Western European Car Sales Point to a Recession

Posted on 5 August 2022 by Ken Zino

The Western Europe selling rate slipped to 9.5mn units/year in July, at the  year-to-date (YTD) average of 9.5mn units/year, the LMC Automotive* said today. “July saw a decline in new vehicle registrations year-on-year (YoY) across most countries,” LMC noted. The consultancy said this “relates to the ongoing supply issues, exacerbated by the conflict in Ukraine and recent China lockdown.”

Well partially yes, but AutoInformed’s reading of economic data leads us to believe that Europe is in an ongoing recession as the US economy is growing. LMC’s take is, arguably, more optimistic than ours. Continue reading →

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Transportation Unemployment Now at Pre-Pandemic Levels

Posted on 5 August 2022 by Ken Zino
Ken Zino of AutoInformed.com on Biden Recovery: Transportation Unemployment Now at Pre-Pandemic Levels

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The unemployment rate in the U.S. transportation sector was 4.2% (not seasonally adjusted) in July 2022 according to Bureau of Labor Statistics (BLS) data on the Bureau of Transportation Statistics (BTS).

This means that the July 2022 rate – by falling 3.1 percentage points from 7.3% in July 2021 – is now same as the pre-pandemic July level of 4.2% in July 2019. Unemployment in the transportation sector reached its highest level during the COVID-19 pandemic (15.7%) in May 2020 and July 2020 under the failed policies and denials of what would become the voted-out Trump Administration in November 2020. Thus the Biden Administration policies continue to strongly benefit the economy and US workers.
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New Side-Crash Tests: Few Mid-Size Cars Rated Good

Posted on 4 August 2022 by Ken Zino
Ken Zino of AutoInformed.com on New Side-Crash Tests: Few Mid-Size Cars Rated Good

Click to enlarge. F=MA*

Only three of seven mid-size cars earn good or acceptable ratings, the Insurance Institute for Highway Safety said today as it published results of its updated side crash test. Overall, this initial group of midsize cars did not perform as well as the first batches of small and mid-size SUVs evaluated earlier. This appears to be a result of their lower ride height.

IIHS developed the updated side crash test after research showed that many of the real-world side impacts that still account for nearly a quarter of passenger vehicle occupant fatalities are more severe than the original evaluation.
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Toyota Motor FY Q1 Profit Drop Spooks Market

Posted on 4 August 2022 by Ken Zino
Ken Zino of AutoInformed.com on Toyota Motor FY Q1 Profit Drop Spooks Market

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Toyota Motor Corp. today reported a quarterly profit of ¥736.8 billion ($5.5 billion) for Q1 of Fiscal Year 2023, down from ¥897.8 billion ($6.74B) the previous year, even though sales rose 7% to ¥8.49 trillion ($63 billion).

A favorable foreign exchange rate from a weak Yen increased Toyota’s operating income for the quarter by ¥195 billion ($1.5 billion), TMC said in a results presentation.

Aside from the well-known semiconductor problems, Covid lock-downs in Shanghai and other parts of Asia, as well as flooding in South Africa and the ongoing Hino emissions fraud matter hurt the results. Toyota shares fell -3.45% after it released its earnings report, which showed a 42% year-over-year drop in operating profit, but recovered slightly to close down -2.99%. The Nikkei average share closed up 0.69% at ¥27,932.20 and even topped the ¥28,000 mark at one point. Continue reading →

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July US Light Vehicle Sales Still Stalled

Posted on 3 August 2022 by Ken Zino

US Light Vehicle sales in July performed mostly in line with the June results, according to LMC Automotive,* which means they are still stalled at ~1.13 million units. “While the selling rate improved slightly for the second consecutive month, to 13.3 million units. Yet, the inventory crisis has forced the US to lose 1.65 million units of potential demand so far in 2022 – equivalent of total sales in Canada last year,” LMC noted. (AutoInformed on: US July Sales Forecast Down. Prices, Profits Still Records)

Compared to July 2021, sales fell by 11.6% – only January’s decline of 10.2% was better thus far in 2022. However, last July was hampered by the chip shortage. Since 2000, this July was only better than the period of the Great Recession in 2008-2011. Year-to-date, sales stand at 7.91 million units, down by 17.3% YoY. Continue reading →

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FCA Emissions Fraud: Accountability or Accountancy?

