From The Driver's Seat At Detroit's NAIAS: Ford And Toyota Steal Day One's Spotlight
Sunday marked the start of the 2017 North American International Auto Show here in Detroit. Nick Donato, one of Benzinga's own news desk analysts, was on the floor for the first press day of the show.
Donato stopped in on Tuesday's episode of the PreMarket Prep morning show to discuss the latest car news, as well as his impressions of the day one winners.
Diversity and Style
Both Ford Motor Company (NYSE: F) and Toyota Motor Corp (ADR) (NYSE: TM) held conferences on Monday, and Donato noted how Ford's presentation focused a lot on how the company was diversifying its presence in the transportation field. "A lot of what Ford talked about yesterday were their new technologies and new initiatives, whether it be and increased electric battery or a partnership with Michael Bloomberg on fixing gridlock," he said, explaining that Ford CEO Mark Fields announced this partnership, dubbed Chariot, in similar terms as a ride sharing service. The program will be aimed at improving the quality of life of homeless or low income individuals by mitigating some of the cost and effort associated with commuting.
Nevertheless, Donato felt Lexus and Toyota were the clear standouts on Monday. "The new Lexus LS 500 and the new Camry were really the show stealers," Donato stated. "From the car side of thing, I would say Toyota was the most impressive."
Two of the more consistent trends in the opening days of the 2017 show were an emphasis on domestic investments and initiatives on the part of the automakers. "I believe it was announced that there would be a billion-dollar investment by Fiat Chrysler Automobiles NV (NYSE: FCAU) over the next ten years, and there were other mentions of similar investments from Mark Fields." Toyota also emphasized its commitment to operating in the United States, announcing a $10 billion-dollar investment in U.S. manufacturing over the next five years.
Busy After CES?
An obvious lacuna so far at this year's show is the absence of big tech companies like Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Apple Inc. (NASDAQ: AAPL) that have been creeping into the auto industry. One unsurprising vacancy was left by Tesla Motors Inc (NASDAQ: TSLA), which, as Donato pointed out, has never been on great terms with traditional car companies. "There's a little bit of bad blood between Tesla in Detroit," Donato elaborated. "As you know, they arn't allowed to sell directly in Michigan. It's going to take a while for Tesla to really establish a presence here."
heck back with Benzinga for more news from Detroit's North American International Auto Show.
Listen to the full discussion with Donato at 11-minute mark in the clip below.
PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short term trades. You can listen to the show live every morning from 8–9 ET here, or catch the podcast here.
Image Credit: Taken and provided by Jason Shubnell; used with expressed permission.
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