Tag: Possible_Terrorism_Warfare

Tariffs cost Ford $1 billion in profit and hurt sales in China

Luke Sharrett | Bloomberg | Getty Images
An employee works on a Ford Expedition sports utility vehicle on the assembly line at the Ford Kentucky Truck Plant in Louisville, Kentucky.

President Donald Trump's tariffs are hitting Ford's finances hard.

The second-largest U.S. automaker has suffered $1 billion in lost profits from tariffs on metals imported to the United States, said Ford CEO Jim Hackett in an interview with Bloomberg TV on Wednesday.

The U.S. has a 25 percent tariff on steel and a 10 percent tariff on aluminum imported from several countries, an early step in an escalating trade war that threatens to raise prices on goods and deal a blow to firms in a wide range of industries, including autos.

The tariffs come at a time when Ford is trying to improve its financial health, raise its share price and sink money into developing new propulsion technologies, such as electric powertrains, autonomous driving technology, cloud computing technology for transportation and other mobility businesses.

Ford shares were down nearly one percent Wednesday morning.

“From Ford's perspective, the metals tariffs took about $1 billion profit from us,” he added. “The irony is, we source most of that in the U.S. today anyways. So we are in a good place right now, but if it goes on longer there will be more damage.”

The trade war is also creating difficulties for Ford's U.S. factories. Ford exports Lincoln vehicles from a plant in Louisville, Kentucky to China, where Hackett said the brand is popular. China's tit-for-tat 25 percent tariff hike, which raises the total duty to 40 percent on U.S. autos, has raised the price of the Lincoln MKC sport utility vehicle in China.

In July, Ford cut its full-year outlook, citing in part heavy losses in China in the second quarter.

“We have had to move people in that factory to other functions because of that trade problem,” he said.

BMW warns of lower profits on new emissions rules and an escalating trade war ‘distorting demand’

Andreas Gebert | Anadolu Agency | Getty Images
A visitor of BMW World walks past a BMW car during the annual accounts press conference of German car manufacturer BMW at the BWM World in Munich, Germany.

BMW said Tuesday its 2018 sales and profits will likely fall due to the costs of implementing new emissions standards in Europe and rising uncertainty stemming from the escalating global trade war.

Automotive revenues are now expected to fall slightly from the 88.6 billion euros ($104.4 billion at the current exchange rate) it generated last year, the company said. It previously told investors sales would rise.

BMW had also previously forecast profits to be on par with last year, but now expects a “moderate decrease,” the company said. The company earned 10.7 billion euros ($12.6 billion at the current rate) in 2017.

“The continuing international trade conflicts are aggravating the market situation and feeding uncertainty,” BMW said in a statement. “These circumstances are distorting demand more than anticipated and leading to pricing pressure in several automotive markets.”

The German automaker also said the industry's shift to a new laboratory test for emissions, the Worldwide Harmonised Light Vehicle Test Procedure, has created “supply distortions in several European markets and an unexpected intense competition.”

BMW had already expected 2018 to be a challenging year, due to the more than 1 billion euros in investments it is making in mobility, along with currency headwinds.

Fellow German automaker Daimler had warned at the end of July that the heightening trade war between the U.S. and China could affect its profitability this year. Both automakers have factories in the United States, where they build vehicles for both the U.S. market and for export.

Out of juice: Infiniti Q50 Hybrid luxury sedan dropped

2016 Infiniti Q50 Hybrid
The long-running Infiniti Q50 Hybrid luxury sedan won't return for 2019, the automaker said Thursday.

Infiniti spokesman Kyle Bazemore confirmed the demise of the Q50 Hybrid this year for Green Car Reports. The automaker axed the Q70 Hybrid in July.

Although Infiniti didn't report sales for the Q50 Hybrid and Q70 Hybrid models separately, it's likely that the hybrid-battery powered sedans were a small fraction of overall sales for both.

The Q50 Hybrid sedan was powered by a 3.5-liter V-6 and electric motor combo that produced 360 horsepower. According to the EPA, the Q50 Hybrid was rated at 29 mpg combined for front-drivers, 28 mpg combined for all-wheel-drive versions. The Q70 Hybrid sedan was powered by a similar hybrid powertrain and returned 30 mpg combined, compared to 21 mpg for V-6-only versions.

The Q50 Hybrid first appeared in Infiniti dealers in 2013.

DON'T MISS: Infiniti announces new electric car lineup based on Q Inspiration

Last year, Infiniti quietly killed its slow-selling QX60 Hybrid crossover after relegating it to special-order only for buyers.

The move leaves Infiniti without an electrified powertrain in its vehicle lineup, for now.

Infiniti announced most new models coming from the luxury automaker would be electrified by 2021. The company also announced it would build a range of electric cars based on its Q Inspiration concept before 2023.

This year, the QX50 debuted a new variable-compression turbocharged engine that can change its operation for better efficiency or better power. The turbo-4 found under the hood of the popular crossover contributed to an overall fuel-efficiency improvement of more than 20 percent, compared to prior generations.

The US Secret Service just ordered a Harley-Davidson motorcycle despite Trump’s call for a boycott

Drew Angerer | Getty Images News | Getty Images
President Donald Trump and Vice President Mike Pence walk together on their way to greet Harley Davidson executives on the South Lawn of the White House, February 2, 2017 in Washington, DC.

Less than a month after President Donald Trump called for a boycott of Harley-Davidson Inc. motorcycles, the organization charged with his protection has ordered one.

