The car industry is back in business, GM’s contempt for its dealers is evident and Japan. All this and more The morning shift for April 6, 2021.
1st March: Carmakers want the help of Joe Biden
The relationship of automakers with the federal government in the United States is usually quite strained due to the regulatory powers of the federal government. Wwhen it comes to government grants that will help support the (a lot usable) automotive industry, however, the message of the automotive industry is always clear: We will take it.
He global shortage of chips has given carmakers another chance to ask for help.
From Reuters:
The U.S. Department of Commerce should devote some of the funding to a bill to expand semiconductor production in the U.S. to the needs of the automotive industry, the Alliance for Automated Innovation said in written responses to a review initiated by the government.
In February, U.S. President Joe Biden ordered several actions by federal agencies to address the chip crisis and also seeks $ 37 billion in funding for legislation to overload chip manufacturing in the United States. .
Some funding “should be used to build new capabilities that support the automotive industry and mitigate the risks to the automotive supply chain evidenced by the current shortage of chips,” the president wrote group executive, John Bozzella.
The group said the US government could specify “a specific percentage, which is reasonably based on the projected needs of the automotive industry, which will be allocated to facilities that support the production of high-quality automatic chips. ‘somehow’.
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The Alliance for Automotive Innovation is the largest commercial group in the automotive industry in DC, representing almost every major automaker. Wwhen he speaks, you can be sure you hear from the horse’s mouth.
2nd gear: Ferrari is falling
This story is from Sunday, so I apologize for the delay, but it’s remarkable. Bloomberg reports that High-flying Ferrari it doesn’t really do that well, and it seems to be because current investors are all in EV. Ferrari is at the other end of that spectrum, as he said in November it would never go 100% electric.
The Italian super car maker, the best performance in the Stoxx 600 Automobiles & Parts index for each of the last three years, has fallen 5.6% since early 2021 and has just suffered its worst quarter since late 2018. This is in stark contrast to strong gains by rivals such as Volkswagen AG, which owns luxury brands Porsche, Bugatti and Lamborghini.
While competitors, particularly VW, have gotten a big boost from electric vehicles, the company known for its Prancing Horse logo has had setbacks, including a disappointing earnings forecast. Without a clear EV strategy, Ferrari has also been hit by an unresolved search for a new CEO and a wider rotation of so-called growth names of a company that some investors consider more of a luxury work.
“Stocks have become too costly and profit momentum is fading,” said Arndt Ellinghorst, an analyst at Sanford C. Bernstein, who also highlighted the uncertainty about the CEO’s situation and the lack of vision. EV “.
History goes on to point out that Ferrari doesn’t really fall into the same category as a company like Volkswagen, as ferraris basically only sell to the idle rich. That Keep in mind that it explains the strong performance of Ferrari during the pandemic the rich became richer. Still, I’m amused that apparently there are investors who look at Ferrari and judge it based on its strategy (or lack thereof) for electric vehicles.
3rd gear: The Jeep has apparently been convinced that it has finally solved Japan
Jeep expects to sell more than 15,000 cars in Japan this year, or five percent more than last year. Jeep says so means maybe yes made a corner in Japan. Presumably, this is based in part on Jeep incredible confidence to the Gladiator he sells there.
From Bloomberg:
Buyers in Japan tend to opt for smaller cars with high fuel efficiency, one of the reasons Ford Motor Co. ended up leaving the country in 2016. But Jeep has managed to maintain a loyal customer base. Now, in the midst of the coronavirus pandemic, there are more young people who are interested in vehicles, attracted by their ability to handle all kinds of outdoor terrain, which helps avoid public transportation.
“We’ve made efforts to fit in with the Japanese market” by launching right-wheel drive cars, unlike General Motors and Ford, [Hitoshi Ushikubo, the head of sales at Fiat Chrysler Japan] dit. “Young people are looking for cars that allow them to present a part of their character,” he said, adding that a strong presence on social media has also helped the brand.
Nearly 4.6 million new cars they were sold in Japan last year, meaning 15,000 Jeeps would account for about 0.3 percent of all new car sales in Japan if 2021 stays at the pace of 2020, or even less than 0.3 percent, as new car sales in Japan in 2021 are likely to be higher. Still, many car manufacturers make a lot of money by being niches in various markets, just ask Volvo. The Tesla.
4th Gear: Subaru will operate a plant in Japan
The plant manufactures Forestals and Legacys. He damn shortage of chips he attacks again.
From Reuters:
Subaru will restart all production lines at the Yajima plant in Gunma prefecture from May 10, it said in a statement on Monday. He added that the impact on the group’s financial results is uncertain. Some operations will resume on April 21, the company said, adding that April 28 to May 9 is a planned holiday break for the plant.
It is said that about 10,000 cars are affected, which is definitely quite minimal, although I am sure the people at Subaru are not happy.
5th Gear: GM highlights dealers with the Hummer EV
Traders, as we all know, I don’t really have a reason to exist outside of state franchise laws, and make sure the pressure groups have their mouths fed. Car manufacturers know this as well as anyone, although Tesla pushing direct sales has accelerated what could be the beginning of the end for dealers as we know them.
The latest tests are how GMC will sell the Hummer EV. If GM thought the dealership model worked, it would probably simply sell the Hummer EV through dealerships, just like its other cars do. But he is not doing it. From the free Detroit press:
Consumers who want to buy the new GMC Hummer EV pickup or SUV will do so online with minimal dealer participation, directly from General Motors, for at least the next two years.
After that, the retail shopping experience will “evolve” as GM launches more electric vehicles.
The vehicles will arrive at GMC dealership showrooms over time, but even then, the buying process will change, said Phil Brook, vice president of marketing for Buick and GMC.
“There is no doubt about it,” Brook told Free Press, though he declined to offer further details.
“This vehicle allows us to take a different approach,” Brook said. “The market is evolving and changing and we are changing, but we are working through distributors. We see our dealers as a huge competitive advantage for us. ”
It’s not hard to imagine that laughing GMC vice president after saying GM would do everything possible to avoid using dealerships to sell the Hummer EV, and then insisting that dealerships are important to GM.
Reverse: 2001
Science fiction movies have always overestimated how quickly technology would advance and for decades. I’m not even sure if 3001: a space odyssey would be accurate.
Neutral: How are you?
I received my first dose of vax on Saturday in Brooklyn. It could have been the biggest anticlimax of my life; the shot took about two seconds and was so fast that at first I thought the nurse had not pressed the plunger or anything. Then my left arm started to feel like a pile of bricks.
The second round is in three weeks in Harlem, with two weeks later, on May 8, to be precise, the day I will be considered fully vaccinated, according to the guidelines. Then: at least nine margaritas in Atlantic City.