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Archive for the ‘Financials’ Category

EV Truck Maker Rivian Reportedly in Talks with Amazon and GM

Deal could be announced this month, according to Reuters.

by on Feb.12, 2019

Rivian founder RJ Scaringe showed off the the R1T all-electric pickup at the LA Auto Show.

Battery truckmaker Rivian Automotive is reportedly in negotiations with both Amazon and General Motors on a deal that could be worth as much as $2 billion.

The deal would give the two companies a minority stake in Rivian, a start-up based in the Detroit suburb of Plymouth, according to a report on Reuters.

Breaking News!

The proposed deal could help GM, in particular, add a battery-electric pickup to its line-up, something archrival Ford Motor Co. has said that it is already working on. A senior executive at GM last month told TheDetroitBureau.com that the carmaker is “considering” an all-electric truck.

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Ghosn Affair Hits Nissan’s Bottom Line, Along with Weak Sales

Automaker downgrades future earnings forecast.

by on Feb.12, 2019

Nissan is taking an $83.2 million charge against earnings due to the scandal surrounding Carlos Ghosn.

Nissan Motor Co. warned that its earnings for the fiscal year ending March 31, could be about the lowest the carmaker has seen in six years.

Nissan now expects to earn 410 billion yen, or $3.7 billion, for the fiscal year, a 45% year-over-year decline. It originally projected a 500 billion yen, or $4.5 billion profit.

Global News!

The second-largest of the Japanese automakers put most of the blame on sliding sales in the U.S. and China, its two largest markets. But it also revealed that it has logged an $83.2 million charge related to the scandal that began with the arrest last November of its former Chairman Carlos Ghosn. (more…)

Daimler AG Profits Fall as Car, Van Division Sales Drop

Mercedes fails to meet last year's profit, sales marks.

by on Feb.08, 2019

Daimler AG Chairman Dieter Zetsche fields questions from the media during the company's annual earnings press conference.

Daimler AG said its fourth-quarter operating profit fell 22% as trade wars and ballooning costs for developing electric and self-driving cars took a bit out of the company’s profits.

The German automaker’s earnings before interest and tax or EBIT dropped to 2.67 billion euros in the fourth quarter, falling short of analyst expectations of 2.92 billion euros.

Financial News!

Mercedes-Benz said increased tariffs on vehicles imported from the United States to China and delivery stoppages for individual diesel models hit demand and resulted in weaker prices. (more…)

Toyota Profits Up in 3Q, But Miss Analysts’ Mark

Automaker cuts forecast for rest of year.

by on Feb.07, 2019

Toyota's Masayoshi Shirayanagi said the automaker is looking for ways to further cut costs.

Toyota Motor Co., Japan’s largest automaker, posted a profit of 676.1 billion yen, or $6.16 billion, for the third quarter, up from 673.64 billion yen in the same period a year earlier.

However, the result fell short of the street’s expectations of the 680.84 billion yen median of 10 analyst estimates compiled by Refinitiv.

Global News!

The automaker saw rising sales in Asia, particularly China, offset a decline in the company’s largest market: the United States. (more…)

Pickups, SUVs Push GM Profit Well Above Expectations

Automaker betting numbers will look even better as truck production ramps up in 2019.

by on Feb.06, 2019

GM reported stronger than expected earnings as Chairman and CEO Mary Barra continues to reshape the company.

General Motors handily beat Wall Street’s earnings forecast for the fourth quarter and full year a strong performance that reflects both booming truck demand and the payoff of shedding the company’s long-struggling European operations.

For the final quarter of 2018, GM delivered earnings of $1.43 a share — $1.40 after excluding special items. The consensus, according to Zacks Investment Research, was $1.24. For the full year, earnings came to $6.54 a share, well ahead of the consensus forecast of $6.29. After special charges, the figure dropped to $5.58 per share.

News Now!

GM’s overall $8.1 billion profit for all of 2018 was more than double the $3.9 billion number from the year before, but the 2017 figure reflected a significant hit from the sell-off of the company’s long-troubled European Opel-Vauxhall subsidiary. It was acquired by PSA Group, parent of the Peugeot and Citroen brands. (more…)

Aston Martin Lagonda All-Terrain Concept Hints at Future

All-electric prototype hints of crossover set to mark the brand’s revival.

by on Feb.06, 2019

The Aston Martin Lagonda All-Terrain Concept will strongly influence a coming production model.