The U.S. Secret Service Uniformed Division placed an order for a Harley-Davidson police motorcycle last week, a move which documents connected to the order refer to as an organization requirement for “protective motorcade support functions.” That could include protecting the president, who called for a boycott of Harley-Davidson in August in his continued Twitter campaign to discourage his supporters from patronizing the Milwaukee motorcycle company following a June announcement of an overseas production move.

“Many @harleydavidson owners plan to boycott the company if manufacturing moves overseas,” Trump wrote on Aug. 12. “Great! Most other companies are coming in our direction, including Harley competitors. A really bad move! U.S. will soon have a level playing field, or better.”

According to the purchase order documents, Harley-Davidson motorcycles are required for motorcades to ensure the “consistency of appearance, performance, training and parts with the currently existing motorcade motorcycle fleet.” Furthermore, the motorcycle order achieves consistency with the Metropolitan Police and U.S. Park Police in Washington, D.C.

Ordering a different brand of motorcycle would also require the Secret Service to spend time training its support technicians “at a cost of thousands of dollars,” and motorcade support officers would also need training. The Secret Service would have to “duplicate an inventory of spare parts” if the brand was switched as well.

Moreover, the Harley-Davidson police motorcycles come outfitted with a side car, and the Secret Service would need to purchase additional sidecars to equip with a new brand were a switch made.

As for when a switch away from Harley-Davidson could realistically happen for the Secret Service, the document indicates an evaluation could take place “when the current fleet is deemed worn out and economically unviable.” However, the current fleet should last “for years to come” if properly maintained.

Harley-Davidson representatives didn't immediately respond to a request for comment on the order. President Trump hasn't mentioned Harley-Davidson on Twitter since Aug. 12.

WATCH: How big Harley-Davidson is and why it's a trade-war target

Here’s how big Harley-Davidson really is
7:20 AM ET Wed, 18 July 2018 | 04:18

More from Milwaukee Business Journal:
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Good City secures $1 million MEDC loan for taproom next to Fiserv Forum

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UPDATE 1-Go-Jek aims to raise $2 bln for Southeast Asia expansion -sources

SINGAPORE/JAKARTA (Reuters) – Indonesian ride-hailing firm Go-Jek is seeking to raise about $2 billion from existing investors, including Tencent Holdings Ltd and JD.com, to fund its expansion plans in Southeast Asia, sources familiar with the matter said on Monday. A Go-Jek driver rides a motorcycle on a street in Jakarta, Indonesia, December 15, 2017. REUTERS/Beawiharta… Continue reading UPDATE 1-Go-Jek aims to raise $2 bln for Southeast Asia expansion -sources

End of the road: Volkswagen to stop making Beetles

Volkswagen will the halt the production of Beetles in 2019, marking the end of the road for one of the world’s most beloved cars. The German company will introduce two special editions of the vehicle before it stops making the model altogether in July. Volkswagen is sidelining the Beetle, renowned for its distinctive curved shape… Continue reading End of the road: Volkswagen to stop making Beetles

UPDATE 2-Volkswagen to end production of the Beetle next year

(Reuters) – Volkswagen (VOWG_p.DE) said on Thursday it would stop producing its Beetle compact car in 2019, ending a model that looked backward to the 1960s counterculture as the automaker prepares for a leap toward a future of mass-market electric cars. FILE PHOTO: A 2015 Volkswagen Beetle R-Line model is seen at the press day… Continue reading UPDATE 2-Volkswagen to end production of the Beetle next year

Tesla Eliminates Two Color Choices To Streamline Production

Billionaire CEO Elon Musk announced on Twitter this morning that Tesla, Inc. will be dropping two of its premium color options in order to streamline manufacturing.

According to Reuters, the car company only offers seven colors (Obsidian Black, Metallic Silver, Solid Black, Midnight Silver Metallic, Deep Blue Metallic, Pearl White Multi-Coat, and Red Multi-Coat), so dropping two colors from standard manufacturing amounts to a reduction in color choice by nearly a third. Repair facilities will continue to stock all colors, and Musk notes that Obsidian Black and Metallic Silver will still be available by special request at a premium. Nearly all of Tesla’s color choices are options anyway; per CNN, the only color buyers don’t have to pay extra for is Solid Black.

Tesla has been on a bit of a roller coaster this year, partially due to a production shortfall of its Model 3 sedan, the company’s car for the masses. The Model 3 is smaller and less expensive than the other two products currently in the Tesla lineup, the Model S and Model X, and the company is betting its future on being able to pump out as many as 6,000 Model 3s per week to meet demand. Currently, Tesla is only making about 5,000 per week, and it didn’t reach that number until July, much later than Musk originally planned. Taking the most labor-intensive paint options out of the mix is an attempt to speed up production, though it remains to be seen how much it will help.

The other factor contributing to Tesla’s ups and downs this year has been Musk himself. In just the last couple of months, he has been seen smoking marijuana on Joe Rogan’s podcast, got into a Twitter war with a pop star, threatened to create his own media empire to avoid criticism from the press, falsely accused a British rescue diver of being a pedophile, and spontaneously announced plans on Twitter to take the company private at $420 per share, a violation of Securities and Exchange Commission laws. A number of lawsuits have sprung up surrounding these events, increasing Musk’s already high stress load from his claimed 120-hour work weeks. Since the privatization announcement in early August, Tesla shares have dropped an astonishing 29 percent, and are currently hovering around $275, a far cry from the nearly $400 share price before Musk’s announcement. On Tuesday, brokerage Nomura Instinet downgraded Tesla stock from neutral to buy status, citing Musk’s “erratic behavior” as the reason.

Tesla, Inc. trades on NASDAQ under the ticker symbol TSLA.O.