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Home / Tag Archives: Cars, Trucks & Crashes

Tag Archives: Cars, Trucks & Crashes

Subprime Auto Loans Blow Up, Delinquencies at 2009 Level, Biggest 12-Month Surge Since 2010

But these are the good times. Automakers are not amused. The auto industry depends on subprime-rated customers that make up over 21% of total loan originations. Without these customers, the wheels would come off the industry. And tightening up lending standards to reduce risks would cause serious damage to the undercarriage. Subprime lending is very profitable – until the loans blow up – because interest rates can be high. But those subprime auto loans are blowing up at rates not seen...

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Why Have Global Semiconductor Sales Plunged & Gotten Stuck at These Levels for 5 Months Now?

Today’s scenario is very unlike the plunge during the Financial Crisis, which blew over in no time. This is an edited transcript from my interview with “This Week in Money” by HoweStreet.com. You can listen to it here. Semiconductor sales have plunged about 22% from the peak last October. That peak was the end of a long spike that started in 2017. When you look at the chart, you see the surge in semiconductor sales that lasted for a year and a half. And then it’s just a straight line...

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How Can a Company Lose $5.2 Billion on $3.2 Billion in Revenue? Uber Shows How

And rideshare revenue is stagnating. Uber’s losses have been legendary for years, ever since they were being leaked to the public while it was still a privately held company. But this takes the cake. Uber reported this evening that it had lost $5.24 billion in the quarter through June 30. The thing is, Uber reported revenues of only $3.2 billion. In other words, its net loss exceeded revenue by $2 billion. That takes some doing. Its $5.24 billion loss came on top of its $878 million...

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World Trade in Face of Tariffmageddon, Trade Wars & Manufacturing Slowdown

Consumers and companies keep plugging, the world has not come to an end. World trade volume – imports and exports of merchandise across the globe – increased 0.3% in May from April, after falling 0.6% in the prior month, according to the Merchandise World Trade Monitor, released today by CPB Netherlands Bureau for Economic Policy Analysis. On a year-over-year basis, the index fell 0.4%. And it is down 2.1% from the peak in October 2018. This isn’t exactly stellar, compared to 2017 and...

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I Got it, Nothing Matters. Tesla, Boeing, Other Stocks: It’s Like the Whole Market Has Gone Nuts

Story stocks, momentum stocks, hyperventilation stocks, consensual hallucination stocks, financial engineering stocks: anything but reality. You see, Tesla is different. It just reported another doozie, a loss of $408 million in the second quarter, after its $702 million loss in the first quarter, for a total loss in the first half of $1.1 billion. In its 14-year history, it has never generated an annual profit. It has real and popular products and surging sales, but it subsidizes...

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Californians Sour on Tesla Model S and Model X

In their most important market, the plunge in registrations far outpaced their already stunning global decline. Which opens a whole new question. The Model S and the Model X are Tesla’s high-dollar high-margin vehicles. Some versions clock in at over $100,000. Sales of them have been declining globally ever since the Model 3 showed up in quantity. But in the second quarter, registrations in California of the Model X plunged by 40% compared to a year ago. And registrations of the Model...

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My Advice to the Fed on “Low Inflation”: Use a Different Index for Crying Out Loud and Tell the Government to be Less Aggressive with “Hedonic Quality Adjustments”

The Fed could instantly claim victory and pocket the kudos. For the first time in history, the Fed is officially and vocally considering the use of monetary policy to increase inflation, or at least inflation expectations. On Friday, it was the turn of Chicago Fed President Charles Evans to drill this message into the minds of recalcitrant consumers and workers, whose fruits of their labor get eaten up by inflation: “Because inflation expectations seem to be below our 2% objective and...

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China Auto Sales Spiral Down, But This Time It’s Different: Government Refuses to Bail Them Out with Big-Fat Incentives

Here’s why. The strategy is a game changer with global impact. Geely, China’s largest domestic automaker, disclosed that deliveries plunged 29% in June compared to a year ago, and that they’re down 15% in the first half. And it slashed by another 10% its already lowered forecast for deliveries for the whole year. This type of disclosure is now a regular feature of China’s dramatic auto slowdown. New-vehicle sales in China dropped 9.4% in June, compared to a year ago, to 2.06 million...

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India’s Vehicle Sales Plunge as Shadow Banks Topple: Clamoring for Government Bailouts amid Contagion from the Debt Crisis

“Probably the most prolonged de-growth phase we have seen.” Car sales in India, the fifth-largest auto market in the world, plunged 24% in June, compared to June last year, after they’d already plunged 26% in May, the Society of Indian Automobile Manufacturers reported. Year-over-year declines have been dragging on for nearly a year. Sales of “goods carriers,” which are seen as an indication of economic momentum, dropped 18% from a year ago. Goods carriers include vehicles such as...

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New-Vehicle Sales Fall to 1999 Levels: How to Grow Revenues After 20 Years of Stagnation (Yup, You Guessed It)

Carmageddon for cars. But big equipment is hot and gets pricier. Ford waited until today to report its second-quarter new-vehicle deliveries in the US. So now we know what happened to total US auto sales in the second quarter and in the first half this year, and it wasn’t pretty. New-vehicle deliveries, fleet and retail combined, fell 1.5% in Q2 compared to Q2 last year, to 4.5 million vehicles; and in the first half fell by 2.4% to 8.4 million vehicles. This puts new vehicle sales on...

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