Passengers wait to get on a Hertz shuttle bus at Los Angeles International Airport.Patrick T. Fallon | Bloomberg | Getty ImagesHertz Global Holdings stock jumped more than 8% Tuesday after the car rental company announced a new vehicle-subscription service called Hertz My Car, which will launch as a pilot program in Atlanta and Austin, Texas.
Hertz is up more than 5% over the past 12 months and more than 12% so far this year.
The monthly subscription service is an alternative to traditional vehicle ownership, which the company said has become less popular in urban areas. It will cost subscribers between $999 and $1,399 per month, depending on which vehicle package they choose.
The pilot program will grant customers access to various automobiles through the two subscription tiers and allow them to exchange vehicles twice a month for different models. The subscription will cover vehicle maintenance, roadside assistance, damage and limited liability protection, the company said.
Hertz said the service is part of a greater shift away from traditional vehicle ownership. The company shared a survey by Cox Automotive where roughly 40% of respondents said that while access to transportation is necessary, owning a vehicle is not.
“We feel well positioned to lead in vehicle subscription services,” said Jayesh Patel, Hertz Senior Vice President of Brand. “We've seen growth in our longer-term rentals in recent years which we believe is one of several positive indicators the time is right for this service.”
Hertz's stock has fallen more than 20% since the beginning of March, when long-time investor Carl Icahn said he trimmed his stake in the company.
WATCH: Turo CEO on future of car sharing
VIDEO6:2806:28Turo CEO on the future of car sharingSquawk Box
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Fiat Chrysler blames the French government as it withdraws its offer to buy Renault
VIDEO5:4005:40Kevin O'Leary explains what the Fiat-Renault deal collapse means for investorsSquawk BoxFiat Chrysler has withdrawn an offer for a merger-of-equals with Groupe Renault, and people close to the negotiations between the two companies are pointing the finger at what they described as meddling by the French government.
The sudden move was announced in a statement released by the Italian-American automaker shortly after midnight European time that said that, while Fiat Chrysler management remained “firmly convinced” of the rationale behind the proposed merger, “it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”
Fiat Chrysler's decision to withdraw the proposal came suddenly: The two companies, less than three hours earlier, were preparing to issue a joint statement that said the merger plans were going to move ahead after receiving approval from the Renault board, according to a senior-level source closely briefed on the talks between the two companies.
“We went in different directions very rapidly,” that person explained to CNBC. “It turned on a dime.”
Renault shares slid more than 6% by around 10 am ET, while Fiat was little changed.
Fiat Chrysler made its original merger proposal on May 27 following months of discussions between the two companies. They had initially started discussing more limited measures, including the joint development of new product platforms, CNBC previously reported. But, as the contacts escalated, it became apparent to top managers — including FCA CEO Mike Manley and his Renault counterpart Jean-Dominique Senard — that they had an opportunity to take the ultimate step and combine forces.
There was relatively little overlap in product lines and each company had strengths that could compensate for the other's weaknesses, many analysts said after studying the proposal. Fiat Chrysler, for one, had the powerful Jeep and Ram brands, while Renault is a leader in the development of autonomous and electrified vehicles.
The French automaker's board quickly expressed initial interest in the merger proposal, something analysts said was of little surprise since they had been talking to one another for months. It was widely expected to give more formal approval on Tuesday, according to industry observers, but the initial board meeting went by without a resolution, extending into Wednesday.
From the start, several potential obstacles emerged. That included Renault's long-standing alliance with Japanese automakers Nissan and Mitsubishi. The relationship has been strained since former Renault-Nissan-Mitsubishi Alliance chief Carlos Ghosn was arrested last November on financial corruption charges, with a number of observers questioning whether that was actually the result of Nissan's desire to gain more control in the three-way partnership.
There have been some concerns about the merger raised by the Japanese, an auto industry veteran with lengthy ties to Chrysler, Nissan and Renault said by email, but that was not likely to scuttle the deal.
If anything, said the person closely briefed on the negotiations who spoke with CNBC, Nissan had expressed interest in the deal and the potential benefits to the Japanese automaker. In its original merger proposal, Fiat Chrysler outlined 5 billion euros in potential synergies, 1 billion of that set to accrue to Nissan and Mitsubishi.
