This Weeks OEM Headlines
BMW Q2 results beat consensus thanks to demand for offroaders – BMW’s second-quarter operating profit beat expectations thanks to record sales of luxury cars including the X1 offroader and the new 7 series. Earnings before interest and taxes (EBIT) rose 7.9 percent to 2.73 billion euros ($3.05 billion), above consensus for 2.65 billion euros in a Reuters poll. The return on sales at BMW’s automotive division rose to 9.5 percent from 8.4 percent a year earlier, the company said on Tuesday, the 25th consecutive quarter automotive profits have been within its target range of between 8 percent and 10 percent.
Mercedes Is About to Unveil an Entire Fleet of Electric Vehicles – Mercedes-Benz is planning its own distinct line of electric vehicles, challenging BMW and Tesla Motors Inc. in a bet that alternative-fuel cars have the potential to become profitable. Mercedes will add two electric sport utility vehicles and two sedans, according to two people familiar with the plan, who asked not to be named because the details haven’t been disclosed. Mercedes will create a new sub-brand for the cars, though a name hasn’t been chosen yet, one of the people said. Chief Executive Officer Dieter Zetsche said in June that the company planned to unveil an electric car at the Paris motor show in September.
Chrysler stock jumps nearly 9% on word of Samsung talks – Shares of Fiat Chrysler’s stock jumped Wednesdayafter a Bloomberg report that the automaker is in talks to sell one of its components divisions toSamsung Electronics. The company is said to be weighing a potential sale of supplier Magneti Marelli in a deal that would provide entry for Samsung into the lucrative world of vehicle electronics and infotainment. Fiat Chrysler shares (FCAU) traded on the New York Stock Exchange ended up 8.9%. It was welcome news for a stock that had suffered a 2.7% blow on Tuesday, when U.S. automakers reported disappointing July sales figures.
Poll: 79% support increased mpg rules – Seventy-nine percent of respondents polled by an environmental group want the federal government to keep increasing fuel economy standards for automakers, according to findings released Thursday. The finding, from the the Washington-based Natural Resources Defense Council, comes on the heels of a projection from federal regulators that U.S. automakers probably will miss the goal of a 54.5 miles-per-gallon fleetwide average by 2025 that was sent by President Barack Obama’s administration in 2012.