Detroit Free Press: Can Detroit 3 build a cult following and drive up auto stocks?

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Ken Elias, Partner at MK&A, was quoted in the Detroit Free Press on challenges with Ford. Ken is quoted “You’ve just not seen where the future for Ford is,” he said. “People just aren’t seeing it.”

The article can be read by clicking the link below:

http://www.freep.com/story/money/personal-finance/susan-tompor/2017/05/22/detroit-tesla-race-car-stocks/330317001/
*Photo Credit: Forbes.

Maryann Keller joins John Murphy (Bank of America Merrill Lynch) and Kevin Tynan (Bloomberg Intelligence) on Autoline.

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“The Wall Street Auto Analysts” Synopsis:
From the floor of the New York International Auto Show, John McElroy of Autoline interviews three Wall Street analysts whose job it is to keep an eye on what’s going on with the automotive landscape. We’ll see where they think the industry is headed and how soon autonomous vehicles may be driving off dealer lots.

To watch this episode, visit Autoline’s website:
http://www.autoline.tv/show/2117

Maryann Keller, MK&A; John Murphy, Bank of America Merrill Lynch; Kevin Tynan, Bloomberg Intelligence. Topic: Wall Street Auto Analysis.

Bloomberg: GM Joins Ford Worrying About Declining Used-Car Prices

Maryann Keller, Principal of MK&A, was quoted in Bloomberg on warnings from GM that used car price drops will cause losses for it’s captive finance unit. Maryann is quoted “Leasing became the flavor of the month…This is a consequence of the behavior we’ve seen.”

The article can be read by clicking the link below:

https://www.bloomberg.com/news/articles/2017-04-06/gm-joins-chorus-warning-used-car-prices-to-fall-on-supply-glut

*Photo Credit: Bloomberg.

Chicago Tribune: Would you buy a new car online? Lynk & Co is betting on it.

Maryann Keller, Principal of MK&A, was quoted in the Chicago Tribune on Lynk & Co’s effort to enter the U.S. market. Maryann is quoted “They would be able to be up and running across the country faster, and they would do it without having to put their own capital to work. They can set whatever standards (for dealers) they want.”

The article can be read by clicking the link below:

http://www.chicagotribune.com/classified/automotive/sc-lynk-car-company-autocover-0330-story.html

 

*Photo Credit: Chicago Tribune.

Bloomberg: Einhorn Was Rejected by GM, But Revealed Barra’s Big Problem.

Maryann Keller, Principal of MK&A, was quoted in Bloomberg on the suggestion by billionaire David Einhorn that GM split its stock into two classes: “Everyone else who GM competes with, like Toyota or Volkswagen, doesn’t deal with this. Einhorn’s idea to introduce a class of dividend shares doesn’t make sense.”

The article can be read by clicking the link below:

https://www.bloomberg.com/news/articles/2017-03-28/einhorn-urges-gm-share-split-sees-up-to-38-billion-value-boost

 

*Photo Credit: Bloomberg.

Maryann Keller to Keynote CU Direct’s DRIVE ’17

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Maryann Keller, Principal of Maryann Keller & Associates, was selected as a keynote speaker at CU Direct’s DRIVE ’17 Conference.

DRIVE ’17 is the premier credit union conference to help credit union leaders, lending executives and managers achieve better results in lending performance with the knowledge and insight from industry disruptors. CU Direct, the nation’s second largest originator of auto loans, will host DRIVE ’17 from May 23 – 25, 2017 at The Cosmopolitan in Las Vegas.

 

Maryann’s keynote topic will occur on May 25, from 1:30pm to 2:30pm PST; she will discuss “The Next 3 Years of Automotive Retail:”

Although the past few years were favorable for dealers and lenders, the next three will bring change in some ways. As new vehicle sales plateau and even decline in years ahead, dealers will see further pressure on new car profit margins as they remain squeezed between manufacturer and the increasingly-competitive market environment.  To augment falling new car profit margins, smart dealers will seek new and improved pathways to profitability.  Among them will be greater sales efficiencies, such as Sonic’s One initiative, which aims to allow seamless online transactions.  This may eliminate, in part, the traditional finance office that permits manager discretion as to where to place deals for approval and funding.  Second, back-end F&I grosses will be further emphasized – with dealers naturally sending new car paper to their favored lenders…for a price of course.  Third, used car sales will serve as more important profit center for dealers – with CPO sales at franchised dealers further accelerating in light of expected manufacturer incentives and rate subvention from captive finance lenders.

