We’ll have to wait before autonomous vehicles are mainstream, CEO of Softbank’s Arm says

ARM Holdings CEO on the future of self-driving cars
15 Hours Ago | 05:31

It's going to be “a while” before self-driving cars become mainstream, the CEO of Arm Holdings told CNBC Tuesday.
“It is a phenomenally hard problem to anticipate what a car could do under absolutely any set of circumstances,” Simon Segars, who was speaking at CNBC's Karen Tso at the Mobile World Congress in Barcelona, Spain, added.
“I think you're going to start to see early services, in quite a constrained way, quite soon over the next couple of years,” he added, explaining that there was “some way to come” before the technology was “completely mainstream.”
Over the last few years, the development of technology has led to several trial runs of autonomous vehicles.

In August 2018, for example, the Hyundai Motor announced that the first journey by an autonomous truck on a South Korean highway had taken place. The firm's Xcient truck, which has a maximum load capacity of 40 tons, drove around 40 kilometers between Uiwang and Incheon.
The vehicle used an autonomous driving system that allowed it to accelerate, decelerate, steer and maneuver through traffic without needing input from a human, although one was on board to take control as and when required.
Back in Barcelona, Arm Holdings' Segars gave an insight into the technology required for autonomous vehicles.
“Self-driving cars have … racks of servers in them, that's great for prototyping, but if you want to make millions of them then you've got to shrink it down, so there has to be a pathway to get all of that technology into very low cost, very power efficient chips.”

France’s Peugeot set to make American return after 30-year absence

Peugeot Automotive

French car brand Peugeot will be making a return to the North American market, parent Groupe PSA announced Tuesday morning, though the exact timing of the relaunch is uncertain and could be pushed out as late as 2026.

Peugeot was one of a number of European brands that pulled out of the American market during a severe industry downturn in the early 1990s, a list that included Fiat before it bought Chrysler and French rival Peugeot. The parent company has been exploring ways to return for several years and has already launched several mobility services ventures in the U.S. Groupe PSA had been exploring which of its various marques would spearhead its return and has settled on the flagship Peugeot.

“This is another step in a multi-step return to the market,” Groupe PSA North America CEO Larry Dominique said in an interview with CNBC.

The exact timing for relaunching Peugeot in the U.S. has yet to be determined, Dominique, a former Nissan executive, emphasized, noting that it could stretch out as late as 2026 though it will more likely happen sooner.

“This is not about speed. It's about getting things right,” Dominique said. “The good news for us is PSA is not dependent on me to sell a single car. The idea is to build the brand the right way.”

The roots of Groupe PSA stretch back 208 years and the company today has operations in a variety of fields, including culinary goods, watches and bicycles, though automobiles constitute the largest source of its 74 billion euros in revenue in 2018.

Groupe PSA sold 4.1 million vehicles in 2018, a 3.8 percent decline, according to the Global Auto Database, positioning it as the world's ninth largest automotive group. The numbers include not only the group's largest brand, Peugeot, but also Citroen, DS and Opel/Vauxhall — the latter purchased from General Motors which has exited the European market.

The Paris-based company first signaled plans to return to the U.S. in April 2016, announcing that it would begin a decade-long effort to begin with a push into mobility services. It said it could take several more years to determine which of the various group car brands would then be re-launched in North America.

Several mobility service ventures are already in operation, including the Free2Move Carsharing service launched in Washington, D.C. late last year. The goal is to roll that out in major cities across the U.S. and Canada over the next few years.

For the time being Free2Go is offering two Chevrolet products, the Chevrolet Equinox SUV and Chevy Cruze sedan, but the goal is to add Peugeot products over the next few years. That is likely to happen even before PSA re-launches its retail sales network, Dominique previously told CNBC, and would serve as a way to gauge consumer reaction to its products.

PSA also is rolling out a service that will allow users of its Free2Move smartphone app to schedule multi-modal travel – everything from bicycle rentals to train tickets and car-sharing. And the group now operates parking service at airports in Los Angeles and other cities allowing customers to rent out their own vehicles while traveling, something known as a peer-to-peer car-sharing service.

Those operations aim to take advantage of what many analysts see as a dramatic shift in personal transportation likely to take place over the coming decade, some experts predicting that millions of Americans may abandon personal vehicle ownership in favor of car and ride-sharing, as well as mass transit.

