Stellantis Reports Legacy FCA, PSA 2020 Financial Results

Ken Zino of AutoInformed.com on Stellantis Legacy FCA and PSA 2020 Financial Results

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The creation of Stellantis N.V. by merging Fiat Chrysler and Peugeot occurred in January and created the world’s fourth largest automaker.  It has posted financial results of the legacy operations – FCA and PSA – for the year ended December 31, 2020. Group revenue amounted to €60,734 million in 2020, down by -18.7% compared to 2019. Automotive revenue amounted to €47,613 million down by -19.2% versus 2019, mainly from the negative impact of volumes and country mix (-23.9%), the impact of exchange rates (-1.8%) and the decrease of sales to partners (-0.3%); conversely, revenues benefited from the positive effect of product mix (+4.2%) and price (+0.9%), as well as others (+1.7%).

Nonetheless, what is now Stellantis was profitable in 2020 despite COVID-19 with 7.1% Automotive adjusted operating margin at €3.4 billion. Its 9.4% H2 Automotive adjusted operating margin was a record. The net result of group share was €2.2 billion with €2.7 billion Automotive free cash flow and a €13.2 billion Automotive net financial position. Continue reading

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SEC Starts Task Force on Climate Change Investment Risks

Ken Zino of AutoInformed.com on SEC and climate change financial risks

The tip of the regulatory iceberg?

The Securities and Exchange Commission today announced the creation of a Climate and ESG* Task Force in the Division of Enforcement. The task force will be led by Kelly L. Gibson, the Acting Deputy Director of Enforcement, who will oversee a Division-wide effort, with 22 members drawn from the SEC’s headquarters, regional offices, and Enforcement specialized units. The Climate and ESG Task Force will develop initiatives to proactively identify ESG-related misconduct. The task force will also coordinate the effective use of Division resources, including through the use of sophisticated data analysis to mine and assess information across registrants, to identify potential violations.

What this means, in short, is that things are getting tougher for companies that are part of the global warming crisis or want to profit from investors who wish to support firms that are run on an environmentally friendly basis.  Environmental, social, and governance (ESG) criteria are an “increasingly popular way for investors to evaluate companies in which they might want to invest,” said the SEC. Continue reading

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Volvo Cars Posts a +29% Global Sales Increase in 2021

Ken Zino of AutoInformed.com on Volvo Cars 29% Sales increase YTD 2021

In February 2021, the Volvo XC40 was the top-selling model, with sales of 15,818 cars (2020: 10,266), followed by XC60 at 14,463 cars (9,774) and XC90 at 6,808 cars (4,852).

Volvo Cars had good global sales in February, after the Chinese company posted 29.1% growth for the first two months of the year compared with the same period last year. Total sales amounted to 110,383 cars, as the US, Europe and China reported increases. The main factor was an ongoing recovery from the Covid-19 pandemic in China compared to last year, a solid performance in the US and increased sales in Sweden, said Volvo.

In China, Volvo Cars sold 29,243 cars in the first two months of the year, up 160.6% year-on-year, as the company managed to more than recover lost sales due to Covid-19 shutdowns last year. For the month of February, Volvo Cars sold a total of 50,795 cars, up 27.8% compared with the same month last year, and the company’s best February sales performance ever. Continue reading

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Ugh – US Light Vehicle Sales Drop during February 2021

Ken Zino of AutoInformed.com on US Light Vehicle Sales Drop during February 2021

LMC’s outlook for US Light Vehicle sales in 2021 has been upgraded again, to 16.0 million units, an increase of 11% from 2020. Retail sales are projected to grow by 9% and fleet by more than 20% from 2020. Click to Enlarge.

Blame the weather since US light vehicle sales dropped to 1.18 million in February, according LMC Automotive, an automotive global forecasting consultancy. The -3% Year-over-Y decline in LMC’s view was caused by two fewer selling days this year, as well as abnormally cold weather and winter storms across many key markets. Any way you look at it, the selling-day adjusted sales volume was still down by -5.5% YoY. The annualized rate dropped to 15.7 million units, down from 16.6 mn units in January.

Compact and mid-size SUVs performed better than large pickups. They were the two most popular segments, which appears the long-term trend with mid-size SUVs gaining 0.9 percentage points of share from February 2020. Only Compact Premium SUVs grew more, up by 1.2 pp, likely from new product launches. Not surprisingly, mid-size Cars lost 2.5 pp of share from a year ago, more than any other segment. Here LMC hedges, “although consumers have been moving away from cars, lower fleet volume also hurt the segment significantly. While six segments sold more than 100,000 units last February, only four reached the threshold this year – Compact SUV, Mid-size SUV, Large Pickup and Small SUV. Combined, they accounted for 57% of total sales.” Continue reading

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World’s First Electric Bentleys to be Built by Lunaz

 Ken Zino of AutoInformed.com on Lunaz EV Conversion of a 1961 Bentley S3 Continental Flying Spur

Just bring tons of pounds – prices start at £350,000, excluding local taxes.

