China Association of Automobile Manufacturers (CAAM) released vehicle production and delivery data in the country for 2024. Last year, China’s auto production and sales saw solid growth, both hitting new record highs. Production and deliveries totaled 31.28 million and 31.44 million units, reflecting year-on-year increases of 3.7% and 4.5%, respectively. This was the second consecutive year in which production and sales exceeded 30 million units.
The 2025 Consumer Electronics Show (CES), held from Jan. 7-10, highlighted groundbreaking innovations, from cutting-edge electric vehicles (EVs) to advanced artificial intelligence (AI) integrations. From Honda’s 0 Series to Toyota’s Woven City, the automotive space at CES showcased how technology continues to reshape the way we think about transportation.
On the news front, used car e-retailer Carvana CVNA renewed a used car loan sale deal with Ally Financial. Tire manufacturing giant Goodyear Tire GT inked a deal to sell its Dunlop brand to Japan’s Sumitomo Rubber. U.S. legacy automaker General Motors GM announced its vehicle delivery data in China. EV giant Tesla TSLA made it to the top stories as it is recalling 239,000 EVs, while EV charging company EVgo EVGO received its first drawdown from a $1.25 billion guaranteed loan by the U.S. Department of Energy (DOE).
Last Week’s Top Stories
Carvana managed to secure a significant deal with Ally Financial to sell up to $4 billion in auto loan receivables. The move comes after Hindenburg’s report suggested Ally was stepping back from its relationship with Carvana, which appears to have been an overstatement. Hindenburg Research’s report painted a grim picture of Carvana’s financial practices. It described CVNA’s recovery as a mirage driven by unreliable loans and manipulative accounting.
Hindenburg highlighted $800 million in loan sales to what it described as a "suspected undisclosed related party." This, coupled with accusations of manipulating delinquencies through loan extensions, raises red flags about Carvana’s transparency and governance. Carvana’s agreement to sell $4 billion of used-car loan receivables to Ally Financial not only alleviates concerns about Carvana’s ability to market its loans but also signals confidence from a major financial institution.
Goodyear Tire reached an agreement to sell the Dunlop brand, including its trademarks and intangible assets, for operations in Europe, North America and Oceania to Sumitomo Rubber Industries, Ltd. (SRI). The sale covers consumer, commercial, and specialty tires, along with related intellectual property. This move is part of Goodyear's strategy to optimize its portfolio and reduce leverage, aligning with its goal of creating long-term shareholder value while focusing on its core brands.
The decision follows a strategic review of the Dunlop brand under Goodyear's Goodyear Forward transformation plan. As part of the agreement, SRI will pay Goodyear approximately $701 million at closing. The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to be finalized by mid-2025. Goodyear intends to use the proceeds to reduce debt and fund initiatives related to its transformation plan.
Tesla is voluntarily recalling approximately 239,000 electric vehicles in the United States due to an issue with rearview cameras that could cause them to fail. The recall affects 2024-2025 Model 3 and Model S sedans and 2023-2025 Model X and Model Y SUVs. Tesla informed the National Highway Traffic Safety Administration (NHTSA) that a malfunctioning rearview camera reduces the driver’s rear visibility, increasing the risk of a crash. The company reported 887 warranty claims and several field reports but stated there have been no injuries or fatalities linked to the issue. Per NHTSA data, Tesla issued 16 recalls that affected 5.14 million vehicles in the United States in 2024, addressing a range of issues with over-the-air updates and parts replacements.
In other news, Tesla introduced a redesigned Model Y in China, aiming to regain market share from local competitors such as BYD and Xiaomi. With a starting price of 263,500 yuan ($35,900), the new version is 5.4% more expensive than its predecessor. Deliveries of the model are expected to begin in March. The updated Model Y boasts a new exterior design and upgraded interior features, which are intended to make it more appealing to Chinese consumers. Tesla hopes the enhancements will attract more buyers in its second-largest market, where it has faced growing competition in the EV sector.
EVgo announced that it secured its first $75 million disbursement from a $1.25 billion guaranteed loan provided by the U.S. DOE Loan Programs Office under the Title 17 Clean Energy Financing Program. This initial funding, along with future drawdowns over a five-year deployment period, will support EVgo's efforts to expand its nationwide charging infrastructure. the DOE’s low-cost financing will enable the company to more than triple the size of its network by 2029. This expansion will enhance EVgo’s operational and financial scale while broadening its geographic reach.
Through the $1.25 billion loan guarantee, EVGO plans to construct approximately 7,500 new public fast-charging stalls across the country. This will bring the company’s total owned and operated network to at least 10,000 fast-charging stalls nationwide by 2029, meeting the growing demand for reliable and accessible charging solutions as faster charge rates, standardized cables and autonomous vehicle technologies gain traction.
General Motors and its joint ventures in China achieved a 40.6% quarter-over-quarter increase in fourth-quarter deliveries, totaling nearly 600,000 vehicles. This represents the company’s strongest sequential growth since the second quarter of 2022. For the full year, GM delivered more than 1.8 million vehicles in the Chinese market compared with 2.1 million units in 2023.
China remains a crucial market for GM, ranking second only to its U.S. operations. The automaker partners with SAIC Motor Corp. in a 50-50 joint venture in China called Shanghai General Motors (“SGM”), which manufactures and sells Chevrolet, Buick and Cadillac vehicles. The joint ventures demonstrated strong performance in the new energy vehicle (NEV) sector. The NEV deliveries, comprising battery-electric vehicles and plug-in hybrid electric vehicles, rose 50% year over year in 2024 and accounted for nearly half of GM China’s annual sales.
GM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Auto Space?
Industry watchers will also keep a tab on EU vehicle sales for the month of December and full-year 2024.
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