Automakers have a habit of reaching into the history books. We’ve seen a number of once forgotten nameplates rise from the dead lately, including the Chevrolet Blazer and Ford Bronco. And the upcoming Geneva Motor Show will mark the revival of two once-grand brands: Hispano-Suiza and Lagonda.

The return of the latter, a subsidiary of Aston Martin, has been in the works for several years, a show car called the Lagonda Vision making its debut in Switzerland a year ago. Next month, we’ll see the debut of a second prototype, the Lagonda All-Terrain Concept, and it seems a lot closer to the production model set to reach showrooms a couple years from now.

Geneva Motor Show News!

“The Lagonda All-Terrain Concept offers explicit clues regarding what will be the first Lagonda model to enter production, and further demonstrates how Lagonda’s zero emission powertrain enables us to create spectacular cars that will radically redefine their sectors of the market,” says Aston CEO Andy Palmer.

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Tesla Purchasing Ultracapacitor Maker Maxwell Tech

Electrify America turns to Tesla Powerpack for new charging stations.

by on Feb.05, 2019

A Tesla supercharger station.

Tesla will spend $218 million to acquire Maxwell Technologies, an energy company that could help it both reduce battery costs and develop a battery alternative called an ultracapacitor.

Separately, Electrify America, a company dedicated to promoting and supporting electric vehicles, plans to use Tesla’s Powerpack battery backup system at more than 100 of its EV charging stations.

Electrifying News!

“We are always looking for potential acquisitions that make sense for the business and support Tesla’s mission to accelerate the world’s transition to sustainable energy,” Tesla said of the planned purchase of Maxwell in a statement.

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General Motors Set to Begin About 4,000 Layoffs on Monday

Goal is to complete handing out pink slips before Q4 earnings release.

by on Feb.01, 2019

General Motors plans to terminate 4,000 jobs in its North American operations on Monday.

General Motors will begin involuntary layoffs on Monday, hoping to complete the latest round of cutbacks before releasing its fourth-quarter earnings on Wednesday.

In all, about 4,000 workers in its North American operations will be terminated, part of a broader series of cuts expected to save the automaker billions of dollars and help it prepare for an expected slowdown of the U.S. automotive market during the next several years.

The Last Word!

“This is not going to be like Black Friday,” one source told TheDetroitBureau.com, referring to the massive cutback GM ordered in the run-up to its 2010 bankruptcy. (more…)

Recalls and Incentives Hammer Honda’s Earnings

Automaker also prepping for impact of Brexit on UK operations.

by on Feb.01, 2019

Honda COO Seiji Kuraishi said the automaker was making plans to deal with the issues surrounding Brexit.

Honda Motor Co.’s earnings tumbled 71% during the company’s fiscal third quarter, a downturn driven by relatively flat sales, retail incentives and a surge of airbag-related recalls.

Honda was one of the largest customers for airbags provided by Japanese supplier Takata. Defects can cause those components to explode during an accident, sending shrapnel into the passenger compartment. At least 23 people, most in the U.S., have been killed as a result of the defective bags.

Business News!

The third-largest of the Japanese automakers reported a profit of 168 billion yen for the quarter ending Dec. 31, or $1.5 billion. That was down from 570.3 billion yen a year earlier and fell well below analysts’ consensus forecast according to polling by Refinitiv. (more…)

With More Product Coming, Tesla CEO Musk Promises Good Earnings Even In a Global Recession

Musk outlines plans for Tesla Model Y, Semi and Pickup in hour-long earnings call.

by on Jan.31, 2019

Tesla's Elon Musk spent much of his time on a call with analysts and media painting a rosy picture for 2019.

Tesla’s weak fourth-quarter earnings failed to impress industry analysts and investors, despite an optimistic, hour-long presentation by CEO Elon Musk who promised that the battery-electric automaker is ready to deliver solid profits “even if there’s a global recession.”

Speaking to reports and analysts, Musk presented an upbeat vision that anticipates a huge surge in both production and demand for the Model 3 sedan, while noting that two other products, the Model Y SUV and battery-powered Semi will go into production in 2020. The 47-year-old entrepreneur fended off concerns that Tesla won’t be able to cover an upcoming bond payment of more than $900 million without seeking new equity.

News You Can Trust!

“2019 is going to be an amazing year for Tesla,” Musk said, later adding that he is “optimistic about being profitable in Q1. Not by a lot, but I’m optimistic about being profitable in Q1 and for all quarters going forward.” (more…)