Classics car manufacturers are shaking off some corona consequences
Electric Vehicles are Too Damn Expensive
The average Josephine on the street can’t afford to step into most electric vehicles on sale in the U.S. today, Tesla CEO Elon Musk has admitted. “Our cars are not affordable enough,” Musk said during his second-quarter earnings call in July. “We need to fix that.” Electric cars and crossovers remain far too expensive to be daily commuters for the middle- and working-classes, who in congested urban areas, at least, may be turning to e-bikes instead, an electric segment in which U.S. sales spiked 92-percent in April and 137-percent in May, according to Bicycle Retailer and Industry News.
industry leader Volkswagen and large parts of the car industry have put away the worst consequences of the corona slump in spring. However, it is far from clear whether the catching-up process will continue after the significantly better third quarter.
Should the new infections continue to rise and the stricter contact restrictions in Germany as well as restrictions in other countries stifle demand, the important branch of the economy would probably quickly fall back into sales lows. Uncertainty remains high, companies are cautious with forecasts. China in particular is driving the recovery.
Ford, Honda, VW and BMW seal California fuel-economy and emissions deal
The voluntary deal flies in the face of newly announced standards from the Trump administration. © Provided by Roadshow The four automakers will improve fuel economy by 3.7% year-over-year, rather than 1.5%. Irfan Khan/Getty Images The California Air Resources Board sealed a new deal with the four major automakers on the matter, Reuters reported Monday, after initially announcing their intentions this time last year. CARB did not immediately return Roadshow's request for comment on the deal's finalization.
The VW group, the world's largest manufacturer, reported a noticeable improvement on Thursday for July to September. The net profit attributable to the shareholders leveled off at 2.6 billion euros, while there was a loss of 1.6 billion euros in the second quarter. The situation also eased in terms of sales, deliveries and ongoing business. Looking at the previous year's figures, however, the pandemic is still noticeable.
Especially in April, the tapes had stood still for weeks as a result of the first corona shutdown. Car dealerships were also closed in many places, and supply chains were cut. VW has now been able to work off the backlog in the warehouses and, thanks to the purchase bonuses for hybrid and e-cars, sell more vehicles again.
Ford Mustang successor will live through the end of this decade, report says
Production of the 7th-generation pony car should start in 2022, which suggests a reveal could happen as soon as next year.Citing sources close to the Blue Oval's plans, industry publication Automotive News reported Monday that Ford will keep this next pony car around for a lengthy eight-year product cycle. AN's sources also reaffirmed a 2022 production start date, which would give the next Mustang life through the end of this decade at least.
Sales in the third quarter of the year at 59 billion euros were 3.4 percent below the previous year's level - but that is an improvement on the previous quarter, when the books had fallen by 37 percent compared to 2019. Deliveries across the group were recently 1.1 percent in the red, also stabilizing after slipping by almost a third in the second quarter.
You can now see a «noticeable recovery», it said. However, the overall development in 2020 remains critical. "The business of the Volkswagen Group remains severely affected by the Covid 19 pandemic after nine months," said CFO Frank Witter. After all, there is a “clear trend towards recovery”. In September, the number of new car registrations in several European countries had increased somewhat, and it was not just the subsidized models with alternative drives that saw more copies on the road.
Video: Increase in sales in retail (SAT.1)
2017 Porsche Cayenne Hybrid: What You Need to Know
The 2017 Porsche Cayenne S E-Hybrid finishes in the top half our luxury midsize SUV rankings. It boasts a posh cabin, sprightly acceleration, and precise handling. It also earns a great predicted reliability rating. That said, the Cayenne Hybrid’s cramped cargo area hurts its appeal. The 2017 Porsche Cayenne Hybrid is ranked: #2 in 2017 Hybrid SUVs #3 in Used Hybrid SUVs $30K and up Is the 2017 Porsche Cayenne Hybrid a Good Used SUV? The 2017 Porsche Cayenne S E-Hybrid is a marvelous luxury midsize SUV that delivers on both the luxury and performance fronts.
NordLB's car market expert Frank Schwope was optimistic: "Volkswagen is convincing after the catastrophic second with a strong third quarter and was able to clearly exceed market expectations." But he warned against an early all-clear: “Even if the key figures improved massively, the auto industry is concerned about a second corona lockdown. In our opinion, the corona spook should cause uncertainty at least until next summer. "
There are major differences between the individual group brands. The VW passenger cars made an operating profit in the third quarter, after the billion-dollar loss in the second quarter, the heart of the Wolfsburg-based car group achieved a result of 522 million euros. Calculated over the course of the year, the operating profit is still in the red at just under a billion euros.
Audi generated an operating income of 864 million euros between July and September, the result since the beginning of the year is clearly weaker at 221 million euros. At Porsche it is the other way around with 741 million and 1.9 billion euros. The business was driven by China, which contributed more than 1.2 billion euros to the profit of the VW group in the third quarter.
Volvo, BMW and Cadillac lead the J.D. Power Tech Experience Index
The survey asks what tech customers want and finds which manufacturers are delivering it.That's where the 2020 J.D. Power Tech Experience Index, published on Wednesday, comes in. It looks at nearly all major vehicle manufacturers -- including Tesla, for the first time -- and assigns a score based on how quickly they assimilate new safety technologies and how effectively they're integrated into production vehicles.
Witter emphasized that society as a whole is asked to reduce the risk of another total standstill: The resolutions to tighten contact reduction are a "very clear signal that it is up to us all to get the situation under control". There are also new infections in the VW workforce, the group is using a corona hygiene concept. VW expects deliveries and sales for 2020 to be “well below” the previous year. The operating result is expected to be “seriously declining, but overall positive”.
car companies try to secure themselves through short-time work and additional financing. But the staff is feeling the consequences of the crisis. The VW core brand has officially stopped hiring, while the truck subsidiary MAN is on a controversial austerity program with thousands of job cuts. Overall, the number of employees in Europe's largest industrial group fell slightly by one percent to 664,200 at the end of the third quarter.
Investments in current business have recently fallen by almost ten percent. In mid-November the board wants to announce the plans for the next five years. For the “major future topics of electrification and digitization”, spending would be “kept at a high level”.
Other providers also showed signs of recovery over the summer. Between July and September, Daimler even made more profits than a year ago, also because business in China was running at full steam again. At BMW, according to initial findings, the cash position has brightened with significant inflows of funds - in the first half of the year it still looked desolate there.
At the supplier Continental, the gloomy situation in day-to-day business disappeared. The fact that Conti almost returned to its old values in terms of sales and operating profit was not reflected in the bottom line: the Hanoverians again posted high depreciation and continued to have to invest a lot of money in the expensive downsizing.
Tested: 2007 Compact Car Comparison .
Somewhere south of 20 grand, there's a sweet spot of cheap miles and wide smiles. We compare seven of the contenders—Toyota Corolla, Honda Civic, Hyundai Elantra, Mazda 3, VW Rabbit, Nissan Sentra. From the December 2006 issue of Car and Driver.What's not to like about combining frugality with fun? Nissan's all-new-for-2007 Sentra comes standard with a six-speed manual. Let's round up the whole class of compact four-doors, equip them with all-natural U-shift-'em gearboxes, and enjoy driving while we compare choices at the low-budget end of the market.There's action once again in the small-car biz.