Global Auto Business Threatened by Covid Second Wave

Posted on 22 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on Covid and vehicle industry use rates of plants.

Utilization had already been declining from a healthy level of 70% and above, prior to the pandemic. Chart courtesy of LMC Automotive.

The financial health of the global auto business remains threatened by Covid 19 and it could be just as deadly. This comes from the latest forecast from consultancy LMC Automotive as it takes a steely-eyed look at the pandemic and its ongoing economic destruction.

While the past isn’t a 100% sure predictor of the future, “A second wave and stricter social controls pose a large risk to our central forecast,” LMC notes in its latest analysis. LMC projects that 2020 global assembly plant use is expected to fall to the lowest level ever recorded – just 51%. The pandemic-caused shutdowns during March and April had a profound impact on both the volume and use of plants globally.
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Making America Late Again – NAIAS to September 2021

Posted on 21 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on the ongoing disruption ot the auto industry because of the Trump Administration's failure to act on Covid 19.

German Chancellor Angela Merkel looks past then-International Monetary Fund Managing Director Christine Lagarde toward U.S. President Donald Trump – Leon Neal for Getty Images.

The North American International Auto Show today said it will move its show, originally planned for summer 2021 to 28 September – 9 October 2021. Once again the lack of an effective national plan to fight Covid is the major back story to the shift. The US remains mired in the Trump Administration’s ongoing quest to stay in office despite the hundreds of thousands of people who have perished so far – with many more deaths to come.

“We have talked with many of our partners, particularly the OEMs, and they are fully on board and excited about the date change,” NAIAS Executive Director Rod Alberts said. (AutoInformed.com – 2020 NAIAS Canceled. TCF Center to be Field Hospital. Michigan’s COVID Crisis had Little Federal Help)

NAIAS will remain a fall show going forward after the inaugural event in September 2021. Show dates have been secured with TCF Center for the next three years. NAIAS organizers choose dates towards the end of the month because of the new IAA in Munich, which is scheduled for the first full week in September. NAIAS has had a troubled relationship with German automakers in the past. The NAIAS move  is defensive with a yet unknown outcome in our view. (AutoInformed.com – Business, Politics, States Can Work Together in Germany)
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Subaru Aids First National Clean-Up and Recycling Plan

Posted on 17 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on Subaru Aids First National Clean-Up And Recycling Plan

“It feels good to do good!”

Subaru of America says that it will co-host and serve as official vehicle for the country’s first national litter clean-up and recycling initiative. The stated goal is to egg on people to help reduce landfill waste in their local communities or their own backyards.

Entitled Facelift: Act Local, the six-day-long event produced by the Yosemite Climbing Association and co-presented by The North Face, encourages people to independently get outdoors and safely pick up trash at their local green spaces, neighborhood parks or backyards from September 22-27.
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California to Subsidize 51 Shell Hydrogen Sites

Posted on 17 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on Shell Hydrogen Refueling Subsidized by Taxpayers

Socialism for the rich once again. Too bad the CEC doesn’t require some ownership for the capital it is providing.

The California Energy Commission (CEC) has posted a Notice of Proposed Award outlining subsidies to support hydrogen refueling infrastructure in California. Equilon Enterprises LLC (d/b/a Shell Oil Products US), aka Shell Hydrogen, was awarded $40.8 million. If the proposal is adapted by the CEC, Shell Hydrogen will install hydrogen refueling equipment at 48 existing Shell retail stations, upgrade two current Shell Hydrogen stations and add light-duty fueling dispensers and positions at one existing Shell Hydrogen heavy-duty truck station.

Yes, that’s right big oil, which lobbied strenuously and successfully against global warming even though executives knew the companies were major contributors to the problem, is raiding the taxpayer’s bank accounts to become part of the newly emerging green age that will make fossil fuels obsolete. Continue reading →

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Auto Shoppers Dumping Dealers for Online Buying

Posted on 15 September 2020 by Ken Zino

During the COVID-19 pandemic, 65% of automotive shoppers’ decision to purchase a vehicle was affected and 40% of shoppers delayed making a new vehicle purchase, according to the J.D. Power 2020 Manufacturer Website Evaluation Study.

