Automobile Industry 01 (Aug 08 - Sep 15)

[kennynah]

of cos, it doesn't always pan out like this... i have never collated solid evidence that this pattern exists, except that i've noticed similar plays before.. so, many traders/investors actually get out before earnings announcement... big good, big bad situation...

[iam802]

Toyota Motors chart looks good.

I think it is about to to back up.... what do you think?

http://stockcharts.com/h-sc/ui?s=TM&p=D ... 0353821234

[millionairemind]

Nice. I think all the bad news probably been discounted in the price by now.

[iam802]

Toyota hopes 0% financing will lure customers

http://money.cnn.com/2010/03/02/autos/t ... 2010030310

Notes:
- GM follows as well

So, who is paying for the financing?

Didn't GM used to do such things as well (and GM is now doing it again) ?

Move inventory at 0% financing. So, where do you earn the money? Surely the finance department will need to borrow money from elsewhere.

[kennynah]

So, who is paying for the financing?

say is zero financing.. but it's build into the price...

[millionairemind]

Mar 9, 2010
China car sales up 55%
SHANGHAI - CHINA'S passenger car sales climbed 55 per cent from a year earlier in Feburary, despite a long national holiday, on strong demand for smaller cars and sport utility vehicles, an industry group reported Tuesday.

Sales of cars, commercial vehicles and SUVs rose to 942,900 units, while sales of all vehicles including trucks and buses rose 46 per cent year-on-year to 1.21 million, according to the government-affiliated China Association of Automobile Manufacturers.

Unlike the US, China's auto industry does not release monthly sales data adjusted for annual rates. US auto sales rose 13 per cent from a year earlier to an annualized rate of 10.4 million, according to Autodata Corp. Tax cuts and subsidies for small-car purchases pushed demand sharply higher last year, with total vehicle sales leaping 45 per cent to 13.6 million, making China the world's biggest auto market, as American car sales languished.

China appears to have kept that lead so far in 2010, though February is traditionally a slow month for auto sales in both markets. The Lunar New Year holiday in mid-February kept China's sales well below the 1.1 million passenger cars sold in January, when sales more than doubled from a year earlier.

Analysts have forecast sales growth to slow this year. Some of the strong growth seen in January was from orders booked late last year, said An Yun, a researcher at Changxin Fund in Shanghai. 'I don't expect sales in 2010 to be as good as last year, though the question is how much slower they will be,' An said. 'To be fair, we need to watch what happens in the next couple of months.'

In January-February, vehicle sales jumped 84 per cent year-on-year to 2.87 million, while production rose 92 per cent to 2.82 million, the auto industry association said. A large share of the vehicles sold in China are small passenger cars and minivans used by farming families and small businesses - the focus of the tax cuts and other policies aimed at spurring sales of fuel-efficient vehicles. -- AP

[millionairemind]

June 1, 2010, 7.06 pm (Singapore time)

China to subsidise hybrid, electric car purchases

BEIJING/SHANGHAI - China said on Tuesday that it would launch a pilot programme in five cities to provide subsidies to buyers of electric and hybrid cars, as the government steps up efforts to cut emissions in the world's biggest auto market.

Residents of Shanghai and Shenzhen, as well as Hangzhou and Hefei in the east of the country and Changchun in the northeast, would receive up to 50,000 yuan (US$7,320) in subsidies if they buy plug-in hybrid cars, the Ministry of Finance said on its website.

The maximum subsidy for those who bought fully electric cars was 60,000 yuan, the ministry said.

'The handouts could get people interested in green car models now that the government has come up with a concrete plan and real money to back it up,' said Harry Zhao, an analyst with industry consultancy CSM Worldwide.

'But it's unrealistic to expect it to work like magic; like tax incentives did last year.'

Beijing's tax incentives for small cars and subsidies for vehicle buyers in rural areas helped domestic vehicle sales surge 46 per cent last year to 13.6 million units, surpassing the United States as the world's top auto market.

The impact of the new subsidies on green car sales was unlikely to be very large in the short term because of high battery costs and an inadequate charging network, but would make it easier for those interested in cars fuelled by alternative energy to decide to buy such vehicles, analysts said.

HYBRID BANDWAGON
Taking cues from the government, the biggest players in the Chinese auto market, from top state auto group SAIC Motor Corp to rising star Geely Automotive Holding, have been ramping up efforts to bring low-emission vehicles onto the roads.

SAIC plans to roll out its first hybrid car this year, while Shenzhen-based car and battery maker BYD Co, backed by Warren Buffett's Berkshire Hathaway, started retail sales of its plug-in hybrid F3DM in March.

The government would also allocate unspecified funding to bankroll the construction of charging stations and battery recovery networks in the pilot cities, the finance ministry added.

Instead of handing out subsidies to consumers directly, the government would allocate the money to carmakers, who would then lower the prices of relevant models accordingly, it said, without indicating when the programme would begin.

The level of handouts would be reduced after carmakers sold a total 50,000 green cars, it said, without elaborating.

The government started to offer subsidies for purchases of cleaner buses in early 2009, as part of another pilot programme in 13 cities.

In addition to the new programme limited to the five specified cities, Beijing would also offer nationwide subsidies of 3,000 yuan on purchases of cars with 1.6-litre engines or smaller and that consume 20 per cent less fuel than current standards, it added. -- REUTERS

[iam802]

So, this is China's new stimulus plan (under the disguise of going green)

[kennynah]

i think GM is about to re-list?

[winston]

All the Chinese Auto companies are up a lot today. Not vested.


DJ MARKET TALK: China Auto Stocks Higher; Prudential Likes Geely

1110 [Dow Jones] HK-listed China auto stocks higher, outperforming vs HSI's 0.9% rise, after China extends subsidies for trade-in of old, polluting vehicles for newer, more efficient models to end 2010; trade-in subsidy originally set to expire May 31.

Extension follows unveiling of new incentives for purchases of fuel-efficient, electric battery cars earlier this month. Dongfeng (0489.HK) +7.4% at HK$8.71, Great Wall Motor (2333.HK) +7.4% at HK$13.56, Geely (0175.HK) +8.2% at HK$2.65.

"This is expected to provide support for the China auto sector in the medium-term," says Prudential's Alvin Cheung. Suggests this sector and China's home appliance sector will both keep faring better vs broader market. Suggests buying Geely given its relatively bigger market share. Medium-term target for Geely at HK$3.50.


Source: Dow Jones Newswire