'Cumulative demands and pressures'Instead, Fiat Chrysler's proposal began to break down as a result of “cumulative demands and pressures” from the French government, said the insider briefed on the talks. That began just hours after the original proposal was announced, with France's finance minister laying out three key demands, including the need to preserve all of the Renault jobs and plants in France.
That expanded to include demands covering the location of the merged company's headquarters and the make up of its board, the insider explained, adding that “the final one” came late Friday at the extended Renault board meeting.
After several efforts to wrap things up, the French CGT Union voted “no” on the merger plan, according to Reuters. Nissan, which some had expected also would give a thumbs down, instead abstained. All other directors gave the proposal their approval, but for the government representatives who demanded that a final decision be delayed for another week as they flew to Tokyo for further consultation with Nissan.
“There was a clear, growing realization that this is not an environment in which the proposal can come together,” the Fiat Chrysler source said, noting the irony that there remains “a very cordial relationship” between the two companies, and, in particular, between CEOs Manley and Senard. Renault's 66-year-old chief executive is now finding himself “in a very difficult position,” said the industry veteran who has been linked to several of the carmakers.
Senard was pushed into the post by the French government — which holds a 15% stake in the automaker — after former Renault CEO Ghosn tendered his resignation, but now finds himself on the outs as a strong supporter of the merger proposal.
“It's unfortunate this proposal failed so quickly,” said Karl Brauer, an analyst with Kelley Blue Book, “though it's better than having it drag on for weeks or months and then fail.
What will happen next is uncertain, the Fiat Chrysler insider said one should “never say never,” and it is possible that clearer heads could prevail, though it is unlikely the merger proposal would quickly be revived.
Fiat Chrysler could also look at other merger possibilities — news reports earlier this year suggested the company might want to tie up with the other major French automaker, PSA. CEO Manley, meanwhile, said he was more than willing to continue operating independently during a media round table at the North American International Auto Show in Detroit last January.
Auto loans hit record, pushing average monthly car payments to all-time highs
I love images | Cultura | Getty ImagesPeople buying a new vehicle are borrowing more and paying more each month for their auto loan.
Experian, which tracks millions of auto loans each month, said the average amount borrowed to buy a new vehicle hit a record $32,187 in the first quarter. The average used-vehicle loan also hit a record, $20,137.
“We have not seen a slowdown in loan demand. In fact, volume for new and used loans is up from previous years,” said Melinda Zabritski, senior director of automotive financial solutions for Experian.
With sales of new vehicles moderating slightly after the four best years the industry has ever seen in the U.S., dealers and auto executives are watching whether consumers will be more resistant to the steady increase in new car prices. That is not happening. In fact, the average amount borrowed topped $32,000 for the first time ever.
As a result, the average monthly payment for a new vehicle continued to climb to a new high of $554 and to a record $391 for used vehicles, according to Experian.
While new car sales and loans are still strong, people with the best credit scores are increasingly buying a used model instead of new. Experian says 61.8% of those with a prime credit rating and 44.7% of those with a super prime credit rating took out loans to buy a used vehicle in the first quarter. Those are the highest percentages Experian has ever recorded for prime and super prime used vehicle borrowing.
It's a trend Zabritski has seen increasing in recent years. “Consumers seem to be taking advantage of options to reduce payments — specifically leasing,” she said.
VIDEO1:4801:48Here's why 46,000 auto repair technicians will be needed by 2026Power Lunch
Fiat Chrysler teams up with Amazon-backed driverless car start-up Aurora
Source: AuroraFiat Chrysler is joining forces with Silicon Valley-based technology upstart Aurora to build driverless cars.
The two companies said Monday they had signed an agreement that lays the groundwork for a “powerful partnership in self-driving commercial vehicles.”
The deal will enable Aurora to expand the scope of its self-driving software, the firm said, “allowing us to offer a variety of solutions to strategic customers in logistics, transit, and other use cases.”
Financial terms of the deal were not disclosed.
The news comes just under a week after the Italian-American automaker dropped its merger offer for French rival Renault.
The deal could have helped the two align their strategy on innovations like electric and self-driving cars, a space that has become a central battleground for major carmakers worldwide.
“As part of FCA's autonomous vehicle strategy we will continue to work with strategic partners in this space to address the needs of consumers in a rapidly changing industry,” Fiat Chrysler CEO Mike Manley said in a statement Monday.
