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Archive for the ‘Earnings’ Category

VW Tagged With $1B Fine in Germany for Diesel Scandal

Penalty doesn't prevent civil lawsuits against maker.

by on Jun.13, 2018

VW's new CEO Herbert Diess recently noted the company would have to work hard to regain the public's trust.

Volkswagen AG’s diesel cheating scandal has resulted in the automaker writing another large check, $1 billion, for violating German emissions controls mandates.

The fine is just the latest in a litany of payouts related to the automaker’s attempts to circumvent emissions rules in the U.S. and other countries.

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The $1 billion fine by German authorities is one of the largest in the country’s history. However, its significantly less than what it agreed to in a U.S. plea agreement in January 2017 when VW agreed to pay $4.3 billion in criminal and civil penalties for installing illegal software in diesel engines.  (more…)

Volvo Hopes to Electrify Customers – and Investors

All-electric models now expected to generate half its sales by mid-2020s, with 1/3 self-driving.

by on Jun.08, 2018

The Volvo 40.2 Concept hints at what's coming with the marque's first all-electric vehicle.

Volvo took a lead in the push into electrification last year, announcing it would use some of battery-based drive system on all future products, whether mild, conventional or plug-in hybrids, or pure battery-electric. And, last January, it gave us a hint of what that first BEV would be with the debut of its 40.2 concept.

The production version will follow in 2019 and, if Volvo’s latest forecast is any indication, so will plenty of other all-electric models, as the Swedish automaker now says it wants them to generate half of its sales by mid-decade.

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The mid-term plan Volvo is laying out is nothing if not ambitious. It also predicts that half of the Chinese-owned automaker’s sales will come from self-driving vehicles, and that half of its volume will come through its Care by Volvo subscription service, rather than conventional sales and leasing. Oh, and add a goal of boosting volume – and profitability – to match other premium manufacturers.

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Automakers Launch Full-Size Truck Incentive War

Up to $16,000 in givebacks and discounts on some 2018 models.

by on Jun.07, 2018

FCA has some of the largest incentives -- up to $16,000 -- available on its 2018 Ram.

Despite strong demand, US. Automakers have launched some of the most lavish incentives on full-size truck models seen since the end of the Great Recession, with discounts of as much as $16,000.

The move might come as a surprise considering pickups have retained strong momentum despite the weakening of the broader U.S. automotive market over the last year, and the latest round of incentives threaten to cut into the earnings delivered by what are traditionally the most profitable product segment in the market.

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Automakers appear to be acting for a variety of reasons, including the need to clear inventories ahead of the launch of all-new models from both General Motors and Fiat Chrysler Automobiles, as well as the potential weakness of segment leader Ford which lost thousands of units of production due to a supplier problem last month.

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Tesla CEO Musk Survives 1st Big Challenge as Chairman as Model 3 “Quite Likely” to Meet Target

Shanghai, European plants could be announced within weeks.

by on Jun.06, 2018

Tesla CEO Elon Musk beat back challenges to his role, while 3 board members were voted back in.

Elon Musk stared down a group of dissident shareholders on Tuesday, surviving the first serious challenge to his dual role as chairman and CEO of the California automaker, while three of his hand-picked board members also fended off challenges.

Musk, who has developed an almost cult-like following among investors and electric vehicle fans alike, has faced an unusual degree of scrutiny in recent months as a result of mounting losses, struggles with production of the Model 3 sedan and a series of widely reported crashes involving Tesla vehicles. But despite some opposition, the company’s annual shareholders meeting was largely focused on promises about great things to come.

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Musk promised that after months of what the CEO has dubbed “production hell,” the pace is picking up at the Fremont assembly plant and that production will “quite likely” reach his 5,000 vehicle-a-week target by the end of June. Meanwhile, he and members of his senior management team outlined other developments to come, including the launch of additional production plants that could substantially boost global demand.

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What’s Fiat Chrysler Automobiles Without Fiat and Chrysler?

Two namesake brands will survive – barely, for now.

by on Jun.04, 2018

The Chrysler Pacifica may soon go it solo as the brand continues to shrink.

It’s been nearly a decade since struggling European automaker Fiat combined with the post-Chapter 11 Chrysler, and if the 5-year plan unveiled during a day-long meeting in Milan last week comes close to being accurate, the carmaker could be in for a “brighter future” than ever, according to John Elkann, the chairman of Fiat Chrysler Automobiles, and the heir to the Italian side of the company’s founders.

There’s just one problem: neither the Fiat nor Chrysler brands seem poised to share in the spoils. The Fiat Capital Day briefing focused all but exclusively on just four brands – Jeep, Ram, Alfa Romeo and Maserati – expected to dominate FCA’s future. For now, Fiat and Chrysler will survive, but in greatly diminished form, and observers question whether they’ll be around for the long-term.

