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Archive for the ‘China’ Category

Tesla Q2 Losses Double, But Profits Promised in Q3

Investors happy to see capex spend drop, stock jumps nearly 5%.

by on Aug.01, 2018

Tesla CEO delivered enough positives in the second quarter to excite investors. The company's stock rose 5% in after hours trading.

Tesla Inc.’s mad dash efforts to meet its ever-shifting production quotas didn’t result in a narrowing of financial losses for Q2, not that CEO Elon Musk implied that. However, the end result was a doubling of losses on a year-over-year basis.

In the second quarter of 2018, Tesla’s automotive business saw revenue rise to $3.1 billion compared with $2 billion for the same period last year; however, losses jumped to $717.5 million, or $4.22 a share, from $336.4 million, or $2.04 a share.

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However, the letter produced to explain the quarterly results suggests that only good times are on the horizon despite the company missing analyst expectations for losses this quarter. Ultimately, shareholders were pleased with the results as the stock jumped nearly 5% after hours on the news.  (more…)

US Trade Partners Plan Next Steps Against Potential New Tariffs

Geneva meeting represents $1 trillion auto exports.

by on Jul.31, 2018

European Commission President Jean-Claude Juncker, left, and President Donald Trump met to discuss a new trade deal.

A large group of the United States’ top trading partners gathered in Geneva this week to discuss a variety of countermeasures against the U.S. should the Trump administration decide to implement a new set of automotive tariffs.

Deputy trade ministers from Canada, Mexico, Japan, South Korea and the European Union created an outline of possible actions they could take in the event Trump imposes tariffs on foreign imports as a result of the U.S. Commerce Department’s investigation to determine if those imports represent a threat to U.S. national security.

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The group revealed it is considering several options, including an appeal to the World Trade Organization’s dispute settlement system and the imposition of retaliatory tariffs against U.S. goods, Bloomberg News reported.  (more…)

Audi Set to Reveal PB 18 e-tron Concept

Pebble Beach debut sets in motion Audi’s entry into battery-car market.

by on Jul.30, 2018

For now, Audi is billing the PB 18 as a concept, but could it be working up a challenge to the planned Tesla Roadster electric supercar?

With its first long-range battery-electric SUV set to make its launch later this year, Audi is setting the stage for its entry into the emerging market with the upcoming debut of the PB 18 e-tron Concept.

The name is a bit of code, though one not difficult to figure out, as the electric supercar will be unveiled during this coming month’s series of classic car events capped off by the Aug. 26 Pebble Beach Concours d’Elegance.

Electrifying!

“It also recalls the LeMans-series winner Audi R18 e-tron, whose technology inspired the solutions for various details,” the German automaker says in a statement accompanying this teaser image, adding that, “The Audi PB 18 e-tron was conceived and designed by the new Audi Design Loft in Malibu, California.” (more…)

Daimler AG Pushing Forward on Restructuring Plans

Company's move to split into three units provides more freedom.

by on Jul.26, 2018

Daimler AG is splitting into three separate entities to improve efficiency and profitability.

Daimler AG took another step toward a restructuring aimed at giving its three key operating units – cars, trucks and financial services – greater freedom and flexibility.

The plan approved by the company’s supervisory board this week creates three new operating companies while the parent company, Daimler AG, retains oversight and governance, according to the company’s announcement.

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“The new structure positions Daimler to tackle the rapid pace of change in the mobility sector and the corresponding strategic challenges. Legally independent divisions will sharpen our focus on the future success of the business.” Manfred Bischoff, chairman of the Supervisory Board of Daimler AG. (more…)

Audi Rolls Out All-New, 2019 Q3

Crisper exterior, bigger interior, more tech toys.

by on Jul.26, 2018

Audi has a new entry for the small luxury utility market that is growing by leaps and bounds in the U.S.: the 2019 Q3.

Audi has been moving on two critical trends in the luxury car market, both moving both down-market and expanding its presence in the fast-growing utility vehicle market. It scored with the original Q3 that combined both trends into one package and, for 2019, it’s hoping to hammer another one out of the park with the second-generation of its compact crossover.

The Q3 comes along at a busy time for Audi which, among other things, is also launching a new range-topper, the big Q8 utility vehicle. For the U.S., the Q3 is the smallest crossover it offers, and the all-new version comes just four years after the North American debut of the original.

