Elon Musk's idea of offering Tesla insurance, more on US and China tariffs, lowers the Chevrolet Corvette sales as buyers, waiting for the upcoming car, vendor's preparation for General Motors & # 39; factory shutdown,  and BMW's first quarter losses. All this and more in the Morning shift Tuesday May 7, 2019.
When Tesla posted a $ 700 million first quarter loss recently, CEO Elon Musk announced that the company would offer car insurance. There was not much said about the insurance product at the time of the announcement, which was in late April, except that the plan was to come out in a month, and that some of the current practice would flush into
From a CNBC History at that Time:
In response to a subsequent question about the safety of Autopilot, Musk says that Tesla provides more information on security to insurance companies.
"We provide some more detailed information to insurance companies to help with rates. And of course, when we start our own insurance product next month, we will surely incorporate this information into the insurance rate," says Musk.
Wall Street Journal published more on the plan Tuesday, which is actually that Tesla will sell its drivers cheaper car insurance based on the owner's run and the performance of the Tesla Autopilot driver assistance system.WSJ reports that Tesla said it has better data on the performance of the cars and drivers than the insurance companies do, and
Of course, Musk drivers say "to agree not to drive a car in a bad way" otherwise the insurance rate will be higher. From the story:
Tesla's planned offer "is symbolic for the types of partnerships traditional car operators have to forge along with vehicle manufacturers and data and software conglomerates If they hope to survive the transition from the present environment, "[Robert Hartwig, director of the Risk and Uncertainty Management Center at the University of South Carolina’s Darla Moore School of Business] said. The car manufacturer is taking advantage of the value associated with the hordes of data collected as Tesla owners log miles in their vehicles, he said. […]
Researchers at the insurance industry-funded Highway Loss Data Institute have determined that the Tesla Model S crash removal features reduce physical damage and liability while Autopilot lowers collision requirements.  WSJ has more on the plans here.
2. Gear: More about US tariffs on China
There is a lot going on in tariffs, threats of threats and predictions about Trump administration tariffs on China lately, and that is unlikely to change. The latter, via Bloomberg, involves some predictions and reactions.
Firstly, the forecasts: Bloomberg reports that the CEO of ZoZo Go, a consultation focusing on automotive technology and vehicle companies in general, believes President Donald Trump will keep tariffs on electric vehicles from China as high as possible. From the story, as there are several here:
China's government is pouring $ 100 billion to become the world leader in electric vehicles, Dunne said. Last year, Chinese consumers bought 1.2 million battery-powered cars compared to about 350,000 in US Trump's tough tariff, which has disturbed the Chinese government as much as it has rattled markets, with the aim of protecting technological innovation in the United States, Dunne said.
Trump "believes that in threatening tariffs, this really puts a scare into the Chinese, and it seems to have received its attention," Dunne said. "Customs is almost a psychological tactic to undermine the average Chinese businessman and consumer confidence. But the real story remains technology. The customs are almost a decoder – the technology is what the trading dealers are working on."
But while it all works well and well For US companies seeking further EV production, the leader of a multi-focus company, Cummins, is not a fan. Cummins CEO Thomas Linebarger told Bloomberg Television that tariffs are not "the right medicine" for commercial disputes.
Linbarger said that Cummins Chinese business has stopped, it has been paying a "substantial price" in the tariffs. There are also other issues: According to the interview, the company is starting to see orders that are lower than production.
From Bloomberg:  "By imposing tariffs, what we're actually doing is getting a cost or a tax on US business," r. "Most of these charges are being paid by US operations today to address structural and non-tariff barriers."
And as always, we know who pays for the extra costs that companies incur us: us, the buyers.
The mid-engined Chevrolet Corvette that car enthusiasts have not been able to shut up for decades is finally (almost) here, but it's not all celebration and fun for General Motors. As the July debut of the car's eighth generation, C8, is approaching, the sale of the current Corvette engine is not too great.
