Category: Automotive

Tesla issues $13.8M in stock to buy trailers in bid to improve electric vehicle deliveries

Tesla is using more than $13 million worth of stock to buy trucks and trailers that will transport its electric vehicles to customers, the latest effort by the automaker to improve its logistics and delivery services. Instead of using cash, Tesla  issued $13.8 million in stock, a new securities filing posted Monday shows. Tesla used… Continue reading Tesla issues $13.8M in stock to buy trailers in bid to improve electric vehicle deliveries

Faurecia And Michelin To Create A Global Leader In Hydrogen Mobility

AUBURN HILLS, Mich., March 11, 2019 /PRNewswire/ — Michelin, world leader in tyres and sustainable mobility, and Faurecia, technology leader in the automotive industry, announced today the signature of a Memorandum of Understanding to create a joint venture bringing together all of Michelin’s fuel cell related activities – including its subsidiary Symbio – with those of… Continue reading Faurecia And Michelin To Create A Global Leader In Hydrogen Mobility

Carvana CEO says he wouldn’t bet against Tesla selling cars online

Carvana CEO Ernie Garcia: Building trust in the brand could be Tesla's key to selling cars online
1:51 PM ET Thu, 7 March 2019 | 04:26

The head of a rising online used car business said Tesla's decision to take all sales onto the internet may be a much better bet than some skeptics think.

“I think every business has its challenges, but they've done a pretty good job overall, I wouldn't be betting against them,” Carvana CEO Ernie Garcia, said Thursday on CNBC's Squawk Alley. “I think when you buy a new car, questions are different, but the return policy is enormously powerful like it is on the used side. A customer knows they can return it.”

Tesla shares were up more than 1 percent Thursday.

Tesla's shift to online sales has garnered mixed reviews from some investors, with some saying the move could substantially reduce costs by eliminating stores, but also worrying that Tesla is losing a valuable sales strategy.

“The move to direct sales is bold, though we are comforted that 70%+ of Tesla buyers in 2018 did *not* test drive prior to purchase,” Bernstein analyst Toni Sacconaghi wrote in a research note shortly after Tesla's announcement a week ago. “That said,” he added, “we do believe that salespeople have been important in up-selling Tesla customers, as well as selling Tesla solar products.”

The move will result in the closure of most of Tesla's stores and layoffs. At least one employee said they are still in the dark over Tesla's plans.

The electric car maker has long been waging battles in a number of states to allow Tesla vehicle sales. Several states have laws banning the direct sales of vehicles by automakers. The laws are vestiges of an earlier era, when dealers wanted to be protected from automakers competing directly with them.

Garcia said he is not worried too much about direct competition from Tesla, since Carvana focuses on used cars. But he said the company can bring more customers to online car sales overall.

“Tesla has an incredible megaphone,” he said.

Moody’s downgrades auto industry outlook from stable to negative on falling demand

Barcroft Media | Getty Images

Weakening demand for cars and trucks has pushed credit rating company Moody's to cut its outlook for the auto industry from stable to negative.

Slowing economic growth, a better-than-expected end to 2018 and a host of potential political pitfalls are all expected to dampen global auto sales in 2019, Moody's said in a research note Monday.

The company cut its 2019 growth forecast for worldwide light vehicle sales by more than half, saying they won't totally recover from a slowdown in the latter part of 2018.

Moody's expects global auto sales to grow by 0.5 percent this year, down from its previous forecast of 1.2 percent, “which had assumed a stronger finish in 2018.” For 2020, Moody's forecast growth of 0.8 percent.

Auto sales are likely to continue falling in the first half of 2019, before regaining lost ground in the last two quarters of the year, Moody's said. It's forecasting a slowdown in global economic growth as well, with stronger growth in developing markets such as China. U.S. sales are expected to drop by nearly 3 percent in 2019 and 0.6 percent in 2020, largely due to a drying up of a financing environment that had buoyed sales for so long.

Of course, the threat of U.S. import tariffs and the United Kingdom's potential exit from the European Union are also risks.

The industry is also faced with declining sales at a time when many companies are racing to invest in new transportation tech, including self-driving cars, connected cars, and advanced safety features.

Auto manufacturers also face ever more stringent emissions guidelines, which are forcing investments in hybrid and electric vehicles, and other options for passengers and freight.

NVIDIA to Acquire Mellanox for $6.9 Billion

Unites leaders in processing and interconnect for the high performance computing market Builds on the companies’ long history of collaboration and joint innovation Expected to be accretive to NVIDIA’s non-GAAP gross margin, non-GAAP EPS and free cash flow immediately after close NVIDIA and Mellanox today announced that the companies have reached a definitive agreement under… Continue reading NVIDIA to Acquire Mellanox for $6.9 Billion

Alphabet’s Waymo seeks outside investors: The Information

FILE PHOTO: A Waymo self-driving car is seen during the annual Google I/O developers conference in Mountain View, California, May 8, 2018. REUTERS/ Stephen Lam (Reuters) – Alphabet Inc’s self-driving car division, Waymo, has been seeking financing from outside investors such as European automakers Volkswagen AG, The Information reported on Monday, citing a person with… Continue reading Alphabet’s Waymo seeks outside investors: The Information

Rybrook buys JLR dealerships in Stoke from Pendragon

Warwick-based Rybrook Group is representing Jaguar and Land Rover in Stoke following the completion of its acquisition of the businesses from Pendragon for an undisclosed sum. The businesses is trading as Rybrook Land Rover Stoke and Rybrook Jaguar Stoke. These new additions increase the Warwick-based Group’s dealerships to 25. Rybrook already has Jaguar and Land… Continue reading Rybrook buys JLR dealerships in Stoke from Pendragon

Ola Kallenius a new breed of CEO for Daimler – Automotive News

Since the move had been telegraphed for almost two years, it’s no surprise that Ola Källenius will succeed Dieter Zetsche as CEO of Daimler next May. But this strikes me as more than one of those seamless, soulless, standardized transfers of power at Daimler or BMW. Zetsche has led Daimler since 2006 and has been… Continue reading Ola Kallenius a new breed of CEO for Daimler – Automotive News