Sandeep Mukherjee and Abdulqadir Navsariwala also contributed to this note.

Fuel Efficient Vehicles supply Constraint Plays Spoilsport

Jun08 monthly auto sales turned out to be much worse with most of US automakers sales declining in double digit. In addition to negative macroeconomic environment of record high crude oil price, weakened housing industry, and lower consumer sentiment, supply constraint of compact fuel efficient cars at many automakers further precipitated the the sales decline. Secondary aftereffects of higher gas prices is resulting in lower resale value of pre-owned pick-ups and trucks causing restricted trade-ins for more fuel efficient vehicles. Moreover, number of selling days was three days lower in Jun08 than in Jun07, which also contributed to lower sales volume across the industry. read more…

Sandeep Mukherjee and Abdulqadir Navsariwala also contributed to this note.

No sign of market pickup: Mar08 sales plummet across all major players

US automakers reported a decline of 12% in overall sales in a market environment marked by tightened credit lending norms, higher gasoline prices, and weakened housing and construction activities cumulating in weak consumer sentiments. Not surprisingly, all the major automakers reported negative sales growth. The car segment continued to perform relatively better driven by small fuel-efficient cars with respect to truck, SUV and pickup segment, Mar08 results reflect increased consumer preferences for fuel-efficient and smaller vehicles.

Among US automakers, GM posted sales decline of 19.2%, while F reported a sales decline of 14.3%. In non-US automakers, HMC posted sales decline of 3.2% and TM reporting sales decline of 10.3%. Truck division for all the automakers reported decline in sales. Notably, Mar08 had only 26 selling days compared to 28 selling days in Mar07. The US industry recorded an estimated seasonal adjusted annual rate (SAAR) in the range of 15.2 – 15.3 M units of cars and light trucks for the period ending Mar08.
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Sandeep Mukherjee and Sneha Khatri also contributed to this note.

Profitability likely to be under pressure as truck sales continue downward slide

US automakers continued to record increased sales of fuel-efficient small and midsized cars. The month witnessed plummeting sales of SUVs, trucks and large cars as consumers continue to hold back big ticket purchases due to a weak credit environment and housing market and record high energy prices. Automakers continue to have a cautious approach and have reduced their next quarter production levels.

Among US automakers, GM posted a decline of 16.7% in sales while F reported a decline of 6.9% in vehicle sales with sharp decline in truck sales. Non-US automakers had a different story. HMC and NSANY reported sales growth along with truck sales growth while TM reported a decline in vehicle sales despite strong performance of its fuel-efficient subcompact vehicles. The US industry recorded an estimated seasonal adjusted annual rate (SAAR) in the range of 15.5 – 15.8 M units of cars and light trucks in Feb08. read more…

Himali Madye and Bhushan Khushalani also contributed to this Note

Gridstone Research consistently covers press releases filed by more than 80 Consumer Non Durables companies listed in the US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analyzed the events reported across different industries within Consumer Non Durables and found that each industry has its own undercurrent theme. The sector witnessed new product launches with added features and functionalities, instances of product recalls, efforts to enhance core businesses, market leadership, brand portfolios and investment in capacity expansion across geographies. Food and non-alcoholic companies continued their focus on wellness and nutrition products while tobacco players enhanced their focus on other tobacco products.
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Richa Mohindroo and Bhushan Khushalani also contributed to this Note

Gridstone Research [GSR] consistently covers press releases filed by more than 90 Consumer Durables companies listed in the US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analysed the events reported across different sub-industries within Consumer Durables and found that each industry has its own undercurrent theme. Overall the sector was marked by business portfolio restructuring, brand/product portfolio rationalization, new product launches, inter-company technological tie-ups and strategic alliances for capability building initiatives both in domestic and overseas markets.

This is Part III of a three part note based on study of such events leading to identified industry undercurrents which are not only relevant for the past quarter but also for the foreseeable quarters.
read more…

Richa Mohindroo and Bhushan Khushalani also contributed to this Note

Gridstone Research [GSR] consistently covers press releases filed by more than 90 Consumer Durables companies listed in the
US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analysed the events reported across different sub-industries within Consumer Durables and found that each industry has its own undercurrent theme. Overall the sector was marked by business portfolio restructuring, brand/product portfolio rationalization, new product launches, inter-company technological tie-ups and strategic alliances for capability building initiatives both in domestic and overseas markets.

This is Part II of a three part note based on study of such events leading to identified industry undercurrents which are not
only relevant for the past quarter but also for the foreseeable quarters.
read more…

Richa Mohindroo and Bhushan Khushalani also contributed to this Note

Gridstone Research [GSR] consistently covers press releases filed by more than 90 Consumer Durables companies listed in the US, tracking important developments like corporate restructuring, strategic alliance, product launch, brand / product portfolio rationalization etc. In this note we have analyzed the events reported across different sub-industries within Consumer Durables and found that each industry has its own undercurrent theme. Overall the sector was marked by business portfolio restructuring, brand/product portfolio rationalization, new product launches, inter-company technological tie-ups and strategic alliances for capability building initiatives both in domestic and overseas markets.

This is Part I of a three part note based on study of such events leading to identified industry undercurrents which are not only relevant for the past quarter but also for the foreseeable quarters.
read more…