Half of Pandemic Layoffs Will Result in Permanent Job Loss

Posted on 14 May 2020 by Ken Zino
AutoInformed,com on Permanent Pandemic Job Losses

Even if the crisis is resolved quickly, many pandemic-induced shifts in consumer demand and business will linger. Therefore, they conclude that the reallocation of labor is likely to persist and estimate that 42% of recent pandemic-induced layoffs will result in permanent job loss.

The Hutchins Institute says that with large parts of the economy shut down, some firms are expanding in response to pandemic-induced demand shifts. Jose Maria Barrero from the Autonomous Technological Institute of Mexico, Steven J. Davis from the University of Chicago, and Nicholas Bloom from Stanford find that the COVID-19 shock caused three new hires in the near term for every 10 layoffs. Continue reading →

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Einride and Oatly to Electrify Transport in Sweden

Posted on 14 May 2020 by Ken Zino
AutoInformed.com on Einride and Oatly to Electrify Transport in Sweden

With electric trucks, Einride will support the transport of Oatly’s finished oat-based products.

Einride, a Swedish technology company that designs and develops technology for freight mobility, says it will be partnering with Oatly, the original oat drink company, to transition to all-electric vehicles in the Swedish market. The partnership will commence in Q4 of 2020 in Sweden, making Oatly one of the world’s first companies to electrify transportation on commercial routes.

“Road freight transport as it currently exists is a system that drastically needs to change. Nearly 7% of global CO2 emissions come from this road freight, a figure that will only increase if we do not switch to more sustainable,” says Robert Falck, CEO and Founder of Einride.
 Continue reading →

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VW: Three-Month Warranty Extension On New, Used Vehicles

Posted on 13 May 2020 by Ken Zino

Volkswagen is providing a three-month warranty extension on its New Vehicle Limited Warranty as well as its Certified pre-owned Limited Warranty set to expire in March through the end of May 2020. The extension is automatic and requires no action by the owner. If the New Vehicle Limited Warranty or Certified pre-owned Limited Warranty expire due to mileage rather than time, no extension will be provided.

Volkswagen and Volkswagen Credit (VCI) also announced an extension  of customer payment relief options put in place because of the ongoing COVID-19 pandemic. Audi is also providing a three-month warranty extension on its New Vehicle Limited Warranty as well as its Certified pre-owned Limited Warranty. Audi continues to offer payment relief for customers impacted by COVID-19 through June 1. Continue reading →

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COVID Journal – Our Correspondents on Politics, Policy and Insights in these Medieval Times of a 21st Century Plague

Posted on 12 May 2020 by Ken Zino

Letter from Detroit – Vietnam All over Again with a Higher Body Count

Steve W homemade gym.

Dear Steve: Upon much shelter in place reflection, CORONA is really a simple problem to grasp. I note with irony here that a lot of my core personality traits have been shaped by similar events.

1: Sputnik which sent me and my ilk – virtually forced – into studying more of the sciences and the scientific method as the U.S panicked by realizing that the so-called Ike and Mami good years (Eisenhower) fifties prosperity had neglected the ability to fight the enemy and that prosperity could evaporate overnight. Sound familiar?

2: Vietnam and Nixon – when I was student deferred as a relatively prosperous white male, which kept me alive until the war ground down. During that time, it became apparent that the presidency and national leadership were lying to save their own political posteriors. Sound familiar? Continue reading →

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Penske Automotive Q1 2020 Results -46% at $0.64 per share

Posted on 10 May 2020 by Ken Zino

AutoInformed.com on Trump's Job-destroying Covid Inaction.Penske Automotive Group, Inc. (NYSE: PAG), said for the three months ended March 31, 2020, the company reported income from continuing operations attributable to common shareholders of $51.6 million, or $0.64 per share, compared to $100.1 million, or $1.19 per share in the prior year. Foreign exchange rates  as well as the Corona virus negatively impacted earnings per share by $0.01. Revenue was $5.0 billion compared to $5.6 billion in the same period last year.

In the U.S., through February same-store new and used automotive retail unit sales increased 7.5% and declined 1.1% internationally. In March, the outbreak of COVID-19 began to impact Penske in all markets. Many U.S. and Germany dealerships were impacted by shelter-in-place orders while operations in Italy, Spain and the U.K. were closed. As a result, same-store new and used automotive retail unit sales for the month of March declined -40.2%. Continue reading →

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More than 20 Million Jobs Lost in April as ~15% Unemployed

Posted on 9 May 2020 by Ken Zino

Total non-farm payroll employment fell by 20.5 million in April, and the unemployment rate rose to 14.7%, the U.S. Bureau of Labor Statistics reported today. The changes in these measures reflect the effects of the coronavirus (COVID-19) pandemic and the Trump Administration’s lack of efforts to contain it – since it was going to go away in April. Wrong. It shut the country down. And the grim news is based on data from only the first two weeks of April. The worst is yet to come.

AutoInformed.com on the Trump Great Depression V2.0

The worst is yet to come because of lack of testing and the absence of a National COVID elimination strategy from the anti-science Trump Administration.