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The new model grows in every dimension, both outside and in, while also adopting a bolder, more muscular appearance that bears the clear stamp of Marc Lichte, Audi’s design director who came onboard a few years back, promising to shake up the brand’s styling language. But what may particularly appeal to the generally younger buyers is that the 2019 Audi Q3 features a suite of new, high-tech features. (more…)

Ford Q2 Earnings Hurt by China, Supplier Fire

Automaker revises full-year guidance downward.

by on Jul.25, 2018

Jim Hackett, Ford president and CEO, said the company is moving to invest in areas that will return the best profits.

Ford’s second-quarter earnings were down compared with year-ago results, driven there by poor sales in China and the loss of truck sales when its supplier suffered a fire that forced the company to shut down its truck production lines for eight days.

The automaker reported net income of $1.1 billion, or 27 cents a share, on revenue of $38.9 billion, compared with 2017 results of net income of $2.1 billion, or 51 cents a share, on revenue of $39.9 billion.

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“This quarter we achieved solid results in North America, offset in part by unexpected challenges with our overseas operations and headwinds in the business environment,” said Jim Hackett, president and CEO, in a statement. (more…)

FCA Reports Lower Than Expected Earnings as it Mourns Marchionne

Former chief memorialized with a moment of silence on earnings call.

by on Jul.25, 2018

Mike Manley, new CEO of FCA, led a moment of silence today before leading the reporting of the company's second quarter earnings.

Fiat Chrysler Automobiles reported Q2 earnings that were lower than expected, but that was surpassed by news that former CEO Sergio Marchionne died due to complications from surgery in Switzerland.

The company’s executives, including the newly appointed replacement for Marchionne, Mike Manley, soldiered on through the earnings call, starting with a moment of silence to honor the man many believe saved Chrysler from extinction.

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Then they moved on, as they believed Marchionne would have insisted, to describe how slow sales in China put a drag on the company’s earnings results despite impressive sales in North America during the first half of the year. (more…)

General Motors Reports Flat Earnings for Second Quarter

Rising incentives on pickups drain profits.

by on Jul.25, 2018

GM's profits were hurt by increased incentives on its full-size pickups during the second quarter.

General Motors posted earnings for the second quarter that were basically flat as rising incentives and lower prices on its pickup trucks took a bite out of the company’s profits.

GM’s income from continuing operations of $2.4 billion, down $0.1 billion, compared to the second quarter of 2017 due to a driven primarily by the decline pricing and trim mix for the company’s the current-generation full-size pickup truck models, which is due to be replaced next year, and increased commodity costs.

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The decline in the profitability of the company’s pick-up truck business was partially offset by improved performance in GM Financial and China. (more…)

PSA Makes Opel Profitable a Year After Buying It From GM

Company makes $588 million in first half of 2018.

by on Jul.24, 2018

PSA CEO Carlos Tavares has been credited with turning around the near-bankrupt French company, and now making a profit at Opel in just one year.

In just about a year, PSA Group managed to do something General Motors Co. hadn’t done 20 years: squeeze a profit out of Opel. PSA bought the company as well as its British sibling Vauxhall from GM for $1.3 billion euros last year.

The German brand reported a profit of $588 million, or 502 million euros, through the first six months of this year compared with a loss last year.

Global News!

The profits excluded $492 million, or 406 million euros, in one-time charges, after the company reached an agreement in May with German labor representatives to eliminate 3,700 jobs from Opel’s German workforce of about 20,000 employees. (more…)

Manly Manley Facing Tough Challenges at FCA

Great track record at Jeep, Ram, but lots more to do, observers caution.

by on Jul.23, 2018

New Fiat Chrysler CEO Mike Manley is not sliding into a cushy job, rather it is a position that faces several difficult challenges in the near and long term.

The head of Fiat Chrysler’s European, Mideast and African business operations reportedly has stepped down, the apparent departure of Alfredo Altavilla kicking into high gear what could become a period of significant turmoil in the automaker’s senior ranks touched off by the unexpected departure of long-time CEO Sergio Marchionne over the weekend.

The 66-year-old Marchionne, who brought Fiat in as a white knight to save Chrysler after its 2010 bankruptcy, was replaced over the weekend by Michael Manley after suffering a grave decline in health following seemingly routine shoulder surgery last week.

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The 54-year-old Manley was considered the front-runner to replace Marchionne when he retired nearly a year from now, but the unexpected shake-up will put plenty of pressure on the new CEO to hold things together while also moving ahead with the new FCA five-year plan Marchionne unveiled barely two months ago. Altavilla was seen as one of the other senior execs positioned to succeed Marchionne and it remains to be seen if his departure could be followed by others. (more…)