That could play a major role in shaping the way the Peugeot brand itself comes back to the North American market, said Michelle Krebs, executive automotive analyst with Cox Automotive.

But she cautioned that even then, “It will be no cakewalk. The North American market isn't going to grow a lot.”

Krebs expects that the cars Peugeot brings back to North America will also reflect another major, ongoing shift: the growth of electrification. Most major manufacturers have announced plans to introduce hybrids, plug-ins and pure battery-electric vehicles, or BEVs, to their fleets. Rival Volkswagen AG, for example, expects to have more than 50 different BEVs, as well as dozens of hybrids, on sale by 2025.

While Dominique wouldn't say precisely what approach PSA will take, it has already begun adding electrified models and they are expected to play at least something of a role in the Peugeot brand's American revival.

Ford will stop selling commercial trucks in South America

Source: Ford
A Ford-4000 heavy truck.

Ford will stop selling heavy trucks in South America, a region where the automaker has long struggled.

The second largest U.S. automaker expects to record pretax special item charges of about $460 million as a result.

Ford will stop production at its Sao Bernardo do Campo plant in Brazil this year, and will stop selling the Cargo lineup, F-4000 and F-350 trucks along with the Fiesta compact car once it sells out of its inventories.

The automaker said it is still invested in the region, despite the pullback.

Ford bets big on trucks, Fiat Chrysler issues weak 2019 guidance
6:44 PM ET Thu, 7 Feb 2019 | 02:18

“Ford is committed to the South American region by building a sustainable and profitable business with strengthened product offerings, outstanding customer experience, and a leaner more agile business model,” said Lyle Watters, president, Ford of South America.

Ford has been taking steps to trim its operations and overhaul its business — a plan that will likely take years and cost $11 billion. The company's international businesses pose a particularly thorny challenge. Rival General Motors has pulled out entirely of some regions where it has not performed well, but Ford's trouble is that many of its businesses around the world are a mixture of good and bad. The company said earlier this year it plans to partner with German automaker Volkswagen on a number of initiatives in Europe, South America, and Africa.

“It positive to see Ford finally beginning to take some long overdue in South America,” said Jon Gabrielsen, an independent auto industry analyst. “I fear it is likely to be too little, too late.”

Tesla shares fall after SEC asks judge to hold Elon Musk in contempt for violating deal

Robyn Beck | Bloomberg | Getty Images
Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Boring Co. Hawthorne test tunnel in Hawthorne, California, U.S., on Tuesday, Dec. 18, 2018.

Shares of Tesla fell 5 percent after the SEC has asked a judge to hold Elon Musk in contempt for violating its deal. The SEC cited an “inaccurate” February 19 tweet about production, Bloomberg first reported.

On that date, Elon Musk tweeted — then revised — projections for full-year Tesla manufacturing numbers.

The CEO said that Tesla would make “around” 500,000 vehicles this year, clarifying about four hours later that he “meant to say” the company's annualized production rate at the end of 2019 could be around 500,000 vehicles — or a production rate of 10,000 cars per week. Total deliveries for the year are still estimated at 400,000, Musk said.

“Musk did not seek or receive pre-approval prior to publishing this tweet, which was inaccurate and disseminated to over 24 million people,” the SEC wrote in the court filing.

The Securities and Exchange Commission settled charges with Musk and Tesla over the CEO's aborted bid to take the company private last fall, with the billionaire remaining at the helm of the company but relinquishing his chairman title and getting slapped with a $20 million fine. As part of the settlement, Musk was supposed to get pre-approval for future tweets.

However, the SEC writes, “in response to the SEC's February 20 request for information, Musk and Tesla state that, since Tesla's Policy was implemented in December 2018, Musk's tweets have been reviewed after their publication, but there is no suggestion that Musk has sought or obtained pre-approval of any tweet prior to publishing it.”

The agency concludes, “For all the reasons stated, the SEC respectfully requests that the Court enter an
order to show cause why Defendant Elon Musk should not be held in contempt of the Court's October 16, 2018 Final Judgment.”

The SEC's enforcement action is the next step in a saga which began in early August, when Musk announced via Twitter that he had secured enough funding for a massive private buyout of Tesla. The SEC complaint alleged that in doing so, Musk issued “false and misleading” statements, and failed to properly notify regulators of material company events.

