OEMs – Page 4877 – I wish I had more to offer

Volkswagen sets new delivery record in 2018

Most successful year in company’s history with global deliveries of 6.24 million vehicles (+0.2 percent) Growth in South America, USA and Europe offsets situation in China and adverse effects due to WLTP SUV offensive and numerous other new products were key growth drivers Sales Board Member Jürgen Stackmann: “2018 was characterized by considerable uncertainty in some… Continue reading Volkswagen sets new delivery record in 2018

Info-graphics on Electromobility (January 2019)

Do you need help? Please contact our support team from 9 to 17 CET via support.pressclub@bmwgroup.com. PressClub Global · Article. Thu Jan 10 11:00:00 CET 2019 Press Release Overview of brands and their shares in the Electromobility markets for various countries. Source: IHS Markit New Registrations 2018. (04.01.2019 report) My.PressClub Login BMW Group Streaming. LA AUTO… Continue reading Info-graphics on Electromobility (January 2019)

Tesla FUD: Tax Credit & Tesla Pricing — #TSLA

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Published on January 5th, 2019 |

by Frugal Moogal

Tesla FUD: Tax Credit & Tesla Pricing — #TSLA

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January 5th, 2019 by Frugal Moogal

The goal of this series is to examine current topics being written about Tesla [TSLA] that appear to be stirring up “Fear, Uncertainty and Doubt” (or FUD). The plan is to try to provide reasonable analysis about the validity of the claims. I generally do not link to the articles that “inspire” me to write this, as I do not wish to reward analysis I feel is poor with increased traffic. However, I will freely admit that my analysis may contain incorrect assumptions, and will do my best to acknowledge them in future articles.

If you somehow missed it, Tesla just announced Q4 deliveries totaling 90,700 vehicles, and that the company was dropping the price of its vehicles by $2,000 in response to the phaseout of the federal EV tax credit.

The stock price responded by dropping almost 7% on the day.

There is actually a TON to unpack in Tesla’s Q4 communication, and I intend to do that soon, but I wanted to briefly touch on the believed reason for the stock hit — the price drop on the vehicles and the supposed “price ceiling” to Tesla’s current offerings.

Before I go on, my usual boilerplate paragraph about my stock: I’ll note that I remain a Tesla shareholder with a whopping 8 shares, with no intention to add to or sell that stake. I do think that Tesla remains a risky investment for a plethora of reasons that I won’t get into right now (a few people commented that they want to hear that, so I need to think about how to explain it without creating my own Tesla FUD article…), but also one that has the potential to increase astronomically in the future, which is why I decided to purchase and hold a very limited number of shares. I would not suggest anyone use the following article as their sole data point to decide to invest nor sell shares in Tesla.

What Did The Market Expect?
I don’t get what the market wanted Tesla to do here.

Like it or not, the federal EV tax credit is considered to be a discount on the purchase to nearly all buyers of EVs. Every other time we have had a market where EV credits or rebates have phased out, we have generally seen a surge in demand followed by a sudden drop in demand, especially if the pricing of the vehicles remains the same.

Duh?

Between Black Friday and Christmas, Microsoft knocked $100 off its Xbox One S console, making it just $199 to get one. It was advertised as a limited time promotion, and today the same console does indeed cost $299 to purchase. Is anyone expecting Microsoft will sell the same number of Xbox One S consoles this month as it did last month? If so, they seem to have missed some lessons on supply and demand, and the impact of pricing on that demand.

Tesla’s Response
Tesla decided to offset the $3,750 reduction in the federal tax credit by reducing the cost of its vehicles by $2,000. To me, it’s a genius move for a whole variety of reasons. I’m trying to keep this article short, so here’s a quick rundown of some of the positives here:

Auto loans don’t take into account the tax credit (that has to be claimed by the individual who owns the car), meaning that this makes the monthly payments for purchasing a new car cheaper. Most people take out loans to purchase cars.
Tesla is making more than $2,000 in profits off all of its cars. It can reduce the price and still make money.
According to Tesla, more than ¾ of Model 3s sold were to new customers, not reservation holders, meaning that new Model 3 demand was more than 45,000 vehicles. Considering that Tesla hasn’t started international deliveries, that means that demand remained very strong. Some of that demand may have been moved up due to the tax credit expiring, but not all of it.

