Q2 US Sales Snippets and Notes

BMW of North America announced today 1 July Q2 2020 sales results for the BMW and MINI brands in the U.S.  For the sales period ending June 30, 2020, BMW brand sales totaled 50,957 vehicles, a decrease of 39.3% vs the 83,976 vehicles sold in the same time last year. MINI brand sales totaled 5,288 vehicles, a decrease of 41.5% vs the 9,044 vehicles sold in the first quarter of 2019.

Since the onset of the global pandemic in the U.S. in mid-March, BMW has instituted several measures to sell and service vehicles across the U.S.  While the situation has differed greatly from state-to-state, at many locations, BMW has accelerated its use of digital sales practices, allowing customers to move further down the path to purchase online before visiting a store, and enabled virtual transactions so that purchases may be completed digitally and vehicles delivered.  Dealers are also offering “invisible” service where vehicles in need of service or maintenance are picked up and dropped off without interaction.

Ford Motor Company Q2 overall sales were down -33.3% at 433,869. Ford brand sales at 412,588 dropped -34%. Ford car at 40653 sank -61%. Ford truck at 278,891was off -22.2%. Lincoln brand at 21,281 dropped -18%. Shutdowns and shelter-in-place restrictions had the largest impact on fleet sales in Q2. Daily rental was down -94%, while commercial was off -78% from production shutdowns – commercial performance did improve sequentially through the quarter Ford claimed. Continue reading

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GM Reports Q2 US Sales at -34% Year-over-Year

ken Zino of AutoInformed.com on GM Q2 2020 Sales

Trucks are leading the recovery.

General Motors (NYSE: GM) announced today that it delivered 492,489 vehicles in the second quarter of 2020, a decrease in total vehicle sales of about -34% compared to a year ago. However, GM said demand outpaced supply in the latter half of the quarter.

“While the industry experienced significant declines due to the outbreak of COVID-19, full-size pickup truck sales performed exceptionally well, and overall sales showed signs of recovery, especially deliveries to retail customers,” GM claimed.
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Ford, Wayne State University and ACCESS Coalition Expand Mobile COVID-19 Testing

AutoInformed - Ken Zino of AutoInformed.com on Ford, Wayne State University and ACCESS Coalition Expands Mobile COVID-19 TestingFord Motor Company, Wayne State University, the Wayne State University Physician Group and ACCESS coalition have expanded mobile COVID-19 testing beyond first responders and health care workers. It is now also serving local communities in need as the plague is once again on the rise in Michigan.

Since launching in April, the mobile testing operation has added four Ford Transits – each fully equipped for mobile COVID-19 testing – as clinical test vehicles to conduct and support testing for symptomatic and asymptomatic individuals.
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COVID Casualty – Woodward Dream Cruise

Ken Zino photo for AutoInformed.com

“In 1968, I bought a new car and the payments – over $100 a month were killing me. So in 1969 I paid $1700 for a used GTO, and all my friends thought I was crazy – paid too much for it,” Haskell beamed.

The latest victim of the spreading Covid-19 plague in the US is the Woodward Dream Cruise, which was cancelled yesterday after a Zoom meeting of the town officials of the nine cities that are invaded each year along the Woodward Avenue route. Previously the organizers in April and May were in denial of the gravity of the Covid threat not unlike the hapless Trump Administration. (Dream Cruise Delights – Power to The People)

The real public health question remains what will the estimated crowd of 1-2 million enthusiasts of the car culture do during the week ending with the main event on August 15 this year?  Woodward Avenue – a state highway – cannot be shut down, barring emergency action from Governor Gretchen Whitmer, whose office did not respond to AutoInformed.
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RumbleOn Posts Q1 Net Loss of -$22 Million

AutoInformed - Ken Zino of AutoInformed.com on RumbleOn Q1 2020 Results

Click to Enlarge.