“Aurora brings a unique skillset combined with advanced and purposeful technology that complements and enhances our philosophy on self-driving.”
Aurora is already partnered with household names in the industry like Volkswagen and Hyundai. The firm boasts talent from founders who all previously worked at tech giants including Alphabet, Tesla and Uber.
The Palo Alto, California-based company raised $530 million earlier this year, in a round that was backed by leading venture capital firm Sequoia and e-commerce titan Amazon.
The race toward full self-driving capability has become a heated one, with tech firms and automakers alike looking to make waves in the field.
Just last week, it was reported that Apple was looking to buy driverless shuttle service Drive.ai. The firm's autonomous driving division, known as Project Titan, underwent a big restructuring earlier this year, laying off over 200 employees.
France has a strategy for Renault-Nissan alliance, finance minister says
France's Bruno Le Maire.Eric Peirmont | AFP | Getty ImagesFrench Finance and Economy Minister Bruno Le Maire has said the country has a strategy to reinforce a fragile alliance between Renault and Nissan.
“What is at the heart of this strategy is the reinforcement of the alliance between Renault and Nissan” Le Maire told CNBC on Sunday.
“Then we will see if consolidation is possible. We are all aware that there is a necessity for consolidation in the automotive industry and the proposal of a merger between Fiat and Renault was a very interesting one but as a second step – the first step must be the reinforcement of alliance between Renault and Nissan,” he told CNBC's Nancy Hungerford.
Le Maire's comments come days after Fiat Chrysler pulled back from a $35 billion merger offer for Renault, citing “political conditions in France” as a reason for its withdrawal.
Speaking to CNBC last week when the deal collapsed, people close to the negotiations described what they saw as meddling by the French government as one of the reasons for the merger's failure.
VIDEO2:1902:19France wants to 'reinforce' Renault-Nissan alliance, Bruno Le Maire saysSquawk Box AsiaRenault's long-standing but strained relationship with Nissan and partner Mitsubishi is also believed to have been an issue. Relations between Renault and Japanese carmaker Nissan have been tense following the arrest of the former Renault-Nissan-Mitsubishi Alliance chief Carlos Ghosn last November on financial misconduct charges. He denies the charges and is awaiting trial.
Le Maire was speaking to CNBC in Fukuoka, Japan, where he had attended a meeting of G-20 finance ministers, but said he had no plans to meet with Nissan management while in Japan, saying it was the responsibility of Renault's management to “pave the way for the reinforcement of the links between Renault and Nissan.”
The French state currently holds a 15% stake in the carmaker but the minister did not rule out the French state paring down its interest in Renault. He said the first step was for the carmaker to bolster its alliance with Nissan and to then explore a possible merger, and only then would the government consider reducing its stake in the company.
US rejects GM, Volvo tariff relief requests for China-made SUVs
Volvo XC90 SUV is on display on day three of the China International Import Expo (CIIE) at the National Exhibition and Convention Center on November 7, 2018 in Shanghai, China.VCG | Getty ImagesThe United States has rejected separate requests from General Motors and Chinese-owned Volvo Cars for an exemption to a 25% U.S. tariff on their Chinese-made sport utility vehicle models.
GM, the largest U.S. automaker, and Sweden's Volvo both said they were aware of the respective denials of their nearly year-old petitions. Both companies had not raised the sticker price to account for tariffs, which came into play last July.
The denial of GM's petition for its Buick Envision came in a May 29 letter from the U.S. Trade Representative's office saying the request concerned “a product strategically important or related to 'Made in China 2025' or other Chinese industrial programs.”
The midsize SUV, with a starting price of about $35,000, has become a target for U.S. critics of Chinese-made goods, including leaders of the United Auto Workers union and members in key political swing states such as Michigan and Ohio.
Buick Envision sales fell in the United States by nearly 27%to 30,000 last year and fell another 21% in the first three months of 2019.
Only a small number of vehicles are built in China and sold in the United States.
Last month, the U.S. Trade Representative's Office also rejected a request by Volvo Cars for its mid-size XC60 SUVs, its top selling U.S. vehicle.
Volvo, which is owned by China's Geely, had already last year begun switching production of U.S.-bound XC60s from China to Europe as part of a global shake up of production plans for most of its lineup in an effort to dodge tariffs.
