Ford Q3 Net Income at $2.4B Treads Water. Q4 $500M Loss?

Posted on 29 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on Ford Motor Q3 2020 Financial Results

“We haven’t suddenly fixed the issues in our automotive business…

Ford Motor Company posted modest Q3 results after the market closed yesterday that continued to reflect the underlying weakness of the business compounded by ongoing negative effects of the Covid pandemic. The positives in Q3 – $2.4 billion in net income and 6.4% net income margin, on revenue of $37.5 billion were also areas of potential negatives in Q4 as Covid reappears in North America.

As a result, the Ford outlook is wobbly including a fourth quarter adjusted EBIT between break-even and a, gulp, $500 million loss. (Ford Pickup Truck Sales Best Q3 in 15 Years. Cars Dead, Ford Motor Q2- Sales Drop -53%. Debt Grows $10B, Ford Motor US Sales Down in -3% 2019 as War Worries Increase, 2019 Ford Motor US Sales Continue Slump, Ford Motor 2019 Q2 – Sales, Share, Net Income, EPS All down, Ford Motor 2018 US Sales drop -3.5% to 2.5 Million. Cars at 486,000 dive -18%. Trucks Up Again)

“We haven’t suddenly fixed the issues in our automotive business, but we have a clear turnaround plan to get that done,” said Jim Farley, Ford’s president and CEO. “That work is underway and we’re making progress.” Continue reading →

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US Vehicle Sales to Rise in October?

Posted on 28 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on US Vehicle Sales Forecast October 2020

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New-vehicle U.S. retail sales for the month of October are projected to be up from October 2019, according to a joint forecast from J.D. Power and LMC Automotive. Retail sales for new vehicles are anticipated to reach 1,187,800 units, a 3.0% increase compared with October 2019 when adjusted for selling days. October 2020 contains one additional selling day over October 2019. Comparing the same sales volume without adjusting for the number of selling days is an increase of 6.8% year-over-year – if the forecast holds true as Covid continues increasing its deadly grip on people and the U.S. economy. Global light-vehicle sales year to date through September increased three percentage points from August and are now down -19% from the same period in 2019.

Complete U.S. new-vehicle sales including all transactions for October are projected to reach 1,321,400 units, a -4.5% decrease from October 2019 when adjusted for selling days. The seasonally adjusted annualized rate, aka SAAR, for total new vehicle sales is expected to be 15.9 million units, down 0.8 million units from 2019, the least year-over-year decline since the pandemic began. This is the annual output of two to four final assembly plants, without considering the component parts plants from internal or external sources. Continue reading →

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Ferrari Recalls 812 Superfast for Rear Glass Blowouts

Posted on 28 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on the Ferrari 812 Superfast safety recall.

Faster than the glue, so to speak…

Ferrari North America is recalling 1,063 of its 812 Superfast sports car because the rear window can blow out because of defective bonding. The first instance that Ferrari said it is aware of in the required NHTSA filing occurred in Germany on May 11th 2020. Two other cases were reported, and both occurred in Germany on May 21st 2020. No other problems were reported from any other markets. At that point, Ferrari started a probe involving, the supplier of the component – Saint-Gobain Sekurit Italia.

The 812 Superfast is the most powerful and fastest road-going Ferrari ever built (save for the rear-engined special limited-series 12-cylinders). The investigation seems to have run a pace in inverse proportion to the pace of the Superfast. Ferrari continued to investigate the potential causes of this problem for several months to determine a root cause, if any. On September 21st 2020, Ferrari completed the analysis on a sample of vehicles on production and found that the defect was potentially caused by an error in supplier’s production concerning the non-cleaned glass bonding area on bodywork.
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GM Defense Delivers First Infantry Squad Vehicle to US Army

Posted on 27 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on GM Defense Infantry Squad Vehicle

GM Defense will manufacture 649 ISVs and will support the production of up to 2,065 vehicles with additional authorization over eight years. This is the first major award and delivery for GM Defense since it was reestablished in 2017.

