December Global Light Vehicle Sales at 82M Down Again

Posted on 16 January 2023 by Ken Zino

December’s Global Light Vehicle selling rate fell for the fourth consecutive month to 82.7 million units/year, despite flat YoY raw monthly registrations. The total sales figure for 2022, 81 million vehicles, came in slightly below that of 2021 (-0.6%) due to heightened market disruptions, according to the latest data punished by the respected LMC* consultancy.

China’s market was a major culprit with its sluggish end to 2022 . In China December raw sales were down almost 12% year-over-year (YoY), which LMC attributed to increased disruption and uncertainty with the abrupt ending to the zero-Covid policy. North America and Europe showed positive YoY growth for December, although both remained below their 2021 sales, -7% and -11% respectively.
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Marketing Annals – Chevy Trax Dream Chaser Contest Opens

Posted on 13 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on Marketing Annals - Chevy Trax Dream Chaser Contest Opens

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Hyping the debut of the 2024 Trax this spring, Chevy is announcing a contest to become a “Lead Dream Chaser.” This is a three-month program that will enable one person to pursue their lifelong dream or passion project. The Lead Dream Chaser will share their journey on social media and in return receive $100,000 and three months with the all-new 2024 Trax1. (read autoinformed.com on General Motors Posts US Sales Leadership for 2022 )

Chevy has hired Everette Taylor, CEO of Kickstarter, to identify the person to serve as Lead Dream Chaser. “The past few years have caused many to consider turning their ideas and ambitions into reality, and I’m excited to help Chevy find a qualified person who will pursue their dream,” said Taylor. Continue reading →

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American Honda Recalls more Talon Off-Highway Vehicles

Posted on 13 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on American Honda Recalls more Talon Off-Highway Vehicles

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American Honda is expanding a previous recall of its Talon Recreational Off-Highway Vehicles (ROVs) due to Crash and Injury Hazards that can occur if the Talon’s intake funnel band screw loosens and enters the engine through the intake funnel and cause sudden engine failure. If this occurs, it could result in a loss of control, increasing the risk of a crash or injury.

Consumers should immediately stop using the recalled recreational off-highway vehicles and contact an authorized Honda Powersports dealer to schedule an appointment for a free inspection and repair, which includes proper tightening and thread deformation of the intake funnel screw. American Honda is contacting all known purchasers directly. Honda has received a total of 18 reports of incidents, including one report of a loss of control, resulting in a crash with minor injuries to the occupants. About 34,000 of the recalled Talons were sold. Continue reading →

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Global Warming – GP ICE RACE 2023 Cancelled in Melting Alps

Posted on 12 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on Global Warming - GP ICE RACE 2023 Cancelled in Melting Alps

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The GP ICE RACE 2023, planned for 27-29 January 2023, is cancelled due to the ongoing melting in the Austrian Alps. The organizers said today that they “reached this conclusion after consultations with partners and sponsors. Tickets already purchased will be fully refunded – there will be no replacement date.” (read autoinformed.com: Fresh Frozen! Comeback of Ice Race in Zell am See)

“The GP ICE RACE is spectacle for everyone. It is therefore with regret, that we have had to cancel this iconic ice racing event. The current warm weather system did not leave us with another option. I want to thank our fans and supporters. These have been some tough weeks, but we will now look forward to a reunion at the Grossglockner,” said Ferdi Porsche, Managing Director of the organizer GP ICE RACE. Continue reading →

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Racing Colors Revealed – Three Cadillac V-LMDh Daytona Cars

Posted on 12 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on Racing Colors Revealed - Three Cadillac V-LMDh Daytona Cars

Gold is in the eye of the beholder. Click for more information.

Cadillac today revealed the racing colors for the three new electrified V-LMDh race cars that will make their competition debut at the Rolex 24 at Daytona this month. The three designs represent the teams running the Cadillacs, each with a different color from the Cadillac V-Series emblem. Cadillac says each car uses one of the “primary colors” of the V-Series logo – No. 01 in gold, No. 2 in blue, red on the No. 31. (pace Newton, we know Gold isn’t a primary color in the classic sense, but with light sent through a marketing prism it is.)

Cadillac Racing will be competing in the IMSA WeatherTech SportsCar Championship with the No. 01 Cadillac Racing and No. 31 Whelen Engineering V-LMDh cars and in the FIA World Endurance Championship with the No. 2 Cadillac Racing V-LMDh. WEC means that Cadillac will return to the 24 Hours of LeMans for the first time in 21 years.  Continue reading →

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Total Sales Flat in 2022 at 1.6M as Audi Delivers 100,000 EVs

Posted on 11 January 2023 by Ken Zino

Audi said today that it sold more than 1.61 million vehicles last year, below the previous year’s level in the face of prolonged supply disruptions and concurrent  challenges in the logistics chain. Audi beat 2021’s results in Europe and Germany, but came up short in China the US and other markets.