Posted on 3 August 2022 by Ken Zino

FCA US LLC (FCA US), previously Chrysler Group, and now part of Stellantis, was sentenced this week in federal court in Detroit and ordered to pay a fine of $96,145,784; and a forfeiture money judgment of $203,572,892. The court also imposed a three-year term of organizational probation.* Stellantis previously said it had reached an agreement – subject to court approval. “As described in Stellantis N.V.’s 2021 financial disclosures, approximately €266 million ($301 million) was previously accrued related to this matter, which is sufficient to cover the forfeiture and penalty imposed by the plea agreement,” it said in a 3 June release.

“This case demonstrates the Criminal Division’s dedication to prosecuting companies that seek to place profits above full candor, good corporate governance, and timely remediation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence shows that companies that engage in misleading U.S. regulators, or their own customers, will be held accountable.” Continue reading →

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GM Expanding Super Cruise Hands-Free Driver Assistance

Posted on 3 August 2022 by Ken Zino

General Motors (NYSE: GM) announced today that Super Cruise hands-free driver assistance technology, will soon be expanded so that it works on more roads in the US and Canada. Hundreds of thousands of additional miles will become available for Super Cruse use, which GM describes as “the industry’s first true hands-free driver assistance technology.” To date, GM says customers have driven more than 34 million miles with Super Cruise engaged.*

“We are pursuing what we believe to be the most comprehensive path to autonomy in the industry with responsible deployment of automated driving technology like Super Cruise at the core of what we do,”said Mario Maiorana, GM chief engineer, Super Cruise. Continue reading →

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Back to School – E Before Q at MBUSA

Posted on 2 August 2022 by Ken Zino
Ken Zino of AutoInformed.com on Back to School - E Before Q at MBUSA

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Today Mercedes-Benz USA (MBUSA) announced the launch of Mercedes-EQ Experience, a training program for dealership and corporate employees “to both deepen knowledge of electric vehicles and create unprecedented pride for Mercedes-EQ, the new sub-brand of electric vehicles.”

The program is hosted in Alabama and will provide a three-day training session designed to educate, and electrify Mercedes-Benz team members nationwide. (AutoInformed: Mercedes-Benz Starting Global E-Learning for Employees) Continue reading →

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Stellantis: $99 Million for New Engine at Three N.A. Plants

Posted on 1 August 2022 by Ken Zino
Ken Zino of AutoInformed.com on Stellantis: $99 Million for New Engine Production at Three N.A. Plants

Then Chrysler CEO Sergio Marchionne with a 1.4-liter, 16-valve engine built at Dundee.

Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA), the mega merger of FCA and Peugeot, said today that it will invest $99 million in three North American plants for production of a new four-cylinder turbocharged engine. Affected are the Dundee Engine Complex in Michigan, the Kokomo Casting Plant in Indiana and the Etobicoke Casting Plant in Toronto. This fulfills one of the covenants of the successful taxpayer-financed bailout of FCA. (AutoInformed: Stellantis: Record First Half 2022 at €8.0 Billion Net Profit) Continue reading →

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Subaru Recalls 2015-2021 WRX Sedans For Backup Lights

Posted on 1 August 2022 by Ken Zino

Subaru of America, Inc. is recalling 2015-2021 WRX sedans. The backup light switch may corrode and become inoperative, which can result in the backup lights not illuminating and the rearview camera image not displaying when the vehicle is in reverse. About 60,000 WRX sedans may have the safety defect.

In the required NHTSA filing made public today, Subaru said: “The operating environment of the Backup Lamp Switch may expose the internal switch contacts to heated oil. When heated, sulfur in the oil may cause a chemical reaction with the materials used on the switch terminal contact surfaces and plate spring. Continue reading →

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Renault Group: Sales Drop, Revenues Even, Margins, Profits Up

Posted on 29 July 2022 by Ken Zino
Ken Zino of AutoInformed.com on Renault Group: Sales Drop, Revenues Even, Margins, Profits Up

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Renault Group* said today that its in-depth transformation and turnaround of its activities continued during the first half of 2022. “These first half results are a proof of this: despite all the headwinds related to the stop of the activity in Russia, the semiconductor crisis and cost inflation, the Group continues to improve its operating performance and is beginning to benefit from the success of new launches,” Renault Group said.