GM Defense, a subsidiary of General Motors, is marking the first delivery of the Infantry Squad Vehicle (ISV) – an all-terrain troop carrier intended to transport a nine-Soldier infantry squad and their equipment – to the U.S. Army as part of a $214.3 million contract awarded in June.

The ISV is based off the Chevrolet Colorado ZR2 mid-size truck architecture and use 90% commercial-off-the-shelf (COTS) parts, including Chevrolet Performance race components. The 5,000-pound ISV was engineered to fulfill military requirements and designed to provide rapid ground mobility. The expeditionary ISV is light enough to be sling loaded from a UH-60 Blackhawk helicopter and compact enough to fit inside a CH-47 Chinook helicopter for air transportability. The parts, combined with the ISV’s Rollover Protection System, should provide agile transportability on the battlefield.
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Multinationals Liable For Supply Chains? Swiss Vote Due

Posted on 27 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on the Responsible Business Initiative in Switzerland

Corporate lobbies are fighting the initiative.

Switzerland will hold on 29 November a nationwide referendum on the Responsible Business Initiative. A vote in favor of the initiative will make companies headquartered in Switzerland legally responsible for what happens in their supply chains.

The initiative is part of a growing slew of similar legislation being proposed in other countries, based on the United Nations Guiding Principles on Business and Human Rights. Wider adoption has vast implications for automakers.
Continue reading →

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Leasys Tweaks Noleggio Chiaro with ‘Light’ Model

Posted on 26 October 2020 by Ken Zino

Leasys, a subsidiary of FCA Bank, today (26 Oct. 20) added to Noleggio (rental) Chiaro (clear) a light version. This is claimed to be an “innovative rental solution … in the Automotive service category, grants customers a right of first refusal on the purchase of the vehicle at the end of the rental period.”

The new Noleggio Chiaro light allows customers to rent a vehicle at a competitive monthly fee with a minimum set of services, which include Third-Party Liability (TPL) insurance, roadside assistance, I-Care info-mobility service and the customary use of the Leasys app to manage the contract from a smartphone. This package of essential services allows customers to benefit from the right of pre-emption to buy the vehicle at the end of the rental period.
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Barrett-Jackson Renews Live Auctions as Covid Rages

Posted on 25 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on Barrett-Jackson Returns to Live Auctions as Covid Rages in Arizona

The prices were breathless, and it’s unknown if attendees will still be able to breath next month.

Barrett-Jackson returned to in-person events during the Fall Auction at WestWorld of Scottsdale, October 22-24, 2020 as the Arizona Republic reported that Arizona continues a trend of higher COVID-19 case reports. There were 801 new cases, 1 new death The past several weeks have seen relatively higher daily case reports as the virus spreads at its fastest rate in Arizona since June. Identified cases rose to 238,964 and known deaths were at 5,875, according to the daily report from the Arizona Department of Health Services. The number of patients hospitalized statewide for known or suspected COVID-19 cases was at 837 on Sunday 25 October, up slightly from the three previous days. Wednesday’s 848 inpatients were the highest number reported since Aug. 26. At the peak of Arizona’s surge in July, the number of hospitalized patients suspected or confirmed to have the virus exceeded 3,000. Continue reading →

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Daimler Q3 Covid Results – Sales, Revenue Down. Earnings Up

Posted on 23 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on Daimler Results

China profits helped Daimler as other major markets collapsed.

Daimler AG (ticker symbol: DAI) today reported its results for the third quarter, which ended September 30, 2020. The Group’s total unit sales decreased by -8% to 772,700 cars and commercial vehicles (Q3 2019: 839,300) and revenue dropped by -7% to €40.3 billion (Q3 2019: €43.3 billion). EBIT increased by 14% to €3,070 million (Q3 2019: €2,690 million). Adjusted EBIT, reflecting the underlying business, was €3,479 million (Q3 2019: €3,142 million) and net profit was €2,158 million (Q3 2019: €1,813 million). (Daimler Q1 2020 Net Profit Down -92% at €168m from €2149)