“In a challenging and dynamic environment, our global team once again proved its resilience in 2022,” said Hildegard Wortmann, Member of the Board of Management for Sales and Marketing at AUDI AG. “Thanks to extraordinary team spirit, operational excellence and effective sales control, we were able to close out the business year successfully.”

Audi  – in a classic public relations move – then switched the subject. “Overall, Audi delivered 118,196 electric models to customers last year, which is 44.3% more than in 2021ignoring that such a percentage was possible because of the small base number from which it derived. The business challenge comes from Audi’s previously stated strategy that deems starting in 2026, Audi will only introduce all-electric cars to the global market. Continue reading →

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Automakers Rapidly Increasing EV Prices

Posted on 10 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on Automakers Rapidly Increasing EV Prices

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During the third quarter of 2022, more than 232,000 electric vehicles were sold in the United States, representing 7.1% of overall light-duty vehicle sales. EVs include battery, plug-in hybrid, and fuel-cell electric vehicles. This is a 2.14 percentage point (pp) increase compared to Q3 of 2021, and a 0.42 pp increase from the Q2 of 2022, according to data released today by the Alliance for Automotive Innovation, an industry trade group in Washington, DC.*

The cost of the average EV in the third quarter of 2022 was about $66,100 while the average cost of all new light-duty vehicles in that time period was about $48,000. Year-over-year, EV prices rose more than $12,500 from the Q3 of 2021, while the average cost of all new light vehicles rose just over $3,700.

AutoInformed thinks two factors are in play here: First demand for EVs is strong, particularly among affluent buyers. Second, EVs are more costly to develop, batteries are still expensive and the covid pandemic supply chain interruptions are making them scarce. One click bait headline had it that “EVs are Bringing Out the Worst in Us” because, among other things, a Hummer EV battery pack weighs as much as a Honda Civic. It consumes minerals that could otherwise be used to build several electric-sedan batteries or hundreds upon hundreds of e-bike batteries. Continue reading →

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Bugged – BMW EV Software Recall on 14,000 Vehicles

Posted on 10 January 2023 by Ken Zino

BMW of North America recalling 2022-2023 iX xDrive40, iX xDrive50, iX M60, i4 eDrive35, i4 eDrive40, i4 M50, and 2023 i7 xDrive60 vehicles because the high voltage battery electronic control unit (ECU) software may cause an interruption of electrical power. With the bug-affected software, monitoring of the high-voltage battery charging process may be affected.

This could lead to an interruption during high-voltage battery charging, a temporary loss of power while driving, or stalling. In the required NHTSA filing, BMW stated  ~1% of the recalled vehicles are affected. The potential safety problem fist occurred in China last June. Continue reading →

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Virtual Power Plant Partnership – Ford, GM, SunPower, Others

Posted on 10 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on Virtual Power Plant Partnership – Ford, GM, SunPower, Others

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RMI today announced the expansion of the Virtual Power Plant Partnership. This non-profit organization led by the Rocky Mountain Institute is looking to accelerate global energy transformation. A virtual power plant, aka VPP* or the comingVP3** combines and coordinates distributed energy resources “to benefit all those who rely on the electric grid.”

It involves hundreds or thousands of households and businesses that offer the concealed potential of their electric vehicles (EVs), smart thermostats, appliances, batteries, and solar arrays to support the grid. It wants to transform policy to support scaling VPPs in ways that help advance affordable, reliable electric sector decarbonization by overcoming barriers to VPP market growth. Continue reading →

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Infected – November 2022 US Aviation Fuel Consumption Down

Posted on 10 January 2023 by Ken Zino
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The Department of Transportation’s Bureau of Transportation Statistics (BTS) today released US airline November fuel cost and consumption numbers that show US scheduled service airlines used 1.398 billion gallons of fuel, 2.5% less fuel than in October 2022 (1.434 billion gallons) and 3.2% less than in pre-pandemic November 2019.*

The cost per gallon of fuel in November 2022 ($3.32) was down 13 cents (3.8%) from October 2022 ($3.45) and up $1.33 (66.8%) from November 2019. Total November 2022 fuel expenditure ($4.64B) was down 6.2% from October 2022 ($4.95B) and up 61.5% from pre-pandemic November 2019. Costs are in current dollars and are not adjusted for inflation. Continue reading →

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Mercedes-Benz Recalls 324,000 Vehicles for Sudden Stalling

Posted on 9 January 2023 by Ken Zino

Mercedes-Benz USA (MBUSA) is recalling ~324,000 vehicles* for sudden stalling. “Water might accumulate in the spare tire wheel well and damage the fuel pump control unit, which could cause an engine stall while driving,” Mercedes said in the required filling made public today by the National Highway Traffic Safety Administration.