Renault Group also “upgraded” its 2022 full-year financial outlook**. In the fall, new mid-term financial outlook and the accelerated roll-out of  the so-called Renaulution will be presented during its Capital Market Day. “All our energies are mobilized to transform Renault Group into a competitive, tech and sustainable player,” said Luca de Meo, CEO of Renault Group. Continue reading →

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Flo~Pro Performance Exhaust To Halt Sales of Defeat Devices

Posted on 29 July 2022 by Ken Zino
Ken Zino of AutoInformed.com on Flo~Pro Performance Exhaust To Halt Sales of Defeat Devices

EPA estimates the subject parts from these companies in 2016-2019 may have resulted in more than 775 million pounds of excess nitrogen oxides emissions and 6.7 million pounds of excess particulate matter over the life of affected vehicles.

Red Deer Exhaust Inc. (DBA Flo~Pro Performance Exhaust) and Thunder Diesel & Performance Company will stop selling devices that bypass or disable vehicle emissions controls, and pay a $1.6 million penalty, to resolve allegations they violated the Clean Air Act, the Environmental Protection Agency said today.

The complaint, filed simultaneously with the consent decree, alleges that the parts described below are “defeat devices” prohibited by the CAA. The Environmental Protection Agency (EPA) estimates that prior to its 2018 investigation, Flo~Pro manufactured or sold more than 100,000 aftermarket defeat devices in the United States per year. In early 2019, Flo~Pro suspended sales of the defeat devices in the United States in an effort to resolve this matter. The consent decree for this settlement was lodged in the U.S. District Court for the Western District of Arkansas and will be open for public comments for a period of 30 days.
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Stellantis: Record First Half 2022 at €8.0 Billion Net Profit

Posted on 29 July 2022 by Ken Zino

Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA), the mega merger of FCA and Peugeot, posted record profitability during the first half or 2020 because of increasing sales of low emission vehicles (LEV), which include battery electric (BEV), plug-in hybrid (PHEV) and fuel cell electric vehicles. Stellantis said it ranked second in the EU30 market for BEV and LEV sales, and third in the U.S. market for LEV sales.. Stellantis’ global BEV sales were up nearly 50% y-o-y to 136,000 units in H1. The company now offers 20 BEVs, with an additional 28 BEVs to be launched through 2024.

“In a demanding global context, we continue to ‘Dare Forward,’ delivering an outstanding performance and executing our bold electrification strategy. Together with our employees’ resiliency, agility and entrepreneurial mindset, and our innovative partners, we are shaping Stellantis into a sustainable mobility tech company that’s fit for the future. I would like to express my sincere appreciation to all Stellantis employees for their commitment and their contribution to these results,” said Carlos Tavares, CEO. (AutoInformed: Dare Forward 2030 – Stellantis Survival Plan Unveiled)
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Police Pickup: 2023 Ford F-150 Lightning Pro SSV

Posted on 28 July 2022 by Ken Zino
Ken Zino of AutoInformed.com on Police Pickup: 2023 Ford F-150 Lightning Pro SSV

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Ford Motor said this morning that it is launching “America’s first electric pickup truck purpose-built for police: the 2023 Ford F-150® Lightning™ Pro Special Service Vehicle.

Ford, which is badly behind in EV sales and development – it made 14,000 EVs in June – has an opportunity here. Ford has been providing police departments with the than 70 years. Ford Pro customers include more than 12,000 police departments across the country now. Ford said “its police vehicle lineup outsells all other police vehicles combined1. The company attributes this success and customer loyalty to the automaker’s close collaboration with its customers through the Ford Police Advisory Board. (AutoInformed on: Ford Police Interceptor Claws Back the Profitable Business that Dearborn Abandoned by Killing the Crown Victoria in 2011; De-Carbonize the Police. Ford Submits EV to Michigan)
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Ford Motor Posts Good Earnings But Weak Net Income

Posted on 27 July 2022 by Ken Zino

Ford Motor (NYSE: F) late today said that during Q2 of 2022 it had revenue of $40.2 billion because of a 35% increase in wholesale shipments together with “favorable pricing and vehicle mix.” Operating cash flow was $2.9 billion and adjusted free cash flow was $3.6 billion, with automotive EBIT of $3.3 billion. Ford ended the quarter with $29 billion in cash, $45 billion in total liquidity.

However, Ford’s net income was $667 million, a margin of 1.7%, which included a mark-to-market loss of, gulp, $2.4 billion on Ford’s stake in Rivian. Ford is also in the process of slashing costs under its latest restructuring plan, but refused to comment on pending job cuts, which are being reported by Bloomberg as around 8000 white collar positions in a bid to cut $3 billion in costs, other than to say there are too many people. Continue reading →

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