Ford Motor Q1 Prelim Results Hint at COVID-19 Illiquidity

Posted on 13 April 2020 by Ken Zino
AutoInformed.com on Ford COVID-19 Liquity

As of 9 April, the company had about $30 billion in cash on its balance sheet, including $15.4 billion of proceeds from borrowings last month against two existing credit lines.

In an unusual move, Ford Motor Company today provided some preliminary Q1 2020 and other balance sheet data, as it considers possible additional financing actions while the coronavirus pandemic stalls commerce around the world. (Ford Stops Production in India, South Africa, Thailand and Vietnam, Ford Britain Shuts Dagenham and Bridgend Engine Plants, UAW Pressure: Ford Further Postpones NA Production Restart, Ford Stops North American Production)

The implication is that Ford is facing the COVID-19 pandemic that is likely causing a Greater Depression than its namesake with more unknowns than can yet be imagined.  Will the Dearborn-based automaker have to once again return to the credit markets to forestall bankruptcy an issue that many major conglomerates are now facing? Actual Q1 results are due 28 April after the markets close. There may or may not be more answers then*.
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Back-Up Camera Recall on More than 318,000 FCA Models

Posted on 13 April 2020 by Ken Zino

FCA is recalling 2020 Jeep Gladiator and Jeep Cherokee, 2019-2020 Ram 1500 Pickup, Ram 2500 Pickup, Ram 3500 Pickup, Chrysler Pacifica, Dodge Durango, Jeep Grand Cherokee, Jeep Wrangler, and Jeep Renegade and 2019 Dodge Challenger vehicles equipped with 8.4″ or 12″ radio displays.

If the rear-view image is displayed after the backing event has ended, a driver may be distracted by repeatedly and/or continuously shifting attention in attempt(s) to cancel the image which can cause a vehicle crash without warning.
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Chinese Junk Watch: Continuum Recalls Lenox Tea Kettles

Posted on 12 April 2020 by Ken Zino
AutoInformed.com on Recalled Chinese-made Lenox 2.5-Quart Tea Kettle

Click to Enlarge.

Continuum’s Lenox-branded 2.5 Quart Whistling Stainless Steel Tea Kettle with a three-layered bottom are expelling hot water through the top.

Continuum has received 14 reports of tea kettles expelling hot water through the top, says the US Consumer Product Safety Commission. There are four reports of burn injuries, some of them severe.
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COVID-19 – GM Gives $2.65 Million to 40 Non-Profits

Posted on 9 April 2020 by Ken Zino

In response to the challenges brought on by the coronavirus pandemic, General Motors is helping communities across the country, investing $2.65 million in 40 non-profits and supporting employee volunteer and donation efforts.

Included in these efforts is a $1 million grant to the DonorsChoose Keep Kids Learning plan, which provides $1,000 credits to 1,000 teachers in high-need school districts to help send basic resources like books, pencils, notebooks, food and cleaning supplies to students’ homes.
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Trade to Plunge as COVID-19 Upends Global Economy

Posted on 9 April 2020 by Ken Zino

AutoInformed.com on World Merchandise Trade VolumeWorld trade is expected to fall by between 13% and 32% in 2020 as the COVID-19 pandemic disrupts normal economic activity and life around the world, according to the World Trade Organization. WTO said today that the wide range of possibilities for the predicted decline is explained by the unprecedented nature of this health crisis and the uncertainty around its precise economic impact.

The response of political leadership can also have a big impact in the outcome. But WTO economists believe the decline will likely exceed the trade slump brought on by the global financial crisis of 2008‑09 (Chart above). Estimates of the expected recovery in 2021 are equally uncertain, with outcomes depending largely on the duration of the outbreak and the effectiveness of the policy responses.
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Unions, FCA Sign Agreement on Workplace Health and Safety

Posted on 9 April 2020 by Ken Zino
AutoInformed.com on FCA restarting manufacturing in the U.S.

Soon to be adapted for the U.S.?

Today Fiat Chrysler Automobiles signed an agreement with trade unions FIM-CISL, UILM-UIL, FISMIC, UGLM, AQCFR and FIOM-CGIL that establishes a series of measures at company sites in Italy to ensure maximum protection of the health of workers when it restarts production activities. The same COVID-19 measures will be applied to all external personnel entering FCA sites. These measures will be jointly monitored by both company and unions.

The guidelines established focused on “rigorous implementation of government directives aimed at combating the spread of the Covid-19 virus and application of best practices implemented by the Group at its sites around the world.” This presumably will be adapted and  applied to the United States where the ‘Do Nothing’ Trump Administration claims that this is a job for the states, not national leadership. (COVID-19: UAW, GM, Ford, FCA to Improve Protection for Manufacturing and Warehouse Workers) Continue reading →

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Electrify America, Kia Offer DC Fast Charging Plan for Niro EV

Posted on 9 April 2020 by Ken Zino
AutoInformed.com on Kia Select Flat Rate Electrify America Charging Plan

Click to Enlarge.

Electrify America today announced an agreement with Kia Motors America to offer ‘Kia Select,’ a new charging program with optimized pricing for the Kia Niro electric vehicle (EV) model on Electrify America’s direct current (DC) fast charging network.

The ‘Kia Select’ program offers a flat rate of 35 cents per-minute charging for current Kia Niro EV drivers, designed specifically for the unique DC charging characteristics of the model. The program also waives session fees and has no subscription fees for participants.
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Porsche “Gives” Employees A Voluntary Bonus

Posted on 9 April 2020 by Ken Zino
AutoInformed.com on Porsche 6 Month 2019 Financial Results

Porsche continues to grow meeting its €4.4 billion target for the fiscal year 2019. Then there’s 2020?