RumbleOn (NASDAQ: RMBL), the e-commerce company that claims to simplify how dealers and consumers buy, sell, trade or finance pre-owned vehicles, today announced financial results -ma net loss of -$22 million for the three months ended March 31, 2020. This calculates to a net loss per share was of -$10.77 for the stock that is touted by some traders as disruptive of the dealership centered automotive universe. RMBL is currently trading at ~$9:70/share. Even disruptive tech companies though are vulnerable to the harsh realities of the ongoing and spreading Covid 19 pandemic in the U.S. (RumbleOn Posts 2019 Loss. Cancels Guidance)

Theories in business, science, politics and life can be crude or elegant, but they are subject to correction or questioning by data. The e-commerce RumbleOn touts using innovative technology to simplify how dealers and consumers buy, sell, trade or finance used vehicles. As such, it’s one of a growing number of companies that were catching analyst and day trader enthusiasm because they are “disruptive” to the ruling business order.

Well, so is COVID-19, which is ideologically atheistic about class, party, economic theories and Wall Street fads. The question here goes far beyond RumbleOn’s strategy and management to the still unknown COVID-19 plague effects going forward. This is a stock for the brave…(AutoInformed has no position in the stock)
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2020 Ranger Adds Three New Performance Packages

AutoInformed Ken Zino of AutoInformed.com on Ford Ranger Performance Package

Just bring money to the installing dealership.

Three new optional Ford Performance accessory packages are now on sale for Ranger pickup customers, adding off-road capability. They include an off-road leveling kit, FOX Shocks, new 17-inch Dyno Gray wheels, Ford Performance graphics on the bed and windshield. These new dealer-installed packages for 2019 and 2020 four-wheel drive Ranger pickups.

With an expanding portfolio and greater part availability, Ford Accessories is offering  personalization for an unknown number of truck buyers. Pre-Covid U.S. Ranger pickup owners added an average of ~$650 worth of accessories to their new 2019 Rangers last year. (Ford Introduces Black Appearance Package for Ranger)
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Navistar Settles Diesel Air Quality Violations for $2m

Truck manufacturer Navistar Inc. has paid $2 million to resolve allegations that it altered heavy-duty vehicle engines from their certified design, potentially causing excess diesel emissions and negatively impacting air quality. Settlement includes $1 million to fund new air filtration systems in Southern California schools, according to CARB’

The Illinois-based company modified its vehicle calibrations from their certified design through “running changes” in the engines of its heavy-duty trucks without notifying the California Air Resources Board that the changes were being made, as is required.
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Global Vehicle Sales Improve but COVID Wave 2 Lurks

AutoInformed Ken Zino on 2020 Global LIght Vehicle Sales forecastThe Global Light Vehicle selling rate improved to 61.5 mn for May, from 49 mn in April, reflecting then easing lockdown measures, according to respected consultancy LMC. The global selling rate is now predicted to reach the 80 mn units/year mark towards the end of 2020 down from 90.3m, assuming there is no major second wave of COVID-19.

This now looks like a long shot to AutoInformed with the US leading the way in spreading new infections and fatalities from the maskless and clueless Trump misadministration.  In the US, a repetition of the ‘cash for clunkers’ scheme could potentially lift sales, “but this has yet to be fully debated or agreed,” says LMC.
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Global Parts – BMW, Toyota Recall Tie Rods

BMW of North America is recalling certain 2019 Z4 sDrive30i, 2019-2020 330i xDrive, M340i and M340i xDrive, 2020 X3M and X4M, and Toyota Supra vehicles. During rough road driving conditions or high temperatures, a steering gear tie rod may become damaged, possibly resulting in a fractured tie rod.
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First Look – 2021 Ford F-150 Pickup

AutoInformed Ken Zino of AutoInformed.com on the 2021 Ford F-150 Redesign

All-new F-150 Lariat in Rapid Red Metallic Tinted Clearcoat.

Ford Motor Company has revealed the latest iteration of it crown jewel, the 2021 model F-150 pickup truck. It’s due in showrooms – or likely with online ordering – this fall. It’s an important new model needed to bolster Ford’s weak financial performance in a segment that is more competitive and crowded than ever. (Ford Motor Posts -$2 Billion Q1 Loss, Ford Motor Maxes Out Lines of Credit, Ford Motor Changes Top Exec Roles Again)

Lurking in the background is the flawed launch of another mainstay, the Explorer, which was a technological masterpiece, but a quality and warranty cost disaster. Overall, Ford warranty costs reached $5 billion in 2019, up $1.5 billion in recent years – and fixing vehicle launch problems have also cost an estimated $1 billion. (Ford Posts Weak Q4 Earnings Losing $1.7 Billion) Continue reading

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California Requires Electric Trucks by 2045

AutoInformed Ken Zino at AutoInformed.com on CARB EV truck Mandate

BYD all-electric yard trucks eliminate the use of diesel fuel. A typical yard truck burns 2 to 4 gallons of diesel fuel per hour.

