Europe is the global leader in the automotive sector, owing primarily to major automakers in the region. Furthermore, the presence of significant auto components and solution providers in the region contributes to the industry’s growth. Government grants, subsidies, incentives, and new technological options are all beneficial to the automobile sector in this region.
Germany, the United Kingdom, France, and Italy are among the countries that have had a significant impact on the growth of the automobile sector in the region. The increasing purchasing power of consumers and increased expenditure on luxury automobiles are driving the rise of the regional market.
Also contributing to market growth is the region’s high demand for fuel-efficient and lightweight automobiles. As a result of its thriving automotive industry and cutting-edge technologies, Germany has the most significant part of the regional market. It is followed by Italy, Spain, France, Germany, and the United Kingdom.
Furthermore, the adoption of new technologies and inventions by the original automotive equipment manufacturers (OEMs) provides a significant boost to market growth. The European automobile industry is expected to maintain its dominance throughout the evaluation.
Typically, stockholders pay dividends through a check delivered to their addresses a few days after the ex-dividend date, which is the day the company begins trading without the previously declared dividend. Dividends can also be paid in the form of new shares of stock, which is an alternate means of doing so.
Some automobile firms that we will investigate in this essay are Bayerische Motoren Werke AG, a German automobile manufacturer. BMW and Ford Motor Company are among the ETRs. Harley-Davidson, Inc. (NYSE: HOG) and Ford Motor Company (NYSE: F)
Bayerische Motoren Werke AG ETR: BMW
Every financial year, BMW distributes a coupon to its shareholders, making it one of the largest automobile corporations in the world. During the fiscal year 2020, the Board of Directors determined that a dividend of 1.90 euros per ordinary share and 1.92 euros per share for holders of preference shares would be submitted to shareholders for approval.
Aside from that, the corporation has a significant presence on the stock exchanges. The company is publicly traded on the Frankfurt Stock Exchange. As a result, the BMW stock is quite popular with investors and traders. In addition, the corporation is a constituent of the European Stoxx 600 index.
When the company goes public in November 2021, its market value will be more than 60 billion euros. According to Brand Finance, BMW was rated 71st in a ranking of worldwide brands based on their brand value in 2021, with a brand worth of around 24.8 billion U.S. dollars.
There is just one payout paid in most years (excluding special dividends), and the dividend cover is roughly 3.2. During the past year, the auto industry has been under severe pressure. The sale of new vehicles shows symptoms of slowing down after several years of rapid growth in the industry.
Given that vehicles are cyclical companies, with profits that increase and fall in tandem with economic cycles, investors are concerned about the prospect of profit growth being limited for some time.
This pressure has generated some chances for long-term investors who are willing to wait it out. At these current low valuations, a well-run carmaker that pays a respectable dividend would be a worthwhile investment to consider.
The stock price may rise during the next recession, and you may be pleased with your return if you reinvest that dividend. If the stock price rises during the subsequent recovery, you may be delighted with your return.
Ford Motor Company NYSE: F
The Ford Motor Company is an American global automobile and transportation corporation headquartered in Dearborn, Michigan. A complete line of Ford cars and trucks and SUVs and electrified vehicles, and Lincoln luxury vehicles are manufactured and sold by the company.
Ford Motor Credit Company provides financial services, and the company is pursuing leadership positions in electrification, autonomous vehicles, and mobility solutions. In conjunction with its subsidiaries, Ford Motor Company develops, manufactures, markets, and services automobiles in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
The corporation is aggressively chasing emerging prospects by investing in electrification, autonomy, and mobility. Ford Motor Credit Company LLC (‘Ford Credit’) is the financial services provider. Automotive, Financial Services, Ford Smart Mobility, and Central Treasury Operations are the four operational segments that form the company’s principal business.
Market capitalization, sometimes known as the market cap, is one of the most dependable indicators of a company’s value. A company’s market capitalization is the total worth of all of its stock. It indicates the value that investors place on the company based on its current trading price.
In recent months, Ford’s peak and low share prices have been significantly different from one another. As a result, Ford’s market capitalization has been significantly different from one another. After gaining more than 50% over the previous two quarters, the stock has lost most of those gains. However, compared to a year ago, the stock is still up by more than 50%.
Harley Davidson, Inc NYSE: HOG
From 2010 through 2021, the market capitalization of Harley-Davidson was tracked and graphed. When it comes to determining the size of a publicly listed firm, market capitalization (also known as market value) is the most generally used approach.
It is computed by multiplying the current stock price by the number of shares currently in circulation. The market capitalization of Harley-Davidson as of February 28, 2022, is $6.28 billion.
The next Harley-Davidson, Inc. dividend, worth 15.75 cents per share, was declared four days ago and will be paid in 17 days. The previous Harley-Davidson, Inc. dividend was 15 cents, and it was paid two months after it was declared and went into effect.
In general, there are four dividends paid out per year (excluding special dividends), with a dividend cover of roughly 2.8. The LiveWire, a production electric motorcycle from Harley-Davidson, will be available for purchase in September.
In other words, the nation’s icon for internal combustion, chrome, and steel is going all-in on electric vehicles with two wheels. Harley-Davidson, founded in Milwaukee in 1903, opened a Silicon Valley headquarters in 2018 with intentions to expand its electric vehicle lineup, including everything from motorcycles to bicycles to scooters.
With these moves, HD joins a growing number of major transportation companies reinventing themselves in the face of global mobility’s rapid upheaval. TechCrunch spoke with the company’s senior management about the company’s EV transition and had the opportunity to test the LiveWire on the Formula E race track in New York.
The motorcycle’s 15.5 kWh battery and magnet motor generate 105 horsepower and 86 ft-lbs of torque, giving it a city range of 146 miles (and a combined range of 95 miles when riding on city and highway roads).
The LiveWire is a high-tech motorcycle that contrasts Harley-more Davidson’s basic gas motorcycles. According to HD’s chief engineer for EV Technology, Sean Stanley, the e-moto is equipped with five processors that handle performance and app-based communication.
Conclusion
Collaboration, mergers and acquisitions, expansion, and the introduction of new technologies are all examples of critical strategic methods in the automobile sector. Leading industry companies make strategic investments to support their research and development efforts and expansion strategies.
For example, the Indian government just unveiled its one-of-a-kind initiative named – The Automotive Mission Plan – to increase the contribution of the vehicle sector to the nation’s GDP to 12 percent while creating approximately 50 million new employment.
The Indian automobile sector is a critical component of the country’s goal of becoming a US$5 trillion economy. Therefore, the government wants to increase the auto industry’s contribution to GDP and employment creation. This is not financial advice; any investment in one of these firms is made at your own risk, and you should conduct your due research before deciding to invest.