Let’s also remember, Tesla hasn’t pulled several demand levers for the Model 3 — in particular, international sales and the start of leasing.

Conclusion
I have been accused of being a Tesla shill in the comments before, and I guess this article may continue that trend, as my conclusion for this one is simple: Not just did I expect Tesla to make a move like this (I expected it to be a slightly larger reduction, actually), but the scale of Tesla’s EV production leaves the company in a much stronger position to reduce pricing to raise demand as the tax credit begins its phaseout process than other automakers producing electric vehicles.

In short, I don’t understand the reaction here.

If you think I’m overly positive on this one, leave me a comment explaining why — the more detail, the better. I intend to write a longer article soon unpacking how the tax credit affects demand, and different demand levers that I expect Tesla can and will use to keep that demand up, and I’ll do my best to incorporate and reply to any comments I get.

About the Author

Frugal Moogal A businessman first, the Frugal Moogal looks at EVs from the perspective of a business. Having worked in multiple industries and in roles that managed significant money, he believes that the way to convince people that the EV revolution is here is by looking at the vehicles like a business would.

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Tesla Has The Highest Customer Loyalty Of All Car Brands

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Published on January 9th, 2019 |

by Matt Pressman

Tesla Has The Highest Customer Loyalty Of All Car Brands

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January 9th, 2019 by Matt Pressman

Originally published on EVANNEX.

Studies demonstrate that Tesla has forged a unique bond with its customers. Last year, Consumer Reports found that Tesla has the highest rate of customer satisfaction of all car brands. Now, according to more recent research conducted by Experian, it turns out these high levels of satisfaction are translating into exceptionally high rates of customer loyalty as well.

Tesla owners tend to be a satisfied and loyal (Image via Tesla)

In fact, electric vehicle owners (regardless of brand) have a high propensity for loyalty. According to Experian, “Once dealers have customers in an EV, there’s a good chance they get them back again in the future. Electric vehicle customers are showing early signs of being a highly loyal customer segment. When EV customers return to market, 62 percent buy another EV.”

So what about industry leader Tesla?

Experian found, “Tesla owners show an even higher make loyalty rate than EV customers as a whole. More than 4 in 5 Tesla customers — 80.5 percent – buy or lease another Tesla when they return to market. Tesla has the highest level of make loyalty in the industry, ahead of Subaru at 72.1 percent and Ford at 72 percent.” Experian also found that, “Tesla led the industry with a Conquest/Defection ratio of 13.77 to 1.”

Electric vehicle market share based on US EV sales in the first half of 2018 (Source: Experian)

While Tesla plans to introduce a lower-priced Model 3 option, its current vehicle lineup remains relatively expensive. Therefore, it’s no wonder EV owners tend to be a well-heeled crowd. Experian reports that, “individuals with higher education and high home values are currently more likely to purchase EVs.” Furthermore, if trends start in places like California, EV fever could be spreading. According to Experian, EV buyers “are also more likely to be found [see chart above] on the west coast.”

These insights into electric vehicles (and industry leader Tesla) are definitely encouraging. Experian concludes, “the auto industry should be enthusiastic about the electric vehicle segment’s future … as battery costs continue to come down, EV [pricing] will more closely mimic today’s vehicles. All things being equal, customers are likely to opt for a more environmentally friendly option in the future and eventually, the scales will tip in the favor of EVs.”

Elon Musk Offers Help During California Wildfire, Twitter Gets Into Argument As Some Mock His Thailand Efforts

Elon Musk from Tesla offered to help during the California wildfire if possible. On Twitter, he noted that “If Tesla can help people in California wildfire, please let us know. Model S & X have hospital grade HEPA filters. Maybe helpful for transporting people.”

However, it’s led to a big argument on the platform in the comments, as some mocked him for the prior debacle during the Thailand cave rescue. Meanwhile, others are blasting the critics, saying that he is a wealthy man that’s offering to help people in need, so there’s no reason to demean him.