The California Air Resources Board has adopted a Global First by requiring truck manufacturers to transition from diesel trucks and vans to electric zero-emission trucks beginning in 2024. By 2045, every new truck sold in California will be zero-emission.

Trucks are the largest single source of air pollution from vehicles, responsible for 70% of the smog-causing pollution and 80% of carcinogenic diesel soot even though they number only 2 million among the 30 million registered vehicles in the state.  Continue reading

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US June Retail Sales Down -6% from Pre-Virus Forecast

AutoInformed Ken Zino of AutoInformed.com on US Vehicle Sales Forecast June 2020

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New-vehicle retail sales in June are expected to be down from a year ago, according to a joint forecast developed jointly by J.D. Power and LMC Automotive. Retail sales are projected to reach 1,002,600 units, a 5.7% decrease compared with the J.D. Power pre-virus forecast and 11.3% decrease compared with June 2019. Reporting the same numbers without controlling for the number of selling days translates to a decrease of 14.7% over last year.

Total sales in June are projected to reach 1,085,600 units, a -25.1% decrease compared with June 2019. Reporting the same numbers without controlling for the number of selling days shows a decrease of 28% over last year. The seasonally adjusted annualized rate (SAAR) for total sales is expected to be 12.8 million units, down 4.4 million units from a year ago.
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Formula 1: Car by Car 1950–59 Now Available in the U.S

AutoInformed Ken Zino of AutoInformed.com on Formula 1 Car By Car

Depth, detail and enthusiasm about the emergence of modern day F1.

FORMULA 1: CAR BY CAR 1950-59 is now available in the U.S. In it, the 1950s are explored in this next installment of Evro Publishing’s decade-by-decade series covering all Formula 1 cars and teams. It’s a must read for enthusiasts of what is arguably the most technically demanding motor sport. You can buy all 304 pages of it from specialist and online booksellers.

When the World Championship was first held in 1950, red Italian cars predominated, from Alfa Romeo, Ferrari and Maserati, and continued to do so for much of the period. But, by the time the decade closed, green British cars were in their ascendancy, first Vanwall and then rear-engined Cooper, BRM and Lotus were emerging.
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Ford Motor in Corktown and Newlab Working on – What Else – Vehicle Connectivity, Autonomy and Electrification

Michigan Central, Ford’s Detroit Corktown development, and Newlab today announced two new “studios aimed at solving tomorrow’s transportation challenges and preparing cities, regions and industries for a connected, autonomous and electrified future.”

AutoInformed - Ken Zino of AutoInformed.com on Ford and Newlab Collaboration in Corktown - announced June 2020

This time the release might predict something real could emerge. Click to Enlarge

The studios will work together with Detroit and Michigan-based (Nerd Jargon Alert for what follows – editor) “accelerators and incubators, helping to grow the local startup ecosystem and add new talent, businesses and capital.”

Two years ago, pre-Covid, but nevertheless financially challenged Ford bought 1.2 million square feet in Corktown, Detroit’s oldest neighborhood, including the historic Michigan Central Station, with plans to establish a new mobility innovation district dubbed Michigan Central. Mostly press releases have followed since then. (Ford Opens Corktown Station to Community as Mustang puts Camaro and GM on Trailer During Woodward Dream Cruise, Detroit’s Michigan Central Station Haunted for Halloween, Ford Begins Construction at Michigan Central Station) Continue reading

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Top Five Air Pollution Actions to Improve Health, Climate

The Global Alliance on Health and Pollution (GAHP), AirQualityAsia and The Schiller Institute for Integrated Science and Society at Boston College today released an  evaluation of  22 practical interventions undertaken to reduce air pollution. While some efforts that replace fossil fuels with renewable energy sources improve both local health and favorably impact climate change, other, often politically popular programs are of limited value on either front.

There has been an assumption that adverse conditions impacting climate change and air pollution are the same thing. This is not necessarily true,” says Richard Fuller, Board Chair of the Global Alliance on Health and Pollution and a co-author of the report. “We wanted to see where the overlaps are, where investments can be directed that will improve health and also impact climate change.”
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