CarMax Shares Plunge 25% as Earnings Slide with Used Car Sales Fall of 6.4%

Used car retailer CarMax reported weaker-than-expected second quarter earnings which sent a message across the whole car industry of a weakening used car market. Both retail and wholesale units sold tumbled yr/yr were way below forecasts. $KMX stock lost around one quarter of its value today on the result.  No doubt higher interest rates and other macroeconomic headwinds, such as high inflation have hit the car industry with force. With that other auto retailers fell today including Carvana (CVNA -21%), AutoNation (AN -10%) … Continue reading “CarMax Shares Plunge 25% as Earnings Slide with Used Car Sales Fall of 6.4%”

Auto Makers Crushed By Supply Delays Hitting Production and Orders

Auto makers and parts makers experienced a steepening production decline in September with the sharpest drop in output since May of last year IHS Markit’s PMI surveys showed. Supply delays, which rose to unprecedented levels in September.

Ford Motor Plan to Build $11.4 Billion EV Facilities in Tennessee and Kentucky

Ford Motor announced plans for a massive $11.4 bln investment in electric vehicle production. The deal is part of Ford’s over $30 billion investment plan in EVs through 2025, the campuses will help $F achieve its goal of EV production reaching 40-50% of the total by 2030

Chipmaker Taiwan Semiconductor Dominating Automaker Price Negotiation Pressures Inflation Risk

The global semiconductor chip shortage, the result of lower production from COVID restrictions and increased demand due to Work From Anywhere (WFA). Then we have a delay in Intel’s chips. This has put the Taiwanese Semi giants in a powerful position for upcoming negotiations with automakers. 

Auto and Truck Sales Impact on The American Economy

Auto and auto parts companies impact U.S. economic growth which is a debt led consumer economy. With spiralling auto debt it affects the whole finance pyramid. The U.S. auto industry helps drive industrial production, service and finance industries and insight into consumer trends.