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Runtime: 7:39
0:28 Tesla’s Q4 Earnings Decent, But Below Expectations
1:47 EV Chargers Push Out Traditional Parts at VW Plant
2:19 VW Teases Electric Dune Buggy Concept
2:38 Toy Car Carrier for Your Toy Cars
3:23 Global Car Sales Dip Slightly in 2018
4:10 PSA Increases Engine Production for Opel/Vauxhall
4:44 Mazda Takes Ford’s Stake in Chinese Engine JV
5:40 Harley-Davidson Continues to Struggle
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On today’s show… while they’re not that bad, Tesla’s earnings fall below analyst expectations… global car sales dropped slightly in 2018… and the dune buggy is back and this time it’s electric. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
TESLA EARNINGS DECENT, BUT BELOW EXPECTATIONS
Tesla reported its fourth quarter earnings, and while the numbers were fairly decent, they came in below analyst expectations, and the stock dropped about $14 a share in after hours trading. Normally we compare an automakers quarterly earnings to the same period the year before. But analysts are now looking at Tesla from quarter to quarter because it’s a more accurate picture of what’s going on at the company. Compared to a year ago Tesla is doing spectacularly well, but comparing it to the previous quarter gives us a better snapshot of what’s happening right now. Tesla delivered nearly 91,000 cars in the last three months of 2018, up nearly 9%. It’s revenue rose close to 6%, while its operating profit was essentially flat and its net profit dropped sharply by over 17%. Tesla improved its free cash flow and says it has the money on hand to start new programs like its electric pickup truck. But the company faces a $900 million payout in March, which it can pay with stock if shares are over $360. Otherwise it has to fork over cash. Yesterday, shares closed at $308 a share.
| Tesla Q4, 2018 Earnings Vs. Q3, 2018 | ||
|---|---|---|
| Sales | 90.966 | +8.9% |
| Revenue | $7.2 billion | +5.8% |
| Operating Income | $412 million | -0.7% |
| Net Profit | $210 million | -17.5% |
EV CHARGERS PUSH OUT TRADITIONAL PARTS AT VW PLANT
Volkswagen has started its switch over to electric mobility. Beginning in 2020, VW’s plant in Hanover, Germany that makes heat exchangers will instead start making EV chargers. The flexible charging stations are designed to use battery cells from its electric vehicles. So, once a pack is no longer fit for use in a vehicle, the chargers will provide a second life for batteries. They will also be able to charge up to four EVs at once and can be used for power storage as well.
VW TEASES ALL-ELECTRIC DUNE BUGGY
And speaking of VW EVs, we told you it would have a new age version of the Meyers Manx dune buggy and here are a few renderings it provided. The fully electric concept has no fixed roof, no doors and large off-road tires. It will make its debut in Geneva on March 5th.
TOY CAR CARRIER FOR YOUR TOY CARS
If you know someone that collects scale model cars, Mercedes may have the perfect gift for them. It’s released a 1:18th scale model version of its Actros car carrier. And the detail is quite remarkable. But like the real deal, it doesn’t come cheap. It’s 630 euro or about $725 and each of the models you see here can be purchased as well.
Still to come… global car sales saw a slight decline last year.
GLOBAL CAR SALES DIP SLIGHTLY IN 2018
As we’ve reported, car sales are slowing in the U.S. but the auto industry is seeing a slowdown in most regions of the world. According to WardsAuto, automakers sold over 92 million light vehicles in 2018, which is a slight drop compared to the prior year. Sales in Asia hit 43 million units, which is down slightly. In North America sales totaled 20.6 million units, which is a drop of 0.4%. Sales in Europe dropped half of a percent to 20.1 million vehicles. The only region to see an increase was South America, which sold 4.1 million light vehicles, a strong 7% gain. All other regions recorded a drop-in sales too.
| 2018 Global Light Vehicle Sales | ||
|---|---|---|
| Total | 92,252,000 | -0.3% |
| Asia | 43,025,000 | -0.6% |
| North America | 20,621,000 | -0.4% |
| Europe | 20,167,000 | -0.5% |
| South America | 4,157,000 | +7.3% |
| All Other Regions | 4,282,000 | -2.6% |
PSA MAKES MORE ENGINES FOR OPEL AND VAUXHALL
PSA is making changes to integrate the Opel and Vauxhall brands into the group. Last week we reported how the Opel Zafira has switched over to a PSA platform and now PSA is investing $285 million to expand engine production to help meet expected demand for the new brands. The plant in Poland, which makes the PureTech turbocharged 1.2L 3-cylinder gasoline engine, will now be able to produce around 460,000 units a year.
MAZDA TAKES FORD’S STAKE IN CHINESE ENGINE JV
In other engine production news, Mazda has taken a 50% stake in an engine joint venture with Chinese automaker Changan. The JV was established in 2005 in China with Changan owning 50% and Ford and Mazda having 25% each. But Mazda is taking over Ford’s share. The plant makes Skyactiv 1.5L, 2.0L and 2.5L gasoline engines, which go in the Mazda3, CX-5 and CX-8 for the Chinese market.
Harley-Davidson is going through some tough times. And we’ll more about that, right after this.
HARLEY CONTINUES TO STRUGGLE
Harley-Davidson is an iconic American brand but it’s really struggling at the moment. The company reported worse than expected fourth-quarter earnings and forecast a slump in sales in 2019. Harley expects to ship up to 222,000 motorcycles this year, which would be its lowest amount since 2010. The company’s struggles are due in part to being caught up in the trade war between the European Union and the Trump Administration. The EU slapped tariffs on motorcycles after Trump imposed duties on steel and aluminum. Harley says the tariffs will cost it between $100 and $120 million this year. But tariffs aren’t Harley’s only problem, it’s also having a hard time attracting younger buyers as its core customers grow older. The company is hoping its upcoming electric bikes can attract younger customers but that remains to be seen. Harley’s stock dropped 5% after it revealed its earnings and its shares have plunged 30% since the beginning of 2018.
And don’t forget to tune into Autoline After Hours this afternoon. Our special guest is Ed Welburn, the former head of design at General Motors. Also joining John and Gary for the show, is the one and only Autoextremist, Peter DeLorenzo. So if you have any questions about GM design or design in general, send them our way to viewermail@autoline.tv or message us on social media. That’s today at 3PM eastern time on our website, Autoline.tv.
But that wraps up today’s show, thanks for watching and please join us again tomorrow.
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John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.
