Artificial Intelligence – J.D. Power and Palantir Technologies

J.D. Power, a data and analytics company today announced a collaboration with Palantir Technologies Inc., (NYSE: PLTR) to develop generative artificial intelligence (AI) and predictive analytics solutions that it claimed, “will facilitate deeper insights and more strategic decision making by the automotive industry.” This industry-first collaboration will use your information to “transform the way automakers, dealers, insurers and financing companies leverage data-driven insights.” (AutoInformed: Pew Research Center on Americans’ Views About Privacy, Surveillance and Data-Sharing; Toyota Expands Customer Data Use for Insurance Savings; J.D. Power and Motorq to Monitor EV Battery Health)

“This breakthrough collaboration will fundamentally transform the way the auto industry analyzes its performance and optimizes its go-to-market strategy and product offerings by pairing the world’s most robust automotive databases with the most powerful analytics platforms,” said Dave Habiger, J.D. Power president and CEO. “As a result of our work with Palantir, our clients are now able to create unique insights that were previously impossible.” Continue reading

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Chevrolet Bolt Returning as Affordable EV

Ken Zino of AutoInformed.com on Chevrolet Bolt Returning as Affordable EV

Encore performance.

Chevrolet will introduce a next-generation Bolt, GM Chair and CEO Mary Barra said in a deftly crafted announcement during the company’s quarterly earnings conference call. This reverses an earlier GM decision to drop the recalled nameplate after sales more than doubled in Q2. (AutoInformed: Chevrolet Bolt EVs Recalled for Fires; GM Posts Strong Q2 Results with $3.2B in Earnings).

“Our customers love today’s Bolt. It has been delivering record sales and some of the highest customer satisfaction and loyalty scores in the industry,” said Barra. “It’s also an important source of conquest sales for the company and for Chevrolet. We will keep the momentum going by delivering a new Bolt…and we will execute it more quickly compared to an all-new program with significantly lower engineering expense and capital investment by updating the vehicle with Ultium and Ultifi technologies and by applying our ‘winning with simplicity’ discipline.” Continue reading

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APEAL Study of New Vehicle Owner Satisfaction Down Again

The J.D. Power US Automotive Performance, Execution and Layout (APEAL) StudySM shows that there is a consecutive year-over-year decline in owner satisfaction for the first time in its 28-year history. According to the 2023 study, overall satisfaction is 845 (a 1000-point scale), decreasing 2 points from a year ago and 3 points lower than in 2021. (AutoInformed: J.D. Power: Gasoline Powered Vehicle Satisfaction Drops)

“The decline in consecutive years might look small, but it’s an indicator that larger issues may lie under the surface,” said Frank Hanley, senior director of auto benchmarking at J.D. Power. “Despite the technology and design innovations that manufacturers put into new vehicles, owners are lukewarm about them. While innovations like charging pads, vehicle apps and advanced audio features should enhance an owner’s experience, this is not the case when problems are experienced. This downward trajectory of satisfaction should be a warning sign to manufacturers that they need to better understand what owners really want in their new vehicles.” Continue reading

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GM Posts Strong Q2 Results with $3.2B in Earnings

General Motors (NYSE: GM) today reported strong second-quarter 2023 revenue of $44.7 billion, net income attributable to stockholders of $2.6 billion and  earnings [EBIT-adjusted] of $3.2 billion. GM delivered 1.4 million vehicles during Q2, many of them in premium truck and SUV segments. In the US, the Q2 Average Transaction Price (ATP) was $52,248, up $1890 Year-over-Year and $1600 compared to Q1 2023.

“The biggest driving force behind our financial results is customer demand for our vehicles, which have now led the U.S. industry in initial quality for two consecutive years. We have earned four consecutive quarters of higher retail market share in the U.S. versus a year ago with continued strong pricing and incentive discipline, we’re leading in both commercial and total fleet deliveries calendar year to date, and we’re growing profitably in international markets such as Brazil and Korea,” said CEO Mary Barra. Continue reading

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Stellantis and Samsung SDI to Build Second US Battery Plant

Stellantis** (NYSE: STLA) and Samsung SDI* today announced that they have signed a memorandum of understanding to establish a second battery manufacturing plant in the United States under the existing StarPlus Energy joint venture. Scheduled to start production in 2027, an initial annual production capacity of 34 gigawatt hours (GWh) is forecast.