“This matter reaffirms an important principle embodied in our disclosure-based federal securities laws,” SEC chairman Jay Clayton said in a statement in September.

“Specifically, when companies and corporate insiders make statements, they must act responsibly, including endeavoring to ensure the statements are not false or misleading and do not omit information a reasonable investor would consider important in making an investment decision,” Clayton added.

Read the full court filing here:

Elon Musk is ‘almost unethical,’ says outgoing AutoNation CEO

Musk is over-promising on autonomous vehicles, says AutoNation CEO Mike Jackson
10:45 AM ET Fri, 22 Feb 2019 | 00:57

Tesla CEO Elon Musk acts in an “almost unethical” way, the outgoing CEO of the largest U.S. auto dealer chain told CNBC on Friday.

Musk recently said he expects Tesla to have all the features needed for fully self-driving cars by the end of the year. That seems like an almost impossible goal, Cox Automotive executive publisher Karl Brauer said Wednesday on CNBC's “The Exchange.” Other companies working on autonomous driving technology, such as Waymo, are not making such bold predictions.

“I think he is overpromising on autonomous vehicles in an almost unethical way,” AutoNation CEO Mike Jackson said on “Squawk Box,” referring to Musk.

Jackson has long been a Tesla critic and has accused Musk of using “bait-and-switch” tactics on consumers, making commitments he cannot keep, and has said the electric car maker's business will not be sustainable over the long term.

In the interview Friday, Jackson once again criticized Tesla's practice of taking orders on the midsize Tesla Model 3 sedan, saying the cars Tesla has been building are different from the ones the company had said it planned to build. Tesla initially advertised its Model 3 at a price of $35,000 but has so far sold only more expensive versions.

“There's not another retailer in America that could get away with that bait and switch,” Jackson said. Currently the cheapest Model 3 starts at $42,900. Musk has said that despite the originally advertised price, Tesla has had to prioritize the production of more expensive versions to keep margins high. At one point, Tesla had more than 400,000 reservations for the the Model 3.

Tesla has faced political and legal battles in several states over its decision to eschew the traditional dealership model in favor of a direct model that sells to customers.

AutoNation reported earnings of $1.10 on Friday, missing a consensus estimate by 4 cents. The dealership chain also said Jackson will end his long tenure in the top job in March, and Carl Liebert will succeed him on March 11. Liebert was formerly chief operating officer at financial services company USAA. He was also executive vice president of stores at home improvement retailer Home Depot.

AutoNation shares sank 6 percent in early trading Friday. Tesla's stock was up 1.2 percent.

“It was a challenging quarter, no question,” Jackson said. New vehicle sales across the industry were down 10 percent in California, and environments in Texas and Florida were also problems.

“But even beyond those two explanations, I think retail automotive is getting more difficult,” he said, attributing the challenges in part to the cyclical nature of the business.

Jackson said he expects a gradual downturn across the industry. He expects sales in 2019 to be about 16.8 million vehicles, down from 17.2 million in 2018.

Tesla did not immediately respond to CNBC's request for comment about Jackson's remarks.

Zero Motorcycles unveils two rapid-charging electric motorcycles to fend off Harley-Davidson

Source: Zero Motorcycles
Zero Motocycle unveils new SR/F model.

Electric motorcycle manufacturer Zero Motorcycles unveiled two new models on Monday, the latest step in its quest to challenge gas-burning bikes and fend off competition in the small but growing segment.

The California company is releasing its newest bike just months after American heavyweight motorcycle maker Harley-Davidson unveiled its LiveWire motorcycle in November. Other established bike manufacturers intend to produce electric motorcycles, but Zero has something of a head start. It specializes in electric motorcycles and has been making them since 2006.

“We sell more full-size premium electric motorcycles than all our competitors combined,” said Zero Motorcycles CEO Sam Paschel, at a launch event in New York on Monday. The Zero SR/F is a brand new product “from the ground up,” he said.

The bike comes in two trims, a standard model starting at $18,995 and a premium model available starting at $20,995.

That means Zero's higher-end version is about $10,000 cheaper than the Harley-Davidson LiveWire, a new electric bike the venerable motorcycle company hopes will help it attract new riders, including those who are excited about the potential for electric powertrains. The LiveWire's price hovers around $30,000, which means it could need to come down if Harley-Davidson wants to compete with an upstart like Zero.

