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Archive for the ‘Earnings’ Category

Tesla Loses Big Money in 2017: $1.96B

Model 3 production issue escalate expenses, offsetting record revenues.

by on Feb.07, 2018

Production of the new Model 3 has run into some snags, according to Tesla.

Tesla reported its revenues rose in the final quarter of 2017 to $3.3 billion, which was better than last year’s Q4 result of 2.3 billion. However, the increased revenue also brought a bigger loss of $675 million, or 4.01 a share, compared with $619 million, or $3.70 a share.

For the full year, revenue rose 55.7% to $11.7 billion due in large measure to achieving record sales results for its Model S and X electric vehicles; however, the company still lost money for the year and is well behind early production goals for the Model 3.

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The company lost $1.96 billion, or $11.83 a share, this year compared with $694 million, or $4.68 a share, in 2016 as its operating expenses were nearly double from the year-ago figure. (more…)

US Tax Windfall Doubles Toyota’s Q3 Profits

Automaker revised full-year earnings forecasts for third time.

by on Feb.06, 2018

Despite giving the Camry a stylish makeover the sedan continued to lose sales momentum last quarter.

Toyota reported a 54% increase in operating profit in Q3 despite weak sales in the U.S. However, it was the U.S. that help to double its profits from the year-ago period, courtesy of President Donald Trump’s recently passed tax plan.

Operating profit was 673.6 billion yen, or $5.98 billion, in the quarter that ended Dec. 31, an increase of 214.7 billion yen, or $1.91 billion. Additionally, net income rose nearly 94% to 941.8 billion yen, or $8.36 billion, the company said.

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The results pushed Toyota to revise its full-year earnings forecast for the third time, although its prediction for sales remained unchanged at 8.95 million for the year ending March 31. (more…)

Accounting Adjustment Masks Record Full Year Earnings for General Motors

Workers will get $11,750 in profit-sharing.

by on Feb.06, 2018

GM CEO Mary Barra has pushed for major changes in GM's strategy, and the 2017 numbers suggest her approach is paying off.

General Motors officially reported a net loss for 2017, but the real numbers were masked by a series of accounting adjustments and actually climbed into record territory for the year.

The adjusted, $12.8 billion in pretax profits, which worked out to $6.62 a share – an 8.2% year-over-year gain – comes as good news to workers as well as investors at a time when economic uncertainty has shocked Wall Street. About 50,000 U.S. hourly employees will share the maker’s success with profit-sharing checks averaging $11,750 apiece. That bonus actually dipped from $12,000 last year.

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“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year,” said GM Chairman and CEO Mary Barra, in comments during a media and analyst conference call. “We will continue executing our plan and reshaping our company to position it for long-term success.”


Ferrari Will Ride Hybrid, SUV Sales to Debt-Free Status

Marchionne says new vehicle sales will make company debt-free a year early.

by on Feb.02, 2018

Ferrari CEO Sergio Marchionne said the company will be debt-free sooner than expected.

What Oprah Winfrey is the giving away free cars, Sergio Marchionne is to promising to make automakers debt-free!

Marchionne told investors in a conference call today that the Italian sportscar maker will be debt-free a year earlier than he predicted, while pushing earnings to $2.5 billion by 2022. The sweater-wearing leader told FCA investors that the company would be debt-free by the end of the year.

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He believed that the increased production levels and coming products, especially hybrids, EVs and the sport-utility vehicle will drive the increase in earnings. (more…)

Mitsubishi Recalls 227K for Sunroof, Parking Brake Issues

Dealers will begin repairs in late March.

by on Feb.02, 2018

Mitsubishi is recalling 227,000 cars, including Lancers, to resolve a couple of defects.

Mitsubishi’s ongoing comeback in the U.S. has hit a rough patch as the automaker announced a recall of nearly 227,000 vehicles in the U.S. to fix glass sunroofs that can fly off and parking brakes that may fail.

The sunroof recall covers about 57,000 Outlanders built from 2007 to 2010, Lancers from 2008 to 2010, Lancer Evolutions from 2009 and 2010, and 2010 Lancer Sportbacks. The sunroof glass can detach while the vehicle is in motion and become a hazard.

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Dealers will replace the glass at no cost to the customer. (more…)

Recall Costs Topping $20B Annually as Safety Defects Grow

Minor problems now can grow into global nightmares as automakers have cut quality efforts.

by on Feb.02, 2018

Now 22 people are known to have died due to faulty Takata airbag inflators. Recalls will cost the industry more than $20B in 2017.

