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Business

Mercedes-Benz is making so much money right now




Image for the article titled Mercedes-Benz is making so much money right now

Photo: Mercedes-Benz

Mercedes-Benz says it’s going pretty well despite that everything happening in the world, Russia sends less gas to Europe because everything continue, and NHTSA examines nearly 2 million vehicles from the Big Three. All that and more in The morning shift for Wednesday 27 July 2022.

1st gear: Mercedes does it pretty, pretty, pretty well

Mercedes-Benz says it expects a significant increase in revenue and slightly higher earnings in 2022, despite the fact that the world is coming to an end on a daily basis. It all has to do with higher than ever vehicle prices and the company’s mix of models.

MB said it is raising its outlook after an 8 percent jump in second-quarter adjusted earnings to $4.97 billion. It had previously said that it expected only slightly higher revenues this year and earnings at the level of 2021.

Mercedes also says that it has cut gas consumption by 10 percent in Europe while maintaining full operations. From Car news:

The company said it could reduce its gas intake in Germany by 50 percent if the regional merger took place. It said it had found a way to run the paint shop at the Sindelfingen plant without gas in an emergency. The plant builds high-end electric EQS, S-Class and Maybach models.

A worsening economic climate that weighs on consumers is combined with the ongoing struggles to get enough semiconductors for automakers. Ongoing pandemic lockdowns in China preventing people from buying cars are another threat.

Still, Mercedes predicted good demand for its models in the second half of the year with solid order books indicating that demand continues to outstrip available cars.

The company is also working directly with several microchip manufacturers to ensure that the chips continue to flow throughout the rest of the year.

2nd gear: Russia reduces gas flow to Europe

Russia is supplying less gas to Europe as part of further escalations in the energy gap between Moscow and the EU. It will make it much more difficult and expensive for the EU to fill up stocks ahead of the winter heating season.

Apparently, the capacity of the Nord Stream 1 pipeline, the main delivery route to Europe for Russian gas, has been cut to a fifth of its total capacity. It accounts for about a third of all Russian gas exported to Europe. The fall came just a week after the pipeline restarted after a planned 10-day maintenance break. From Reuters:

On Tuesday, EU countries approved a weakened emergency plan to curb gas demand after striking compromise deals to limit cuts for some countries, hoping that lower consumption will ease the impact if Moscow cuts supplies altogether.

The plan highlights fears that countries will not be able to meet targets to replenish stocks and keep residents warm in the winter months, and that Europe’s fragile economic growth could take another hit if gas has to be rationed.

Royal Bank of Canada analysts said the plan could help Europe get through the winter provided gas flows from Russia are at 20-50% capacity, but warned against “market complacency European politicians have now solved the problem of Russian gas dependence.”

While Moscow has blamed various technical problems for the supply cuts, Brussels has accused Russia of using energy as a weapon to blackmail the bloc and retaliate against Western sanctions over its invasion of Ukraine.

Kremlin spokesman Dmitry Peskov said Gazprom was supplying as much gas to Europe as possible, adding that sanctions-driven technical problems with equipment prevented it from exporting more.

Now countries in Europe are trying to make up the difference in lost energy. Germany, the biggest importer of Russian gas, may use nuclear power to avoid power shortages. The country is now in phase 2 of a three-stage emergency gas plan. The final phase will start when gas rationing cannot be avoided.

3rd gear: A few million Detroit three cars are examined

It has US safety regulators opened five separate probes into the safety of about 1.9 million vehicles made by Ford, General Motors and Stellantis, according to Automotive News. The largest probe covers about 1.3 million Jeep Cherokees made between 2014 and 2020. Water can leak into the vehicles and cause the electronic parking brake to activate and stop the cars while they are in motion. So far, NHTSA has received 80 complaints.

The agency is also looking at the 2016 Dodge Journeys, Jeep Compasses and Jeep Patriots after receiving 127 complaints of faulty crankshaft or camshaft sensors causing the engines to stall while driving. From Car news:

FCA US, now Stellantis, recalled certain Journey, Compass and Patriot vehicles manufactured between May 9 and July 15, 2016 for the problem in December 2016. NHTSA said that vehicles similar to those identified in the recall but not included in its scope, may also experience the alleged defect. The agency has opened a recall request for more than 289,000 vehicles for further review and to determine whether to recall more vehicles.

The agency is also investigating Chrysler Pacifica plug-in hybrid vehicles from the 2019-21 model years after receiving 40 complaints alleging a potential transmission malfunction that could cause stalling or loss of power. Most of the alleged incidents occurred at speeds above 25 mph and required the vehicle to be towed, according to NHTSA. The safety probe covers an estimated 21,348 vehicles.

