The car industry is back in business, GM’s contempt for its dealers is clear, and Japan. All this and much more in Morning change for April 6, 2021.
First step: carmakers want Joe Biden’s help
The relationship of car manufacturers with the US federal government is usually quite full because of it the regulatory powers of the federal government. Wwhen it comes to government documents that will help support (very profitable) the car industry, however, The message of the car industry is always clear: We’ll take it.
global chip deficit gave carmakers another chance to call for help.
from Reuters:
The U.S. Department of Commerce should dedicate some of the funding to a proposed bill to expand U.S. semiconductor production to the needs of the automotive sector, the Alliance for Automotive Innovation said in written responses to a government-initiated review.
U.S. President Joe Biden ordered several federal agency actions in February to address the token crisis and is also seeking $ 37 billion in funding for legislation to overload chip production in the United States.
Some funding should be “used to build new capacity to support the automotive industry and mitigate risks to the automotive supply chain, highlighted by the current lack of chips,” wrote the group’s chief executive John Bozzella.
The group said the US government could specify “a certain percentage – which is reasonably based on the projected needs of the automotive industry – to be allocated to facilities that will support the production of quality automotive chips in some way.”
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Alliance for Automotive Innovation is the largest commercial group in the automotive industry in DC, representing almost all major automakers. Wwhen he speaks, you can be sure he hears from the horse’s mouth.
Second step: Ferrari gave up
This story is from Sunday, so my apologies for the delay are still remarkable. Bloomberg rEPORTS that High-flying Ferrari In fact, it does not do so well and it seems because today’s investors are all in EV. Ferrari is at the other end of the spectrum, in the sense that it said in November that it is it would never work 100% electrically.
The Italian supercar manufacturer, the best performer in the Stoxx 600 Automobile & Parts index for each of the last three years, has fallen by 5.6% since the beginning of 2021 and has just suffered the worst quarter since the end of 2018. This is a stark contrast to the strong gains of rivals, including Volkswagen AG, which owns luxury brands Porsche, Bugatti and Lamborghini.
While competitors, especially VW, received a boost from hullabaloo around electric vehicles, the company known for the Prancing Horse logo faced failures, including an overwhelming earnings forecast. Without a clear EV strategy, Ferrari has also been hurt by an unresolved search for a new CEO and a wider rotation of so-called growth names for a company that some investors consider more of a piece. of luxury.
“Stocks have become too expensive and the momentum of earnings is declining,” said Sanford C. Bernstein analyst Arndt Ellinghorst, noting the uncertainty about the CEO’s situation and a “lack of EV vision.”
The story goes on to note that Ferrari really is not in the same category as a company like Volkswagen, because Ferraris is practically sold only to the rich. That explains Ferrari’s strong performance during the pandemic, given this the rich got rich. However, it’s funny to me that apparently there are investors who look at Ferrari and judge it based on its strategy (or lack thereof) for electric vehicles.
Third step: Jeep was apparently convinced that it had finally solved Japan
Jeep expects to sell more than 15,000 cars in Japan this year, or five by percentages more than last year. Jeep says it means maybe he has turned a corner in Japan. This is probably based in part on the Jeep incredible confidence in the Gladiator who sells there.
from Bloomberg:
Buyers in Japan have typically opted for smaller, fuel-efficient cars, one of the reasons Ford Motor Co. came to give up the country in 2016. But Jeep managed to retain a loyal customer base. Now, amid the coronavirus pandemic, more young people are interested in vehicles, attracted by their ability to manage all kinds of outdoor land, which helps to avoid public transport.
“We have made efforts to match the Japanese market,” by launching right-hand drive cars, unlike General Motors and Ford. [Hitoshi Ushikubo, the head of sales at Fiat Chrysler Japan] said. “Young people are looking for cars that allow them to show a part of their character,” he said, adding that a strong social media presence also helped the brand.
Almost 4.6 million new cars were sold in Japan last year, which means that 15,000 Jeeps would account for about 0.3 percent of total new car sales in Japan if 2021 stays on track with 2020, or even less than 0.3 percent as new car sales from Japan in 2021 will probably be higher. However, many car manufacturers make a lot of money in niches in various markets, ask Volvo. Or Tesla.
Step 4: Subaru will slow down a plant in Japan
The plant produces foresters and beetles. damn lack of chips hit again.
from Reuters:
Subaru will restart all production lines at the Yajima plant in Gunma prefecture starting 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 – May 9 is a previously scheduled holiday break for the plant.
It is said that about 10,000 cars are affected, which is, at one point, quite minimal, although I am sure that Subaru people are not happy.
Speed 5: GM disregards dealers with Hummer EV
Dealers, as we all know, I don’t really have a reason to exist outside the state franchise laws and making sure that lobbyists have their mouths fed. Car manufacturers know this as well as anyone, although Tesla, which promotes direct sales, has accelerated what could be the beginning of the end for dealers as we know them.
The latest evidence is how GMC will sell the Hummer EV. If GM thought the distribution model worked, it would probably simply sell the Hummer EV through dealers, just like its other cars. But don’t do that. from free press in Detroit:
Consumers who want to buy the new GMC Hummer EV pick-up or SUV will do so online with minimal distributor involvement, 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 reach GMC dealership showrooms, but even then, the buying process will change, said Phil Brook, vice president of marketing for Buick and GMC.
“There is no doubt about that,” Brook told the Free Press, though he declined to comment.
“This vehicle allows us to take a different approach,” Brook said. “The market is evolving and changing and we are changing, but we work through dealers. We see our dealers as a huge competitive advantage for us. ”
It’s not hard to imagine that this GMC vice president bursts out laughing after he said that GM will do everything possible to avoid using dealers to sell Hummer EVs, then insisting that dealers are important to GM.
Reverse: 2001
Science fiction films have always overestimated how fast technology would advance for decades. I’m not even sure if 3001: A Space Odyssey would be correct.
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 lasted about two seconds and was so fast that at first I thought the nurse hadn’t pressed the piston or anything. Then my left arm started to feel like a ton of bricks.
The second round is in three weeks in Harlem, two weeks later, on May 8, the day I will be considered fully vaccinated, according to the guidelines. After that: at least nine daisies in Atlantic City.