auto sales ranged between 16 million and 18 million. They crashed below 10 million in 2009.

The Keynesians running our government have pulled out all the stops to restart this engine of consumer spending.

First they wasted $3 billion of taxpayer funds on the Cash for Clunkers debacle. Almost 700,000 perfectly good cars were destroyed in order to keep union workers happy.

This Keynesian brain fart distorted the used car market for two years, raising prices for cars needed by the working poor.

After that miserable failure, they realized the true secret to selling vehicles is to give them away to anyone that can scratch an X on a loan document, with 0% interest for 60 months, financed by Federal government controlled banking interests.

Add in some massive channel stuffing and presto!!! – You’ve got an auto sales boom.

http://www.theburningplatform.com/?p=40182

[winston]

Anti-Japanese protests

1. Nissan suspends China production for two days after protests: sources
2. Mazda to temporarily shut China factory following anti-Japan protests
3. Honda says in 2-day China production halt from Sept 18

[winston]

Road cleared for self-driving cars in California

California Governor Jerry Brown on Tuesday signed a bill clearing the way for self-driving cars, to jockey with human-operated vehicles to test the technology on the state's roads.

"Autonomous vehicles are another example of how California's technological leadership is turning today's science fiction into tomorrow's reality," Brown said during a signing ceremony at the Google campus in Mountain View.

"This law will allow California's pioneering engineers to safely test and implement this amazing new technology."

The legislation backed by state senator Alex Padilla lets driverless cars be operated on public roads for testing purposes as long as licensed drivers are behind the wheels to take over if needed.

Development of a self-driving car is one of the projects of a special Google research team headed by company co-founder Sergey Brin.

Brown, Brin and Padilla took a ride in a Google self-driving car before the governor signed the bill into law.

"It obviously seems the stuff of science fiction," Brin said.

"It is a fascinating area to work on but it really has the power to change people's lives, which is why I am really excited about it."


Source: AFP Global Edition

[winston]

DJ MARKET TALK: China Automakers Gain On Rural Subsidy Report

0640 GMT [Dow Jones] Chinese automakers rise after a China Securities Journal report cites unnamed sources as saying that Beijing will soon introduce subsidies to automobile purchases in rural areas in an effort to boost consumption.

This time around, the incentives for consumers to buy new automobiles are expected to be expanded to include small passenger vehicles with below 1.3 liter engines and heavy trucks, the report adds.


Source: Dow Jones & Company, Inc.

[winston]

not vested

Vehicle stocks climb 4%-5% as CN to subsidize purchase of vehicles in rural areas

The new round of subsidizing vehicles in rural ares will be introduced in China soon, and the market raised prospects that the disputes over Diaoyu Islands will be eased.

DONGFENG GROUP (00489.HK), after hitting $9.6, last climbed 5% to $9.58 on trading volume soaring to 50.9 million shares.

GAC GROUP (02238.HK) reclaimed 10MA and hit $5.11. It last climbed 4.5% to $5.07 on trading volume of 24.9 million shares.

GEELY AUTO (00175.HK) touched 6-month high and last climbed 4.2% to $3.2 with 92.56 million shares changed hands on market.

BYD COMPANY (01211.HK) last grew 5.2% to $14.16.


Source: AAStocks Financial News

[profittaker]

Insurance is another area that needs to be covered.

The driverless revolution rolls on

Last month California became the third state, after Nevada and Florida, to make self-driving vehicles street legal. (The catch, for now, is that a human must sit in the driver's seat, ready to take over in an emergency.)

There has, however, been little thought about how autonomous vehicles might impact business and alter industries ranging from car makers to auto insurers to transport companies to steel fabricators, and in the process leave a trail of winners and losers. These vehicles could also help boost fuel efficiency. For instance, GPS could identify empty parking spaces. A report published by the MIT Media Lab states, "In congested urban areas, about 40% of total gasoline use is in cars looking for parking."

Source: http://tech.fortune.cnn.com/2012/11/12/self-driving-cars/

[winston]

China car market to grow 8% annually: McKinsey

Growth in China's auto market, the world's largest, is forecast to slow to an average eight percent annually from now until 2020 as consumers' tastes change, consultancy McKinsey said on Wednesday.

http://www.france24.com/en/20121121-chi ... y-mckinsey

[winston]

US auto sales hit fastest pace since January 2008

AFP - US auto sales posted their fastest clip since January 2008 amid an improving economic outlook and demand for replacement vehicles following the devastating Hurricane Sandy.

Total industry sales in November were up 15 percent from a year earlier and came in at an adjusted, annualized rate of 15.5 million vehicles, according to Autodata.

Honda led the pack with a 39 percent gain that drove its best ever November results. Rivals Chrysler, Ford and GM managed to post their best Novembers in years with more modest but still solid growth.

http://www.france24.com/en/20121204-us- ... nuary-2008

[winston]

China auto sales 'missed expectations' in 2012

AFP - Auto sales growth in China, the world's biggest car market, fell short of expectations last year, an industry group said Friday, as the economy slowed and cities put limits on vehicle numbers.

Sales rose 4.3 percent year-on-year in 2012 to 19.31 million vehicles, the China Association of Automobile Manufacturers said, well below forecasts of eight percent.

While the figure is up from 2.5 percent growth in 2011, when 18.51 million units were sold, it is a fraction of the explosive 32 percent rise seen in 2010.


http://www.france24.com/en/20130111-chi ... tions-2012

[winston]

Global auto sales are in an uptrend… fresh 52-week highs for Ford and GM.