Hyundai Motor Co – TheNewsHub

Hyundai Motor India’s shares decline in debut after record IPO

suimt — Tue, 22 Oct 2024 05:01:22 +0000

Some analysts are positive on the stock’s long-term prospects.

Hyundai Motor India Ltd shares slipped almost 6% early in their Mumbai debut, a tepid start to trading for what was the nation’s largest-ever initial public offering.
The shares traded as low as 1,844.65 rupees after they were priced at 1,960 rupees, the top of the marketed range. South Korea’s Hyundai Motor Co sold a 17.5% stake in its local unit in the IPO, seeking to benefit from the investor frenzy for share sales in India — one of the world’s most vibrant venues for listings this year.
Hyundai Motor India, the nation’s second-largest carmaker by sales, was valued at about $19 billion in the IPO. Some saw the shares as pricey, with Bloomberg Intelligence analyst Joanna Chen noting the valuation was about five times its Korean parent’s, though in line with those of Indian peers such as Maruti Suzuki India Ltd.
While the offering was eventually oversubscribed more than two times, book-building was slower than some had anticipated. Hyundai’s deal saw strong demand from institutions, which flooded in on the last day of sale. Retail investors, however, only bought about half the portion that had been reserved for them in the IPO.

Individual traders were turned off by the parent company getting all of the IPO proceeds as well as cooling demand in India’s auto industry, analysts have said. The poor retail interest stands in contrast to the frenzy seen in some recent IPOs, particularly smaller issues.
‘Long-term value’
Hyundai’s initial decline makes it an outlier given that enthusiasm for Indian share sales has generally carried over to their post-listing performance. New listings in the nation have risen by an average of 39% in their first trading day this year, according to data compiled by Bloomberg. Among IPOs of over $500 million, the average gain was 66%.
Some analysts are positive on the stock’s long-term prospects.

“Hyundai Motor India’s IPO offers potential long-term value, but it is not suited for investors seeking quick gains,” Devi Subhakesan, an analyst at Investory Pte, wrote in a note on Smartkarma ahead of the debut. “Valuation risks are expected” amid shifting consumer preferences and rising competition in India’s auto industry.
India’s emergence as the world’s fastest-growing major economy as well as its expanding middle class present an opportunity for automakers. The nation’s car market is on track to reach 20 million units by 2047, Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa said in an interview in July. A total of 4.2 million passenger vehicles were sold in India in the fiscal year ended in March, according to the Society of Indian Automobile Manufacturers.
Nomura Holdings Inc initiated coverage with a buy rating ahead of the listing, citing expectations for “healthy” volume growth and vehicle price increases. It set a price target of 2,472 rupees, implying a potential upside of about 26% over the IPO price.
With Hyundai’s proceeds, Indian IPOs have raised more than $12 billion so far this year, eclipsing volumes for the past two years but still below the record $17.8 billion raised in 2021, according to data compiled by Bloomberg. Other pending debuts include food-delivery company Swiggy Ltd. and the renewable-energy arm of state-run power producer NTPC Ltd.
Around 20 companies from Asia Pacific are listing shares this week in deals that may raise more than $8 billion, the biggest weekly volume since April 2022, according to data compiled by Bloomberg. Shares of Japan’s Tokyo Metro Co are scheduled to start trading on Wednesday after a $2.3 billion offering.

Here's what investors need to know after GM's capital markets day

suimt — Wed, 09 Oct 2024 14:58:54 +0000

The GM logo is seen on the facade of the General Motors headquarters in Detroit on March 16, 2021.

Rebecca Cook | Reuters

DETROIT — Wall Street reacted to General Motors’ investor day on Tuesday with a shrug.

Executives used the Detroit automaker’s event to focus on broad, near-term updates to the company’s operations in an attempt to separate itself from its competitors amid more challenging market and economic conditions. But it did little to move the company’s stock.

GM believes it is in a unique position to outperform the industry and Wall Street’s expectations with its all-electric vehicles and traditional internal combustion engine vehicles. The company expects to improve profits for both types of vehicles as it targets adjusted earnings next year to be similar to 2024.

“It all starts there: scale, capital efficiency and cost discipline. These will differentiate us from others in our industry, and frankly, from our own past performance,” GM CEO Mary Barra said during the roughly three-hour event from its manufacturing operations in Spring Hill, Tennessee.

GM President Mark Reuss even took jabs at its traditional crosstown rivals Ford Motor and Stellantis. Without naming them, he said GM doesn’t need a “skunkworks” team to develop affordable EVs like Ford and that cutting to profitability, like Stellantis appears to be doing, doesn’t work.