As a result, more buyers are now willing to purchase their vehicles online instead of at a dealership. Is this a long-term trend or a temporary fad? The answer has significant financial, marketing and job implications for the auto industry.
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Hyundai Recalls 2019-2021 Tucson SUVs for Fires

Posted on 14 September 2020 by Ken Zino

Hyundai Motor America is recalling 180,000 2019-2021 Tucson SUVs because the Anti-lock Brake Hydraulic Electronic Control unit could corrode and cause an engine compartment fire. An electrical short in the ABS module increases the risk of an engine compartment fire while parked or driving. There are at least 12 known fires in the US thus far.

In the required NHTSA filing, Hyundai said it recommends parking these vehicles outside and away from structures until the recall remedy is completed. Hyundai plans to notify owners to instruct them to return their vehicles to a dealership for replacement of the ABS module “when available.”
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Multi Problems with Automotive Multi-Media

Posted on 11 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on US Multi Media Quality and Satisfaction Survey

Click to enlarge.

The top 10 problems with automotive multimedia systems are design related. As a result, owner satisfaction with such systems is among the least satisfying aspects of the vehicle experience, according to the J.D. Power 2020 U.S. Multimedia Quality and Satisfaction Study.

“The majority of frequently occurring problems with multimedia and infotainment systems are design-related issues, many of which could be addressed through software updates to work out the bugs,” claimed Brent Gruber, senior director of global automotive quality at the J.D. Power consultancy.
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2020 Muscle Car and Corvette Nationals Cancelled

Posted on 11 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on MCACN 2020 Cancellation

Another Covid 19 casualty.

MCACN says that it is in the “best interest of all involved” to cancel the 2020 event, scheduled for November 21-22, 2020. Ongoing safety and health concerns about Covid 19, as well as the State of Illinois regulations limiting indoor gatherings to 100 people were the reasons for the cancellation.

“We know that we have all been hoping for the best, but with the uncertainty and the current State of Illinois limitations regarding spectators at indoor events, it is not feasible to continue with the show this year,” said MCACN Managing Member, Bob Ashton.
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Milestones: Nissan Production of 500,000 Leaf EVs

Posted on 9 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on 500,000 Nissan Leaf EVs

Globally LEAF owners helped prevent more than 2.4 billion kilograms of CO2 emissions.

In celebration of World EV Day, Nissan marked the production of the 500,000th LEAF, the first mass-market 100% electric car. With half a million LEAF built globally, customers around the world continue to buy the pioneering zero-emission vehicle. (Original 2010 AutoInformed review Nissan Leaf Debuts in U.S. at $32,780)

The milestone was achieved at Nissan’s plant in Sunderland, England, almost a decade after the model first went on sale. The plant has built more than 175,000 LEAF cars since it began producing the model in 2013.Ironically, Sunderland is now threatened by BREXIT and the UK Governments lack of an agreement with the EU.
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GM Claims Wireless Battery Management for Future EVs

Posted on 9 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on GM Wireless Battery Management

GM claims the wBMS’ basic structure can accept new features as software becomes available.

General Motors claims it will be the first automaker to use an almost completely wireless battery management system for production electric vehicles. This wireless system, or wBMS, developed with Analog Devices, Inc., will be a key to GM’s ability to ultimately power many different types of electric vehicles from a common set of battery components.

It is hoped that – the badly named – wBMS will get GM’s Ultium-powered EVs to market faster because time won’t be needed to develop specific communications systems or redesign complex wiring designs for each new vehicle. It has already sped the creation of more automotive engineering/marketing jargon powered by acronyms. The wireless battery monitoring system will be standard on all planned GM vehicles powered by Ultium batteries. Continue reading →

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Daimler Issues Its First Green Bond of €1 Billion

Posted on 8 September 2020 by Ken Zino
Ken Zino of UatoInformed.com on Daimler Green Bonds

Daimler will use the bond money to develop and produce zero-emission vehicles.