Some may remember that Musk offered his help when a soccer team became trapped in a dangerous cave system in Thailand. He and his team came up with a child-size submarine that could potentially be used to shuttle the players out of the cave. While the actual invention was not used during the successful mission, it’s what happened next that brought on a ton of negative publicity for Elon.

He was criticized by a diver, Vernon Unsworth, who said that Musk’s efforts were merely a “PR stunt” and told him he “can stick his submarine somewhere where it hurts.” Upset by the diver’s words, Elon later tweeted, “Sorry pedo guy, you really did ask for it,” while saying he never saw Unsworth when he delivered the submarine.

One user has gotten over 1,400 likes for his comment in the hour since Musk tweeted his willingness to help. The user blasted Elon for his prior actions during the Thai rescue.

“Just an idea but maybe you can intrude into this continuing crisis, build an unworkable and ridiculous capsule or something, and call some firefighters pedophiles.”

But that didn’t sit well with others, who couldn’t believe that people were putting Elon down for simply wanting to help.

“Why is it that when Elon Musk wants 2 help people that he has to have ulterior motives? Honestly, just cause he is rich & successful he should be an a**hole?”

Another user simply said, “Elon just wants to help, so let this guy just do it.”

As the argument rages on in the comments, the fallout from the fires are undeniable. So far, nine people have been reported killed as a result of the “Camp Fire” in Paradise, detailed Eyewitness News. The same fire destroyed the entire town of 26,000 people, and so far has burned somewhere near 28,300 hectares of land. Meanwhile, firefighters have not been able to contain the fire.

Mazda Develops World’s First Cold-Stamped Parts Using1,310 MPa-Class High-Strength Steel

2019/01/10 Products and Technology To be applied across the lineup starting from the all-new Mazda3 HIROSHIMA, Japan—Mazda Motor Corporation, working separately with Nippon Steel & Sumitomo Metal Corporation and JFE Steel Corporation, has developed the world’s first cold-stamped vehicle body parts made from 1,310 MPa-class high-strength steel.1 The parts are used in Mazda’s new-generation Skyactiv-Vehicle… Continue reading Mazda Develops World’s First Cold-Stamped Parts Using1,310 MPa-Class High-Strength Steel

Tesla Model 3 Used Car Stats As Depressing For BMW & Audi As New Car Sales

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Published on January 6th, 2019 |

by Michael Barnard

Tesla Model 3 Used Car Stats As Depressing For BMW & Audi As New Car Sales

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January 6th, 2019 by Michael Barnard

The Tesla Model 3 has many superlatives associated with it. The most pre-orders of any production car ever. The highest volume sales of any small or midsize luxury sedan in the USA. The highest revenue for any car sold in the USA for the last 4–6 months of 2018. The fewest buttons, switches, and dials of any car.

But there’s another superlative.

The fewest used cars available. By an order of magnitude.
Autotrader is the largest online used car site in the USA. A search for second-hand Tesla Model 3s on January 1st found 78 Tesla Model 3s for sale on the site. There were roughly 140,000 Tesla Model 3s sold in 2018 when you include likely December sales per earlier CleanTechnica reporting.

78 used cars represents about 0.06% of the Tesla Model 3s on the road. That number doesn’t seem that high.

Using the November sales chart, I also looked at the cars which ranked just above and below the Model 3 in January–November 2018 sales volume. Checking for used 2018–2019 Chevy Malibus on Autotrader, there are over 1,000 for sale right now, and there were only a few more of them built and sold in 2018 than the Model 3. There are 986 used 2018–2019 Ford Focuses available for sale right now, 13 times more than Tesla Model 3s, with fewer built and sold. That’s about 0.8% that are up for resale.

There’s an order of magnitude fewer Tesla Model 3s for sale than cars which sold in equal numbers in 2018 in the USA.

But what about its closest competitors, small, luxury, performance sedans such as the BMW 3 Series and the Audi A4? They have similar price points and target demographics, so are arguably better to compare to the Model 3 than either the Malibu or Focus.

