On today’s show…Panasonic is developing batteries that don’t use cobalt…due to slumping sales, Nissan is slashing production in North America…and General Motors explains why it’s keeping its operations in South Korea. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
NISSAN SLASHES NORTH AMERICAN PRODUCTION
Nissan is struggling in the American market this year. The company’s sales plunged nearly 30% in April and through the first four months of the year, sales are down 6.5%. Because of this, it’s inventory is piling up. According to WardsAuto, the company had 88 days of supply at the end of April. So it’s not surprising to learn that Nissan is cutting production this summer to reduce its inventory. Bloomberg reports that the company will slash production by 20% at five of its plants in the U.S. and Mexico. This is part of a strategy to boost profitability in North America. Last year the company grew its market share by boosting incentives and fleet sales, but that ended up cutting into its profit margin.
KIA NAMES NEW HEAD OF U.S. OPERATIONS
At the beginning of April, Michael Sprague, the Chief Operating Officer of Kia Motors America, abruptly left the company. And now Kia has finally announced his replacement. Michael Cole, who’s currently the COO of Kia Motors Europe, has been tapped to replace Sprague. He will be in charge of sales, marketing and product planning functions in the U.S.
JEFF BRACKEN TO RETIRE FROM LEXUS
And speaking of management changes, Lexus has announced that its group vice president and general manager, Jeff Bracken will be replaced by David Christ. It doesn’t seem to have to do with performance. Lexus’ sales are up 2 and a quarter percent so far this year. Bracken, who’s been a guest on our shows several times in the past, will take over the role of executive advisor to Lexus until August 1st, at which time he will retire after 40 years within the Toyota group.
And we’ll be back with more right after this.
CALIFORNIA TO TEST DIGITAL LICENSE PLATES
You may remember from our coverage of the National Automobile Dealers Association trade show, a company by the name of Reviver that’s trying to get people to buy into the idea of digital license plates. Well, we just learned that California is finally rolling out a pilot program for the plates. They’re also approved for Texas, Florida and Arizona, so I’ve got to imagine those states will keep an eye on the California test. But at the time of NADA a whole lot of you commented that the price would keep you from buying a digital plate. Go back to watch the video to find out just how much. It may shock you.
PANASONIC DEVELOPING COBALT-FREE BATTERIES
As we’ve reported recently, prices for cobalt, which is used in lithium-ion batteries, has quadrupled in just the last two years and Chinese companies dominate the supply chain. That has left top battery makers scrambling to reduce the amount of cobalt they use in their batteries and now Panasonic has announced it wants to make batteries with no cobalt. It says development is already underway and hopes to achieve its goal in the near future. We thought the cost of making batteries may not come down as fast as some have predicted, but there’s still reason to be hopeful.
Coming up next, General Motors explains its decision to remain in South Korea.
GM EXPLAINS SOUTH KOREA DECISION
Due to plummeting sales and high labor costs, General Motors considered pulling out of the South Korean market. But a little more than a month ago, GM was able to make a deal with its workers and the South Korean government to keep its operations going. On Autoline This Week, we were joined by Dan Ammann, the President of GM, and he talked about the company’s decision to stay in South Korea.
(The ATW preview is only available in the video version of today’s show.)
You can watch that entire discussion with Dan Ammann right now on our website, Autoline.tv or you can find it on our YouTube channel.
And don’t forget to join us this Thursday for Autoline After Hours when we’ll have Brian McKay, the head of powertrain technology for North America for the supplier Continental. If you have any powertrain questions funnel them our way to viewermail@autoline.tv, then join us live at 3PM eastern time for some of the best inside talk in the automotive industry.
But that’s it for today, thanks for watching and please join us again tomorrow.
Share
Permalink
Comments (12)
May 30th, 2018 at 11:48 am
For the GM “explanation” as how/why they decided to remain in South Korea…there were a lot of talking points covered but no disclosure how “they” removed 40% of the overhead in the So American factories and how that solution is applied to the South Korean business model.
May 30th, 2018 at 11:49 am
Year the R plate is cool. The price tag not so much. However, I can see a path where OEM’s could be required to incorporate said item into the build of the car making is much less expensive.
