Daily Archives: January 30, 2015

Carmakers: opportunities for a recovery

Carmarkers' brands

Carmakers are one of most damaged industry in the current economic crisis. The drop of consumption, the high oil prices and the cut in the credit flows hit the branch severely. The figures from the International Organization of Motor Vehicle Manufacturers (OICA) show the trends: Europe and North America have fewer sales now than before the crisis. However, global figures are higher, because China multiplied 4.5 times the sales in 2013 compared with 2005.

China is the promising market for carmakers, as US, Western Europe and Japan have a low recovery. India does not have the expected development for this branch, although the current government is more opened for business.

If we collect the figures from the four largest carmakers, the results are as follow:

Toyota figures in T-Advisor

The largest carmaker, the Japanese Toyota, increased the revenues 16.4%, till ¥25,7 billion, in fiscal year 2014. Net income almost doubled, till ¥1,8 billion, in the same period.

Volkswagen figures in T-Advisor

The German carmaker improved the revenues 2.2% in 2013, till €197 billion. Net profit dropped a 58.2%, till €9.1 billion.

General Motors figures in T-Advisor

Revenues from the American carmaker increase 2%, till $155.4 billion, in 2013. Net income fell 22.4%, till $3.8 billion.

Carmakers: Renault figures in T-Advisor

Renault, the French carmaker joined with the Japanese Nissan, earned just a 0.5% more in 2013. The revenues reached €40.9 billion. Net income, however, dropped a 59%, till €700 million.

The comparison in the main data made by T-Advisor has the following results:

Performance

YTD

Volatility

YTD

Score

Liquidity

VaR

1 week

Toyota

3.53%

11.61%

9.74

10

-6.82%

Volkswagen

10.58%

24.07 %

7.33

9

-4.86%

General Motors

-5.93%

22.08%

7.17

9

-9.20%

Renault

12.59%

32.85%

8.48

10

-6.88%

Investors show interesting opportunities in European carmakers, as the current performance in 2015 is high. However, the best T-Advisor score belongs to Toyota, which is also the least volatile stock. The worst is General Motors, with the lower performance and score and shows a very high VaR.