LONDON - Shares in Europe's car retailers did far better than shares in suppliers and automakers in the third quarter, according to the latest Automotive News Europe/PricewaterhouseCoopers Total Shareholder Return Index.
Retailers benefited from price cuts in the UK, where Europe's big publicly-owned dealer groups are concentrated. The sector was well ahead of major stock exchange indices in the third quarter.
The index of 17 retailers rose 14.12 percent in the quarter, while the German DAX 30 was down 1.45 percent, France's CAC40 declined 2.65 percent and the FTSE 100 in the UK rose 0.36 percent.
Seven European-based carmakers rose 3.9 percent. But the value of parts makers was hard hit in the quarter. The index of 29 suppliers declined 8.1 percent.
'Half of the suppliers analyzed have lost 20 percent or more of their value over the year ended September 30,' said Steve Utting, head of PricewaterhouseCooper's automotive corporate finance practice in Europe. 'Only one quarter of suppliers has generated positive shareholder returns above 20 percent in the same period.'
Total shareholder return shows how the value of an investment changes by including both share price appreciation and reinvestment of dividends.
Returns were calculated for the third quarter and also over the one-year and three-year periods that ended September 30.
DaimlerChrysler pulled down the automakers' shareholder value index in the third quarter. The company's return to investors in the three-month period fell by 7.9 percent. The declined followed announcement of a $530 million operating loss at its Chrysler unit. Without DaimlerChrysler, the carmaker index increased 13.9 percent.
Volkswagen has given little back to investors in recent years, but its payback improved sharply in the third quarter. VW's 30.3 percent total shareholder return in the quarter was second only to Porsche among carmakers.
Porsche continues to reward investors. Not only did it beat all other carmakers in the third quarter, it is the best-performing automotive stock in Europe when measured over the past year and past three years.