COVID Effects: BMW AG FY Earnings Guidance – Zero

AutoInformed.com on COVID Corrosion of Earnings

Motorcycle and automobile deliveries will be significantly below 2019.

The Board of Management of BMW AG today updated its guidance for the financial year 2020 to zero earnings on automobiles. In 2019, the BMW Group sold over 2.5 million passenger vehicles and more than 175,000 motorcycles worldwide. The profit before tax in the financial year 2019 was € 7.118 billion on revenues amounting to €104.210 billion. As of 31 December 2019, the BMW Group had a workforce of 126,016 employees.

“The decisive factor for the adjustment is that the measures to contain the corona virus pandemic are lasting longer in several markets and are thus leading to a broader negative impact than was foreseeable in mid-March, BMW said in a statement. “It is therefore apparent that delivery volumes in these markets will not-as was previously assumed-return to normal within a few weeks.”
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Consumer Feelings on Future Mobility Technologies Declines

AutoInformed,com on The Baidu-Ford L4 Autonomous Vehicle Test Project kicks off with on-road testing slated to begin by the end of this year. 百度与福特的L4级别自动驾驶联合测试项目,未来将在公开道路进行测试

 Baidu-Ford L4 Autonomous Vehicle Test Project kicks off with on-road testing. 百度与福特的L4级别自动驾驶联合测试项目,未来将在公开道路进行测试

Consumer confidence in future mobility technologies lags far behind automakers’ plans to bring self-driving and battery-electric vehicles to the marketplace, according to the J.D. Power 2020 Q1 Mobility Confidence Index. The Index for self-driving vehicles decreases for the first time—to 35 from 36 on a 100-point scale—for American consumers and to 36 from 39 for Canadian consumers. For battery-electric vehicles, the index remains at 55 in the U.S. for the fourth consecutive quarter, while decreasing to 57 from 59 in Canada.

“Frankly, we’re concerned for automakers,” said Kristin Kolodge, executive director of driver interaction & human machine interface research at J.D. Power. “They’re pushing forward with technology that consumers seem to have little interest in. Nor are they making the strides needed to change people’s minds. Especially now, automakers need to reevaluate where they are spending money. They are investing billions in these technologies, but they need to also invest in educating consumers. Lack of knowledge is a huge roadblock for future adoption.”
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Multi-Seasonal Self-Driving Data Issued by Ford

AutoInformed.com on Multi-Seasonal Self-Driving Data Issued by Ford

Key here is quantity.

When a self-driving vehicle is operating, it is gathering information about the world around it. Cameras and LiDAR help it identify vehicles, pedestrians, signs and, hopefully, anything else that might be out in or near the streets. Radar helps the vehicle keep track of how fast things are moving around it.

“Without all this data, self-driving cars wouldn’t even be able to leave a parking lot,” says Tony Lockwood, Autonomous Vehicle Manager, Virtual Driver Systems, Ford Motor Company. He observes that these vehicles need to process a constant stream of information to “safely navigate” their surroundings.

Leaving aside for the moment giant unresolved privacy issues and how companies can sell your personal information their benefit not yours, data is needed to help engineers and researchers create software that can teach self-driving vehicles how to analyze their environments. This software used to be called the driver.
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Alexandra Ford English to Join Rivian’s Board of Directors

AutoInformed.com on Rivian R1S.

Rivian R1S.

Rivian and Ford Motor Company last Friday announced that Alexandra Ford English – Executive Ford Chairman Bill Ford’s daughter – will join Rivian’s board of directors effective immediately. English is director of Corporate Strategy for Ford Motor Company, responsible for the company’s enterprise strategy, connectivity, and digital network strategy – a highly risky “bet the company” business plan. (Ford Motor Posts -$2 Billion Q1 Loss, Rivian Gets $500 Million for New Ford Battery Electric Vehicle)