In May 2022, Stellantis and Samsung SDI announced their intention to build a first battery manufacturing facility in Kokomo, Indiana. Targeted to launch in Q1 of 2025, the plant will have an annual production of 33 GWh, up from the initial target of 23 GWh. That plant – now plants – are a  source of contention with the UAW, which is currently conducting contract negotiations with Stellantis. (AutoInformed on Stellantis and Samsung SDI JV to Build EV Batteries in Kokomo and UAW Dumps Traditional Negotiation Opening Handshake) Continue reading

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Tesla Safety Recalls for Safety Systems and Seat Belts

Tesla (NASDAQ: TSLA) is recalling 2023 Model S, Model X, and Model Y vehicles. The forward-facing camera may be misaligned, causing some of the active safety features such as emergency braking, forward collision warning, and lane assist to become unavailable without alerting the driver. Tesla is also recalling 2021-2023 Model S and Model X vehicles. The front-row seat belts may not be connected properly to the pretensioner anchors, which can cause the seat belts to detach.

Both recalls of more than 17,000 vehicles in total were made public today when the National Highway Traffic Safety Administration (NHTSA) released the required filing documents for safety recalls.
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Toyota and Lexus Recalling Numerous Vehicles for Bad Airbags

Toyota is recalling model year 2023 Corolla, Corolla Cross, Corolla Cross Hybrid, Highlander, Highlander Hybrid, Tacoma, 2023 Lexus RX350, RX350 Hybrid, RX500 Hybrid, 2023-2024 Lexus NX250, NX350, and NX350 Hybrid vehicles because of potentially defective airbags.

According to documents release this morning by The National Highway Traffic Safety Administration (NHTSA) An electrical connector inside the steering column’s spiral cable assembly may be poorly welded, causing the connection to separate and deactivate the driver’s air bag. These vehicles, ~110,000, fail to comply with the requirements of Federal Motor Vehicle Safety Standard number 208, “Occupant Crash Protection.” Continue reading

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Honda Halting Lawn Mower Production in US

Ken Zino of AutoInformed.com on Honda Halting Lawn Mower Production in US

Click on ATV for more.

Honda North Carolina Manufacturing (NCM) in Swepsonville today started making the FourTrax Rancher all-terrain vehicle (ATV). NCM will become the sole production source for Honda ATVs in North America, joining with Honda South Carolina Manufacturing (SCM) in Timmonsville, SC, which is the only facility in the world to build Honda side-by-sides. NCM will produce Honda FourTrax and TRX series ATV models.*

Significantly, by the end of September, NCM will discontinue production of gasoline lawnmowers “due to market forces” such as stricter environmental regulations and shifting customer preferences to become the sole producer of Honda ATVs in North America,allowing SCM to expand Honda side-by-side production of Pioneer and Talon sports models. (AutoInformed: Honda to Abandon IC Engines – Global Electrification by 2040; CARB Fines Honda Motor for Small Engine Emissions) Continue reading

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Tesla – Solid Q2 with Higher Production and Lower Prices but…

During Q2 2023 Tesla (NASDAQ: TSLA) made  ~480,000 vehicles and delivered more than 466,000, the highest to date. As a result, Q2-2023 looked solid with Tesla setting its production and deliveries among its top five quarters. The result was revenue approaching $25B in a single quarter. Net revenue was $2.7 billion. However, analysts remain skeptical about what many of them say is a greatly overvalued stock that pays no dividends.  During the past year a share of TSLA stock has ranged from ~$102 to $315. It’s currently trading ~$260. (AutoInformed: Ford Cuts F-150 Lightning Prices by $6000 to $10,000)

“Our operating margin remained healthy at approximately 10% [9.6%], even with price reductions in Q1 and early Q2. This reflects our ongoing cost reduction efforts, the continued production ramp success in Berlin and Texas and the strong performance of our Energy and Services & Other businesses,” Tesla said. Continue reading

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Consumer Rights Nil in New Autonomous Vehicle Bills?

The Innovation, Data, and Commerce Subcommittee of the House Committee on Energy and Commerce will look at autonomous vehicle regulations during a 26 July hearing called “Self-Driving Vehicle Legislative Framework: Enhancing Safety, Improving Lives and Mobility, and Beating China.” Previous versions of the Bill were sponsored by Republicans but went nowhere. This time the subcommittee will consider separate draft legislation from Representative Bob Latta, a Republican from Ohio, and Representative Debbie Dingell, a Democrat from Michigan. NHTSA is also in the process of looking at self-driving vehicle regulations.* 

