Manufacturing – Page 12584 – I wish I had more to offer

GM strike ripples across the economy, raising new recession fears – Financial Post

Here in the heart of America’s car industry, car parts have nowhere to go. Eighty-five tractor trailers full of hoods, bumpers and other assorted parts sat, unloaded, in Lansing, Michigan, this week — more evidence of the cost of the General Motors Co. strike that has shut down most of its North American plants and… Continue reading GM strike ripples across the economy, raising new recession fears – Financial Post

Capital One: Value of Luxury Gas Cars Getting Slammed by Tesla Model 3

Invest
Electric Cars
Electric Car Benefits
Electric Car Sales
Solar Energy Rocks
RSS
Advertise
Privacy Policy

Cars

Published on October 6th, 2019 |

by Zachary Shahan

Capital One: Value of Luxury Gas Cars Getting Slammed by Tesla Model 3

Twitter
LinkedIn
Facebook

October 6th, 2019 by Zachary Shahan

We talked at length about it years ago at a CleanTechnica conference in Berlin. The night the Tesla Model 3 was first shown to the public, it also crossed our minds. Kyle Field and I were on the test track — only sharing the road and driveway with a few Tesla employees, a black matte Tesla Model 3 prototype, a silver Tesla Model 3 prototype, and a couple of other Teslas. In the 20 minute video I shared of that extremely lucky test track experience (but not the 10 minute abridged video), I didn’t interrupt the fun sounds of the test track fog shooters and the smoothly rolling Teslas very much, but while talking with a Tesla employee near the beginning I laughed a bit out of my awe for the beautiful, super fresh Model 3 and what it would mean for the auto industry. I was picturing elite auto giants in the board room of BMW and Audi sobbing. This was a disruptor, a truly disruptive product that would transform the auto industry, starting with the luxury car market.

A couple of weeks later, at our first Cleantech Revolution Tour conference, in Berlin, we discussed a matter that seemed absolutely imminent: a crash in luxury gas and diesel car resale values. The ramifications of a disruptive new electric luxury car that genuinely embarrasses the Audi A4, Mercedes C-Class, and BMW 3 Series are manifold, but perhaps one of the biggest is that strong depreciation of these previous industry leaders could be disastrous for their parent companies and further accelerate the switch to electric transport.

Notably, a crash in resale values means leasing companies have to increase what they charge customers — otherwise, they’ll lose money on the cars over time. Raising leasing prices means that those vehicles become less competitive, which means fewer people leasing.

An employee of one of the largest auto leasing companies in Europe told me a couple years ago that the CEO of the company had already committed to a quick transition to 100% electric vehicles as a result. It would simply be bad business management to walk into a collapsing market and financial crisis. All he had to do was look the superiority of the Tesla Model 3 and reflect on where the market was headed.

Normal new car buyers may be slower to pick up on the market trends. If they didn’t put down money for a Model 3 reservation or at least jump into the crowd once production ramped up, there’s a good chance they’re simply out of touch. So, it should come as a surprise when they bring their 2018, 2019, and 2020 BMW 320i, Audi A4, or Mercedes C300 “luxury automobiles” to auto dealers or the private used car market and find they lost far more value than the consumers anticipated. Nonetheless, that is what’s going to happen, and that is what’s starting to happen.

No, this is no longer just CleanTechnica saying so. It is not simply Teslarati and Teslamondo saying so. It is Capital One saying so. As the non-analyst tweeting above highlights, Capital One now says that the Tesla Model 3 is “wreaking havoc” on the used luxury car market — that is, the used luxury gas and diesel car market. To Tesla owners, the most confusing part of that some people still consider those cars luxury cars. They have horrible, non-luxury drive quality compared to a Model 3. They have horrible, non-luxury tech compared to a Model 3. The don’t meet the safety level or performance of a Model 3. The interiors or cluttered with old technology, knobs, buttons, and an antiquated interior design. Perhaps we’re Tesla fanboys and fangirls, but there are many reasons for that, and the fan population is growing fast.

Nonetheless, it’s both surprising and exciting that such a mainstream, establishment company like Capital One is publishing the news. It does not mince words. Here’s the headline and summary statement:

The report also notes that 22.2% of Tesla buyers are trading in European luxury vehicles when buying their Teslas.