The Zero SR/F will feature a brand new battery motor and rapid charging system. The SR/F has 140 pound-foot of torque and “unbelievable acceleration,” Pashel said. It has a top speed of 124 miles per hour and over 100 horsepower. The bike can drive up to 200 miles in the city with its largest available battery, about the same as Zero's current motorcycles. It can be charged to nearly full capacity in about an hour.

The company said the motorcycle, which will begin shipping in April, will connect to the cloud and comes with an integrated mobile app.

“I certainly applaud Harley's efforts to attract new riders with electric bikes, which should appeal to a younger, urban dwelling demographic,” said Raymond James analyst Joe Altobello. “That said, it will likely take time to really move the needle for them given the relatively small size of the market, the potential improvements in battery life, and the relatively high price point, with LiveWire starting at nearly $30,000.”

Rising sales of all electric vehicles indicates there is a future for a plug-in motorcycle, Pashel said.

“From 2008 to 2010, over that three year period, the total number of plug-in vehicles of all types sold in the United States, were under 5,000 units,” Paschel said, speaking to a room full of reporters at the vehicle launch. “Now if you compare that with last year, there were over 300,000 plug-in vehicles of all types sold in the United States. Your presence here indicates that the idea of electrification has gone from something of a novelty to something that has a lot of excitement around it.”

Auto giant Peugeot to launch a 100 percent electric, zero-emission car

Peugeot Automotive

French carmaker Peugeot has announced details of a 100 percent electric, zero emission car.
In a statement Monday, Peugeot said that the new vehicle would be released in late summer 2019 and was the first in a series of all electric models, with the firm readying itself to electrify its whole range by the year 2023. Petrol and diesel versions of the “208” model will also be available.
Peugeot said that the e-208 was powered by a 100-kilowatt electric motor and 50-kilowatt hour battery, and had a range of up to 211 miles.
The vehicle can be charged using three methods. A domestic plug can provide a complete charge in 20 hours or more, while a dedicated charging point can charge the vehicle in around eight hours. Public terminals that offer rapid charging can also be used.
Peugeot U.K.'s Managing Director, David Peel, said the business was excited to be “building towards our goal of a full electric range by 2023” and described the e-208 as “a great step in cementing Peugeot's foothold in the ever-growing EV market.”

In 2017, global sales of electric cars hit 1.1 million, an increase of 54 percent, according to the International Energy Agency. The “global stock of electric cars” exceeded 3 million that year, with 40 percent of the planet's electric cars on Chinese roads.
Peugeot is the latest major car company to make a move in the electric vehicle sector. In 2018, for instance, Mercedes launched its first all-electric SUV, the Mercedes-Benz EQC, while Volvo Cars bought a stake in FreeWire Technologies, a California-based electric car charging business, through its Volvo Cars Tech Fund.

VW CEO says he hopes he’s done enough to please Trump and avoid tariffs

VW CEO: We want more of U.S. market share
12:07 PM ET Fri, 22 Feb 2019 | 02:35

Volkswagen Group Chief Executive Herbert Diess told CNBC Friday that he hopes the German auto firm has done enough to please President Donald Trump and avoid punitive import tariffs.

Washington is currently holding out for fresh trade talks with the European Union and has said if it's not satisfied it could slap tariffs on EU cars and parts coming into the United States. Trump has complained about German cars' presence on U.S. streets and tweeted threats to tax European, and particularly German, vehicles.

Diess has said import tariffs could cost VW as much 2.5 billion euros ($2.8 billion) each year.

The German firm announced in January that it's investing $800 million in its factory in Chattanooga, Tennessee to prepare the location for the production of new electric cars.

Speaking to CNBC's Annette Weisbach at VW's Wolfsburg headquarters, the German car chief said the investment appeared to please the U.S. president.

“We received a positive tweet,” said Diess, before adding that he hoped VW would “do everything to avoid import taxes.”

Diess added that currently VW only has a 4 percent market share in the United States and is committed to growing that number to become a “volume producer.”

On a global basis VW Group posted 2018 full-year revenues of 235.8 billion euros on Friday. In its outlook for 2019, Diess said he expected a challenging year but predicted sales to rise by around 5 percent.