The Center for Auto Safety says one of the proposals, the SELF DRIVE Act, “neglects to include any consumer protections that prevent the use of binding arbitration clauses in contracts involving autonomous vehicles.” As is common in Washington the legislation is misleadingly named. However, there is a need to explore the issue as there are arguments on many aspects of technology and systems that can save lives and reduce traffic congestion even though AutoInformed remains skeptical about the ability of politicians to do so with a regard for We the People as opposed to We the Congress who are paid large sums by corporate interests. Continue reading

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Milestones – 40M Engines Built at Nissan Yokohama Plant

Ken Zino of AutoInformed.com on Milestones - 40M Engines Built at Nissan Yokohama PlantThe Nissan Yokohama Plant has built 40 million engines in 2023 – the same year Nissan celebrates its 90th anniversary. Yokohama opened in 1935, two years after Datsun’s (Nissan after 1986) founding. It was bombed in the Doolittle Raid in April of 1942 and Japan’s second largest city was almost completely destroyed in subsequent WW2 bombings. Yokohama was making trucks for the Japanese Imperial Army at the time.

Yokohama built its 10 millionth engine in 1976, its 20 millionth in 1986 and its 30 millionth in 1997. With the launch of the all-electric LEAF in 2010, the plant has also been producing electric motors, including those for e-POWER vehicles such as the Nissan Note. During the Japanese fiscal year 2022, motors accounted for approximately 40% of Yokohama Plant’s production. Continue reading

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Stellantis, Saft Show Battery Integrating Inverter and Charger

Ken Zino of AutoInformed.com on Stellantis and Saft Show Battery Integrating Inverter and Charger

The charger and investor atop the motor are absent in the prototype system.

Stellantis (NYSE: STLA / Euronext Paris: STLAP) and Saft* engineers and researchers announced today in France a prototype energy storage battery that integrates the inverter and charger functions. Integrating the inverter and charger creates a battery that is more efficient, which enhances electric vehicle range and is more reliable and less costly. It also increases space in the vehicle.

“Our journey to electrification is fueled by innovation and research excellence that uses the latest technology to address the real needs of our EV customers such as range, roominess and affordability while reducing carbon footprint by improving efficiency,” said Ned Curic, Stellantis Chief Engineering & Technology Officer. “This revolutionary battery system could mark a decisive step in Stellantis’ commitment to provide useful, easy and advanced technology to all.” Continue reading

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Repair Shop Owner Sentenced to Prison for False Tax Return

A New Jersey man was sentenced yesterday to one year and one day in prison for filing a false corporate income tax return with the IRS, the Department of Justice said. Gabriel Ferrari of Edison, New Jersey, owned and operated Buses and Trucks, Inc., an automotive repair business in Linden, New Jersey.

In 2011, Ferrari used business funds to pay for personal items, including gambling on horse races. Ferrari concealed this diversion of business income by not disclosing it to his return preparer, thus causing the preparation and filing of a false corporate tax return. Furthermore, Ferrari did not pay employment taxes in the amount of $291,600 based on an unreported cash payroll, according to court documents. Continue reading

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Penske Automotive Group Ups Dividend Again

Ken Zino of AutoInformed.com on Penske Automotive Ups Dividend, Will Buyback More Shares

Click to enlarge.

Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company as well as a notable global automotive and commercial truck retailer, today announced that its Board of Directors has increased the Company’s quarterly dividend by $0.06 per share, or 9%, to $0.72 per share. The dividend is payable September 1, 2023, to shareholders of record as of August 10, 2023. PAG Q2 earnings will be announced next week.

We are pleased to provide an increase in the cash dividend to our shareholders,” said Penske Automotive Group President, Robert Kurnick, Jr. “Continued strong cash flow, a healthy balance sheet, and the strength of our operations enables us to increase the dividend and reward our shareholders.”  Continue reading

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EU – EVs Outsell Diesel Cars for First Time

Ken Zino of AutoInformed.com on EU - EVs Outsell Diesel Cars for First Time

Click for more information.

In June 2023, the EU car market grew by 17.8% to 1 million registered units, according to ACEA,* the trade group that represents automakers, said this morning. Except for Hungary (-1.4%), all the EU markets grew, including the four largest: Germany (+24.8%), Spain (+13.3%), France (+11.5%), and Italy (+9.1%). The growth is partially a statistical anomaly since it is compared can be to the region’s rebound from a low comparison base last year, the result of vehicle component shortages.

Perhaps more significant though is that battery electric vehicles took a 15.1% market share, outselling once tax-favored diesel vehicles. Hybrid-electric cars remained the second-most popular choice among new car buyers, representing 24.3% of the market. Gasoline fueled cars retained the largest share, accounting for 36.3%. Continue reading

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