Lunaz will commence full production of the world’s first electric Bentleys by converting vehicles to electric powertrains. The most recently completed car is a 1961 Bentley S3 Continental Flying Spur by H.J Mulliner. Lunaz claims it demonstrates the breadth of possibilities through collaboration between a Lunaz customer and the company’s design team, with the car in a contrasting two-tone exterior paint configuration. It uses a proprietary modular electric powertrain that can and will be applied to wider applications.

Lunaz, an electric vehicle engineering company and creator of electric classic cars, says it will increase its global manufacturing headquarters by 500% in the Spring of 2021. The company will go from its current 8,000 sq/ft facility to a 40,000 sq/ft engineering, design and manufacturing center adjacent to its current home. This will be the largest occupied manufacturing space within the Silverstone Technology Cluster in Britain’s advanced engineering heartland. Continue reading

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First Look – February 2021 Auto Sales

Hyundai Motor America reported total February sales of 48,333 units, a -9% decrease compared with the company’s record in February 2020. Retail sales were down -2%. Hyundai fleet sales were down -47%, representing 9% of total volume. February 2021 contained two fewer selling days and one fewer selling weekend than last year. On a daily selling rate basis, Hyundai total sales increased 1% and retail sales were up 9%. Retail SUV sales were up 8% and represented 69% of the total retail mix. Year-to-date Hyundai sold 91,727 vehicles compared to 95,757 ytd 2020, off – 4%.

Kia Corporation recorded total global sales of 210,177 units in February 2021, a 7% increase compared to the same month last year. Continue reading

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Volvo to Only Sell EVs Online as a Pure EV Company by 2030

Ken Zino of AutoInformed.com on Volvo to Sell EVs Online Only

Volvocars.com will “radically simplify the process for, and reduce the number of steps involved in, signing up for an electric Volvo.”

Chinese-owned Volvo Cars said today it will transform the current wholesale model by moving online as it aims to be a fully electric car company by 2030. Volvo currently only sells one pure EV, but expects government regulations will increase demand. Volvo will launch a completely new family of electric cars in the coming years – all of which will be available online only. As part of its new strategy, Volvo Cars says it will invest heavily in its online sales channels, radically reduce complexity in its product offerings, and provide “transparent and set pricing models.” Combined with the move to online sales, Volvo Cars will offer EVs under the “Care by Volvo” name. (Geely moves Closer to Owning AB Volvo. Chinese Company Owns the Car Brand and Is Buying Into the Truck BusinessA Decade of Chinese Ownership – Volvo Cars Posts Strongest Second-Half Sales in Its 93-Year History)

The strategy is focused on what appears to be the fastest-growing segment in the global car industry: the premium electric market. Volvo Cars aspires to be a leader or at least a survivor in this segment competing with Tesla, Audi, Cadillac, BMW and Mercedes, among others. Volvo will focus on developing electric cars only going forward. It does however face potential legal problems from current authorized dealers or dealership groups. Continue reading

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Brazil –  A Ford Motor South American Nightmare

Ken Zino of AutoInformed.com on Nationalizing Ford of Brazil

The growing Ford business crisis in Brazil stems from its attempts to shore up its balance sheet with its latest reorganization that ceases all manufacturing in Brazil.

Ford Motor management is standing at an intersection of survival and extinction in the international auto business. It’s attempting to eliminate losing operations in the face of a long heritage of local operations, customs and traditions that predate and overlook the globalization, disruption and perils that the company is facing. It’s a risky political challenge as well.

With the exception of North America and Europe, Ford’s automobile businesses lost money during Q4 and Full Year 2020 in every other major region – including China where the economy is thriving. Ford Motor earnings before interest and taxes (EBIT) are slight at 4.9% or when adjusted a paltry 2.2%.

In  money-losing South America there is a governmental history of graft and corruption, economic catastrophes and failed financial and fiscal policies – among other factors at play. The brew distilling there appears to be 151-proof toxic. The outcome is a potential drunk-driving multi-car collision that will leave smoldering businesses and tragically ruined lives and careers. This is all playing out against a backdrop of a new potent Corona virus variant in Brazil that infects vaccinated people, and an ongoing public health disaster. Deaths have surpassed 250,000 in Brazil. It is the world’s second-highest mortality tally after the U.S. Continue reading

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Daimler Truck, Volvo Group Create “cellcentric” Fuel-Cell JV

Ken Zino of AutoInformed.com on Daimler Truck, Volvo Group Create “cellcentric” Fuel-Cell JV

Toyota and Hino appear to be out front on fuel-cell trucks at the moment.

Daimler Truck AG and the Volvo Group today completed a transaction to form a fuel-cell joint venture. The Volvo Group has acquired 50% of the partnership interests in the existing Daimler Truck Fuel Cell company for ~€0.6 billion on a cash and debt-free basis.

The lofty goal is to make the new joint venture a leading global manufacturer of fuel-cells. It will help both truck makers survive the growing and capital intensive move to climate-neutral and sustainable transportation. Daimler and the Volvo renamed the company “cellcentric GmbH & Co. KG.” In November 2020, the Volvo Group and Daimler Truck AG signed a binding agreement that provided the foundation for the JV.
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HomeStation – Connected Home Charging for Electric Vehicles

Ken Zino of AutoInformed.com on Home Station EV charging

Indoor or outdoor installation is possible.