A spokeswoman said the XC60 shift, Volvo's biggest move to mitigate the impact of tariffs, was completed in the Spring,meaning Volvo was no longer paying tariffs on XC60 imports and would not see any fresh cost impact due to the rejection.
Volvo had argued in its exemption request that it could “anticipate” the XC60 would be eventually produced in its recently opened South Carolina plant, where it is building S60 sedans, but the spokeswoman said no decision had been taken.
“(New production setup) is a cost so that would of course depend on the permanence of tariffs and what the situation looks like going forward. It's a continuous evaluation that we always do with the flexible manufacturing footprint,” she said.
Besides the shift, Volvo has also split production of its S60 luxury sport sedan between the two countries; altered some European production plans; and reduced shipments of its S90 sedan, which is only produced in China, to the United States.
U.S. retail sales for the S90 sedan this year to May were down 63.7 percent year on year, company data showed.
GM had argued in its request that Envision sales in China and the United States would generate funds “to invest in our U.S. manufacturing facilities and to develop the next generation of automotive technology in the United States.”
GM said last year the “vast majority” of Envisions, about 200,000 a year, are sold in China.
Because of the lower U.S. sales volume, “assembly in our home market is not an option” for the Envision, which competes with such mid-size crossover vehicles as the Jeep Grand Cherokee and the Cadillac XT5. Ahead of the July 2018 start for higher import tariffs, GM shipped in a six-month supply of Envisions at the much lower 2.5 percent tariff rate, Reuters reported in August 2018.
Ferrari goes electric with its most powerful street-legal car ever: the SF90 Stradale
Ferrari SF90 StradaleSource: FerrariFerrari just launched Its most powerful street-legal car ever — a 986 horsepower road bullet with three electric motors.
The SF90 Stradale marks Ferrari's first plug-in hybrid that's not built for the racetrack. It's powered by a 4.0-liter turbocharged V8 that generates 769 horsepower, but gets another 217 horsepower from three electric motors — one powering the rear wheels and two for the front.
VIDEO1:5201:52Ferrari reveals its most powerful road car everSquawk Box EuropeAll that extra juice helps the car do zero-to 62 mph in a mere 2.5 seconds and reach a top speed of 211 mph.
It's not exactly the first plug-in Ferrari, famed for its thunderous V12 internal-combustion engines. The $1.5 million La Ferrari supercar, only 500 of which were produced, used electric motors to give a little boost to its V12 and push it to 950 horsepower. Ferrari's Formula One racers also use a hybrid motor-generator system.
The “SF90 Stradale” name comes from the automaker's 2019 Formula One race car, the SF90 in honor of Ferrari's 90 years in racing. The word “stradale” means “road” in Italian.
Ferrari SF90 StradaleSource: FerrariIt's fast but don't count on driving too far in battery-only mode since the all-electric range is only 16 miles.
But Ferrari's engineers had to solve some complex problems by adding a hybrid system, which added an additional 595 pounds. Ferrari shaved off some of those pounds with carbon fiber but also came up with some clever innovations.
By using the hybrid system for reverse, Ferrari was able to take out the reverse gear from the eight-speed gearbox, which saves weight. It's also all-wheel drive, to better utilize the hybrid system. And the two front electric motors also control the torque, making driving at high speeds “much simpler and easier,” according to Ferrari.
Ferrari also had to work on new aerodynamics to create more downforce and efficiencies. So it lowered the engine cover and created new diffuser and front-end systems.
Ferrari SF90 StradaleSource: FerrariThe big question Ferrari has yet to answer is price. Ferrari dealers say it will be less than the La Ferrari but likely more than Ferrari's previous V8 mid-engine, the $350,000 488 GTB, which was recently replaced by the F8 Tributo.
Either way one thing is certain: the waiting list for the SF90 Stradale will be long. Deliveries are expected to start in the beginning of 2020.
Ferrari SF90 StradaleSource: Ferrari
Elon Musk’s SpaceX is now worth more than Tesla
Elon Musk speaks near a Falcon 9 rocket during his announcement that Japanese billionaire Yusaku Maezawa will be the first private passenger who will fly around the Moon aboard the SpaceX BFR launch vehicle.DAVID MCNEW | AFP | Getty ImagesElon Musk's space company, SpaceX, is now worth more than his electric car company, Tesla — at least on paper.