The announcement comes at crucial point for Ford Motor as analysts are speculating that future of a challenged Ford – operational competence, liquidity, as well as quality and warranty issues – will require a merger with another global automaker, perhaps Volkswagen. (Bill Ford has been quoted – second hand – by insiders as saying “No.” Then after a pause “Hell No.”)  Continue reading

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US Q1 GDP Estimates – Negative Growth as Economy Retracts

AutoInformed.com on US Real GDP Q1 2020

The worst is yet to come…

The Department of Commerce’s Bureau of Economic Analysis (BEA) advanced estimate for gross domestic product (GDP) for the first quarter of 2020, says that real gross domestic product contracted at an annual rate of -4.8%. Current‑dollar GDP decreased -3.5% or -gulp –  $191.2 billion, in the first quarter to a level of $21.54 trillion.
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Penske Automotive to Hold Audio Annual Meeting

AutoInformed.com on Penske

It’s unlike Penske to exclude the press?

Penske Automotive Group (NYSE:PAG) today announced its 2020 Annual Meeting of Stockholders due to the continued public health concerns regarding COVID-19, including the restrictions on in-person gatherings in Michigan, that the 2020 Annual Meeting will be conducted by remote communication.

As previously announced, the 2020 Annual Meeting will be held on Wednesday, 13 May 2020 at 8:00 a.m., EDT. Stockholders will not be able to attend the Annual Meeting in person; however, stockholders will be afforded the same rights and opportunities to participate as they would at an in-person meeting. Only stockholders of record at the close of business on 17 March 2020 are entitled to vote at or attend the Annual Meeting. Penske Automotive  confirm that this means no media access. How this doesn’t violation SEC regulation FD is unclear.
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Global Unions Want COVID-19 Dubbed Occupational Disease

AutoInformed.com on COVID-19 as Occupational DiseaseWith a third of the population around the world currently living under various forms of lockdown to slow the spread of COVID-19, millions of workers, including those in health and social care, emergency services, agriculture, food and retail, transport, education, infrastructure and construction work and other public services, continue to work hard to keep society functioning.

The global union movement says workers need official recognition of COVID-19 as an occupational disease. Such recognition would ensure the right to worker representation and occupational safety and health (OSH) rights and the application of agreed measures to reduce risk. These rights include the right to refuse to work under unsafe working conditions. This also ensures employers are responsible and liable and that negligent employers are subject to the application of penalties.
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BMW Welt in Munich to Reopen on 4 May

AutoInformed.com on COVID Closings

If you open it, will they come?

BMW says that since the Bavarian State Government has now eased its regulations and measures to curb the spread of the coronavirus that BMW Welt will be reopening its vehicle collection service, sales rooms and showrooms from May 4.

Customers can therefore again take delivery of their new BMW in person at BMW Welt. In addition, a limited number of visitors can get personal advice on new vehicles in the BMW Welt showrooms or visit the BMW Welt Lifestyle & Accessory Shop to purchase from a wide range of BMW and MINI branded products.
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Porsche Production to restart in Zuffenhausen and Leipzig

Porsche Resumes Production in Germany 4 May 2020 - AutoInformed.com

The question is Demand, not Supply at this point.

On Monday 4 May, Porsche is restarting production on a site- and task-specific basis. All the required measures have been taken in advance to guarantee the safety for employees and so that production can be increased in stages up to full capacity.

Porsche initially stopped production in its two factories on 21 March 2020 for a period of two weeks. Due to bottlenecks in global supply chains, the factories have remained closed for a total of six weeks because orderly production was not possible.
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Daimler Q1 2020 Net Profit Down -92% at €168m from €2149  

AutoInformed.com on Daimler Earnings Drop

The effects of the pandemic and the decrease in sales led to a significant earnings drop.