Electrify Home has launched HomeStation, a Level 2 residential electric vehicle (EV) charger. With adjustable charging power levels of up to 40 amps, professional and do-it-yourself installation options, and programmable WiFi features, buyers will have the ability to schedule charging times, which can help customers save on energy costs by charging during off-peak hours if such rates are offered.

HomeStation’s WiFi capabilities let users sync their product with the app – which can then be used to start and stop charging sessions remotely, schedule future home charging sessions, and view charging status and reminders. Switching back and forth between the public network of more than 2,400 chargers and the HomeStation is also possible, helping keep track of all charging history in one app. HomeStation also allows for integration with Amazon’s Alexa and Google Assistant, so customers can use their voice assistants to communicate with the charger.
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Brazil to Nationalize Ford Motor Plants?

Ken Zino of AutoInformed.com on Nationalizing Ford of Brazil

Ford has been in Brazil for more than a century.

Ford workers are looking for ways to protect their jobs and have agreed to begin talks with the US carmaker’s global management team today. (see AutoInformed.com on Latest Ford Restructuring – Brazil Manufacturing to Cease) They are also looking into the possibility of introducing a bill to nationalize Ford’s operations in Brazil. Ford Brazil will end production at its Camaçari, Taubaté and Troller plants during 2021 as weak sales have resulted in years of significant losses. Ford has been in Brazil for more than a century. Continue reading

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Daimler Earns €4.0 billion in 2020

Ken Zino of AutoInformed.com on Daimler Earns €4.0 billion in 2020

The pre-existing financial crisis at Daimler required drastic steps, which were underway and served it well when Covid struck.

Daimler AG (ticker: DAI) reports that net profit increased by 48% to €4.0 billion for the fiscal year 2020 while proposing a dividend of €1.35 per share (2019: €0.90). The Group’s total sales of passenger cars and commercial vehicles decreased by -15%, to 2.84 million (2019: 3.34 million). Revenue was down at €154.3 billion (2019: €172.7 billion), a reduction of 11%. Due to extensive cost and cash preservation action and good performances across all divisions, EBIT of the Daimler Group increased by 53% to €6.6 billion (2019: €4.3 billion).

Adjusted EBIT, reflecting the underlying business, was €8.6 billion down from €10.3 billion in 2019. The numbers are based on audited financial statements. The reporting structure and previous year’s figures have been adjusted to reflect the newly formed Group divisions. (read AutoInformed.com on Daimler to Spin-Off Daimler Truck into Separate Compan,  Daimler Q3 Covid Results – Sales, Revenue Down. Earnings Up) Continue reading

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New St. Clair Magna Plant to Supply GMC’s Hummer EV

KKen Zino of AutoInformed.com on Magna Electric Vehicle Structures and Hummer

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Magna has broken ground on a new manufacturing facility in St. Clair, Michigan, that will build complex battery enclosures for the all-new 2022 GMC Hummer EV. Construction of the 345,000 square-foot facility, named Magna Electric Vehicle Structures, represents more than a $70 million investment that is likely to bring more than 300 jobs to the city during the next five years. This new business with GM marks an evolution as the company expands its capabilities in all aspects of the vehicle electrification. (see AutoInformed.com on Don’t Hold Your Breath Waiting for the New Hummer EV, GMC Hummer EV – Its First All-Electric Truck) Continue reading

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First Look – 2022 Lexus IS 500 F Sport Sedan

Ken Zino of AutoInformed.com on 2022 Lexus IS 500 F Sport Sedan

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Lexus claims that its front-engine rear-wheel-drive 2021 IS is the “perfect balance of sportiness and sophistication, making it the best IS to date.” Well, maybe until the all-new 2022 IS 500 F SPORT Performance model that is expected to arrive in dealerships later this Fall.

This is the first-ever Lexus IS 500 F SPORT Performance, with the addition of a 472-horsepower, naturally aspirated V8 engine and a quad exhaust system. It without question expands the IS family. It also appears to be the beginning a new line of F SPORT Performance models for driving enthusiasts that will spend big money for higher levels of performance over the standard F SPORT models. Current pricing on 2021 IS ~$39,000-$50,000. Continue reading

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Groupe Renault and Faurecia to Work on Hydrogen Storage

Starting at the end of 2021, Faurecia will supply hydrogen storage systems for a fleet of light commercial vehicles for Groupe Renault. These systems will be developed and produced at its global center of expertise in Bavans, France. As volumes, increase production will be extended to a new plant dedicated to hydrogen storage systems that Faurecia is building in Allenjoie, France.

Hydrogen, of course, is central to an ongoing energy transition toward zero-emissions mobility. Fuel cell electric vehicle technology will be significant in the powertrain and vehicle mix by 2030 promoted or demanded by government regulations, taxpayer subsidies and the growing realization that Global Warming is a significant health and economic threat. Continue reading

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