The key market of China could prove a challenge, however, with Diess admitting that sales there had slowed in the final quarter of 2018 and January 2019 had witnessed a 10 percent slump year-on-year.

Shares of Volkswagen initially rose after the news, but were 0.25 percent lower by 3:45 p.m. London time on Friday afternoon.

Ford is investigating possible problems with fuel economy, emissions tests

Bill Pugliano | Getty Images
Workers build a truck as it goes through the assembly line at the Ford Kentucky Truck Plant in Louisville, Kentucky.

Ford Motor said on Thursday it has hired outside experts to investigate its vehicle fuel economy and testing procedures after employees raised concerns, and did not know whether it would have to correct data provided to regulators or consumers.

The issues involving Ford's testing processes do not involve the use of so-called defeat devices — hardware and software designed deliberately to deceive government emissions tests, Kimberly Pittel, Ford's group vice president for sustainability, environment and safety engineering, told Reuters.

The automaker since last fall has been investigating concerns raised by employees that incorrect calculations were used to translate test results into the mileage and emissions data submitted to regulators, Pittel said.

Ford said it was evaluating changes to the process it uses to develop fuel economy and emissions figures, “including engineering, technical and governance components.”

Ford shares dipped slightly in after-hours trading following the disclosure.

Ford has hired the law firm Sidley Austin to lead an independent investigation into possible discrepancies in calculations used to produce emissions and fuel economy figures, Pittel said. The company is using an independent laboratory to conduct testing.

U.S. and California regulators have been cracking down on automakers for emissions cheating following revelations in 2015 that German automaker Volkswagen had used defeat devices to make models equipped with diesel engines appear to comply with emissions standards when they emitted far more pollution than allowed in real-world driving.

“We have voluntarily shared this information” with the U.S. Environmental Protection Agency and the California Air Resources Board, Pittel said. Ford notified the agencies this week, she said.

The EPA said in a statement on Thursday that information from Ford's investigation is “too incomplete for EPA to reach any conclusions. We take the potential issues seriously and are following up with the company to fully understand the circumstances behind this disclosure.”

The investigation has started with testing of the 2019 Ranger pickup truck, and the company expects data back next week, Pittel said.

She said it was not clear what impact the review will have on advertised mileage or fuel economy data submitted to regulators, nor is it clear how many vehicles could be affected if Ford is required to revise the data.

“We cannot predict the outcome, and cannot provide assurance that it will not have a material adverse effect on us,” Ford told investors in a regulatory filing Thursday.

“We are going to go where the investigation takes us,” Pittel said.

Ford has been embarrassed in the past by errors in fuel economy claims. In 2013, the automaker cut by seven miles per gallon the claimed fuel economy for its C-Max hybrid model following complaints that real-world mileage did not match the claimed fuel economy. In 2014, Ford lowered fuel economy ratings for six other models and offered compensation to customers.

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Auto sales are headed for further declines, says AutoNation CEO Mike Jackson

AutoNation outgoing and incoming CEOs on earnings report and the future of the company
5 Hours Ago | 11:32

It's getting harder to sell cars, and that signals the auto industry is about to enter a period of decline, the departing CEO of the nation's largest auto dealership chain said Friday.

Sales of new vehicles are expected to continue their downward slide since they hit record levels of 17.6 million units in 2016, AutoNation CEO Mike Jackson told CNBC's “Squawk Box.” He is expecting 2019 sales to be around 16.8 million units.

The downturn over the next few years will be far more gradual than the sudden collapse seen about a decade ago during the financial crisis.

AutoNation reported earnings of $1.10 a share on Friday, missing Wall Street expectations, sending shares down 4 percent. The company's stock has fallen almost 30 percent in the last year.

Jackson is stepping down in March. He'll be succeeded by Carl Liebert, most recently chief operating officer of USAA, a financial services company. Liebert also was an executive vice president at Home Depot.

During Jackson's 20 years at the helm, he helped transform a small collection of dealerships into the country's largest automotive retailing chain, weathering downturns in the process.

“As they say in 'The Godfather,' this is the life we chose,” Jackson said. “Autos is a cyclical business. As far as investors are concerned, I don't care whether it's a manufacturer, supplier, retail, you don't buy the stock at the end of the cycle. But that also creates a lot of opportunities which we've taken advantage of over the years and have always come out of downturns stronger than we went into them. And we intend to do that this time also.”