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Runtime: 6:20
0:06 Full-Size Commercial Van Sales Soar
0:59 Global Sales Slowing
1:25 New Car Prices Continue Climbing
1:52 Tesla Likely Needs A Capital Raise
2:35 SEAT Uses VR To Make Workers More Efficient
3:25 Ford & Amazon Deliver Packages to Your Trunk
4:34 Distracted Driving Becomes Massive Epidemic
5:22 Porsche Re-Prints Classic Manuals
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This is Autoline Daily reporting on the global automotive industry.
SALES ARE VAN-TASTIC!
Later today automakers will report their sales for April in the U.S. market. Last month, analysts were caught by surprise when sales came in far stronger than they expected. Here’s one reason why. The full-size commercial van market is on fire. Sales were up 15% for the segment, and all but the Ford Econoline posted double digit gains. In fact, sales of the Ram ProMaster shot up a staggering 108%. Most of these vans represent fleet sales, and while most analysts turn up their noses at fleet sales where profits are lower because of heavy discounts, these vans are part of commercial fleet sales, where automakers can make good money. Tomorrow we’ll give you an update on April sales and let you know if these vans are still flying off dealer’s lots.
| U.S. FULL SIZE VAN SALES, MARCH 2019 | ||
|---|---|---|
| Ford Transit | 14,648 | +15.3% |
| Chevrolet Express | 8,071 | +12.7% |
| Ram ProMaster | 4,928 | +108% |
| Ford Econoline | 4,100 | -18% |
| GMC Savana | 3,505 | +38.8% |
| Mercedes Sprinter | 3,003 | +28% |
| Nissan NV | 1,805 | +16.7% |
| TOTAL | 40,060 | +14.8% |
| Source: WardsAuto | ||
GLOBAL SALES SLOWING
BTW, sales of new cars and trucks ain’t doin’ so good around the world. Wards reports that in the first quarter, sales fell in North America, South America, Europe, Asia, China and the rest of the world. Sales were down 4% worldwide, yet automakers sold 8.8 million vehicles, which is still a lot of cars and trucks.
PRICES CONTINUE CLIMBING
Speaking of sales of new vehicles, prices continue to climb higher and higher. Kelley Blue Book reports that the estimated average transaction price for a light vehicle in the U.S. was just under $37,000 in April. That’s a 2% increase compared to April of 2018. KBB says the shift towards SUVs and crossovers accounts for most of the increase.
TESLA LIKELY NEEDS A CAPITAL RAISE
Elon Musk is changing his tune on whether Tesla needs to raise more capital. Musk had emphatically declared that the company would not need to raise more money, that it would soon turn cash-flow positive, and that haters would pay dearly for doubting him. That was then. Now he says that raising more money might be a good idea. But that would probably hurt Tesla stock, which is down 30% so far this year.
SEAT USES VR TO MAKE WORKERS MORE EFFICIENT
We always like to bring you up to speed on some of the latest developments in automotive manufacturing, so let’s take a look at a biomechanics lab that Spanish automaker SEAT is using. SEAT, which is part of the Volkswagen Group, uses the lab to reduce injuries to line workers. The lab uses 20 cameras, a number of different sensors and virtual reality goggles to recreate the assembly line, to measure repetitive stress in workers. Researchers simulate different positions to find the best option for workers, and they can simulate the assembly process before a car actually goes into production. Not only does it help save time and money, SEAT says it’s been able to reduce the rate of muscle injuries in line workers by 70% since the lab opened two years ago.
FORD & AMAZON DELIVER PACKAGES TO YOUR TRUNK
Ford is partnering with Amazon so Ford and Lincoln owners can now have their Amazon Prime packages delivered right to the trunk of their car. The Key by Amazon service works with 2017 and newer vehicles with FordPass Connect and on 2018 Lincolns and newer with Lincoln Connect. It will be available pretty much everywhere Amazon offers the service, which is currently in several U.S. cities. Ford says this is one of the first of a number of new services it will make available to owners of its connected cars.
Be sure to join us for Autoline After Hours tomorrow afternoon. Gary Vasilash is hosting a roundtable of auto analysts to get their insight into what’s going on in the auto industry. So if you have any questions for the panel, send them our way to viewermail@autoline.tv. And tune in Thursday at 3PM eastern time on our website, Autoline.tv.
DISTRACTED DRIVING BECOMES MASSIVE EPIDEMIC
Insurance experts say that distracted driving rose 10% last year and is now a “massive epidemic.” Distracted driving is more predictive of potential accidents than looking at speeding or heavy braking. Drivers who use their cellphones have 20% more insurance claims. Distracted driving led to a 15% increase in U.S. traffic fatalities from 2014 to 2016. But drivers who install a monitoring system in their cars to get lower insurance rates, and who regularly monitor that data see their distraction levels drop by 35%. Seeing that data is critical because most people rate themselves as extremely safe drivers.
PORSCHE RE-PRINTS CLASSIC MANUALS
If you own a classic Porsche but no longer have the owner’s manual, you’re in luck. Porsche is reprinting more than 700 original manuals, from nearly all its early models, starting with a 1952 356 all the way up to the 911 type 996. Technical information, settings and tips for the car are also provided. The manuals are available at all of its dealers worldwide or some of the documents can be ordered at the Porsche Classic online shop.
But that wraps up today’s report, 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.
