Published on 16 Aug 2022 on Zacks via Yahoo Finance

Auto Roundup: HMC Quarterly Results, LOTZ-SFT Merger Plans & More

China Association of Automobile Manufacturers (CAAM) released vehicle sales data for July. Vehicle sales in China rose 29.7% year over year to 2.42 million units, extending June’s recovery on the back of relaxation of COVID-induced curbs as well as stimulus packages offered by the government in an effort to revive the market. The volumes, however, declined slightly from 2.5 million units sold in June owing to heat waves, which slowed production pace and hampered buyers’ visits to dealerships. Per CAAM, sales in the first seven months of 2022 contracted 2% year on year to 14.47 million units. In contrast, sales of new energy vehicles (NEVs) jumped around 115% year over year to 3.194,000 units in the January-June timeframe. Sales of NEVs surged 117% to 593,000 units in July.

Japan’s auto giant Honda HMC unveiled its quarterly results, wherein earnings missed estimates but revenues topped expectations. Encouragingly, the company lifted its sales and profit projections. While the fiscal 2023 operating profit projection still implies a decline on a yearly basis, it has been revised upward from 810 billion yen to 830 billion yen. Auto equipment provider Westport Fuel Systems WPRT incurred a loss in the second quarter of 2022 amid supply chain snafus and commodity cost inflation.

Meanwhile, U.S. legacy automaker Ford F reopened the order book for its much-celebrated all-electric F-150 truck but consumers will have to shell out more for the possession of the same. In view of rising prices of raw materials, the company hiked the prices of the electric truck across all trim levels.