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Runtime: 7:44
0:07 Ford Q1 Earnings Decent
1:04 Tesla to Launch Own Insurance
1:35 GM Likely to Make C7 Corvette Alongside C8
2:31 Renault To Propose Joint Holding Company with Nissan
3:16 Nissan Adopts GT-R Production Technique for Altima
3:57 Mitsubishi Discontinues Pajero In Japan
4:24 Nikola Motor Creates Electric Jet Ski
4:57 Hellephant Crate Engine Costs $30,000
5:35 Will OEMs Bring EV Component Production In-House?
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This is Autoline Daily reporting on the global automotive industry.
FORD Q1 EARNINGS DECENT
Ford reported fairly decent first quarter earnings. It sold 1.4 million vehicles worldwide, but that was down by a whopping 237,000 vehicles. Its revenue came to $40.3 billion, but that was down by $1.6 billion. EBIT came to $1.6 billion, which was down $300 million and net income came to $1.1 billion and that was down by $600 million. Wait a minute, you might be asking yourselves, didn’t you just say Ford had a fairly decent quarter? Yes, here’s the catch. Wall Street was expecting that earnings would come in at 26 cents a share. But they came in at 44 cents on an adjusted basis. And there’s nothing like an upside surprise to goose your stock price. In early trading Ford was above $10 a share for the first time since last July.
| FORD Q1 2019 EARNINGS | ||
|---|---|---|
| Sales | 1.4 M | -16% |
| Revenue | $40.3 B | -3.9% |
| EBIT | $1.6 B | -19% |
| Net Profit | $1.1 B | -32% |
| Source: Ford | ||
TESLA TO LAUNCH OWN INSURANCE
Tesla owners love their cars but complain they have high insurance rates. So Tesla will offer its own insurance in another month or so. Tesla brags it has the safest cars on the road and says insurance rates should reflect that. It formed a partnership with Liberty Mutual two years ago to offer customers insurance but many owners have complained that the rates are still high. It looks like Tesla agrees and that’s why it’s launching its own insurance.
GM LIKELY TO MAKE C7 CORVETTE ALONGSIDE C8
Since we are pretty sure that the new rear, mid-engine ‘Vette will be quite a bit more expensive than the C7, we wondered if GM would continue building the C7 alongside the C8. Now we think we have our answer. GM announced it’s adding a second shift and 400 more jobs at the Bowling Green assembly plant that makes the ‘Vette. We’re taking that to mean they’re going to build both cars, because there’s no way GM needs two shifts to build one model. Now, there have been rumors that Cadillac will get a sports car off the same platform, but we still think this move is about building the C7 and C8 on two shifts.
RENAULT TO PROPOSE JOINT HOLDING CO. WITH NISSAN
Nissan is very unhappy with its alliance with Renault and wants an equal say in the partnership. Now it looks like the French are finally listening. Japan’s Nikkei newspaper reports that Renault will propose a plan to create a joint holding company with Nissan, which would give both companies equal footing. Both automakers would nominate the same number of directors to the new company, ordinary shares for both would be transferred on a balanced basis and the new company would be headquartered in a third country. If Nissan is on board with the proposal we believe the Carlos Ghosn saga is going to wrap up quickly. Here’s our Autoline Insight. He’ll be convicted. Released for time served. And banned from Japan for life.
NISSAN ADOPTS GT-R PRODUCTION TECHNIQUE FOR ALTIMA
A unique manufacturing technique that has mostly been reserved for sports cars, like the GT-R and Mustang GT500, is now making its way into the Nissan Altima. The cylinder walls of the Altima’s 2.5L 4-cylinder engine are undergoing a process called plasma transferred wire arc thermal spraying. High-powered electricity is used to liquefy metal wire, which is then blown into the cylinder with a gas, coating its walls up to 0.2 millimeters thick. The coating is then machined to a mirror finish with a diamond encrusted drill bit. The process helps improve engine efficiency and eliminates the need for cylinder liners.
MITSUBISHI DISCONTINUES PAJERO IN JAPAN
Do you remember the Mitsubishi Montero? The SUV was discontinued in the U.S. 13 years ago, but it’s only now coming to the end of its life in Japan, where it’s called the Pajero. And to send it off into the sunset, Mitsubishi is going to make 700 Final Edition models. It has a number of unique touches, but what strikes us is, how much it still looks like the vehicle that left our shores all those years ago.
NIKOLA MOTOR CREATES ELECTRIC JET SKI
Nikola Motor is making a name for itself with electric semis, but now its dipping its toe into the world of watersports. The WAV, which stands for Water Adventure Vehicle, is an all-electric jet ski concept whose design was modeled after sport bikes. You’ll also notice futuristic LED lighting on the front and rear and a large 12-inch 4K display screen. No word yet on battery capacity, usage time or when it will come out, but you’re able to plunk down your free reservation right now if you want.
HELLEPHANT CRATE ENGINE COSTS $30,000
1,000-horsepower does not come cheap. Mopar revealed its Hellephant crate engine will cost a few dollars less than $30-grand. That’s about $10,000 more than a Hellcat crate engine. And if you want the plug-and-play Engine Kit, which includes wiring harness and engine computer, it’s another 22-hundred bucks. Pre-ordering is open now.
WILL OEMs BRING EV COMPONENT PRODUCTION IN-HOUSE?
BorgWarner is creating EV powertrains that integrate the electric motor, power electronics and the transmission into one unit. Today, most automakers make their own engines and transmissions. But in the future, will automakers buy modules, like BorgWarner’s, from suppliers or will they bring that production in house? On Autoline This Week, Fred Lissalde, the CEO of BorgWarner, answers that question.
(The ATW preview is only available in the video version of today’s show.)
You can watch that entire discussion right now on our website, Autoline.tv or you can find it on our YouTube channel.
But that wraps up today’s report, thanks for watching and have a great weekend.
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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.
