On Tuesday, during the peak of the Harvey-related flooding, we reported that the hurricane may leave a greater trail of automobile destruction than even Katrina, the most expensive natural disaster in US history. In August 2005, Katrina wiped out some 500,000-600,000 vehicles but William Armstrong of CL King warned that Houston has about 5x more people than New Orleans did at the time.
Last week AutomotiveNews reported rumors that at least one Chinese automaker had made a bid for Fiat Chrysler (FCA) at a slight premium to the company's prevailing market price though it was reported rejected. While it's unclear whether an official bid was made, this morning Reuters is confirming that China's Great Wall Motor Company has expressed interest in acquiring FCA, sending the company's shares to a new 52-week high.
After learning over the weekend that Trump plans to call for an investigation into China over allegations that the nation violated U.S. intellectual property rights and forced technology transfers, we learn that several Chinese companies may have submitted bids for Fiat Chrysler (FCA) in a deal that would include the company's iconic Jeep brand. According to AutomotiveNews, at least one Chinese automaker made a bid earlier this month for FCA at a slight premium to the company's prevailing market price but it was rejected for being too low.
It was hard to find a bright spot for auto investors in July's auto sales figures released earlier today with GM down 15% YoY, Ford off 7% and Chrysler down 11%.
The companies blamed the drops on lower fleet sales but GM’s retail sales also fell 14.4% from July 2016. Meanwhile, Ford and Fiat Chrysler retail sales had single-digit declines, and their fleet sales fell 26% and 35%, respectively.
Here's a recap of how each of the largest OEM's made out in July:
GM: