Latest news with #autoindustry
Yahoo
3 days ago
- Business
- Yahoo
Japan Q1 capital spending hits record but some export sectors weak
By Makiko Yamazaki TOKYO (Reuters) -Investment by Japanese companies in plants and equipment surged to a record in the first quarter led by industries focused on domestic demand, but key export sectors reduced spending in a sign that U.S. tariffs are undermining business confidence. Capital spending in January-March grew 6.4% to 18.8 trillion yen ($130 billion), according to finance ministry data on Monday. The previous record had been set in 2007. But business investment has been patchy, dipping 0.2% in the previous quarter to mark the first fall in nearly four years. On a seasonally adjusted basis, capital spending rose 1.6% during the quarter. "Capital expenditure has been driven by those sectors benefiting from strong domestic sales thanks to price hikes or inbound tourism such as hotel construction," said Takeshi Minami, chief economist at Norinchukin Research Institute. Spending for the food sector climbed 13% while the real estate sector increased spending by 11%. Tellingly, however, spending by the auto sector fell 1.4% and spending by makers of factory equipment dropped 4.1%. "After Trump's election victory in November, the tariff threat has turned some of those companies cautious about fresh investment," Minami said. The data is unlikely to have a significant impact on revised gross domestic product figures due on June 9, he added. Preliminary GDP data last month showed Japan's economy shrank by an annualised 0.7% in the first quarter, contracting for the first time in a year due to stagnant consumer spending and falling exports. Capital expenditure, a key gauge of domestic demand-led economic growth, has been generally strong in recent years as companies spent on information technology to offset a chronic labour crunch arising from the country's fast-ageing population. The brisk spending has been backed by rising corporate profits. Monday's data showed corporate sales rose 4.3% in the first quarter from a year earlier, and recurring profits increased 3.8%. U.S. tariffs, however, threaten car makers and other export-oriented Japanese firms which form the backbone of the economy. Trump imposed 10% tariffs on most imports into the United States and has also imposed 25% levies on cars, steel and aluminium. Japan also faces a 24% tariff rate starting in July unless it can negotiate a deal with Trump. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were take effect, U.S.-bound exports will fall by up to 6 trillion yen a year, squeezing corporate profits by up to 25%. That would slow wage growth at manufacturers to 2-2.4% in 2026 from an increase of around 3% currently, the institute said in a report last week. That would in turn weaken the Bank of Japan's working assumption that sustained wage gains will spur domestic demand and justify raising interest rates further. ($1 = 143.68 yen)
CNA
3 days ago
- Business
- CNA
Japan Q1 capital spending hits record but some export sectors weak
TOKYO :Investment by Japanese companies in plants and equipment surged to a record in the first quarter led by industries focused on domestic demand, but key export sectors reduced spending in a sign that U.S. tariffs are undermining business confidence. Capital spending in January-March grew 6.4 per cent to 18.8 trillion yen ($130 billion), according to finance ministry data on Monday. The previous record had been set in 2007. But business investment has been patchy, dipping 0.2 per cent in the previous quarter to mark the first fall in nearly four years. On a seasonally adjusted basis, capital spending rose 1.6 per cent during the quarter. "Capital expenditure has been driven by those sectors benefiting from strong domestic sales thanks to price hikes or inbound tourism such as hotel construction," said Takeshi Minami, chief economist at Norinchukin Research Institute. Spending for the food sector climbed 13 per cent while the real estate sector increased spending by 11 per cent. Tellingly, however, spending by the auto sector fell 1.4 per cent and spending by makers of factory equipment dropped 4.1 per cent. "After Trump's election victory in November, the tariff threat has turned some of those companies cautious about fresh investment," Minami said. The data is unlikely to have a significant impact on revised gross domestic product figures due on June 9, he added. Preliminary GDP data last month showed Japan's economy shrank by an annualised 0.7 per cent in the first quarter, contracting for the first time in a year due to stagnant consumer spending and falling exports. Capital expenditure, a key gauge of domestic demand-led economic growth, has been generally strong in recent years as companies spent on information technology to offset a chronic labour crunch arising from the country's fast-ageing population. The brisk spending has been backed by rising corporate profits. Monday's data showed corporate sales rose 4.3 per cent in the first quarter from a year earlier, and recurring profits increased 3.8 per cent. U.S. tariffs, however, threaten car makers and other export-oriented Japanese firms which form the backbone of the economy. Trump imposed 10 per cent tariffs on most imports into the United States and has also imposed 25 per cent levies on cars, steel and aluminium. Japan also faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with Trump. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were take effect, U.S.-bound exports will fall by up to 6 trillion yen a year, squeezing corporate profits by up to 25 per cent. That would slow wage growth at manufacturers to 2-2.4 per cent in 2026 from an increase of around 3 per cent currently, the institute said in a report last week. That would in turn weaken the Bank of Japan's working assumption that sustained wage gains will spur domestic demand and justify raising interest rates further. ($1 = 143.68 yen)
Associated Press
3 days ago
- Automotive
- Associated Press
Kelly Buick GMC receives 25 Year Dealer Award for GMC
LEHIGH VALLEY, Pa., June 1, 2025 (SEND2PRESS NEWSWIRE) — The Kelly Auto Group is proud to announce that they recently received the 25-Year Dealer Award for GMC for their Buick/GMC dealership in Emmaus. Kelly has had the Buick franchise since 1982 and added GMC in 2000. 'We have been honored to be the premier Buick dealer in the Greater Lehigh Valley for over 40 years, and we were thrilled to add GMC 25 years ago,' said Greg Kelly, the President of the Kelly Auto Group. 'That successful longevity comes from the dedication of our team members to deliver an outstanding experience selling and servicing these exceptional vehicles.' As the Kelly Auto Group continues to grow, these awards serve as a powerful reminder of the company's mission: to deliver exceptional automotive experiences, driven by integrity and a relentless pursuit of excellence. For more information about Kelly Auto Group and its award-winning dealerships, visit: MULTIMEDIA: PHOTO LINK for media: Photo Caption: Kelly Buick GMC Receives 25 Year Dealer Award for GMC. NEWS SOURCE: Kelly Auto Group Keywords: Auto Dealer News, Buick GMC dealership in Emmaus PA, Kelly Auto Group, 25-Year Dealer Award for GMC, LEHIGH VALLEY, Pa. This press release was issued on behalf of the news source (Kelly Auto Group) who is solely responsibile for its accuracy, by Send2Press® Newswire. Information is believed accurate but not guaranteed. Story ID: S2P126641 APNF0325A To view the original version, visit: © 2025 Send2Press® Newswire, a press release distribution service, Calif., USA. RIGHTS GRANTED FOR REPRODUCTION IN WHOLE OR IN PART BY ANY LEGITIMATE MEDIA OUTLET - SUCH AS NEWSPAPER, BROADCAST OR TRADE PERIODICAL. MAY NOT BE USED ON ANY NON-MEDIA WEBSITE PROMOTING PR OR MARKETING SERVICES OR CONTENT DEVELOPMENT. Disclaimer: This press release content was not created by nor issued by the Associated Press (AP). Content below is unrelated to this news story.
Yahoo
5 days ago
- Business
- Yahoo
CCC Intelligent Solutions Holdings Inc. (CCCS): A Bull Case Theory
We came across a bullish thesis on CCC Intelligent Solutions Holdings Inc. (CCCS) on R. Dennis's Substack. In this article, we will summarize the bulls' thesis on CCCS. CCC Intelligent Solutions Holdings Inc. (CCCS)'s share was trading at $8.47 as of 23rd May. CCCS's trailing and forward P/E were 847 and 20.66 respectively according to Yahoo Finance. Highlighting the company's sector and industry, a technician working on a complex SaaS in a technology lab. CCC Intelligent Solutions Holdings Inc. (CCCS) demonstrates solid financial health with consistent revenue growth and strong free cash flow, supported by its asset-light SaaS business model. Capital expenditures remain modest relative to revenue, focusing on technology infrastructure and software development, essential for sustaining innovation and growth. The company's free cash flow has shown a steady increase, providing financial flexibility for investments, debt management, and shareholder returns. While GAAP profitability has been volatile due to non-cash charges and impairments, adjusted profitability metrics highlight the company's underlying operational strength. Leverage levels are moderate but warrant monitoring given recent acquisitions and share repurchases. CCCS benefits from a dominant market position in North American auto physical damage claims technology, backed by a robust multi-sided network, high customer retention, and extensive proprietary data fueling AI innovation. The strategic acquisition of EvolutionIQ diversifies its product offerings into casualty claims, expanding growth opportunities. Management emphasizes navigating current macroeconomic headwinds, including declining claim volumes, while focusing on operational efficiency and AI-driven solutions to maintain competitive advantage. Valuation metrics indicate a reasonable market pricing with a projected 10-12% five-year internal rate of return based on discounted cash flow analysis. Risks include competition, integration challenges, cybersecurity, and regulatory changes, but the company's strong market leadership, recurring revenue model, and continuous investment in AI position it well for long-term growth. Overall, CCCS's outlook is positive, driven by ongoing digitization in the insurance industry, expanding AI capabilities, and growth in adjacent markets, despite near-term uncertainties from economic and industry-specific factors. For a deeper look into another technology stock, be sure to check out our article on Salesforce, Inc. (CRM), wherein we summarized a bullish thesis by Quality Equities on Substack. CCC Intelligent Solutions Holdings Inc. (CCCS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held CCCS at the end of the first quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of CCCS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CCCS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Auto Blog
6 days ago
- Automotive
- Auto Blog
How Tariffs Are Making Trucks Like the Ford Maverick Pricier
Thanks to rising tariffs on foreign auto parts, even budget-friendly models like the Ford Maverick and Subaru Forester are transforming from practical pickups into premium purchases. Why the Ford Maverick Now Costs Over $8K More Than Last Year That 'Buy American' sticker? It's costing you more than patriotism. The scene: You're eyeing a Ford Maverick, imagining weekend road trips, when the dealer slides over a quote. The price? $8,641 higher than last year's model. Suddenly, your practical truck feels like a fiscal hostage. Welcome to the era where tariffs transform workhorses into white elephants—and Washington's trade wars roll up in your driveway. Trump's Auto Part Tariffs: A $42 Billion Burden for Buyers Let's cut through the exhaust fumes. Trump's 25% tariffs on Chinese auto parts aren't just policy—they're a masterclass in economic jiujitsu. That Subaru Forester Hybrid you've been eyeing? Its price tag ballooned by $4,000 overnight, not because of inflation, but geopolitical theater. Detroit's Big Three will pocket $42 billion in tariff costs by 2025, but here's the kicker: You're funding 90% of it through padded MSRPs. This is gaslighting with a V8 engine. 2025 Subaru Forester Hybrid — Source: Subaru How 'American-Made' Trucks Use Global Parts to Dodge Tariffs Ford's F-150—that titan of truck commercials—runs on a Mexican alternator, Canadian half-shafts, and Korean tires. Only 32% of its components are U.S.-sourced, yet it sidesteps tariffs via NAFTA's 'substantial transformation' loopholes. Translation: Assemble a global parts bin in Michigan, slap on a Stars-and-Stripes decal, and charge a $2,055 'market adjustment' because freedom isn't free. Meanwhile, GM's Texas-built Escalade sources aluminum tied to Xinjiang's Uyghur forced labor camps. Your armrest? A $100K tribute to oppression and corporate amnesia. 2024 Ford F-150 XLT — Source: Ford Why Car Dealers Profit Most From Your Patriotic Purchases Meet the real winners: dealerships. When Ram's 'Born in Michigan' ads play, they omit that heavy-duty models roll off Saltillo, Mexico lines—a plant churning out 250,000 units annually. Yet dealers markup these trucks by $1,150 overnight, exploiting your red-white-and-blue reflex. It's not supply and demand. This is psychological warfare with a 72-month financing plan. Are EVs the Answer to Rising Truck and SUV Prices? Amidst the markup madness, here's your lifeline: Go electric. While GM axed the $30K Chevy Bolt to focus on luxury behemoths, Tesla's Model Y persists as a tariff-proof anomaly. Its battery? 50% cheaper per kWh than 2019, with no hidden 'patriotism tax.' Hyundai's Ioniq 5 offers 303-mile range and wireless CarPlay—a tech suite that laughs at Detroit's dated infotainment. Pro tip: Lease. Let the tariffs depreciate on someone else's driveway. Should Tariffs Be Listed on Car Stickers? Tariffs are the new dealer add-ons—unavoidable, infuriating, and dressed in patriotic veneer. Every overpriced SUV is a referendum on what we value. Do we bankroll boardroom greed masked as nationalism? Or demand transparency with our wallets? Amazon was on the money, no pun intended, with wanting to put the 'tariff burden' on the receipt. What about the true value of those tariffs on the sticker price? Your move, America. That extra 8 grand on your F-150 has a cause. 2024 Ford F-150 STX
