Tag: GM

UPDATE 2-UAW sues GM over use of temporary workers at Indiana plant

DETROIT (Reuters) – The United Auto Workers union sued General Motors Co (GM.N) in federal court on Thursday, claiming the automaker’s use of temporary workers at a plant in Indiana violates its labor deal and escalating a fight over GM’s plans to possibly close U.S. factories. FILE PHOTO: Assembled trucks are ready for delivery at… Continue reading UPDATE 2-UAW sues GM over use of temporary workers at Indiana plant

China annual auto sales fall for first time in about two decades with more pain on the way

Fred Dufour | AFP | Getty Images
This picture taken on November 22, 2018 shows vehicles at a Hongqi car dealer in Beijing.

Auto sales in China fell 3 percent in 2018 — their first decline in about two decades and a mild introduction to even more pain coming for automakers doing business in Asia this year, according to China auto consulting firm ZoZoGo.

The slowdown is especially painful for U.S. automakers operating in China, which dwarfs the U.S. as the world's largest car market. Automakers sold roughly 28 million automobiles in China in 2018, compared with about 17 million in the U.S. — the second-largest auto market.

A combination of trade tensions and consumer jitters have stalled sales in a country that has historically been a considerable source of growth for the industry.

“Look for the market to fall another 5 percent in 2019 because consumer confidence remains shaky,” said Michael Dunne, the CEO of ZoZoGo, which advises automakers doing business in China. Dunne is the former president of GM Indonesia. “There's simply too much uncertainty amidst a slowing economy, job security worries and then there is the big cloud of angst about US-China trade tensions. ”

U.S. automaker General Motors has said it is doing well in the country, despite what it calls a challenging business environment. Ford has been less fortunate, due in part to automaker's failure to churn out product fast enough in the highly competitive Chinese market.

U.S. stocks fell sharply on Thursday following a dire quarterly warning from Apple and the release of weaker-than-expected manufacturing data. The iPhone maker blamed a slowing Chinese economy for the shortfall, intensifying fears that the global economy may be slowing down.

Automakers close out 2018 with drop in U.S. new vehicle sales

DETROIT (Reuters) – Major automakers on Thursday posted a weak finish to 2018 for U.S. new vehicle sales as the industry braced for what is widely expected to be a worse year for sales in 2019. FILE PHOTO: A logo of General Motors is pictured at its plant in Silao, in Guanajuato state, Mexico, November… Continue reading Automakers close out 2018 with drop in U.S. new vehicle sales

UPDATE 1-Reuss, head of self-driving unit, to succeed Ammann as GM president

FILE PHOTO: General Motors Executive Vice President Global Product Design Mark Reuss talks about the new 2019 GMC Sierra Denali pickup truck at the Russell Industrial Center in Detroit, Michigan, U.S., March 1, 2018. REUTERS/Rebecca Cook (Reuters) – General Motors Co (GM.N) said on Thursday that Mark Reuss would succeed Dan Ammann as president, effective… Continue reading UPDATE 1-Reuss, head of self-driving unit, to succeed Ammann as GM president

Reuss, head of self-driving unit, to succeed Ammann as GM president

FILE PHOTO: General Motors Executive Vice President Global Product Design Mark Reuss talks about the new 2019 GMC Sierra Denali pickup truck at the Russell Industrial Center in Detroit, Michigan, U.S., March 1, 2018. REUTERS/Rebecca Cook (Reuters) – General Motors Co (GM.N) said on Thursday that Mark Reuss would succeed Dan Ammann as president, effective… Continue reading Reuss, head of self-driving unit, to succeed Ammann as GM president

GM names Mark Reuss company president

FILE PHOTO: General Motors Executive Vice President Global Product Design Mark Reuss talks about the new 2019 GMC Sierra Denali pickup truck at the Russell Industrial Center in Detroit, Michigan, U.S., March 1, 2018. REUTERS/Rebecca Cook (Reuters) – General Motors Co (GM.N) on Thursday named Mark Reuss president, effective immediately, tapping into his experience in… Continue reading GM names Mark Reuss company president

General Motors’ new vehicle sales drop 2.7 percent in fourth quarter

FILE PHOTO: A logo of General Motors is pictured at its plant in Silao, in Guanajuato state, Mexico, November 9, 2017. REUTERS/Edgard Garrido DETROIT (Reuters) – General Motors Co (GM.N) on Thursday reported that its U.S. new vehicle sales fell 2.7 percent in the fourth quarter, with declines across most of its brands. The No.… Continue reading General Motors’ new vehicle sales drop 2.7 percent in fourth quarter

Tesla cuts U.S. prices on all vehicles, shares drop

(Reuters) – Tesla Inc (TSLA.O) on Wednesday cut U.S. prices for all its vehicles to offset lower green tax credits, and fell short on quarterly deliveries of its mass-market Model 3 sedan, sending shares of the electric vehicle maker down nearly 7 percent on worries of future profitability. Analysts questioned whether the $2,000 price cut… Continue reading Tesla cuts U.S. prices on all vehicles, shares drop

Tesla cuts prices $2,000, almost hit 250,000 vehicles in 2018

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2017 Tesla Model 3
Tesla and its CEO Elon Musk made a multi-layered end-of-year push, focused on Tesla's final days and weeks of $7,500 federal EV tax credit eligibility. And with more than 90,000 vehicle deliveries in the fourth quarter of the year—a new record for the California electric-car maker—it appears to have worked.

According to Tesla, it delivered 90,700 vehicles in Q4 2018—8 percent more than in Q3. That included 63,150 deliveries of its mass-market sedan, the Model 3.

DON'T MISS: What effect will lower tax credits on Tesla and GM plug-ins have in the new year?

Model 3 sales alone, for the full year, added up to more than 145,000 vehicles—not far from the 150,000 level, but falling short of some end-of-year estimates. In all, Tesla delivered 245,240 vehicles, which means the automaker is now in close company with any number of strong-selling established brands.

2018 Tesla Model S

The production rate for Q4 2018 included 86,555 vehicles, with 61,394 Model 3 sedans and 25,161 Model S and Model X vehicles. For the Model 3, that amounts to an average rate of 4,722 vehicles per week over the quarter—a fair amount below the 5,000/week rate that Tesla CEO Elon Musk said would be required to make the car profitable in 2018.

Tesla notes that it's reducing the number of models in transit through improvements to its logistics system. Deliveries exceeded production across both of Tesla's model lines, but the company didn't clarify whether that serves as evidence of the improvement.

CHECK OUT: Tesla offers to cover remainder of full tax credit if it can't deliver by year-end

It may prove easier to build stock this quarter because Tesla's eligibility window for the $7,500 federal EV tax credit has passed. Tesla is countering that, however, with a $2,000 U.S. price reduction for the Model 3, as well as the Model S and Model X. Since customers can still receive a federal tax credit of $3,750 on Tesla vehicles for the next six months, it helps soften what's effectively a price hike.

Tesla claims to have started 2018 with a delivery run rate of 120,000 vehicles and ended it at more than 350,000 vehicles per year. We've heard such claims before—like Musk's original target of 500,000 vehicles in 2020—so just as with the financials on the fourth quarter, we'll just have to wait for the numbers.