How will some of these changes affect auto lending?

  • Auto lenders must improve the speed of their operations. Ranging from auto-approvals to quicker funding, lenders must improve the speed of their frontend and backend transactions.
  • Auto lenders must embrace technology (and transparency). In-dealership e-commerce platforms and mobile apps will become more common, and lenders must provide compatible technology and solutions to assist their dealer partners. The role of lender-based automotive shopping sites, and data-based direct marketing initiatives, will bring change to the auto shopper funnel and related lender loyalty. Transparency in auto lending will only grow (and be expected).
  • Auto lenders must create programs to prepare for record supply. Captives will be more active in used cars; with subvented programs for CPO cars that will control residual values but steer away business from non-captive lenders. Non-captive lenders will experiment with used car leasing, extended loan terms, and dealer incentives. The quality of lender’s portfolios will change rapidly, as lenders adjust their risk appetite based on a variety of dynamic criteria.

 

To learn more about DRIVE ’17, please visit CU Direct’s website.

Bloomberg: Peugeot Bargains Over GM’s $9 Billion Pension Gap in Europe

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Maryann Keller, Principal of MK&A, was quoted in Bloomberg on the potential sale of GM’s Opel unit to PSA Group (Peugeot’s owner): “If PSA is going to take responsibility for job loss and consolidation costs, then it makes sense for GM,” Keller said.

The article can be read by clicking the link below:

https://www.bloomberg.com/news/articles/2017-02-22/gm-psa-said-haggling-over-9-billion-pension-gap-in-sale-talks

*Photo Credit: Bloomberg.

CNET: Is Acura’s NSX hybrid supercar struggling amid slow early sales?

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Ken Elias, Partner of MK&A, was quoted in CNET on Acura’s reintroduction of the NSX model: “The simple fact is that the exotic space has gotten crowded… with lots of choices from a variety of manufacturers. Back in the early 1990s, the NSX was somewhat more unique… and the Acura brand was on the upswing.”

The article can be read by clicking the link below:

https://www.cnet.com/roadshow/news/acuras-nsx-hybrid-supercar-struggling-amidst-slow-early-sales/

*Photo Credit: CNET.

Bloomberg: A Rising Tide of Used Cars Threatens Ford’s Profits; ‘Ford is the canary in the coal mine’

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Maryann Keller, Principal of MK&A, was quoted in Bloomberg on Ford’s change to its profit forecast: “Ford is the canary in the coal mine,” said Maryann Keller, a former Wall Street analyst who’s now an auto industry consultant in Stamford, Connecticut…“That’s just the game they play,” Keller said. “It’s deferring the loss, but those losses are now coming home to roost.”

The article can be read by clicking the link below:

https://www.bloomberg.com/news/articles/2017-01-23/ford-seen-as-canary-with-record-leases-spurring-used-car-glut

*Photo Credit: Bloomberg / J.D. Power.

Bloomberg: Toyota Built 6.6% of North American Vehicles in Mexico Last Year

Maryann Keller, Principal of MK&A, was quoted in Bloomberg on Toyota’s North American vehicle production: “What Toyota builds in Mexico and ships here is de minimis,” said Maryann Keller, an independent auto industry consultant in Stamford, Connecticut. “Even with their plans to make it bigger, the vast amount of their non-Japanese production is located here in the U.S. and in Canada already.”

The article can be read by clicking the link below:

https://www.bloomberg.com/news/articles/2017-01-19/toyota-built-6-6-of-north-american-vehicles-in-mexico-last-year

 

*Photo Credit: Associated Press.