Nonetheless, investors have largely failed to reward GM for being ahead of the curve for domestic EV production as well as outperforming many automakers in the profitability of its traditional gas- and diesel-powered vehicles.

Several Wall Street analysts were unchanged in their opinion and ratings of the automaker after the event, citing continued optimism but a lack of details in its overall strategy.

Shares of GM, Ford and Stellantis in 2024

“A missed opportunity — no strategy, just tactics. GM’s investor day showcased many of the company’s current achievements, but did not provide much insight on strategy,” Bernstein analyst Daniel Roeska wrote Wednesday in an investor note.

Others such as Barclays’ Dan Levy and BofA Securities’ John Murphy said while the event lacked some details, it fortified GM’s positioning compared to competitors.

“GM’s Investor Day yesterday didn’t provide much in the way of sharp shifts in strategy. However, we believe it served as a strong reminder of GM’s balanced and pragmatic approach — a thoughtful combination of ramping on EVs alongside a keen focus on execution and cost while continuing to generate robust shareholder returns,” Levy wrote in a Wednesday investor note.

Shares of GM closed Tuesday essentially unchanged at $46.01. The stock remains up nearly 30% this year, but it has been under pressure of late due to several downgrades and price target adjustments by Wall Street analysts.

Here are several topics investors should know from the event:

“similar range” to the company’s results this year, CFO Paul Jacobson said.

Its targeted adjusted earnings before interest and taxes for 2024 were between $13 billion and $15 billion, or $9.50 and $10.50 per share, up from previous guidance of $12.5 billion to $14.5 billion, or $9 to $10 per share, earlier this year.

Through the first half of 2024, GM earned $8.3 billion in EBIT-adjusted and generated $6.4 billion in adjusted automotive free cash flow.

Jacobson said GM’s capital spend also is expected to be consistent in 2025 with this year. GM’s 2024 financial guidance includes anticipated capital spending of between $10.5 billion and $11.5 billion.

is ultimately dead.

GM will drop the “Ultium” name for its electric vehicle batteries and supporting technologies after spending years promoting the brand as it rethinks its EV and battery operations.

The company said the batteries and the technologies will remain, but the name will be gone, except in production operations such as its “Ultium Cells” joint venture plants with LG Energy Solution.

Instead, GM plans to use a variety of battery chemistries and cell designs, said Kurt Kelty, a former Tesla executive who joined GM as vice president of battery earlier this year.

“GM is evolving to a multifaceted approach,” he said. “This should only help GM strengthen our position of producing more EV models than any other automaker.”

previously announced initiative that’s expected to retire roughly 250 million shares of the automaker.

From 2022 through the end of 2024, GM will have returned about $20 billion to shareholders through share repurchases and dividends, Barra said.

The automaker is targeting to get below 1 billion outstanding shares by early 2025, Jacobson said. It has more than 1.1 billion outstanding shares as of Wednesday morning, according to FactSet.

operations in China.

GM’s operations in China have experienced a decade-long slide in earnings, and executives said they are discussing restructuring options with their China-based partners.

“In China, you’ll begin to see evidence of a turnaround this year, with a significant reduction in dealer inventory and modest improvements in sales and share,” Barra said.

Regarding Cruise, GM said its spending next year is not expected to top this year’s. It did not provide updates on its long-term plans for the troubled robotaxi business.

With GM’s investor day being two days ahead of Tesla’s highly anticipated robotaxi day, Wall Street analysts expected some sort of update on the venture, especially regarding future financing or capital spend for the company.

Hyundai Motor: When asked about GM’s announced non-binding memorandum of understanding with Hyundai, Barra said the teams “are working closely and making progress every week on what will become definitive agreements.”
Chevy Bolt: GM said its next-generation Chevrolet Bolt EV that’s expected next year will be only slightly higher than the 2023 Bolt, which started at $28,795.

PHEVs: GM reconfirmed plans to introduce plug-in hybrid electric vehicles, of PHEVs, in 2027. In the meantime, Reuss, citing single-digit market share, said GM is “not missing on anything right now without PHEVs.”

— CNBC’s Michael Bloom contributed to this report.

Ford reveals new 2025 Expedition SUV, including off-road and 'Ultimate' models

suimt — Fri, 04 Oct 2024 00:00:01 +0000

2025 Ford Expedition Platinum Ultimate

Ford

DETROIT — Ford Motor is increasing the refinement and technology of its large Expedition SUV as part of a vehicle redesign to better compete with growing competition.

The new three-row SUV features a smoother interior and exterior design, increased comfort and convenience features such as a 24-inch driver display, and the addition of the automaker’s BlueCruise hands-free highway driving system.