SpaceX is valued at $33.3 billion, investors familiar with the company's latest round told CNBC on Friday.Tesla's market cap was $32.8 billion at the end of trading Friday.
Musk is the largest shareholder and CEO of both companies, with a 54% stake in SpaceX and more than 20% ownership of Tesla.
SpaceX successfully launched 60 Starlink satellites into orbit recently, and has raised more than $1.02 billion since the beginning of 2019. Tesla shares have declined by more than 44% during the same period.
The electric vehicle maker has struggled to rein in its spending, while staking its future on success in China. Its effort to set up a factory in Shanghai began this year as trade relations between the U.S. and China rapidly deteriorated.
Until Tesla can manufacture its Model 3 electric sedans there, it faces steep import taxes in China. It also faces higher tariffs on parts and raw materials it buys from Chinese suppliers to make its batteries and cars in the United States.
Elon Musk, co-founder and chief executive officer of Tesla Motors Inc.Yuriko Nakao | Bloomberg | Getty ImagesMorgan Stanley analyst Adam Jonas said (on a May 22 call) that investors shouldn't rule out the possibility that Musk could use his SpaceX stake to “collateralize” Tesla. “There's a precedent for Elon Musk to think across his portfolio of companies,” he said, referencing the 2016 acquisition of SolarCity by Tesla.
The deal cost Tesla around $5 billion — it issued $2 billion in stock, and took on about $3 billion in SolarCity debt. It was also seen as a bailout for Musk, and his family — his cousin Lyndon Rive was the CEO of the residential solar installer, while Elon Musk and other friends and family members had personally invested in SolarCity as well.
VIDEO2:2602:26SpaceX launches internet satellites into spaceSquawk Alley
Here’s how a Fiat Chrysler-Renault merger could spark some mega auto deals
2017 Chrysler Pacifica BraunAbility is on display at the 109th Annual Chicago Auto Show at McCormick Place in Chicago, Illinois on February 9, 2017.Raymond Boyd | Getty ImagesFiat Chrysler's (FCA) proposed 50/50 merger with Renault could pave the way for a long-awaited M&A (merger and acquisition) boom in the sector, analysts have told CNBC.
The tie-up looks to strengthen FCA's position in electric vehicle technologies but would also create the third largest global automaker by production, behind Volkswagen and Toyota.
It's been lauded by many analysts, including Philippe Houchois, autos equity research analyst at Jefferies, who published in a note that there is nothing to dislike in a proposed merger that offers scope for synergies and restructuring.
“(It's) hard to disagree with the logic (of the deal) and with net synergies. We are positive on both shares with proforma combination still at low end of sector,” Houchois said.
Gaetan Toulemonde, autos equity research analyst at Deutsche Bank, said in a note that it would allow both groups to share platforms and “capture economies of scale at a time when the industry needs to invest massively in CO2 reduction (and) autonomous driving.”
VIDEO3:0103:01Renault would boost Fiat Chrysler in electric vehiclesClosing BellThe auto industry has long promised consolidation but has never fully delivered on market expectations. Now, under mounting pressure from structural changes including new technologies and stricter emissions standards, we could finally be on the brink of an M&A bonanza in the sector.
“There is certainly scope for a lot of co-operation throughout the industry, either through a full merger such as Renault-FCA or just sharing R&D or sourcing,” said Anna-Marie Baisden, Head of Autos, Macro Research at Fitch Solutions.
And Arndt Ellinghorst, the head of global automotive research at investment banking firm Evercore ISI, told CNBC he “wouldn't rule anything out at this stage as we know from public statements that various players are open to consolidation.”
Daimler and BMW recently struck an agreement to pool their mobility services to create a new global player providing sustainable urban mobility for customers. They have also joined forces on autonomous driving. If they are forced to compete with another mega automaker in FCA-Renault, Daimler and BMW could perhaps even explore deepening their ties.
“The recent FCA-Renault announcement confirms that the auto industry is changing and that cooperation will be one of the keys for future success. We are monitoring the next steps closely and certainly see the possibility that the merger can also create opportunities and potentials,” wrote a Daimler spokesperson in an email to CNBC.