Porsche* is combining an optional bonus to its employees with an appeal for donations to support the “Porsche aid” program. The bonus of  €9,000 Euro will be paid out to the Porsche workforce for the 2019 financial year; €700 will be available as a special contribution to the Porsche VarioRente or to the individual pension plan. Employees are encouraged to make voluntary donations to charitable organizations.

It’s another example of the power of unions working with corporations to the benefit of members and society at large. (Porsche Proposes 41% Dividend Rise at May Annual Meeting)  “The success of our company is only possible through the work of our colleagues. All of them have worked for Porsche with great commitment in the past year. It is part of our Porsche culture that the workforce is also rewarded for this,” said Werner Weresch, Chairman of the General and Group Works Councils of Porsche AG.
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Teamsters, CtW Investment Group Demand Amazon Reveal Workplace Safety Record

Posted on 8 April 2020 by Ken Zino
AutoInformed.com on Amazon Helat and Safety Problems

A questionable record on caring for workers exposed during the COVID pandemic.

The Teamsters General Fund and the CtW Investment Group today called on the board of directors of Amazon.com, Inc. (NASDAQ: AMZN) to put up for a vote and support a shareholder proposal, asking the board to issue a report on how the company oversees workplace safety at its own and its contractors’ facilities.

The request comes after the Securities and Exchange Commission (SEC) allowed Amazon to exclude a shareholder proposal that the two investors had filed to be voted on at the online retailer’s annual meeting of shareholders, scheduled for May 27. It’s the latest example of government agencies suppressing democracy under the current administration. The investors are appealing the SEC’s staff decision to the full Commission today.
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Goodyear, Just Tires Offer “Zero Contact” Service

Posted on 8 April 2020 by Ken Zino

Goodyear Auto Service and Just Tires locations in the U.S. now offer “zero-contact” service. This is designed “to help to limit personal contact” and keep customers, including those in essential roles such as law enforcement, first responders, doctors, nurses and grocers, on the road and moving forward. Potential customers have a choice between coming into a store or conducting the entire exchange with zero contact.
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Airbag Shrapnel at Nissan Prompts Recall of 216,678

Posted on 7 April 2020 by Ken Zino
AutoInformed.com on Infiniti Takata Recalls

The recall is expected to begin 25 May.

Nissan North America, Inc. (Nissan) is recalling certain 2012-2017 NV Cargo and NV Passenger Van, 2013-2015 Titan and Armada and 2011-2012 Infiniti QX56 vehicles. Due to a manufacturing defect, the air bag inflator may not function properly or may rupture during deployment.

The rupture may result in metal fragments striking the driver or other occupants resulting in serious injury or death. The so-called PSDI-5D inflator – no surprise here – was made by now bankrupt Takata at Monclova, Mexico. How long Nissan new about the deadly defect is unknown. In the required NHTSA filing, it said the Chronology will be supplied later.
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Corona Crisis – March UK New Car Registrations Fall -44.4% 

Posted on 7 April 2020 by Ken Zino

AutoInformed.com on Plunging UK Car SalesThe UK new car market declined -44.4% in March, according to the Society of Motor Manufacturers and Traders (SMMT). During the important plate change month, 203,370 fewer cars were registered than in March 2019, as showrooms closed in line with government advice to contain the spread of the coronavirus.

The performance represented a steeper fall than during the 2009 financial crisis and the worst March since the late nineties when the market changed to the bi-annual plate change system. With lock-downs taking place in many European countries earlier than the UK, even more dramatic falls have been reported elsewhere, with Italy down -85%, France -72% and Spain down -69% in March.
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IMSA: Chevrolet Detroit Grand Prix Canceled for 2020

Posted on 6 April 2020 by Ken Zino
AutoInformed.con on Detroit Grand Prix Cancelationation

Half mast finally.

The International Motor Sports Association (IMSA) received official notification today from the organizers of the Chevrolet Detroit Grand Prix that this year’s event, scheduled from May 29-30, has been canceled for 2020.

“Over the last several weeks, IMSA and the event promoter exhausted every option to conduct this race in 2020. Many factors made it impossible, including our scheduled races in the second half of the year. We all look forward to returning to the iconic Belle Isle circuit in June of 2021, said IMSA which is owned by COVID-19 denier NASCAR. Continue reading →

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German Tax Payer Funded Driverless Vehicle Testing Shows Need for Complex, Expensive Redundant Systems.

Posted on 5 April 2020 by Ken Zino
AutoInformed.com on German Government 3F Research Program on Driverless Shuttles

Expensive systems and complex programming are needed for safety.

A German government research program – dubbed 3F – running on test grounds in Renningen and Aachen reports that automated shuttles can move around safely, even if a technical malfunction occurs or obstacles appear suddenly. However, expensive, redundant systems are involved in keeping an autonomous vehicle running. That’s the conclusion thus far of what €4.3 million euros in grants from the German Federal Ministry of Economic Affairs bought taxpayers.

With the auto industry in full collapse given the worldwide COVID-19 pandemic and the resulting and still emerging Global Depression, it is unknown if automakers will continue to rush into developing and producing autonomous vehicles – always a dubious business proposition, which is now likely at some makers a survival issue. Invest in the unknown future, or use resources to keep the existing business alive?
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