AD #1365 – Top Automakers by Revenue, Toyota May Move U.S. HQ, Havana Motor Club

April 28th, 2014 at 12:03pm

Runtime: 9:49

- Top Automakers by Revenue
- Toyota May Move U.S. HQ
- VW Threatens Tennessee
- Automotive Job Fair
- Shocking News for Chevy SS
- Buick Upgrades LaCrosse Interior
- Havana Motor Club

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Hello and welcome to a brand new week of Autoline Daily where we cover the industry that never sleeps.

RANKING BY REVENUE
So which car company pulled in the most cash last year? That honor goes to the Volkswagen Group, with $260 billion. But Toyota is hot on its heels and could surpass VW before this year is over. Next come Renault-Nissan, Daimler, General Motors and Ford. In fact, the way things are going, Ford could catch GM in revenue. Next up are Hyundai-Kia and Honda, then Fiat-Chrysler and BMW. I find that ranking these automakers by revenue is very telling.For example, look how far Daimler is up the list even though it sells millions of vehicle less than VW, Toyota or GM. And remember, we’re not talking about the bottom line, we’re talking about the top line. And just to give you an idea of the economic impact the auto industry has, these Top 10 automakers generated $1.6 trillion in revenue last year.

RANKING OEM’S BY 2013 REVENUE (In Billions)

1. VW AG $260
2. Toyota $255
3. Renault-Nissan $168
4. Daimler $156
5. General Motors $155
6. Ford $147
7. Hyundai-Kia $130
8. Honda $121
9. Fiat-Chrysler $114
10. BMW $100

Source: Company reports, Autoline

GOODBYE GOLDEN STATE
In a stunning development, Bloomberg reports that Toyota will move large parts of its U.S. headquarters from California to Texas. The company has more than 5,300 employees at its campus in Torrance, California and will inform them of the decision today. Reportedly the new headquarters will be near Plano, Texas. Toyota is also reorganizing its marketing unit in the U.S. Some employees will be reassigned while others will be offered voluntary buyouts. Toyota isn’t the first automaker to bail on California. Nissan moved its headquarters from the Golden State to Tennessee several years ago and Honda has also moved a lot of resources out of the state to Ohio.

VW THREATENS TN
A report from the Associated Press says that Volkswagen is playing hardball with the state of Tennessee. It’s all about getting the state to give the car maker $300 million in incentives to build a second product in that plant, in this case an SUV that VW badly needs. Tennessee reportedly pulled those incentives off the table when it looked like the UAW would organize that plant. VW says its already secured incentives from another location, presumably in Mexico to build the SUV there. But I would tell Tennessee to take those threats with a grain of salt. I see automakers do this all the time. They dangle out the prospect of jobs as long as they get millions of taxpayer dollars. Here’s my Autoline Insight, bargain hard Tennesee. The Chattanooga plant desperately needs another product if it’s going to be profitable. Last year it only built 133,000 Passats and sales of the Passat are falling fast, and VW cannot gamble with that billion dollar plant only making one model.

GET A JOB
Are you interested in working in the auto industry? Or, if you already do, are you interested in a different job? Well, the Michigan Economic Development Corporation is holding a giant jobs match-making fair in Detroit at Ford Field on June 13th, but you have to register before April 30th. All kinds of automotive companies are involved, including GM, Ford, Chrysler, Toyota, and Nissan, as well as most of the major supplier companies. They want to hire 1,200 people, with skills in engineering, sales, manufacturing, operations, supply chain, project management, HR, marketing, IT and design. There’s no cost to attend but you do have to register. Go to the website puremichigandreamjob.com, where hopefully you will find the job of your dreams.

SHOCKING NEWS FOR SS
Performance fans rejoice because according to the folks over at Motor Trend the 2015 Chevy SS will be adding a manual transmission and magnetic ride control suspension. It’s currently offered with a 6-speed automatic, front MacPherson struts and a multi-link rear suspension with coil over shocks. The move could happen as early as this summer.

LUXO BUICKS
And speaking of GM, Buick will now offer an exclusive interior for the LaCrosse called the Ultra Luxury Interior Package. It features premium materials and color combinations that are only available on Leather, Premium and Premium II trim levels equipped with the 3.6L V6 engine. The package is currently only available for the LaCrosse but Buick says it’s exploring all avenues.