The searing reflection of market trends, perhaps written by a Tesla owner, sounds more like something you’d find on CleanTechnica than in Capital One’s Learning Center:

“The decisions car-buyers make are increasingly on the side of technology—or more specifically, Tesla’s version of it—than the traditional luxury cars that have long been industry benchmarks. What does that mean? Tesla’s sales successes are wreaking havoc on the pre-owned luxury car market. Once-strong demand for European luxury brands like Mercedes, Audi, and BMW is evaporating as buyers that used to spring for premium luxury sedans now want a Tesla. Any Tesla.”

But it’s absolutely true.

Not only are European luxury vehicle owners trading in those cars for Teslas, but the Tesla Model 3 is setting a whole new frame for what is possible from an entry-level luxury car. It is demolishing previous sales records in those markets and competing in the mainstream car market with the likes of the Toyota Camry and Honda Accord — as it should. Good luck, Audi. Good luck, BMW. Good luck, Mercedes.

The Capital One report is about the US market, but the Model 3 is the #1 best selling automobile (of all classes and vehicle types) in the Netherlands and Norway this year. The base version of that car just started getting delivered to many of those markets, and the higher trim is just starting to make its way to Australia, Japan, South Africa, etc. The disruption is just beginning. The signs are clear, and Capital One has even felt compelled to coin a term around this transition:

“In particular, Tesla’s Model 3 went from zero to over 140,000 units faster than any other luxury vehicle had before, and the demand for new Teslas is, in a very real sense, driving the used car market. With buyer after buyer trading in a still new-ish luxury vehicle for a brand-new Tesla, traditional luxury brands appear to be traded-in more frequently than all American and Korean manufacturers combined.

“Tesla now gets European vehicles as trade-ins 22.2% of the time—more than double the industry average of 10.9%. Because of this uptick, the market is becoming flooded with more affordable cars from Mercedes, Audi, BMW and the like—without a corresponding increase in demand.

“We’re calling this The Tesla Effect. It’s strong enough to cause prices to plummet, because the market has an excess supply of used luxury cars.”

It is a great article and analysis from Capital One, even if it comes a few years after CleanTechnica was blasting this message out from microphones and keyboards around the world. Of course, they needed to wait on some proof and robust figures, not in the same market of forecasting and speculation we are sometimes in. The good news is that we are arriving. A short stop for some Supercharging and I’m sure we’ll be back with more exhilarating analysis and fast-paced note-taking.

In the meantime, we should perhaps recognize that Capital One wasn’t the first to use the term “Tesla Effect.” Almost exactly one year ago, Paul Sankey of Mizuho Securities used the term on CNBC while talking about oil stocks. Without a doubt, “Tesla effect” will mean different things to different industries. We’ll keep you updated as recognition of that effect soars.

About the Author

Zachary Shahan Zach is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director and chief editor. He's also the CEO of Important Media. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao.

Zach has long-term investments in Tesla [TSLA] — after years of covering solar and EVs, he simply has a lot of faith in this company and feels like it is a good cleantech company to invest in. But he offers no investment advice and does not recommend investing in Tesla or any other company.

Advertise with CleanTechnica to get your company in front of millions of monthly readers.

Mitsubishi Mi-Tech PHEV concept teases 4-motor layout, downsized powertrain

Mitsubishi will show a 4-motor PHEV concept at the Tokyo Motor Show later this month, highlighting new electrification tech and unconventional gasoline power in a new downsized SUV package.

The automaker describes the Mi-Tech as “An electric SUV that delivers unparalleled driving pleasure and confidence over all terrain in light and wind.” We suspect that last bit is the equivalent of “rain or shine,” emphasizing the SUV proportions and individually driven motors as go-anywhere, anytime technology.

The individual motors enable torque vectoring on both an axle-by-axle and wheel-by-wheel basis, or, as Mitsubishi calls it, dual motor active yaw control.

Rather than a normal gasoline ICE, the Mi-Tech employs a gas turbine generator. Mitsubishi says this provides for both series hybrid and EV-only operation with the sort of response drivers expect from an electrified powertrain.

The Mi-Tech is also meant to be a driver assist showcase. Rather than relying on the cluster or a large screen for driver information displays, the Mi-Tech actually projects information directly onto the windshield. Picture a head-up display, only on a much larger scale.

It's also equipped with the sort of advanced safety systems expected on next-generation cars, such as emergency steering and brake assist.