Daimler AG (ticker symbol DAI) has issued its first Green Bond to support CO2-neutral technologies and services. The benchmark Eurobond had a volume of €1 billion, a term of 10 years and an annual coupon of 0.75%. It was more than 4-times oversubscribed.  The issuance was arranged by BBVA, BNP Paribas, Commerzbank, Crédit Agricole, SEB and Unicredit.

“CO2-neutral mobility and production is a clear goal and an integral part of our sustainable business strategy,” said Harald Wilhelm, Member of the Board of Management of Daimler AG, responsible for Finance & Controlling/Daimler Mobility, and of Mercedes-Benz AG, responsible for Finance & Controlling. Continue reading →

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Uber Plugs-In With Renault, Nissan to Electrify Europe

Posted on 8 September 2020 by Ken Zino

Renault and Nissan, within their Alliance, have signed a Memorandum of Understanding (MoU) with Uber with the aim of electrifying its customers’ journeys in Europe. The companies will now explore a partnership to provide partner drivers on the Uber App with affordable electric vehicles in European markets, notably in the United Kingdom, France, the Netherlands and Portugal.

It follows a successful pilot between Nissan and Uber in the UK. AutoInformed notes the absence of Mitsubishi, the third member of the Alliance, which is in the process of exiting or being squeezed out of the EU. Uber has faced severe regulatory and market challenges in the EU. Continue reading →

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Nikola and General Motors Partner! Nikola Badger Truck to be Engineered and Manufactured by GM

Posted on 8 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on Nikola Badger Pickup Truck - GM Production Late 2022

The agreement with Nikola also extends General Motors’ use of its fuel cell technology to the Class 7/8 semi-truck market and represents a high-volume commercialization of its  Hydrotec fuel cell system.

Nikola Corporation (NASDAQ: NKLA) and General Motors Co. (NYSE: GM) today announced a “strategic partnership” that starts with the Nikola Badger and carries cost reductions through Nikola’s other programs. Badger is anticipated to enter production by year-end 2022. This is potentially a deal that can drastically change the transportation world.

“We would rather work with them than against them,” said Nikola founder and Executive Chairman Trevor Milton on a phone call with reporters and analysts.  Once again the latest linkup is an attempt to share the ruinously expensive costs of investment needed to provide 21st century mobility to a business that until a generation ago was essentially an outgrowth of the 19th century blacksmithing business.
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Covid Labor Day 7 September 2020 Sees a Sick Economy

Posted on 7 September 2020 by Ken Zino
Ken Zino of AuotInformed.com on Labor Day 2020

Click to Enlarge.

Labor Day 2020 sees the US economy in trouble because of Covid 19 and the bungled federal government response to the ongoing global pandemic. In August, the U.S. economy added 1.4 million jobs according to the  Labor Department, down from 1.7 million in July and down abruptly from the 4.8 million added in June. Workforces are still more than 11 million jobs below their pre-pandemic level.

The unemployment rate fell to 8.4%, down from 14.7% in April and 10.2 % in July (The so-called U-3 measure  is people without jobs who must have looked for a job in the last four weeks). Any way you look at it, joblessness is still higher than the peak of many past recessions. The real unemployment rate was 14.2% because it contains 535,000 discouraged workers. (This is U-6 or the real rate because it includes people who would like a better job. It also includes those who are underemployed and marginally attached.)
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COVID-19 – Ford to Donate 100 Million Masks

Posted on 4 September 2020 by Ken Zino
Ken Zino of AutoInformed.com on Ford Built for America - COVID-19 Response

“Nobody said no. Nobody said why? Everybody said ‘let’s go’.” The UAW members who did this are likely on Trump’s sucker list along with veterans and Gold Star families.

Ford Motor is targeting production of 100 million masks through 2021 for communities across the U.S. with limited access to personal protective equipment. The company is focusing on military veterans, schools, food banks and African American communities, among others.

Masks will support presumptive President Joe Biden’s pending mask wearing mandate. Ford, currently manufacturing 2.5 million medical-grade masks a week for its employees and at-risk communities, is adding mask-making machines by mid- to late-October to increase production and deliver on its goal.
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