Actions fca lead the FtseMib with gains exceeding 3% as of 11:26 on Wednesday morning, against a market growing by 1,2%. The leap forward also affects Brembo and affects the entire automotive sector. What is going on? After the penalties suffered in recent months due to the war on tariffs, it is the good news from China that has revived the sector. And, as far as FCA is concerned, there is also positive progress in the American controversy over Dieselgate.
The automotive sector is the best in all of Europe with the Eurostoxx for the sector increasing by 2,45%. In Milan Brembo salt by 3,65%, Ferrari the 2,9% Cnh Industrial by 2,97%. German cars they also benefited from the better than expected data on the trade surplus: Volkswagen rose by 2,67%, Daimler by 2,35% and BMW by 1,87%. In Paris Renault advances 1,5% while Peugeot salt by 2,32%.
Optimism on the auto sector has therefore returned after the sector was one of the hardest hit in 2018. US-China talks are underway again today, Wednesday 9 January, in which tariffs on the auto sector are one of the key points. As early as December, the Asian giant had announced its intention to put a reduction in tariffs on imported American cars on the table of negotiations with the USA (tariffs that had been set at 25%) and so from January XNUMX the duties were cut, just as a signal relaxation in view of the interviews. Auto sales in China fell for six consecutive months until last November. Now, the government has said it wants to facilitate the purchase of private cars in the country and this is a boost for the sector.
Coming then to FCA, the positive effect of the US-China détente adds up to the news coming from the United States: the plea deal with the Justice Department is approaching with regard to the accusations made by the EPA (the American Environmental Agency) for not communicating the existence of software installed in the diesel engines of 104 vehicles sold in the USA (Jeep Grand Cherokee and Dodge Ram 1500 produced in the period 2014 -16), which would have caused an increase in NOx emissions in certain situations. The agreement on Dieselgate could be announced this week, Equita analysts reported, quoted by Radiocor, and should provide for significant pecuniary sanctions and measures to compensate for excess emissions. “In our SOTP (Sum-of-the-Parts valuation) we include a one-off fine of €0,8bn.” Meanwhile, in Italy FCA Bank (50% Italy – 50% Credit Agricole), together with other car manufacturers, was sentenced by the antitrust with a fine of 178 million. "The pro-quota of FCA is worth about 6 cents per share," writes Equita.