It remains to be seen whether Mitsubishi will try to convert the Mi-Tech concept into a production vehicle. The automaker has not had much success with electrified offerings in the States, with only the Outlander PHEV remaining after the departure of the disappointing i-MIEV electric.

Small form factor CUVs and SUVs seem to be the next target for electrification, and their likely popularity in EMEA markets makes them likely candidates for production and overseas distribution. Whether and when that trend will catch on in the United States remains to be seen.

GM’s much-anticipated 2020 Corvette Stingray to be delayed by UAW strike

CLOSE The new mid-engine Chevrolet Corvette made its first public appearance as GM CEO Mary Barra and chief engineer Tadge Juechter cruised about New York City. Detroit Free Press General Motors’ much-anticipated Chevrolet 2020 Corvette Stingray will be delayed going to market because of the UAW strike, the Free Press has learned. Two people familiar with… Continue reading GM’s much-anticipated 2020 Corvette Stingray to be delayed by UAW strike

Tesla Adds Hibar Systems To Its List Of Acquisitions

Invest
Electric Cars
Electric Car Benefits
Electric Car Sales
Solar Energy Rocks
RSS
Advertise
Privacy Policy

Batteries

Published on October 6th, 2019 |

by Steve Hanley

Tesla Adds Hibar Systems To Its List Of Acquisitions

Twitter
LinkedIn
Facebook

October 6th, 2019 by Steve Hanley

Hibar Systems, with headquarters in Ontario, was founded in the 1970s by German-Canadian engineer Heinz Barall. Since then, it has established itself as a leader in precision manufacturing of small cell batteries through a highly mechanized pump injection system.

Company logo may or may not have been designed in the 1990s. Credit: Hibar Systems

According to Electric Autonomy, the company has developed an international reputation in the battery industry, with manufacturing facilities in North America, Europe, South Korea, Japan, Malaysia, and China. In a brochure, the company says the Chinese market accounted for over 50 percent of Hibar’s business in 2014.

Recognizing the huge demand for batteries in a Chinese market rapidly transitioning to electrification, Hibar created a subsidiary, Hibar China, in 2003. It now has two offices in China to manage Asian production.

Here’s where the story gets interesting. After September 16, the company’s website came down and was replaced with a generic information page. So, Electric Autonomy did a little digging. It began by looking at federal lobby registration documents on the government’s lobbyist registry database.

As of July 2019, Tesla Motors Canada listed no subsidiary companies authorized to lobby the government on various issues surrounding electric vehicles and infrastructure. On October 2, 2019, a new filing listed Hibar Systems as a subsidiary with direct interest in the outcome of Tesla’s undertakings with the government of Canada.

Tesla has not responded to a request for comment made by Electric Autonomy. When asked about the situation, Iain McColl, the president and CEO of Hibar Systems, said all inquiries should be directed to Tesla.

In the absence of any official information, we are left with what is hopefully informed speculation. Tesla has acquired Maxwell Technologies, a company with deep roots in China and advanced expertise in making supercapacitors. Hibar Systems has deep roots in China. Production of Tesla automobiles in China is set to begin by the end of this year.

Tesla has been hinting that it may produce its own battery cells in the near future. Elon Musk has also suggested recently that his company is on the verge of offering batteries with the ability to last 1 million miles. Lastly, Tesla has a 5 year contract for advanced battery research with Jeff Dahn of Dalhousie University in Halifax, Nova Scotia.

The conclusion? Tesla is committed to being a global leader in battery design and manufacturing now and into the foreseeable future. It has often been suggested that Tesla is not a car company that also makes batteries but rather a battery company that also makes cars.

While the world is fixated on the latest Tesla vehicle firmware updates and the arrival of the Model Y, the real news may be that Tesla is poised to dominate battery technology now and in the future. All the nattering nabobs of negativism in the investment community who wring their hands about Tesla missing its goal of delivering 100,000 vehicles in the last quarter (delivering 97,000 instead) may well be missing a larger point.

In a world where batteries are clearly the key to a zero carbon future, Tesla is a clear leader in energy storage technology and has every intention of remaining in the forefront of the industry.

About the Author

Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and anywhere else the Singularity may lead him. His motto is, “Life is not measured by how many breaths we take but by the number of moments that take our breath away!” You can follow him on Google + and on Twitter.

Advertise with CleanTechnica to get your company in front of millions of monthly readers.