In addition to this, the agency is launching a probe for the 2021 Ford Bronco. You can read more about that here. NHTSA will also investigate 2020-2021 Cadillac XT5s, XT6s and GMC Acadias after learning of rear-view camera issues.

According to the complaints, the backup camera screens are black or sometimes show a red triangle and a circle with a line through it. The investigation covers an estimated 190,151 vehicles.

This problem has so far led to one reported crash and 11 complaints to the agency.

Fourth gear: UAW Embezzler gets 57 months in prison

A former United Auto Workers official has been sentenced to 57 months in prison for embezzling more than $2 million from the union.

Timothy Edmunds pleaded guilty in March to embezzlement and money laundering while serving as financial secretary and treasurer of UAW Local 412. The 54-year-old worked at the union from 2011 to 2020. From The Detroit News:

Edmunds, of Madison Heights, is the 17th defendant convicted in a years-long crackdown on corruption in the auto industry and one of the nation’s most influential labor unions. He was responsible for managing and investing money for Local 412, which represents about 2,600 workers.

Investigators found that Edmunds used union debit cards for personal purchases, cashed union checks on personal accounts and created false bank statements to hide his systematic theft.

Edmunds took $2.1 million from the organization between 2015-21, and federal prosecutors said evidence showed he used the money for gambling, cocaine, cars and firearms. Between 2018 and 2020, Edmunds spent $30,000 on a union debit card at Greektown Casino alone.

57-month (almost five years) conviction is not the only punishment Edmunds will face. He must also pay $1,963,740 in restitution to Local 412 as well as a $1 million fine.

This is the first criminal charge filed since a court-appointed corruption watchdog was installed to oversee reforms at the UAW.

5th Gear: A Strike causes Lufthansa to cancel over 1,000 flights

Lufthansa had to cancel almost all of its flights from two of its hub airports when the grounds crew staff walked away. It’s a problem that only makes flight disruptions worse as carriers around the world try to deal with increased combat demands.

The German company says 678 flights were booked from Frankfurt Airport. That’s on top of the 345 at the Munich hub that were canceled on Wednesday. All in all, it will affect around 134,000 passengers, and further delays and cancellations may occur on Thursday and Friday. From The Wall Street Journal:

The airline’s ground staff are on strike until 06:00 local time on Thursday due to a pay dispute. The German trade union Verdi is pushing for higher wages for around 20,000 workers, demanding a 9.5% pay rise – or a minimum of 350 euros, around $355 a month – to compensate for rising inflation and to compensate for higher workloads while the industry is struggling with a shortage of employees.

“The situation at the airports is escalating,” said Christine Behle, Verdi’s deputy director. “The [workers] urgently need more money, and they need relief – for themselves and for the passengers. The employer’s offer is not enough.”

Lufthansa has offered basic salary increases of €150 a month from July and a further €100 from the beginning of next year. It also offers to increase the minimum wage from October and a 2% increase in compensation next year provided the company’s earnings are positive. Overall, the airline said, the offer represents a 14.8% increase for lower-paid workers, scaling down to a 5.9% increase for higher-paid workers.

The strikes are the latest in a series across the airline industry – and across Europe more generally – which has led to major travel delays and cancellations. Charles de Gaulle airport in Paris has battled repeated strikes by workers in recent months as workers push for better wages, while airlines including Ryanair Holdings PLC – Europe’s largest airline by passengers – and discount rival easyJet PLC have been hit by strikes from cabin crew. .

Folks, it’s a bad time to fly, no matter how you look at it. But it is a much worse time to be an airline worker, so I don’t blame them for what they do at all.

Reverse: Jet!

On this day in 1949, the world’s first jet-powered passenger aircraft, the British De Havilland Comet, made its first test flight in England. If I have to tell you why it’s incredibly important, I don’t know why you’re reading this website. From History.com:

The Comet was the creation of English aircraft designer and aviation pioneer Sir Geoffrey de Havilland (1882-1965). De Havilland started by designing motorcycles and buses, but after seeing Wilbur Wright demonstrate an airplane in 1908, he decided to build his own. The Wright brothers had made their famous first flight at Kitty Hawk, North Carolina, in 1903. De Havilland designed and successfully piloted his first airplane in 1910 and continued to work for English aircraft manufacturers before starting his own company in 1920. De Havilland Aircraft Company became a leader in the aviation industry, known for developing lighter engines and faster, more streamlined aircraft.

Tidy!

Neutral: Suh dude?

The heat wave across the east coast has finally broken, and the mood is immaculate. Go out, see your buds, and have a nice Wednesday.



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