The automotive industry is going back to the pit, GM’s contempt for its dealers is simple, and Japan. All this and more in The Morning Shift for 6 April 2021.
1st gear: carmakers want the help of Joe Biden
Relations between car manufacturers and the US federal government are usually quite hampered the federal government’s regulatory powers. Wwhen it comes to government handouts that the (very profitable) motor industry, although, the car industry’s message is always clear: We will take it.
The global shortfall gave carmakers the opportunity again to call for help.
Of Reuters:
The U.S. Department of Commerce must dedicate a portion of the funding to a proposed bill to expand U.S. semiconductor production to the needs of the automotive sector, the Alliance for Auto Innovation said in a written response to a government statement. initiated review.
U.S. President Joe Biden ordered in February that several federal agencies act to address the chip crisis, and he also wants to fund $ 37 billion for legislation to compensate for the production of chips in the United States.
Some funding should be “used to build new capacity that will support the automotive industry and reduce the risks to the supply chain in the automotive industry, as evidenced by the current shortage of chips,” wrote the group’s CEO John Bozzella.
The group said the U.S. government could specify a specific percentage, fairly based on the expected needs of the automotive industry, for facilities that could somehow support the production of chips for automobiles. ‘
G / O Media can get a commission
The Alliance for Automotive Innovation is the largest trading industry in DC in DC and represents almost every major automaker. WIf it speaks, you can be sure to hear from the horse’s mouth.
2nd gear: Ferrari bag
This story is from Sunday, so I apologize for the inertia, but it’s remarkable nonetheless. Bloomberg reports that high-flying Ferrari actually not doing everything so well, and that seems to be because investors are all on EVs these days. Ferrari is on the other end of the spectrum because it said in November that it would never be 100 percent electric.
The Italian supermaker manufacturer, which has performed best in the Stoxx 600 Automobiles & Parts index for the past three years, has fallen by 5.6% since the beginning of 2021 and has suffered only its worst quarter since the end of 2018. This is a stark contrast to strong profits by competitors, including Volkswagen AG, which owns luxury brands Porsche, Bugatti and Lamborghini.
While competitors, particularly VW, got a boost from the hullabaloo around electric vehicles, the company known for its Prancing Horse logo suffered setbacks, 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 broader revolution from the so-called growth names for a company that some investors see as more of a luxury play.
“The stock has become too expensive and the earnings momentum is fading,” said Sanford C. Bernstein analyst Arndt Ellinghorst. He also noted uncertainty over the CEO’s situation and a “lack of EV vision.”
In the story, it is further noted that Ferrari really is not in the same category as a company like Volkswagen, as Ferrari’s are basically only sold to the idle rich. That helps explain Ferrari’s strong performance during the pandemic, given the rich got richer. Still, it’s funny to me that there are apparently investors out there watching Ferrari and judging it based on its strategy (or lack thereof) for EVs.
3rd gear: Jeep apparently convinced that he 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 it means that it may have take a turn in Japan. It’s presumably based in part on Jeep’s incredible confidence in the Gladiator selling there.
Of Bloomberg:
Buyers in Japan have generally opted for smaller cars with high fuel efficiency, one of the reasons why Ford Motor Co. finally left the country in 2016. But Jeep has managed to maintain a loyal customer base. Amid the coronavirus pandemic, more young people are taking an interest in the vehicles, drawn by their ability to handle all kinds of outdoor terrain, helping to avoid public transportation.
“We have made efforts to adapt to the Japanese market” by rolling out 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 present a part of their character,” he said, adding that a strong social media presence also helped the brand.
Nearly 4.6 million new cars was sold in Japan last year, which means that 15,000 Jeeps would make up about 0.3 percent of all new car sales in Japan if 2021 remained 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 be. Still, many car manufacturers make a lot of money to be niche in different markets, just ask Volvo. Of Tesla.
4th gear: Subaru will launch a plant in Japan
The plant makes Foresters and Legacys. The damn shift cards strike again.
Of Reuters:
Subaru will restart all production lines at the Yajima plant in Gunma Prefecture from May 10, he 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 holiday for the plant.
It is said that about 10,000 cars are affected, which in my opinion is quite minimal, although I am sure that people from Subaru are not happy.
5th gear: GM highlights dealers with Hummer EV
Traders, as we all know, does not really have a reason to exist outside the state franchise laws, and to ensure that lobbyists get their mouths fed. Car manufacturers know this just as well as anyone, although Tesla strives for direct sales, it has accelerated the beginning of the end for dealers as we know it.
The latest evidence is how GMC will sell the Hummer EV. If GM were to think the dealership model works, it would probably sell the Hummer EV through the dealerships, just like its other cars. But it does not. Of the Detroit Free Press:
Consumers who want to buy the new GMC Hummer EV pickup or SUV will do so online for at least the next two years with minimal involvement with dealers, directly from General Motors.
Thereafter, the in-store shopping experience will “evolve” as GM rolls out more electric vehicles.
The vehicles will eventually come to GMC dealers showrooms, but even then, the purchasing process will change, said Phil Brook, vice president of marketing for Buick and GMC.
“There is no doubt about it,” Brook told the Free Press, although he declined to comment further.
“With this vehicle, we can take a different approach,” Brook said. ‘The market develops and changes and we change, but we work through the traders. We see our traders as a great competitive advantage for us. ‘
It’s not hard to imagine this GMC vice president bursting out laughing after saying that GM is doing everything in its power to avoid dealers selling the Hummer EV, and insisting that dealers are important to GM .
Back: 2001
Sci-fi movies have always overestimated how fast technology would advance, and for decades. I’m not even sure if 3001: A Space Odyssey would be accurate.
Neutral: how are you?
I got my first dose of the wax Saturday in Brooklyn. It was perhaps the greatest anticlimax in my life; the shot lasted about two seconds and was so fast that at first I thought the nurse did not push the plunger or anything. Then my left arm started to feel like a ton of bricks.
Round two is over in three weeks in Harlem, with two weeks after that, May 8 to be exact, the day I will be vaccinated as fully, according to the guidelines. Then: at least nine margaritas in Atlantic City.