Cuba remains a police state, but automotive enthusiasts are sneaking in street racing right under the nose of the authorities. That’s coming up next.

HAVANA MOTOR CLUB
Many of our audience may remember the documentary we did a couple years ago on the classic cars in Cuba. And if you haven’t seen it, you should check it out on our website. But even though change is coming to Cuba, two constants remain: it’s still a poor population driving some of the sweetest classic cars on earth. In fact, there’s a new film hitting theaters this year that takes us behind the scenes of the Havana Motor Club where we experience the forbidden sport — at least in Cuba since the revolution — of car racing. Check out my interview with the film’s director Bent-Jorgan Perlmutt.

(The Havana Motor Club interview is only available in the video version of today’s show.)

Bent says they shot more than 300 hours of race footage and interviews during their time in Cuba. That’s a lot of editing they have to do. So if you want to help the team finish the film you can either search for Havana Motor Club at Kickstarter.com and donate, or go to our DAILY show notes and click on the link which’ll take you there, too.

And that wraps up today’s report.

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26 Comments to “AD #1365 – Top Automakers by Revenue, Toyota May Move U.S. HQ, Havana Motor Club”

  1. pedro fernandez Says:

    I have been waiting for change to come to my homeland for 30 yrs, I am now over 60 and have come to the conclusion that I won’t see it in my life time, these opportunists taking advantage of the misery of those people over there, trust me, if it wasn’t for that despot who has been destroying that country for half a century now, the people would not be driving relics from an era gone by, they would be going out and purchasing new, safe vehicles depending on what their income could afford just like the rest of the world.

  2. G.A.Branigan Says:

    I hear ya Pedro.I too hate communists and have fought them.

  3. pedro fernandez Says:

    Ironic how we get one report on how car makers are reeling in those millions and then we get another story about one those same makers asking for taxpayer money so they can build more and make even more money, it’s disgusting!

  4. T. Bejma Says:

    #3

    That is the way the transplants are here in the US, Pedro. They expect, and in most cases received, incentives as a requirement to do business. Every single one of them got HUGE tax breaks, infrastructure improvements and even free training to their employees to entice them to build here while at the same time most of the domestics were in plants built several years before, not on the backs of tax payers.

    Disgusting? Absolutely! And very un-American!

  5. buzzerd Says:

    As usual so many people thought it was terrible to loan american companies money when the the industry was in the tank but it’s just good business to GIVE companies money to buy jobs. And it’s not just the auto industry, when can include- sports teams, farm aid, the oil industry….

  6. Chuck @ GM Says:

    Incentives to build it here. That is the current climate we’re in folks.

  7. Chuck @ GM Says:

    Pedro – Maybe it was just JFK and me, and I am not sure about JFK, who really bought into his inaugural speech statement

    “Let every nation know, whether it wishes us well or ill, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe to assure the survival and the success of liberty.”

    Our history is littered with the failure to live up to that promise.

    When I hear stories from people like you it makes me sick to know we have betrayed the trust of the people who trusted us.

  8. Bradley Says:

    #4

    Un-American…Unfortunately, I think its very American. The Detroit brands are not isolated from this behavior either.

    Most of the time, its the states/city governments competing among themselves.

  9. MARSHALL Says:

    Now all Chevy has to do is change the body of the SS to give it some sex appeal. Currently it looks like a budget rental car. With a capital ‘B’ for boring!

  10. w l simpson Says:

    Greed, thru politics, RULE !

    Speaking as an ex (native) Miamian , if Kennedy
    has done the job he was hired for , Miami would
    still be an American city.

    Let’s get back to cars tomorrow.

  11. pedro fernandez Says:

    #10 OUCH!

  12. Brett Says:

    How lame of him to die like that. Didn’t even give us two weeks notice or anything.

