European Car Market Shows Signs of Volatility
The European Automobile Manufacturers Association recently reported a 3.3% decline in new car registrations in the European Union for December 2023, snapping a 16-month-long growth record. Notably, Germany witnessed a 23% plunge in registrations, while France and Spain recorded double-digit increases. For the full year, however, sales grew 13.9% to 10.5 million units, with Spain, Italy, France, and Germany experiencing significant year-over-year registration growth.
STLA’s Game-Changing Deal With SIXT
Italian-American automaker Stellantis STLA and premium mobility service provider SIXT have inked a groundbreaking deal, where SIXT will acquire up to 250,000 Stellantis vehicles for its rental fleet, forging a strategic partnership focused on advanced technologies and customer-centric approaches.
Ford’s Response to Electric Vehicle Demand
In response to slower-than-expected customer demand for electric vehicles, U.S. auto giant Ford F is planning to reduce the production of F-150 Lightning in Michigan.
Mississippi’s Trifecta: CMI, PACCAR, and ALSN
Leading engine maker Cummins CMI, commercial vehicle manufacturer Daimler Truck AG, and trucking giant PACCAR PCAR have chosen Mississippi for their battery joint venture (JV). Alongside this, truck transmission manufacturer Allison Transmission ALSN has clinched an $83.3 million contract to supply upgraded X1100 transmissions for the U.S. Army’s Abrams Main Battle Tank.
Last Week’s Top Stories
Stellantis and SIXT have entered into a significant multi-billion-euro agreement, where SIXT will buy up to 250,000 Stellantis vehicles for its rental fleet across Europe and North America by 2026. The collaboration aligns with both companies’ commitment to ambitious decarbonization strategies and customer-centric approaches, emphasizing cutting-edge technologies.
The decrease in production of the F-150 Lightning will impact 1,400 workers. Half of these workers will be transferred to the Michigan Assembly Plant, where Ford will increase the production of gasoline-powered Ford Bronco and Ranger models. Other workers will be shifted to nearby plants or are expected to avail of the Special Retirement Incentive Program per the 2023 Ford-United Auto Workers agreement.
Leading engine maker Cummins CMI, commercial vehicle manufacturer Daimler Truck AG and trucking giant PACCAR PCAR have chosen Mississippi for their battery joint venture (JV). The collaboration aims to localize battery cell production for commercial EVs. It will foster economic growth, create over 2,000 manufacturing jobs in the United States and support the adoption of electric vehicles in medium- and heavy-duty commercial transportation.
Allison secured an $83.3 million contract to supply upgraded and new X1100 transmissions for the U.S. Army’s Abrams Main Battle Tank variants and Foreign Military Sales customers. The contract involves delivering these transmissions throughout 2024, aligning with the performance demands of the Abrams tank.
The Latest Developments for Allison Transmission Holdings, Inc.
Allison Transmission Holdings, Inc. (ALSN) announced that it has secured an $83.3 million firm-fixed-price contract from the U.S. Department of Defense. The contract covers the production of transmissions and related parts to support the Abrams M1A2 tanks. This contract reinforces the company’s commitment to delivering high-quality and reliable products to meet the U.S. Army’s readiness goals and evolving warfighter demands. The deliveries under the contract are scheduled from January to December 2024, establishing a solid foundation for Allison’s longstanding relationship with the U.S. Army.
In addition, Allison ratified a new agreement with the International United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) Local 933. The four-year agreement, covering approximately 1,600 UAW-represented employees in Indianapolis, IN, signifies a collaborative effort toward employee well-being and the company’s future growth.
Price Performance in the Auto Sector
The following table portrays the price movement of major auto players over the last week and a six-month period.
Image Source: Zacks Investment Research
What’s Next in the Auto Space?
The fourth-quarter 2023 earnings season for the auto sector starts today. Watch out for the quarterly releases of EV king Tesla and auto equipment providers Autoliv and Gentex.
Ford Motor Company (F) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
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