Covered are the so-called GLE/ML (166 platform) and GLE Coupe (292 platform) vehicles. “Depending on the amount of water that has entered the spare wheel well, the accumulated water could intermittently contact the fuel pump control unit,” Mercedes said. Continue reading →

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EV Battery Gold Rush Down Under – Stellantis and Element 25

Posted on 9 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on EV Battery Gold Rush Down Under - Stellantis and Element 25

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Stellantis N.V.* (NYSE / MTA / Euronext Paris: STLA) and Element 25 Limited (ASX: E25) announced today the signing of an agreement for Element 25 to supply battery grade, high purity manganese sulphate monohydrate to Stellantis for use in electric vehicle (EV) battery packs. The five-year agreement calls for shipments to begin in 2026, a total volume of 45 kilotons, and options to extend the supply term and volumes.

The deal with Element 25 – similar to ongoing EV battery supply chain moves at other automakers –  is key to Stellantis’ stated electrification strategy, which includes securing substantial supplies of raw materials for battery electric vehicle (BEV) production. Manganese is a stabilizing element in the cathode of EV batteries. Continue reading →

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Penske Automotive Group SEC 8K Filing – Cuts Credit Costs

Posted on 6 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on latest Penske Automotive Group SEC 8K filingSee Autoinformed.com on: Hot, Fast Company: Penske Automotive Increases Dividend 6%; and Penske Motorsport Heads List of Porsche 963 WEC and IMSA Contenders During 2023. A New Golden Age of Racing?

Another win for Penske.

The Penske Automotive Group (NYSE:PAG)* just filed this with the Securities and Exchange Commission (SEC): “On January 1, 2023, we entered into the Ninth Amendment (the “Amendment”) to our U.S. credit agreement with Mercedes-Benz Financial Services USA LLC and Toyota Motor Credit Corporation (as amended, the “U.S. Credit Agreement”) to decrease our non-use fee payable on available but unused credit commitments (other than commitments to issue letters of credit) from 0.30% per annum to 0.20% per annum.

“The U.S. Credit Agreement provides for up to $800.0 million in revolving loans for working capital, acquisitions, capital expenditures, investments, and other general corporate purposes, and provides up to an additional $50.0 million of letters of credit. The U.S. Credit Agreement provides for a maximum of $150.0 million of borrowings for foreign acquisitions and expires on September 30, 2025. The interest rate on revolving loans is LIBOR plus 1.50%, subject to an incremental 1.50% for uncollateralized borrowings in excess of a defined borrowing base. Continue reading →

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US December Unemployment at Record Low of 3.5%

Posted on 6 January 2023 by Ken Zino

The Bureau of Labor Statistics reported today that the American economy added 223,000 jobs in the month of December as the unemployment rate fell to a historic low of 3.5% as more people entered the workforce and the Biden Administration recovery continued. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance sectors. The unemployment rate at 3.5% in December has remained in a narrow range of 3.5% to 3.7% since March. The number of unemployed persons was down to 5.7 million in December.

Nevertheless, the Federal Reserve seems determined to send the US economy into a deep recession. The Fed has done this in the past with reckless interest rate increases from an ideology that thinks it is good when people lose jobs to keep demand and inflation down. However, consider that during December, average hourly earnings for all employees on private non-farm payrolls rose by 9 cents, or a mere 0.3%, to $32.82. During the past 12 months, average hourly earnings have increased by 4.6%. In December, average hourly earnings of private-sector production and non-supervisory employees rose by 6 cents, or 0.2%, to $28.07. AutoInformed doesn’t consider the latest data as cause for inflationary worries, let alone more interest rate increases. (Autoinformed.com: Federal Reserve Chair Powell Says Inflation Remains Too High) Continue reading →

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2022 US Light Vehicles Sales Worst Since 2011

Posted on 6 January 2023 by Ken Zino
Ken Zino of AutoInformed.com on 2022 US Light Vehicles Sales Worst Since 2011

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US Light Vehicle sales totaled an estimated 1.28 million units in December, according to an analysis just released by LMC Automotive.* This is a Year-over-Year increase of 7.2%, with the same number of selling days as December 2021. The year end was not one to celebrate, though. During each year between 2014 and 2020, December sales were at 1.5 million units or above. “A combination of ongoing problems with the availability of vehicles and unfavorable economic conditions are keeping the market relatively subdued,” LMC said.

However, December posted the highest volumes of 2022, ahead of March by ~26,000 units. The daily selling rate was estimated by LMC as 47,500 units/selling day, compared to 44,900 units/selling day in November. LMC thinks that shows how the annualized selling rate was affected by historical seasonality rather than the pace of sales necessarily slowing down. According to preliminary estimates, retail sales totaled around 1,057,000 units, unchanged from December 2021, while fleet accounted for approximately 225,000 units, representing 17.6% of the total market. Continue reading →

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