雅虎香港財經 Auto Roundup: VWAGY & STLA's Strides Into Automated Driving Take Center Stage
Last week, the European Automobile Manufacturers Association released data on new car registrations for February 2024. The European Union (“EU”) car market rose 10% last month to 883,608 units. Registrations in key markets including Germany, Spain, France and Italy rose 5.4%, 9.9%, 13% and 12.8%, respectively, on a year-over-year basis. In the first two months of 2023, EU market vehicle registrations reached 1.7 million units, up 11.2% year over year. During the said timeframe, Germany, Italy and France recorded double-digit percentage growth of 11.8%, 11.7% and 11.2%, respectively, on a year-over-year basis. Meanwhile, registrations in Spain saw an increase of 8.7% in the first two months of the year.
On the news front, Italian-American automaker Stellantis’ STLA venture fund arm — Stellantis Ventures — made a strategic investment in SteerLight, a pioneering developer of cutting-edge Light Detection and Ranging (LiDAR) technology. Germany-based auto giant Volkswagen AG VWAGY is also expanding its strategic partnerships and expediting its development efforts in the realm of automated and autonomous driving.
Recreational vehicle (RV) maker Winnebago Industries WGO posted second-quarter fiscal 2024 results, beating both sales and EPS estimates.
Commercial-duty transmission manufacturer Allison Transmission ALSN and China-based bus manufacturer expanded their presence in Rwanda, delivering transit buses equipped with Allison Torqmatic Series transmissions to Kigali. Also, the New Orleans Regional Transit Authority (RTA) has selected Allison’s eGen Flex technology to be integrated into the U.S.-based bus manufacturer New Flyer’s electric hybrid buses.
Meanwhile, luxury carmaker Mercedes-Benz MBGAF hit the headlines owing to recall issues.
While ALSN presently sports a Zacks Rank #1 (Strong Buy), VWAGY, STLA and MBGAF currently carry a Zacks Rank #3 (Hold) each. WGO carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Last Week’s Top Stories
Allison and Yutong Bus Co., Ltd. are bolstering their presence in Rwanda by introducing city transit buses equipped with Allison Torqmatic Series transmissions. This collaboration, in place for over a decade, recently saw Kigali, Rwanda's capital, upgrade its fleet with Allison-equipped buses. The decision was influenced by the satisfactory performance of Allison transmissions in existing Yutong buses since 2014. The Allison Torqmatic Series, known for its efficiency and reliability, was chosen for its ability to meet the demands of city buses. Additionally, Allison is expanding its service network in Rwanda, enhancing its global reach and commitment to customer support.
In another update, Allison and New Flyer announced a collaboration to bring Allison eGen Flex-equipped electric hybrid buses to New Orleans RTA, offering sustainable transport solutions. The selection aims to enhance emergency preparedness with reliable rechargeable energy storage capabilities, supporting RTA's mission for safe, efficient transit. eGen Flex allows buses to operate silently and emission-free in predefined areas, reducing environmental impact. The system enables up to 50% engine-off mode, conserving fuel and minimizing noise pollution.
Winnebago reported adjusted earnings of 93 cents per share for second-quarter fiscal 2024 (ended Feb 24, 2024), beating the Zacks Consensus Estimate of 86 cents but plummeting 50.5% year over year. Revenues of $703.6 million outpaced the Zacks Consensus Estimate of $703 million. The top line, however, fell 18.8% year over year.Winnebago had cash and cash equivalents of $265.7 million as of Feb 24, 2024. Long-term debt (excluding current maturities) increased to $694.8 million from $592.4 million recorded on Aug 26, 2023. During the quarter, Winnebago completed a $350 million offering of convertible senior notes for refinancing maturing obligations due in 2025.
Winnebago also announced mid-cycle organic growth targets. It aims to generate net revenues between $4.5 billion and $5.0 billion, gross margin of 18-18.5%, and adjusted EBITDA margin in the band of 11-11.5%. The company targets to secure a North American RV market share exceeding 13% and a U.S. aluminum pontoon market share of 13% while striving for an organic non-RV revenue mix comprising 15% to 20% of total revenues. Free cash flow is anticipated to be within the range of $325 million to $375 million.
Stellantis made an investment in SteerLight, known for its LiDAR technology, distinguished by its use of silicon photonics. By combining a universal semiconductor material with the speed of photons, SteerLight's LiDAR can sense the surrounding environment in three dimensions with greater accuracy and precision than ever before. Moreover, it accomplishes this at a reduced production cost, making it more accessible for widespread adoption in the automotive industry. Stellantis' investment underscores the company’s commitment to automated driving. SteerLight's LiDAR technology aligns with STLA’s vision, promising to enable enhanced ADAS applications that can significantly improve driver safety and overall driving experience.
SteerLight’s focus on silicon photonics-based LiDAR technology represents a significant step forward in the advancement of automotive sensing systems. By leveraging Stellantis Ventures' investment and expertise, SteerLight aims to accelerate the development and deployment of its LiDAR technology, paving the way for the next generation of vehicles equipped with advanced safety features and autonomous capabilities.
Mercedes is recalling around 116,000 vehicles because of a loose 48-volt ground connection beneath the front passenger seat, which increases the risk of fire due to potential overheating. Per the National High Traffic Safety Administration (“NHTSA”) filing, Mercedes-AMG GLE53 and GLE63 from the model year 2021-2024, GLS63 from the model year 2021-2023, Mercedes-Benz GLE350 from the model year 2023-2024 and GLE450 from the model year 2020-2024 will be affected by the recall. Other vehicles that are included in the recall, according to NHTSA, are Mercedes-Benz GLE580 from model year 2020-2023, GLS450 from model year 2019-2023, GLS580 from model year 2020-2023 and the Mercedes-Maybach GLS600 from model year 2021-2023.
Last month, the automaker recalled more than 105,000 GLE and GLS vehicles due to defective transmission. In the same month, it recalled around 32,000 vehicles with defective fuses. The German automaker recently recalled another 250,000 vehicles with defective fuses. Per NHTSA, MBGAF recalled 478,175 vehicles last year in the United States. It recalled more than 23.7 million vehicles in total from all the manufacturers.
Volkswagen is deepening its partnership with Mobileyein the domain of automated driving. Through their combined efforts, both companies will introduce new automated driving features to series production. Mobileye will provide its SuperVision and Chauffeur platforms to enable partially and highly automated driving features. In the coming years, Volkswagen’s Audi, Bentley, Lamborghini and Porsche brands will utilize these technologies to integrate new premium-oriented driving features into their respective model ranges, encompassing various powertrain configurations.
Mobileye will enhance VWAGY's Level 2 driving capabilities, enabling hands-off steering while requiring driver attentiveness. The collaboration extends to Level 3 features, where driving assistance assumes control under specified conditions, relieving drivers from continuous monitoring. Mobileye's production-ready features will integrate into Volkswagen's premium software architecture, spanning Audi, Bentley, Lamborghini and Porsche vehicles.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What's Next in the Auto Space?
Industry watchers will keep a tab on auto biggies releasing first-quarter 2024 U.S. vehicle delivery data.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
Mercedes-Benz Group AG (MBGAF) : Free Stock Analysis Report
