In this week’s Tuesday Ticker, private equity financing is supporting a Canadian parts distributor’s expansion, a Canada-specific electric vehicle model is generating local excitement and automotive businesses are reporting sales surprises.
Electric expansion
Kia Canada is accepting orders for the EV5 GT, a higher-performance version of the electric crossover developed for the Canadian market.
The Mississauga, Ont.-based automaker is the Canadian subsidiary of South Korea-based Kia Corp. The EV5 is available in North America exclusively through Canadian dealers.
The GT starts at $63,495 before freight and fees. It has an 81.4-kWh battery, two electric motors, all-wheel drive, 302 horsepower and 354 lb-ft of torque. All-wheel drive will also become available on other EV5 trims later in the third quarter.
On the first trading day after the July 15 announcement, Kia shares rose 3.2% to 149,700 South Korean won ($141.17).
Parts expansion
Private equity financing is supporting an independent automotive parts distributor’s plan to expand from nine branches to more than 20 Canadian locations by fiscal 2030.
Montréal-based Alfar Capital has invested in 1-800-Radiator Canada, a London, Ont.-based distributor of cooling, air conditioning, emissions and electrical parts for light- and heavy-duty vehicles. Financial terms were not disclosed.
The existing branches are in Ontario and Alberta. Management plans to open locations and acquire smaller independent distributors across Canada. Co-owners Farhaan Thobani and Badal Davda will continue managing the business.
"We have spent the last several years proving out a model that delivers price and availabilty our competitors can't match," Thobani said. "Having a partner that backs the founders to keep running the business, while giving us the capital and structure to open markets faster, is exactly what this next stage needed."
Supply growth
Second-quarter sales are increasing at Fastenal as the industrial distributor expands its business with large manufacturing customers.
The Minnesota-based company distributes fasteners, abrasives, cutting tools, safety products and other supplies used by manufacturers and repair businesses.
Sales increased 14.7% to US$2.39 billion ($3.35 billion). Net income rose 15.9% to US$382.8 million ($536.8 million), while sales of cutting tools and abrasives increased 14.8%.
Following the July 14 results, Fastenal shares fell US$1.31, or 2.8%, to US$45.74 ($64.14).
Chinese growth
Second-quarter sales are increasing at Autoliv as new business from Chinese automakers offsets lower worldwide vehicle production.
The Swedish company manufactures airbags, seatbelts and steering wheels for global automakers. Sales increased 3.3% to US$2.80 billion ($3.93 billion), while adjusted operating income rose 7.3% to US$270 million ($378.6 million).
Worldwide production of passenger vehicles and light trucks fell 0.3%. Management now expects production to decline about 2.5% during 2026, compared with its previous forecast of about 1%.
Sales to Chinese automakers increased more than 40%. Those customers accounted for 55% of Autoliv’s sales in China, up from 40% one year earlier. The increase allowed total sales to grow even as automakers produced fewer vehicles.
Following the July 17 results, Autoliv shares fell US$4.73, or 3.8%, to US$120.26 ($168.66).
European gains
First-half registrations are increasing at Stellantis as sales rise across its small-car, hybrid and commercial-vehicle businesses in Europe.
The Netherlands-based automaker owns brands including Chrysler, Dodge, Fiat, Jeep, Peugeot and Ram.
Registrations across 30 European markets increased 3.8% to 1.37 million vehicles. Market share reached 16.7%. When vehicles sold through Chinese partner Leapmotor were included, registrations rose 7.3% and market share reached 17.4%.
Fiat registrations increased 21.7%, while Citroën rose 8.3% and Opel-Vauxhall increased 7.4%. Stellantis also held 28.7% of the region’s light commercial vehicle market.
Following the July 16 announcement, Stellantis shares rose US$0.06, or 1%, to US$5.96 ($8.36).
Volvo split
Second-quarter results are showing lower passenger vehicle sales at Volvo Cars and higher commercial vehicle and service sales at the separately listed Volvo Group.
Volvo Cars manufactures passenger vehicles. Revenue fell to 77.7 billion Swedish kronor ($11.29 billion) from 93.5 billion kronor ($13.58 billion). Global sales declined 5.6%, including a 35% drop in China. Operating income fell to 800 million kronor ($116.2 million).
Following the July 17 results, Volvo Cars shares fell 2.28 kronor, or 10.8%, to 18.87 kronor ($2.74).
Sweden-based Volvo Group manufactures trucks, buses, construction equipment and industrial engines. Revenue rose 3% to 126.3 billion kronor ($18.35 billion). Vehicle sales increased 6% after currency and business changes were removed, while parts, maintenance and other service sales rose 7%.
Following the results, Volvo Group shares fell 2.10 kronor, or 0.6%, to 339.10 kronor ($49.26).