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“There was enough doubt…about their future because they barely showed up in the presentations,” said Joe Phillippi, chief analyst with AutoTrends Consulting, after attending the day-long session at Alfa’ proving grounds near Milan. Fca’s management team “took pains to say (Fiat and Chrysler will have a future, at least in the near-term. But it will be up to the next management team to determine whether they will remain in the portfolio for the long-term.”

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More Products, More Volume, Bigger Margins: FCA Lays Out Aggressive, 5-Year Growth Plan

Morning presentation outlines plans for Jeep, Ram, Maserati and Alfa Romeo brands.

by on Jun.01, 2018

The Ram TRX will be among the new models FCA will bring out over the coming five years.

(This story has been revised to update plans for Jeep’s pickup and a midsize pickup from Ram that, CEO Marchionne now says will come to the U.S. market.)

In a sweeping presentation designed to give analysts, investors, media and potential buyers a good look at its future, Fiat Chrysler Automobiles executives are spending a day detailing their plans for the company and its various brands.

At the midway mark, as they break for lunch, they’ve already lifted the kimono far enough to show what’s coming for the Jeep, Ram, Maserati and Alfa Romeo brands and, in a nutshell, it can be summed up as more products targeting lots more volume and much bigger margins.

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The new five-year plan will be the last crafted under the guidance of Sergio Marchionne, the 65-year-old executive who helped pull off the pairing of two struggling manufacturers to form Fiat Chrysler Automobiles. His third five-year plan, Marchionne stressed that “The true finish line is the one always yet to come.”

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Nissan Cuts North American Production by 20%

Automaker focusing on profits over growth.

by on May.29, 2018

Nissan's Hiroto Saikawa said the company's new product entries this year should increase sales to nearly 6 million.

Nissan Motors is cutting production in North America by 20% as it shifts from a strategy that focused on growth and now zeroes in on profits.

The company has slowed production at two plants in the U.S. and three in Mexico as its sales for 2018 are down 6.5%, including a 9.5% drop in March. The losses have come despite aggressive discounting and fleet sales efforts.

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Although production is slowing down, the Nikkei said, employees will not be let go. The plants will not be completely shut down and, at some point later this year, production is expected to return to normal levels. (more…)

Uber Posts Positive Q1 Earnings After Tough 2017

Shuttering of Arizona ops stings as Waymo, Lyft take off.

by on May.24, 2018

Uber CEO Dara Khosrowshahi has made an impact on the company in the short time he's been there.

After nearly a year of problems and attempts to rectify them, including the addition of a new CEO, Uber Technologies’ first quarter results reveal some of the positive impact of changes implemented across the ride-sharing company.

Uber reported net income of $2.5 billion on gross bookings of $11.29 billion, an increase of 55% compared with the year-ago period. The company’s net revenue grew 67% to $2.5 billion.

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Much of the company’s positive results can be attributed to the changes implemented by new CEO Dara Khosrowshahi and two significant transactions: the sale of GrabTaxi Holdings Pte Ltd. and a joint venture with Yandex N.V. (more…)

Jaguar Land Rover Profits Cut By Falling Diesel Sales

Overall sales rose 1.7% with China leading the way.

by on May.24, 2018

Ralf Speth, Jaguar president, touted the company's full-year sales set a new record, driven by a 19% increase in China.

Jaguar Land Rover reported its annual pre-tax profits fell to 1.5 billion pounds, or $2 billion, from 1.6 billion pounds the year before, and fourth quarter profits during the January to March period was almost cut in half from 676 million pounds, or $905.3 million, to 364 million pounds.

The drop in profits during January to March period was affected by the higher charges in its vehicle development program and the drop in sales of diesel-powered vehicles. But the company said its annual pre-tax profit was boosted a 437-million-pound, or $585.2 million, credit from its pension scheme in the first quarter of the year.

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The automaker, which was re-organized 10 years ago after Ford Motor Co. sold it to Tata, the Indian industrial conglomerate, noted that “consumer uncertainty surrounding diesel models, Brexit and vehicle taxation” hurt sales in the United Kingdom.  (more…)

Ford Restarting F-150 Production on Friday

Production resumes ahead of internal projections.

by on May.16, 2018

Ford will resume production of the F-150 on Friday at the company's Dearborn, Michigan plant.

Ford Motor Co. plans to restart production of the F-150 on Friday after the two plants that build the trucks were idled for nearly two weeks following a parts shortage due to a fire at a supplier plant in Michigan.

The company’s plant in Dearborn, Michigan, which employs 4,000 people for F-150, will begin production on Friday. The 3,600 workers at the Kansas City, Missouri, plant will start on Monday. They are expected to run full production when they return, officials said.

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“While the situation remains extremely dynamic, our teams are focused on returning our plants to full production as fast as possible,” said Joe Hinrichs, Ford president, Global Operations. “The ramp-up time to full production is improving every day.” (more…)