Daimler AG (ticker symbol: DAI) today reported its results for the first quarter ended March 31, 2020. Group net profit was €168 million (Q1 2019: €2,149 million). Total unit sales decreased by -17% to 644,300 passenger cars and commercial vehicles (Q1 2019: 773,800) due to the global spread of the corona virus. Revenue slipped slightly by 6% to €37.2 billion (Q1 2019: €39.7 billion). First-quarter EBIT was €617 million (Q1 2019: €2,798 million). Adjusted EBIT, reflecting the underlying business, was €719 million (Q1 2019: €2,310 million). AutoInformed: Daimler Confirms 2020 Group Sales and Revenue Will Decline 
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Ford Motor Posts -$2 Billion Q1 Loss

AutoInformed.com on Ford Motor Q1 2020 Financial Results

Click to Enlarge.

While Ford shut down its plants around the globe in March, cash use has remained high because production supplier payables are about 45 days. The company’s cash outflow – it is claimed – will be substantially lower after early May as Ford pays down those payables. (UAW Pressure: Ford Further Postpones NA Production Restart, Ford Motor Maxes Out Lines of Credit) Continue reading

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Lincoln MKZ Recalled for Bad Replacement Headlights

AutoInformed

“MKZ Concept’s shape is a vision of simplicity completed with just a few strokes.”

Ford Motor Company is issuing a recall for replacement handlamps that were sold directly to customers or installed on 2013-16 Lincoln MKZ vehicles. Due to a back-order of replacement headlamp assemblies in North America, some dealers began ordering and installing headlamp assemblies designed for the Korea and China markets, which were similar in design to North America units and appeared to function properly.

However, the dealers were “unaware” that the units did not comply with U.S. Federal Motor Vehicle Safety Standards, including for headlamp beam patterns, illuminated side markers, horizontal adjustments and U.S. Department of Transportation markings. Ford did not say where the headlamps were made or who made them. 
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Toyota Group in Full Production of Medical Face Shields

AutoInformed.com on Toyota Group in Full Production of Medical Face Shields

Somebody should tell King Trump about feelings for victims, not grievances by him to change the subject from the complete failure of he and his Courtiers to take effective action against the King’s Covid plague.

Toyota Motor Corporation and Toyota Group companies are now in full-scale production of medical face shields in Japan, with Toyota expanding its production capacity from 500 to 600 units per week to 40,000 units per month (~2,000 units per day) from 27 April. Toyota plans to further expand in-house production to approximately 70,000 pieces per month or 3,600 per day.

Based on a Toyota policy to be “mindful of the feelings of those in the midst of this pandemic, reach conclusions more swiftly, make prompt decisions, and take immediate action faster than ever focusing on safety and security as the highest priorities, Toyota and Toyota Group companies will do what they can to help efforts on the front-lines of treatment and in limiting the further spread of COVID-19, which has become society’s biggest priority.” The Trump Administration in its almost daily sessions –  of grievance, propaganda, confront the press, mock American institutions and law – expresses no such emotions about the plague victims in the US and hi policy failures.
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Toyota and FAW Restructure Their Joint Company Management

AutoInformed.com on FAW and Toyota

The Germans have dismissed Asian automakers before…

China FAW Group Co., Ltd. (FAW) and Toyota Motor Corporation (Toyota) said today in Japan that they will restructure their management “with the aim of achieving sustainable growth in China.”  AutoInformed thinks this really is a giant step toward eliminating Germany luxury car makers as the brands of choice in the Chinese market with a Chinese brand designing and building electric, sports and luxury cars. AutoInformed notes that the chase is from behind; We also note that the Germans for years dismissed what became a global luxury powerhouse – a Toyota division called Lexus.
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Infiniti: 0% Financing, 90-Day Deferred Payments

AutoInformed.com on Covid marketing

The 2020 QX80 is offered in three models – the QX80 Luxe, QX80 Luxe 4wd and the QX80 Limited 4wd.

Infiniti is the latest automaker to take steps to mitigate the sales drop from absent new vehicle buyers during the COVID-19 crisis. Today it announced that it hopes is “one of the strongest purchase offers by any luxury automaker.”

Effective immediately, Infiniti Financial Services is offering well-qualified buyers zero percent APR financing for up to 72 months on any 2020 Infiniti model, and will defer payments for 90 days. This offer is available through June 30, 2020.
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