VIDEO3:0703:07Cramer: Auto companies have too many employeesSquawk on the StreetAngus Tweedie, auto equity research analyst at Citi agrees that closer collaboration between Daimler and BMW would seem very logical given their similar target markets and therefore commonality of components. Areas of difficulty would be the shareholder structure and there also seems some opposition at both companies from an operational perspective. Like all European deals, headcount reductions would be difficult, Tweedie added.
Ford and Volkswagen have already forged a global alliance to develop commercial vans and medium-sized pickups together and have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have started to explore opportunities.
On the prospect of a bigger deal down the line for the two giants, Fitch's Baisden said there was appealing logic.
“Their strategies both focus on EVs and autonomy in the medium to long term and so with a challenging market that threatens their income, it would make sense.”
And don't forget about Peugeot. Multiple reports suggest the French carmaker was interested in doing a deal with Fiat Chrysler. If FCA consummates this deal with Renault, Peugeot will have to look elsewhere for merger opportunities.
Getty ImagesSome market participants suggest a tie-up between Peugeot and Jaguar Land Rover (JLR) could make sense.
“I can see how JLR would be an appealing partner in giving PSA exposure to the premium segment and also the US, which it is looking to return to,” said Baisden.
JLR has been struggling recently, posting losses in the first three quarters of 2017 before swinging to a small profit in the final quarter of the year. Further, PSA's chief Carlos Tavares has successfully turned around the Opel Vauxhall brand he bought from General Motors in 2017, demonstrating his ability to restructure and integrate new businesses.
Ellinghorst also wouldn't rule out Peugeot coming back for FCA: “They have shown interest in FCA before. (But) we must see how Renault and the French government reacts first.”
The European auto sector rallied on the back of FCA's proposal to merge with Renault earlier this week. Market watchers highlight that the positive share price moves show how undervalued carmakers are.
“There has been talk of consolidation for years. Now at the peak of the cycle, the market welcomes the fact that there is some action with regards to consolidation,” Ellinghorst told CNBC.
Peugeot and BMW did not respond to CNBC's request for comment.
Take a look at the most expensive SUV in the world: the $1.9 million Karlmann King
The Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCIf you're looking to spend $1.9 million on a new vehicle, an Italian armored car based on a Ford F-550 chassis is probably not on your radar. Karlmann is trying to change that.
Reclining alligator skin back seats on the Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCThe company operates from Los Angeles, has a factory in Italy and is largely financed by Beijing-based International Automotive Technologies. Its first product, the Karlmann King, is a massive rolling lounge complete with recliners, a coffee maker, champagne flutes, a massive TV and a price tag that makes it the world's most expensive SUV.
The exterior door hatch on the Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCKarlmann King to debut at the New York Auto Show.Source: Karlmann KingOn top of the stratospheric starting price, buyers can customize the King to their liking. Alligator-skin seats, real gold trim and specialty upholstery are all available for a price. Michael Nothdurft, Karlman's sales director, says a client in Africa ordered a Karlman King with a $3.5 million price tag.
View of the interior dash on the Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCOne big part of that additional cost: bulletproofing. Most King buyers opt for the bullet-resistant option, which adds at least $300,000 to the price depending on the level of protection clients want.
Enjoy coffee and champagne while riding in the Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCThe buyers of these bulletproof monster trucks range from clients in dangerous parts of the Middle East and Africa to real estate moguls and high-dollar watch traders in the United States. But for less security-conscious shoppers, Nothdurft stresses that the King is supposed to be a rolling work of art.
Reclining in the Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCIt's undeniably different than anything else you'll see on U.S. roads. It has extremely angular styling and is absolutely massive.
“This car is the most emotional car that you can see at auto shows,” Nothdurft told CNBC. “People either hate it or they love it.”
The backseat control panel on the Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCThe King is based on a Ford F-550 chassis. The F-550 a massive truck frame that Nothdurft says was chosen for its proven durability and ability to handle the weight of an armored luxury vehicle. The King maintains the 6.8-liter V-10, suspension components and transmission of the F-550 and is therefore limited to 87 mph. The interior, however, is bespoke.
The Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBCKarlman is looking to get a U.S. manufacturing line built in the next few months, but for now, the King is hand-built in Italy. For U.S. market cars, armoring takes place in the States.
The company currently has 20 buyers lined up in North America, Nothdurft said.
Buyers who order a King today should expect delivery in nine to 15 months.
The Karlmann King at the 2019 New York Auto Show.Adam Jeffery | CNBC