New Tesla Model 3s outsold new 3 Series and A4s by a large margin in 2018 in the USA, three to four times the sales volume. But going back to Autotrader and looking solely at used 2018–2019 cars for sale is instructive. There are over 1,000 BMW 3 Series available right now for those model years. There are 502 Audi A4s available. There are 7 to 13+ more used new-model BMWs and 6 times as many Audi A4s for sale as Tesla Model 3s.

Let’s run the numbers a slightly different way. If all else were equal, the number of cars available used should be aligned to the number of cars sold. The ratios should be relatively close. There were more BMW 3 Series sold than Audi A4s and there are more available used. The ratio isn’t perfect, as new is roughly 4:3 and used is in the range of 2:1, but the principle applies.

When we look at Tesla vs BMW, we see a ratio of 3:1 new and 1:13 used. Really, the way to look at this is that potentially 40 times as many BMW owners are dumping their new 3 Series as Tesla owners are doing with their Model 3s. Audi is 4:1 and 1:7. There are about 30 times as many Audi owners dumping their A4s as Tesla owners.

There were certainly anecdotal stories of people who bought the two-wheel drive as soon as they could but then put down the more serious money for the AWD or Performance version when it was made available. And there are certainly people who were speculating on the Model 3, intending to make a fast buck by flipping it to people who wanted one.

But what about mileage? Well, a scan of the mileage on Autotrader found a range from 11 miles to 14,000 miles on the cars. There were some that were obviously bought to flip second hand with 11 to 45 miles on them. There were some in the 1,000–2,000 range. The majority were in the mid-1,000s. There were a handful over 10,000, which is reasonable given annual mileage averages in the USA are about 13,500.

Did some people buy to flip? Yes, and no surprise. They probably did okay in June, but wouldn’t be doing okay today with Tesla running 6,000–7,000 a week. Speculation on the Model 3 for quick flips is more a thing of the past, although obviously this does suggest that resale value remains high. Some of the variance can be explained by high demand for used Model 3s, meaning that used inventories remain low.

But really, the statistics show that Tesla Model 3 owners are very happy with their cars and keeping them. Demand is very strong for the newest Tesla. For BMW and Audi? Not so much.

About the Author

Michael Barnard is Chief Strategist with TFIE Strategy Inc. He works with startups, existing businesses and investors to identify opportunities for significant bottom line growth and cost takeout in our rapidly transforming world. He is editor of The Future is Electric, a Medium publication. He regularly publishes analyses of low-carbon technology and policy in sites including Newsweek, Slate, Forbes, Huffington Post, Quartz, CleanTechnica and RenewEconomy, and his work is regularly included in textbooks. Third-party articles on his analyses and interviews have been published in dozens of news sites globally and have reached #1 on Reddit Science. Much of his work originates on Quora.com, where Mike has been a Top Writer annually since 2012. He's available for consulting engagements, speaking engagements and Board positions.

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FCA will keep Jeep Wrangler production in Toledo – The Detroit News

Michael Martinez and Melissa Burden, The Detroit News Published 1:48 p.m. ET Sept. 1, 2015 Fiat Chrysler Automobiles NV will keep building the Jeep Wrangler in Toledo (Photo: Detroit News file photo) Fiat Chrysler Automobiles NV will keep building the Jeep Wrangler in Toledo, according to a union representative who was briefed on the automaker’s… Continue reading FCA will keep Jeep Wrangler production in Toledo – The Detroit News

‘The G is a G and it needs to stay a G’ | Interview with Mercedes R&D chief Ola Kaellenius – Autoblog – Autoblog

At the Detroit Auto Show, we got a chance to sit down with Ola Källenius, the head of Mercedes research and development. The 48-year-old Swede, who was previously head of AMG and Mercedes’ Alabama manufacturing facility, discussed a wide range of Benz-related topics. On the 2019 Mercedes-Benz G-Class introduced in Detroit, and how you make… Continue reading ‘The G is a G and it needs to stay a G’ | Interview with Mercedes R&D chief Ola Kaellenius – Autoblog – Autoblog

VW and Ford want to work together

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