Daimler expects that the significant unit-sales reductions recorded in the first nine months due to the COVID-19 pandemic will only be partially offset by the end of the year. Group unit sales and Group revenue in 2020 are forecast to be significantly lower than in the previous year. (Daimler Confirms 2020 Group Sales and Revenue Will Decline, Daimler Q1 2020 Net Profit Down -92% at €168m from €2149)
 Continue reading →

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Groupe Renault Q3 Revenues -8% at  €10,374m, Sales -6%

Posted on 23 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on Q3 Groupe Renault Results

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While Q3 2020 saw a slight recovery in the global automobile market with a -4.0% drop compared with a -28% decline in the first half of the year, Groupe Renault under-performed at 806,320 vehicles sold – down -6.1% compared with the third quarter of 2019. The Renault brand continues to nurture electric vehicles and is now accelerating the launch of the E-TECH hybrid and plug-in hybrid line-up in Europe as automakers are designing to government regulations, not customer demand.

“This third quarter highlights the change in our commercial policy, which now focuses on profitability rather than volumes.” Our EV performance, our E-TECH hybrid models which have been very well received…” claimed Luca de Meo, CEO of Renault. Group revenues reached €10,374 million (-8.2%) in the quarter. The assertion comes as Covid-19 patients in hospitals in Europe is still less than half of the peak in March and April, but it is rising  each week, according to data from the European Centre for Disease Prevention and Control. People across much of Europe — including larger countries like France, Italy, Poland and Spain — are now more likely to be hospitalized with Covid than those in the US.
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California Remains Below 2020 Emissions Target

Posted on 19 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on California Green House Gas Inventory

The Governor issued a second Executive Order promoting the role of nature in addressing climate change by enlisting California’s vast network of natural and working lands.

The California Air Resources Board today released GHG emissions data for 2018 showing that emissions remain below 1990 levels but are effectively flat compared to 2017, while the economy grew by 4.3%. The data shows a slight increase in overall emissions from the previous year, and a slight decline in emissions from transportation, which is the state’s main source of both GHGs and air pollutants.

Executive Summary: California’s latest greenhouse gas data shows that while the state continues to stay below its 2020 target for emissions, there is much more work to do to achieve carbon neutrality by 2045. Executive Order N-79-20 issued 23 September by California Governor Newsom recognized that achieving our air quality and climate goals hinge on transforming the state’s transportation sector. In that order, the Governor calls for 100% sales of zero emission light-duty vehicles by 2035.
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CARB Warns Vehicle, Engine Makers on Emissions Cheating

Posted on 15 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on CARB actions against emission defeat software used by automakers.

CARB’s recent screening tests and investigations have uncovered several systemic violations. In general, CARB has found that manufacturers have failed to submit required information about their engines and vehicles during the certification process and following certification in-use. Manufacturers are required to submit complete and accurate information according to California Code of Regulations (CCR) sections and test procedures incorporated in the CCR sections for mobile source categories.

The California Air Resources Board (CARB) today sent a letter to automakers and other vehicle and engine manufacturers “encouraging them to disclose” by the end of the year 2020 any unapproved hardware or software programs that impact emissions control systems in vehicles sold in California, aka auxiliary emission control devices or AECDs.

The move comes as CARB nears completion of a new testing lab that gives the agency greater ability to detect these unapproved programs. Given the sorry history of so-called cycle cheating on CARB and EPA compliance tests, it’s not surprising that CARB is increasing efforts to protect public health and reduce combustion pollution. CARB is also immune from the federal machinations of the Trump Administration to roll back, cancel or ignore the negative effects of air pollution on people, communities and the planet itself. Continue reading →

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ZF Seatbelt Retractor Recall Bites Corvette, Jeep, Ram

Posted on 13 October 2020 by Ken Zino
AutoInformed.com on 2020 Corvette Recall because of ZF partsStingray

General Motors President Mark Reuss with the 2020 Chevrolet Corvette during its unveiling.