May 30th, 2018 at 12:17 pm
Nissan makes good stuff; as mentioned yesterday, styling and design need to improve (and that could save Nissan in the U.S.).
It seems the way of the world is electronics; why not ‘bag’ license plates altogether and use scan chip technology. For BOLO’s (be on the lookout), make and model can still be used, then go in for the kill with the chip scanner for absolute identity. Color/make/model/year have been used since day-one as primary search tools.
May 30th, 2018 at 12:25 pm
Other car manufacturers have had labor strikes over low pay and benefits. Wonder how GM is avoiding these issues?
May 30th, 2018 at 12:34 pm
We can’t get the 50 states to align on license plate locations (rear only vs. front and rear). I do t see them aligning on the technical requirements of an electronic license plate in a manner that makes these plates affordable. Also, there are a lot of civil servant jobs at stake here. Another issue will be digital security and anti-theft security.
On the plus side, I could be an advocate if it allowed temporary messaging to vehicles behind me – “please dim your lights” and “beware of sudden deceleration” (for tailgaters). The total price needs to remove a digit for the initial acquisition and NOT have a monthly fee. Otherwise, it is DOA.
May 30th, 2018 at 12:38 pm
Digital plates could have their advantages to some degree. If a plate has expired, it could simply read “EXPIRED” or if there was a lookout for it it could flash different colors to attract attention to itself. If car designers have a hand it, front plates could be integrated into the fascia (for the states that still require them). The downside if if it gets damaged by road debris, would you want to pay $700 or even $200 (after a $500 deductible).
Personally, I’ll stick with a metal plate.
In Korea, GM has had a tough way to go with the unions after buying the Daewoo assets. There have been numerous strikes and work stoppages at the GM owned (sort of) facilities.
May 30th, 2018 at 2:08 pm
Considering how long it took many states to catch up with technology and allow people to renew their plates on-line. I dont see them being able to gear up for something like this anytime soon. Also with many small bump to the rear end, a steel plate would probably fair far better than a screen. No need to add that huge cost for the small advantage it provides.
May 30th, 2018 at 2:19 pm
One week after learning of a Model 3 ABS problem, it is fixed (see link.) The first emergency brake engaging the ABS worked fine, 133 ft, but the subsequent ones ran over 150 ft. It was still not working right after overnight and Consumer Reports replicated it with a borrowed Model 3.
Elon promised a fix over the weekend and delivered using over the air update. Apparently Consumer Reports is very impressed with the speed of the fix and effectiveness.
May 30th, 2018 at 6:14 pm
I would like to suggest to Tom Doll at Subaru that they add a chrome accent bar between the rear tail lights of the soon be released 2019 Subaru Forester. This chrome accent bar between the rear tail lights will give the New 2019 Forester an unmistakable signature to it’s rear and a more upscale look IMHO.
May 31st, 2018 at 9:04 am
From a recent Tesla report (see link:)
“Cells used in Model 3 are the highest energy density cells used in any electric vehicle. We have achieved this by significantly reducing cobalt content per battery pack while increasing nickel content and still maintaining superior thermal stability. The cobalt content of our Nickel-Cobalt-Aluminum cathode chemistry is already lower than next-generation cathodes that will be made by other cell producers with a Nickel-Manganese-Cobalt ratio of 8:1:1. As a result, even with its battery, the gross weight of Model 3 is on par with its gasoline-powered counterparts.”
May 31st, 2018 at 10:28 am
On Telsa – I wonder how thoroughly tested the “fix” was before it was rolled out. Perhaps the tweak provided for better braking on dry payment to satisfy the testing procedure used by CR, but might degraded performance under other conditions (e.g., wet pavement or ice). Having worked for a large automotive OEM, even minute tweaks to anything safety related REQUIRED months of validation testing (physical and simulation) prior to production changes being approved. Just seems like Tesla was either sloppy in its initial calibration of its braking system, or the calibration was the way it was for a reason to balance performance under numerous conditions. I’m not sure I’d want a “fix” to my braking system that took less than a week from start to finish.
May 31st, 2018 at 11:57 am
10 Do you know if battery cells in other EV’s are cylindrical like Tesla’s, or are most flat like the batteries in electronic devices, and electric model airplanes?