Press: Formula E: ZF Becomes “Official Powertrain Partner” of Mahindra Racing

The first test bench tests and test drives of the newly developed driveline, which builds on the successful ZF development status of recent years, are currently being planned for the beginning of next year. In addition to the electric motor, development includes both a single-gear, highly efficient transmission and power electronics, which have been specifically… Continue reading Press: Formula E: ZF Becomes “Official Powertrain Partner” of Mahindra Racing

Monday Morning Auto News, Oct 07, 2019

Volvo and Geely to Merge Engine Operations in Electric Car Push – Bloomberg: Volvo and Geely to Merge Engine Operations in Electric Car Push Bloomberg
VW in talks to share its electric know-how – The Detroit News: Ford agreed earlier this year to use VW”s main electric-car platform for a high-volume car in Europe
Volvo and Geely to merge combustion-engine programmes – Autocar: Volvo engine New engine division will focus on hybrid development, while Volvo will push resour…
Week 4: As UAW GM strike takes its toll, workers vow they’re more committed than ever – Freep: Sounds of gospel music filled what was once the gymnasium in the old Gundry School, now a church with deep connections to GM’s factory workers.
Move to close training center emerges in midst of GM-UAW contract talks – Freep: Key issues remain on the table between GM and the UAW and one of those is the training center embroiled in part of a federal corruption probe.
Harley struggles to fire up new generation of riders with electric bike debut – CNBC: The bike costs nearly as much as a Tesla Model 3, and aims for a market that does not really exist: young, “green” and affluent first-time motorcyclists.
Mercedes-Benz sales soar to record on back of boost from China – FT: Mercedes-Benz sales soar to record on back of boost from China

Swedish EV firm NEVS to sell final new Saab 9-3 this month – Autocar: An unused crash test model from 2013 will be auctioned to raise funds for sustainable mobility res…
1964 Olympic cauldron returns ‘home’ to Saitama Pref. after touring disaster-hit areas – Mainichi: … diameter and weighs approximately 4 metric tons, was created by local metal worker Mannosuke Suzuki and his son Bungo, both now deceased.
Volvo, Geely to merge combustion engine operations – Reuters: Volvo, Geely to merge combustion engine operations Reuters
New Aston Martin Vantage Roadster: first images released – Autocar: V8-powered drop-top will take on the Porsche 911 Cabriolet with over 500bhp and a price tag around…
Analysis: How China is fuelling Volkswagen’s electric dream – Autocar: Volkswagen”s global ID models will be joined by China-only variants Volkswagen”s ambitious EV p…
Jobless claims up around U.S. amid GM strike – The Detroit News: As 46,000 walk picket lines outside GM facilities in 19 states, thousands laid off because of the strike are waiting for a call to return to work.
When harm comes from safety tech, what to do? – Automotive News: More than 800 motorists have lodged complaints about false positive incidents on Nissan Rogues with automated emergency braking systems.
FCA chief cleans up the messes of a legend – Automotive News: When Mike Manley was thrust into the role of CEO of Fiat Chrysler Automobiles in 2018 as his predecessor, Sergio Marchionne, lay dying, the …
V2X might speed progress on the road to autonomy – Automotive News: At the time, only Tesla appeared to be working towards “fake human” driving, by which I mean, relying on cameras/visible spectrum and using artificial …
Peugeot to ditch GTi badge? – Autocar: Peugeot to ditch GTi badge? NZ Autocar

Nissan board set for tense meeting as alleged split over future leadership emerges

TOKYO (Reuters) – The board of Nissan Motor Co (7201.T) will meet on Tuesday as a split has emerged over the scandal-hit automaker’s next CEO, putting the head of the nominations committee at odds with an influential executive, people familiar with the matter said. FILE PHOTO: The logos of car manufacturers Renault and Nissan are… Continue reading Nissan board set for tense meeting as alleged split over future leadership emerges

GM laying off another 415 workers in Mexico as U.S. strike continues

FILE PHOTO: The GM logo is seen at the General Motors Assembly Plant in Ramos Arizpe, in Coahuila state, Mexico November 25, 2017. REUTERS/Daniel Becerril (Reuters) – General Motors Co (GM.N) said Monday it is temporarily laying off another 415 workers in Mexico as a strike by 48,000 U.S. hourly workers enters its fourth week.… Continue reading GM laying off another 415 workers in Mexico as U.S. strike continues

Bentley Motors becomes the UK’s first carbon neutral luxury automotive factory

Original Article