“We spent more than 1,100 hours talking with customers about their everyday lives. And with those insights we’ve rethought and redesigned Expedition to help customers make the most of their precious time with family and to make life easier — before, during and after every trip they make,” said Trevor Scott, general manager of Ford Utilities.

Ford declined to release pricing for the 2025 Expedition until closer to when the vehicles will arrive in dealerships in the spring. Current starting pricing ranges from $55,000 to $84,000, depending on the model. The average transaction price of current models is roughly $70,000, according to Ford.

2025 Ford Expedition Platinum Ultimate

Ford

The last time the vehicle was redesigned seven years ago, its main competition was full-size SUVs from Ford’s crosstown rival General Motors, such as the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon.

While GM’s vehicles continue to lead the segment, new competitors such as the Jeep Wagoneer from Stellantis as well as large three-row crossovers from Kia and Hyundai have also come to market.

Auto data and insights firm Edmunds.com reports three-row crossovers such as the Kia Telluride and Hyundai Palisade, which are smaller but cost less than Ford’s current Expeditions, represent the top cross-shopped vehicle segment of full-size SUVs.

Edmunds reports the mainstream full-size SUV segment that includes the Expedition has grown to represent 2.7% of the U.S. market this year, up from 2% in 2017. Segment sales totaled roughly 312,500 units through September of this year.

2025 Ford Expedition Tremor

Ford

Ford also has shifted the models for the 2025 Expedition to Active, Platinum (including an “Ultimate” version), King Ranch and Tremor. The off-road inspired Tremor is new for the Expedition but is available on other vehicles.

The Expedition will continue to be available in a standard version or longer “Max” model. It will be powered by a 3.5-liter EcoBoost V6 engine or a high-output version of the engine with 440 horsepower and 510 foot-pounds of torque.

GM reports 2.2% decrease in third-quarter sales, but EVs make gains

suimt — Tue, 01 Oct 2024 16:02:04 +0000

GM’s 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.

Michael Wayland / CNBC

DETROIT — Increases in sales of electric vehicles and small crossovers helped General Motors report slightly better-than-expected sales during the third quarter.

The Detroit automaker reported a 2.2% drop in third-quarter sales compared with a year earlier, slipping to 659,601 vehicles sold. Auto industry forecasters such as Cox Automotive and Edmunds had expected GM’s sales to be down by more than 3% during that time.

GM’s third-quarter sales are expected to be in line with the overall industry. Cox Automotive and Edmunds project third-quarter sales industrywide will be down roughly 2% compared to a year earlier.

GM’s sales were assisted by a roughly 60% year-over-year increase in EVs during the quarter, to roughly 32,100 units sold. Still, EVs made up only 4.9% of the company’s total third-quarter sales.

GM forecasts its market share was 9.5% of the U.S. EV market, up 3 percentage points from the first quarter of this year.

While GM has withdrawn most of its previously announced electric vehicle targets, the automaker believes its EV sales momentum is finally building thanks to an expanding lineup of all-electric vehicles — spanning a price range of roughly $35,000 to more than $300,000.

“We are definitely outstripping the industry in terms of growth, in terms of EVs,” Rory Harvey, GM president of global markets, including North America, told CNBC last month. “We have the most comprehensive EV lineup out of any manufacturer in the industry, in the U.S., at the moment.”

GM’s EV sales were led by the Cadillac Lyriq crossover at roughly 7,224 units sold during the quarter, followed by the Hummer EV pickup and SUV at 4,305 units.

Sales of small, gas-powered crossovers such as the Chevrolet Trax and Buick Envista and Envision also experienced notable increases compared with a year earlier, GM reported.

GM’s total 2024 sales of 1.95 million vehicles through the third quarter were down 1% compared with the first nine months of 2023.

An unknown outlier in the third quarter is how much of an effect Hurricane Helene had on vehicle sales in the South, since it hit the U.S. in late September. It’s also unclear how much a strike at U.S. East Coast and Gulf Coast ports will impact sales during the fourth quarter.

GM is one of several automakers to report its third-quarter or September sales on Tuesday. Here are other reported U.S. sales compared with the third quarter of 2023:

The Hyundai brand reported total sales of 210,971 units, a 5% increase over the third quarter of 2023 and the second best third-quarter in the company’s history. Hyundai’s Genesis luxury brand reported its best-ever third quarter of 20,117 units, up roughly 4% from a year earlier.
Toyota Motor reported an 8% decrease in third-quarter sales, including a 20.3% decrease in September.
Nissan reported a sales decline of 2.2% to 212,068 vehicles sold during the third quarter.