Employment fell sharply in all major industry sectors. There were particularly heavy job losses in leisure and hospitality where the spread was initially ignored as Washington slept – until people, now former customers stopped traveling or died. This was out of self-preservation as the corpses mounted in non-living color on the news and in statistical counts no matter what Trump and Pence said. It was also the result of some Democratically-controlled states where shelter in place was imposed out of concern for the health of residents and not for the health of the increasingly infected Trump reelection campaign.
 Continue reading →

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Ford to Begin Phased Restart in North America 18 May

Posted on 8 May 2020 by Ken Zino
AutoInformed.com on Ford Return to Workplace - May 2020

Fumbling Ford management finally voiced clear direction for the moment. Click to Enlarge.

Ford is pursuing a phased restart for its North America operations beginning 18 May 18. This includes restarting vehicle production in North America and bringing back the first wave of employees that are not able to do their jobs remotely. The ramp-up will be gradual. Employees able to work remotely will continue to do so until advised. (Ford Motor Posts -$2 Billion Q1 Loss)

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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General Motors to Offer More Senior Unsecured Notes

Posted on 7 May 2020 by Ken Zino
AutoInformed.com on GM

GM ended Q1 with $33.4 billion in automotive liquidity. It wants more for GD V2.0.

In the latest defensive move as the COVID-19 Pandemic is leading global economies into  Great Depression V2.0**, General Motors (NYSE: GM) announced today it has launched an offering of senior unsecured fixed rate notes. GM intends to use the net proceeds from the sale of the notes for general corporate purposes. Translation: the cash will be needed as profits continue to drop. (COVID Effects: GM Q1 Earnings Drop -89% to $0.17 a Share)

“We expect the New 364-Day Revolving Facility to be unsecured and to provide available borrowing capacity of approximately $2 billion in U.S. Dollars only, and we have received commitments from lenders in excess of this amount. We expect the New 364-Day Revolving Facility will be generally consistent with the terms of our existing revolving credit facilities,” GM said.

Late today GM subsequently said: the pricing of three series of senior unsecured notes totallledof $4.0 billion. These notes include $1.0 billion of 5.40 percent notes due in 2023, $2.0 billion of 6.125 percent notes due in 2025 and $1.0 billion of 6.80 percent notes due in 2027. The offering is expected to settle on Tuesday, May 12, 2020. In addition, following the closing of the notes offering, GM expects to enter into a new 364-Day Revolving Credit Agreement, subject to certain closing conditions. We expect the New 364-Day Revolving Facility to be unsecured and to provide available borrowing capacity of approximately 2 billion in U.S. dollars, and we have received commitments from lenders in excess of this amount. Continue reading →

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How To Disinfect a Vehicle Without Damaging Its Interior

Posted on 7 May 2020 by Ken Zino
AutoInformed.com on How To Disinfect a Vehicle Without Damaging Its Interior

Click to Enlarge.

Nissan is offering advice on how to disinfect your vehicle as some in the US try to stop the spread of COVID-19 honoring Shelter at home requests. Frequent hand washing as directed by The Centers for Disease Control and Prevention (CDC) is a crucial part of staying healthy, but so is disinfecting surfaces, including those in your car.

“Most people are still using their vehicles, whether they are essential employees commuting to work or someone running to the grocery store while in quarantine,” said Ryan Fulkerson, director, New Model Engineering, Nissan North America. “We want to make sure they’re informed on how to best keep their vehicle disinfected.”

The CDC recommends wearing disposable gloves for cleaning and then disinfecting surfaces. If a surface appears dirty, it should be wiped down with soap and water prior to disinfection. For vehicle interiors, a soft or microfiber cloth dampened with soap and water can be used to wipe down hard surfaces. Continue reading →

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COVID! GM Q1 Earnings Drop -89% to $0.17 a Share

Posted on 6 May 2020 by Ken Zino
AutoInformed.com on GM Q1 2020

It’s going to be a long year of going backwards.

General Motors today posted EPS-diluted of $0.17 and EPS-diluted-adjusted of $0.62. The COVID-19 impact on EBIT-adjusted was $(1.4) billion. GM ended quarter with $33.4 billion in automotive liquidity as the global economy headed toward a depression. In March GM suspended production and cancelled earnings projections for the entire year.

First Quarter 2020 results

  • EPS-diluted of $0.17 and EPS-diluted-adjusted of $0.62
  • EPS diluted-adjusted includes a $(0.28) impact from Lyft and PSA revaluations
  • Income of $0.3 billion, and EBIT-adj. of $1.2 billion, which includes a $(1.4) billion COVID-19 impact
  • Revenue of $32.7 billion
  • GM North America EBIT-adjusted of $2.2 billion
  • GM Financial EBT-adjusted of $0.2 billion

Continue reading →

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COVID Effects: BMW AG FY Earnings Guidance – Zero

Posted on 5 May 2020 by Ken Zino
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.”
 Continue reading →

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Consumer Feelings on Future Mobility Technologies Declines

Posted on 5 May 2020 by Ken Zino
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.”
 Continue reading →

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Multi-Seasonal Self-Driving Data Issued by Ford

Posted on 5 May 2020 by Ken Zino
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.
 Continue reading →

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Alexandra Ford English to Join Rivian’s Board of Directors

Posted on 4 May 2020 by Ken Zino
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

Posted on 30 April 2020 by Ken Zino
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.
 Continue reading →

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