2nd ICAI 2022

International Conference on Automotive Industry 2022

Mladá Boleslav, Czech Republic

However, investing in these alternative propulsions required a lot of resources which had a negative impact on financial results of some car manufacturers that resulted into poor performance of their stocks on stock market (see in the next chapters). This work will therefore take into account the financial results of car manufacturers in the context of emission standards in the EU and based on this knowledge we will compare the performance of car manufacturers on the stock market with the performance of the most important European stock indices. 2.1 Model and Data To be able to find the results to our problem, we have to take the data from stockmarkets, mainly the year over year performance of the major European car manufacturers and then compare the performance of these particular stocks to the performance of important European stock indices. In the model we take into consideration only major car European car companies that realize significant part of its sales in Europe which ensures that their core businesses (ie selling cars) are affected by the stricter emission standards created by the European Union. The companies that we studied are: Volkswagen group (Volkswagen, Audi, Skoda, Seat, Bugatti, Lamborghini, Cupra and Bentley), Renault Group (Renault, Dacia, Lada, Alpine), PSA Group / Stellantis (Peugeot, Citroen, DS and Opel, Abarth, Alfa Romeo, Dodge, Fiat, Jeep, Lancia, Maserati and Ram Trucks), Daimler (Maybach, Mercedes-Benz and Smart) and BMW (BMW, Mini and Rolls-Royce). As the stocks of these chosen car manufacturers are publicly traded on major stock exchanges in Europe and as they are part of major stock indices in its countries, we compared their year over year performance with the year over year performance of the indices that they are part of. These indices are German DAX 30 and French CAC 40, where BMW, Daimler and Volkswagen are part of German DAX 30 and Renault with Peugeot (group PSA) are part of French index CAC 40. It is also important to mention that both indices are composed of the biggest companies in that particular country, so the comparison with the chosen big car manufacturers that are part of these indices is relevant. 2.1.1 Model Calibration The overview of the year over year performance of both indices can be found in Table 1. This table will be used as a base data set to compare the year over year performance to the average performance of the car manufacturers stocks. Then the Table 2 presents the year over year performances of individual car manufacturers stocks. It is important to mention that the development of the value of individual shares was influenced by the relative success of the car manufacturer in individual years, meanwhile the performance of both indices was rather affected by relative growth of the economy either in Germany or in France.

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