Bernstein: Germans disrupt $TSLA, $TSLA too slow to fight back

Mission-e

Bernstein Research is one of the few analysts that truly know the car industry. They don’t just dissect balance sheets, they take whole cars apart to find competitive (dis)advantages. Bernstein thinks that the G3, Volkswagen, BMW, and Daimler, are about to roll over Tesla, and that supposedly quick-footed Tesla is too slow to do anything about it. [Continue Reading]

FCA Feels The Crunch

Stuck in neutral... (courtesy: Bernstein Research)

Stuck in neutral… (courtesy: Bernstein Research)

Ever since Sergio Marchionne offered the auto bailout team a home for a bailed-out Chrysler, his Italo-American hodgepodge has been held together with bootpolish, high hopes and strong demand for trucks and SUVs. Had the Jeep and Ram brands been spun off to any other automaker, the Fiat, Chrysler and Dodge brands would almost have certainly ended up in a bankruptcy sale. Instead the House of Chrysler’s two perennial profit centers have found themselves stuck propping up failing mass market brands, just as they were under Cerberus and Daimler-Chrysler management. In the meantime, Chrysler’s cross-town rivals have improved their cars enough to push their truck-powered profit margins towards the 10% level in North America.  But despite strong growth in sales growth, volume and mix, FCA’s North American margins are “bizarrely low” according to research by Bernstein. And their research shows that the bootpolish is really starting to wear thin…

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