An electrical defect that can prevent airbags from deploying in a crash forced Toyota to recall 645,000 vehicles worldwide this week. It’s the third big service action involving airbags in barely a month and sets the auto industry back on a dubious path, the possibility that 2018 could set another recall record, something that’s happened almost annually in recent years.

As automakers have become more aggressive in addressing safety problems – driven by public demand and emboldened regulators – the impact taken a heavy toll on the industry’s collective bottom line, according to a new study by Detroit-based AlixPartners.

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The consultancy noted that 53.1 million vehicles, a full 20% of the U.S. car parc, were recalled in 2016, something it estimates cost the industry about $22 billion. And because automakers are making increased use of shared platforms and components, AlixPartners said in its study, recalls are “no longer an isolated geographic event, but a global (issue).” So, the U.S. figure represents only a fraction of the overall cost. (more…)

Daimler Posts 24 Percent Profit Increase in 2017

Company expects even better results for 2018.

by on Feb.01, 2018

Daimler's Dieter Zetsche reported the company enjoyed its best year ever in 2017.

Daimler AG’s net profit increased by 24% to 10.9 billion euros, the company’s unit sales increased by 9%, and its revenues increased by 7% in best year in the company’s long history.

For 2018, Daimler executives said during the company’s annual press conference the it will be able to increase its overall unit sales on the strength of its “innovative” product portfolio in all divisions, the ongoing positive development of global automotive markets and its strengthening market position.

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On the basis of the positive development of unit sales, a slight increase in revenue is anticipated, they added. (more…)

German Union Digging in for Tough Auto Negotiations

IG Metall preparing for industrywide strike as part of talks.

by on Jan.31, 2018

German workers are being prepared to take a strike vote in talks with automakers.

German carmakers and suppliers are in a major battle with IG Metall, the powerful metalworkers union, which is demanding higher wages and shorter hours. The negotiations are turning into the biggest confrontation between labor and management in more than a decade.

So-called “warning strikes” – short-term walkouts lasting no more than 24 hours – have already hit Daimler AG and Porsche this week as well as major suppliers such as Bosch and ZF. In all, an estimated 260 metalworking firms have been targeted by IG Metall and more than 120,000 workers at Volkswagen AG are poised to go on strike for 24 hours, starting Thursday.

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The walkouts, which stretch across Germany’s industrial centers, follow a failed set of negotiations, where neither the employers nor the union could agree on a formula for a new wage agreement, observers in Germany noted. (more…)

Renault-Nissan-Mitsubishi Take Global Sales Lead

VW slips to second, Toyota to third.

by on Jan.30, 2018

Carlos Ghosn, shown at the debut of the latest Maxima, has turned the Renault-Nissan-Mitsubishi Alliance into a global juggernaut.

The global auto industry has a new king-of-the-hill, the Renault-Nissan Alliance, which got a helping hand with the inclusion of the long-troubled Japanese automaker Mitsubishi.

Combined together, the three members of the Franco-Japanese alliance sold 10.61 million vehicles during 2017, narrowly topping Germany’s Volkswagen AG. Toyota, which had led the sales charts for much of the past decade before itself being toppled by VW last year, slipped into third.

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“This evolution reflects the breadth and depth of our model range, our global market presence and the customer appeal of our vehicle technologies,” said Carlos Ghosn, the chairman and CEO of the Renault-Nissan-Mitsubishi Alliance and CEO of both Renault and Mitsubishi.


Genesis Setting Up Standalone Dealer Network

Luxury brand anticipates five-fold growth by end of 2020.

by on Jan.29, 2018

The Genesis G90 has gotten strong reviews - but the new luxury brand needs its own dealerships to continue its growth.

Genesis plans to stop selling its high-line products through Hyundai dealerships and will now set up 100 of its own luxury showrooms.

The announcement comes as the latest step by parent Hyundai Motor Co. to take on better-established rivals like Mercedes-Benz, BMW and Lexus. And it acknowledges one of the few major complaints buyers and shoppers have had about Genesis since its official launch in 2016.

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The Hyundai spinoff has scored well in quality and feature surveys by the likes of J.D. Power and Strategic Vision, but “The one thing we continued to get (negative) feedback on was the buying experience,” Genesis General Manager Erwin Raphael told (more…)