Front seatbelt retractors may not lock as intended during a crash because of defective parts from supplier ZF. The safety defect applies to multiple makes and models. As a result, FCA US has announced a safety recall on 2019 and 2020 Model Year (DT) Ram 1500 Pickup, 2019 Model Year (DJ) Ram 2500 Pickup, 2019 Model Year (JL) Jeep Wrangler, and 2020 Model Year (JT) Jeep Gladiator vehicles. FCA US is not aware of any accidents or injuries. General Motors recalling some 2020 Chevrolet Corvette models as well. GM is not aware of any injuries or accidents either.

The safety defect appeared at GM during barrier testing of a 2023 model year Corvette. GM worked with ZF to analyze the root cause of the retractor failure, including teardowns, computer analysis, and CAE simulations. That analysis showed that the retractor failure was caused by the locking mechanism not being properly engaged. The same part is used on current production models. Continue reading →

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Chinese, Malaysian owned Lotus Engineering Expands Hethel

Posted on 12 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on New Asian Investments in Lotus

The Lotus consultancy claims to provide a comprehensive range of technical services to automotive manufacturers and suppliers.

The Asian Investors that own Lotus are making a multi-million-pound investment to enhance the engineering test facilities in Hethel, Norfolk UK. These latest improvements are in addition to an all-new sports car factory, which will be home to an all-new Lotus model next year, along with a new assembly hall dedicated to the Lotus Evija all-electric hypercar. Both will be manufacturing new Lotus cars during 2021. (Lotus at Goodwood Confirms Type 130 Named EVIJA)The Lotus Engineering consultancy seeks to expand its portfolio of services and its client base. It will complement the Lotus Cars business as it prepares to deliver a new range of performance cars – the first of which will be unveiled next year. (The Cora Virus effect is unknown as yet, along with the UK’s trading status with the EU.

Improvements include an all-new Electric Drive Unit (EDU) test cell, plus upgrades to the Internal Combustion Engine (ICE) test and development cells, the Propulsion Prototype build workshop and the vehicle emissions lab. The 2.2-mile Hethel test track – the scene of so much historic race and road car development since Lotus moved to the Norfolk site in 1966 – has also been upgraded. (Renault Group to buy Lotus F1 Team, Raffle by Jim Clark Trust for Lotus Evora, Formula 1: Car by Car 1950–59 Now Available in the U.S.) Continue reading →

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InoBat – First Battery Developed With Artificial Intelligence?

Posted on 9 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on Intelligent electric vehicle battery unveiled by European battery pr

InoBat is backed by a consortium of investors.

The world’s first ‘intelligent’ electric vehicle battery was today revealed today by European EV battery producer, InoBat Auto (InoBat) by the company’s CEO, Marian Bocek*. Speaking at the GLOBSEC Tatra Summit 2020, Bocek claimed that after only a year of research and development, InoBat can now unveil the world’s first battery developed through a combination of Artificial Intelligence (AI) and High Throughput (HTP) technology.

InoBat’s technology-led approach to battery production – it’s claimed – enables them to create better batteries more quickly and efficiently, while delivering an increase in operational range for current best-in-class electric vehicles of almost 20%.  This technology enables InoBat to reduce its dependence on cobalt, in addition to also boosting energy density to a goal of 330 Wh/kg and 1,000 Wh/I by the end of 2023. What’s not clear is how InoBat can compete with major automakers, many of whom seeing selling their EV developed technologies to other companies as a way to offset costs and generate profits. GM’s Ultium battery business is just one example. Continue reading →

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Covid Casualties – U.S. and China Images Declining

Posted on 8 October 2020 by Ken Zino
Ken Zino of AutoInformed.com on Pew US China Image Research

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Negative views of the United States and China have risen in many countries during the past year, according to the latest pew Research. In most of 14 advanced economies surveyed between June and August 2020, unfavorable views of both countries are at or near historic highs in Pew Research Center’s decade or more of polling on the issue.

Few in the countries surveyed have confidence in the leader of either the U.S. or China, and many are critical of how both countries have handled the coronavirus outbreak. On most measures included in the survey, people are even more critical of the U.S. than of China. However more still have favorable opinions of the U.S.
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