Here's the deal, via Bloomberg, which has graphs on Corvette sales figures Throughout the generations in its history that look like mountain peaks:
Corvette sales in the US have fallen every quarter from the previous year since 2016. Retailers sold only 18,791 of the vehicles in 2018, 44 per cent less than in 2015. Current models are idle at dealerships, forcing dealers to offer great incentives. Stingray, for example, dangling discounts and incentives up to $ 15,000 on some of the high performance models. If you've always wanted a Corvette and don't care where the engine goes, it's now. […]
However, the difficult thing is that the corvette is one of the rare speed machines that contributes significantly to the bottom line. General Motors makes a neat profit on each one, and it usually sells many of them.
The sales decline waiting for the C8 is massive on Bloomberg's chart, probably because the car with the engine in the middle has been so long in making and imagining.
People have deposited deposits for years back when the middle corvette was still a long-standing rumor, according to Bloomberg:
The Corvette clan is ready. "We've taken deposits to a rumored mid-engine squad since 2014," said Sean McCann, floor manager at Stingray Chevrolet near Tampa, Fla. "People cancel their orders (in 2019) and begin to hold back because they want to wait and see what is going to come out?" […]
Tony Fiorello, president of a dental implant firm in Florida, will be one of many padding sales statistics for Chevrolet. He wanted the first Corvette mid-engine so bad he secured his games. In 2017, he dropped two deposits, one for the 2019 version and one for 2020. "It's a paradigm shift," he explained. "And I just knew I wanted to be No. 1 on the list."
If anything, it's time for that list to become a reality.
General Motors announced plans to close its Oshawa factory in Ontario, Canada last year, and rightly did many people, very angry at what it meant for workplaces. The facility has been open since 1953, and the plan is to close it by the end of the year.
On Tuesday, Automotive News wrote that the suppliers did not feel quite the same, as they saw the closure came and have been prepping for it for about a decade. Many of the prep work has been in diversifying the products that the vendors offer, since they can rely not only on delivering GM all the time.
From Automotive News:
[Automotive Parts Manufacturers’ Association president Flavio] Volpe said Suppliers have diversified their product mixes for several years to better withstand plant closure and consolidation.
"For generations, you could have built a very good business around a particular [automaker] in a plant. No one went to the business school. No one had to go to the business school. .
"Everyone was captured briefly 10 to 15 years ago, even before the crisis [financial] with overcapacity and the new approach to capacity utilization.
"It was a wake-up call on all suppliers. We lost hundreds then. We did not lose hundreds because they moved. We lost hundreds due to consolidation and closure. We are in a new world now. Everyone is in the business school. At work during the day, you earn a degree in these things. "
Automotive News has more on history and vendors trying to reduce the effects of the Oshawa closure here.
Car manufacturing in BMW showed a loss for the first time in a decade during the first quarter, reports Bloomberg due to lower car prices and
of bracket, earnings from the automaker's main unit fell by 42 percent to 1.1 billion euros in the first quarter. The price competition in some markets and the cost of new technology is cut in profit, the luxury car manufacturer said in a statement on Tuesday. […]
The company also cooperates with Daimler AG in autonomous driving, and the two companies merged their mobility services earlier this year. Although there has been speculation about further cooperation plans, Krueger raised cold water hoping for a cross action on Tuesday.
Bloomberg reports that BMW announced a $ 12 billion savings plan, or about $ 13.4 billion at current exchange rates, in March, and that the back year will be better due to sales of the new 3 Series and X7 models. Despite trading tensions, Bloomberg reports that BMW CEO Harald Krueger says the X7 orders are "beyond all expectations."
DaimlerChrysler, who will always be fun to say, began his life May 7, 1998. It's the day Mercedes-Benz's parent organization Daimler announced a $ 36 billion merger with Chrysler Corporation, according to History, but It was not so forever.
From the story:
In 2006, according to the Times, Chrysler had a $ 1.5 billion loss and fell behind Toyota in fourth place in the US car market. This loss came despite the company's splashy launch of 10 new Chrysler models that year, with plans to uncover eight more. The following May, after negotiating a potential sale after negotiating with General Motors, DaimlerChrysler announced it sold 80.1 percent of Chrysler to the $ 7.4 billion private equity firm Cerberus Capital Management. DaimlerChrysler, soon renamed Daimler AG, held a 19.9 percent stake in the new company, known as Chrysler LLC.
Front-engined, mid-engined-yeah, Jaja. Would you go to the front engine if it was marked down?