Ford Motor Company is issuing three safety recalls in North America it announced today. Affected are 2015-18 Ford Edge and 2016-18 Lincoln MKX 2020 Lincoln Corsair crossovers, and 2020 Ford F-150 pickups. All told more than ~560,000 vehicles are being recalled for dangerous safety defects.
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NASCAR and BetMGM today announced a multi-year sports betting partnership. As an Authorized Gaming Operator of NASCAR, BetMGM “will collaborate with NASCAR to create and promote engaging sports betting experiences, including introducing in-race betting options, for racing fans across the United States.”
Live, in-race betting will begin in 2021. BetMGM is currently licensed for sports betting in seven states and has plans to be in 11 states by the end of 2020. NASCAR sanctions more than 1,200 races in more than 30 U.S. states, Canada, Mexico and Europe. (See list of AutoInformed.com on NASCAR below.) Continue reading
J.D. Power, a data analytics and consumer intelligence firm widely known in the auto industry has an agreement to purchase ALG, Inc., from TrueCar, Inc., for $135 million by year end. ALG is an industry specialist on automotive residual value projections in both the United States and Canada.
The acquisition is predicted to augment offerings from the data & analytics division of J.D. Power. It is subject to the necessary regulatory approvals. Upon approval and close, all 40 ALG employees will join J.D. Power. Continue reading
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The federal budget deficit in July 2020 was $61 billion, CBO estimates, compared with a deficit of $120 billion in the same month last year. That decrease, following three months of mind-blowing larger deficits, happened because payment deadlines for individual and corporate income taxes were delayed from April and June to July. Tax receipts were unusually large in July as a result. All told, from April through July, revenues were down 10% from last year’s amounts.
The cumulative federal budget deficit for the first 10 months of fiscal year 2020 reached $2.8 trillion, +$1.9 trillion more than the deficit recorded during the same period last year. Revenues were 1% lower and outlays were 51% higher through July 2020 than during the same 10-month period in fiscal year 2019. Continue reading
Reuss: “If I had one word to describe it, I would say personal.”
Cadillac’s first electric vehicle and GM’s first product on an all-new platform designed for electrification debuted last night in a virtual reveal live from the Design Center dome in Warren MI. Production is scheduled for 2022.
The Lyric’s propulsion system and supporting technologies could make Cadillac a leader in electrification, connectivity and automated driving, but it’s starting the race from the pits.
The abandonment of alpha numeric names is an attempt to craft an identity by not copying the German competition – Audi, BMW, Mercedes – that have been killing Cadillac (only a 9% share of luxury segment in US) in the global marketplace. Lyric was allegedly chosen because Cadillac is mentioned in more songs than any other automotive brand, including Tesla, which pioneered the concept of luxury electric technology, even though its execution was and remains flawed.
LYRIQ is based on GM’s next-generation, modular electric vehicle platform and driven by the Ultium propulsion system, allowing Cadillac to offer customers a variety of range and performance options. With range being one of the biggest factors when it comes to selecting an EV, LYRIQ can provide more than 300 miles of motion on a full charge, based on GM internal testing1.
GM President Mark Reuss offered the most intriguing and compelling description of Lyric when asked will customers accept it?
“At the end of the day, product is key. If we get the vehicle right and have a charging infrastructure, and we have battery cell technology and scale that is very competitive from a price, cost and value standpoint for our customers, things begin to change and they begin to change rapidly,” Reuss said. Continue reading
The workers’ refusal to go quietly played a significant role in winning the agreement.
After a three month fight, three IndustriALL Spanish affiliates – Federación de Industria de USO, UGT Federacíon de Industria, Construccíon y Agro and CC.OO de Industria – representing autoworkers at Nissan Barcelona signed an agreement with the company securing production and employment levels till the end of 2021. (AutoInformed Unions Protest Nissan Closure of Catalan Factories)
The closure of the Barcelona factories was the direct result of a previously announced restructuring plan that would affect more than 12,000 jobs globally at loss-making Nissan, which has been hit twice – once from the Renault Alliance and Carlos Ghosn criminal matter and then COVID-19. (Nissan Posts -¥671.2 Billion Loss for Fiscal Year 2019)
The agreement is the result of gritty union actions. After starting indefinite strike on 4 May, unions mobilized a nationwide protest movement against the factory closures. A convoy of Nissan workers travelled across the country to build support for the struggle, and demonstrations were held at Nissan dealerships. Continue reading
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BMW after reporting a profit for 44 consecutive quarters posted a loss €666 million ($786M) in Q2 of 2020 largely because of Covid-19.
In total, 485,464 vehicles were delivered to customers during the second quarter (-25.3%). Second-quarter revenues dropped to €14.878 billion or $17.6 billion (2019: €22.624 billion; -34.2%). Segment EBIT for the quarter deteriorated to a loss of €1,554 million (2019: profit of €1.469B), with the EBIT margin falling to negative 10.4% (2019: positive 6.5%). Continue reading
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Carvana Co. (NYSE: CVNA), an e-commerce firm for buying and selling used cars, has posted positive Q2 2020 results. Revenue of $1.118 Billion, an increase of 13% Year-over-Year, the result of retail sales of 55,098, an increase of 25%.