  13. cwolf Says:

    Gee, lets think about this a bit more open minded; John says VW cannot afford to gamble with the state of Tenn. because they need to maximize utilization to become profitable. Maybe so, but, as I stated earlier, VW can remind Tenn. they can vote in the UAW themselves if they fail on their promise.
    If a UAW revote comes to fruition and the state reneges, the tally may benifit the UAW. Furthermore, now that a retired UAW crony sits on the GM board, the action may overcome the stigma of the UAW of old. The action and desire to collectively collaborate towards the betterment of company and union workers may be enough to change the attitudes of Toyota and workers regardless of any unfulfilled promise. One thing for sure; Corker and his mob better produce or ……

  14. T. Bejma Says:

    #8

    How so Bradley? The Detroit 3 have not built a new assembly plant in several years (in fact they have closed as many as the transplants have opened). I would hope that if the Detroit 3 would build a new plant, that they would see some of the same advantages as the transplants did, but I somehow doubt it…

  15. G.A.Branigan Says:

    @ TB: Didn’t the off shore oems come here to avoid the ‘chicken tax’,and the high costs of importing/transportation etc?

  16. pedro fernandez Says:

    Miss HtG, did he leave due to the BS he had to put up with the other day? He was a great contributor on this blog and friendly to all.

  17. cwolf Says:

    I bet Ford, Chry and GM will find it in their favor and using quiet resorces to get the transplants unionized, …preferably by the UAW. Think about it…

    I miss HtG, too. I’m sure he’s looking in.

  18. Ziggy Says:

    @#4 You got a lot of nerve complaining about what the taxpayers are giving transplants after every single taxpayer in the country bailed out your sorry company and lost tons of money on the deal to boot. Folks in glass houses…..

  19. cwolf Says:

    Ziggy, many American companys may have created glass houses for themselves which collapsed as a result of the economy. But to say taxpayers lost on the deal? Just imagine what you would have lost if the bail-out hadn’t occured? You’d be a temp burger flipper or a new Mexican citizen toting bails across the boarder.

  20. Bradley Says:

    #14

    I definitely think the Detroit 3 would receive similar treatment. Here is one example not tied to GMs resurrection.

    http://www.freep.com/article/20131212/BUSINESS01/312120099/GM-Ford-federal-tax-credit

  21. C - Tech Says:

    Just catching up. Is the self – cleaning coating work with children and pets?

    Is the difference between BMW and Benzs in revenue due to M – trucks ?

    I believe our so – called representatives give away too much in tax incentives. Check the new soccer stadium in Orlando.

  22. T. Bejma Says:

    #20

    $20 Million to GM and $30 Million to Ford is a drop in the bucket compared to what was given to VW. Not even in the same ballpark.

    “Chattanooga upped the recruitment ante to a record level two years ago when it lured Volkswagen of America to build its only U.S. assembly plant at the Enterprise South Industrial Park.

    The city and county gave the car maker the plant site and will exempt all but the school tax portion of its property taxes for 30 years. The state is providing job tax credits, on-site worker training and roads and railroads to the plant site.

    In all, the Volkswagen incentive package is valued at more than $577 million, which Mr. LeRoy says is the richest incentive package for any automobile plant.”

    http://www.timesfreepress.com/news/2010/jul/09/value-business-tax-incentives-debated/

  23. Bradley Says:

    #22

    From GM’s 2013 Annual Report:
    In the year ended December 31, 2012 income tax benefit increased due primarily to:
    (1) deferred tax asset valuation allowance
    reversals of $36.3 billion in the U.S. and Canada in 2012 as compared to $0.5 billion in Australia in 2011; and
    (2) change in U.S.
    federal tax elections which permitted us to record a tax benefit of $1.1 billion related to foreign tax credits; partially offset by
    (3) current year U.S. income tax provision of $1.4 billion; and
    (4) income tax allocation from Accumulated other comprehensive loss
    to Income tax expense (benefit) of $0.6 billion related to the U.S. salary pension plan.

  24. Kit Gerhart Says:

    16, 17
    HtG, if you are out there. I miss you too.

  25. G.A.Branigan Says:

    @ HtG: Iffin ya don’t show up soon,you’ll be reported AWOL ;}>

  26. Don B. Says:

    I would love to see the Buick Enclave luxed up and V8 put in it. Yea turn it into a Porsche Cayenne killer.