“We’ve been leading the market with The New Way to Buy a Car for the last 7 years and now with even more customers moving to online buying, we are seeing more demand than ever before,” said Ernie Garcia, founder and CEO of Carvana. Continue reading
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The LMC consultancy says that it does not currently anticipate any excess downtime due to the COVID-19 pandemic, but there is no denying that the risk remains.
It’s tough to ignore the mounting number of cases and the rising death toll unless you are the president. Deaths from the virus have exceeded 1,000 for a week with no end in sight – for the first time since May. Covid cases continue to flood the US with more than 4.6 million people infected with the virus, according to the CDC. Continue reading
A Four-Door Electric Mustang, as ground breaking in its own way as the original pony car.
Ford Motor Company today announced that Jim Hackett, 65, CEO since 22 May 2017, plans to retire from the company. Jim Farley COO, 58, has been named the company’s new president and CEO and will join the board of directors, effective 1 October.
Under Hackett, Ford Motor has had a rough off-road ride during the move to smart vehicles that confused industrial companies confronted with a new world order consisting of Amazon, Apple, Tesla, Toyota and many others. Ford to this day continues to restructure operations and tweak the product lineup with mixed results. (Volkswagen Joins Ford by Investing in Argo AI, Carvana Launches First Vending Machine in California)
It has been an unsettling journey for shareholders, too, with Ford stock moving from ~$11 share to under $7 a share during the last three years. Hackett is notable though for undertaking a monumental task – results still unknown – of creating a new Ford culture comfortable with external change while embracing internal reforms needed to respond to them. (Ford Motor Q2- Sales Drop -53%. Debt Grows $10B, Ford Motor Maxes Out Lines of Credit, Ford Posts Weak Q4 Earnings Losing $1.7 Billion, Weak Ford 2018 Financial Results Prove Need for Shakeup) Continue reading
Taxpayers are subsidizing EV charging.
General Motors and EVgo say they will triple the size of the nation’s largest public fast charging network by adding more than 2,700 new fast chargers over the next five years, a baby step in making electric vehicles more useful. (GM Shows New Batteries and a Flexible Global EV Platform, GMC Hummer EV – Its First All-Electric Truck, Lordstown and Lithium. A New GM Constellation is Rising)
The two companies say they will add fast charging stations to cities and suburbs, providing increased charging access to drivers who live in multi-unit homes, rent their homes and can’t install chargers, or might not have access to workplace charging. Continue reading
General Motors dealers are selling three all-new 350 small-block engines. These new GM Original Equipment 5.7L, 350 cubic-inch V8 replacement engines are never re-manufactured.
“Building on the history and versatility of the original 350 first available in Chevrolet models such as the Camaro and Corvette, this engine continues to deliver,” said Andrew McKittrick, manager of GM’s propulsion portfolio. “Every GM Genuine Parts engine incorporates our very latest engineering technology and product enhancements to offer a reliable and dependable product for our customers.” Continue reading
“As the world shifts to electric mobility, EVs will be integrated into society in ways that go beyond transportation.” Click to Enlarge.
Electric vehicle drivers will be able to discharge power from their car’s battery pack to pay for parking while visiting the Nissan Pavilion exhibition space in Yokohama. The Nissan Pavilion opens to the public tomorrow. Nissan says the payment system is “just one of the many innovations customers can experience at the Pavilion, built to show how Nissan moves people to a better world.” (AutoInformed: Nissan Leaf Debuts in U.S. at $32,780, Milestones – Nissan Begins Assembly of 2013 Leaf EV in Tennessee, Nissan LEAF at 400,000 Sales as IMQ Crossover EV Due in 2022)
The 10,000-square-meter, zero-emission Pavilion has solar panels and is supplied with renewable hydroelectric power. Visitors can eat at the Chaya Cafe, operating on power supplied by Leaf EVs and solar energy. They can also enjoy virtual experiences that allow them to feel the thrill of Formula E electric street racing or go for a ride in new Nissan Ariya EV crossover. Continue reading
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Ford Motor Company posted Q2 results that saw sales drop to 645,000 or -53% because of COVID-related lower industry volume and suspended production through May 17. Adjusted Earnings Before Interest and Taxes was down -$1.9B, because of lower volume, new-model material cost and warranty, offset partially by higher net pricing, and lower structural cost arising from suspended production, reduced marketing activity and other one-time cost actions.
Analysts, a mysterious species to AutoInformed, were surprised and delighted? AutoInformed noted an ongoing warranty cost disaster, which is a management failure not a Covid issue. It remains troubling as Ford is introducing increasingly complex but profitable SUV, EVs and Trucks. Continue reading
Unifor Opens Contract Talks with Detroit Three in Canada
Matt Hough, GM Canada general director, human resources and labour relations (right) and Unifor president Jerry Dias (left) officially open up 2020 contract negotiations.
Unifor opened formal contract talks with the Detroit Three automakers, Fiat Chrysler, Ford and General Motors, to reach collective agreements for nearly 20,000 members in Toronto today, 12 August 2020.
All ten of the Detroit Three Canadian plants are at risk some analysts say that potentially could be covered by a new four-year contract. The union represents ~35,000 auto workers overall, with ~20,000 employed by the Detroit Three.
Mimicking UAW collective bargaining for ~150,000 autoworkers in the US, Unifor negotiates vital parts of the contract with one automaker and that establishes the pattern for the rest. The target company will be announced in July. Continue reading →