AD #2374 – Ferrari To Offer Bridgestone Run-Flat Tires, Tesla Cuts Workforce, Used Car Prices Hit Record High

June 13th, 2018 at 11:09am

Runtime: 5:24

0:26 Tesla Cuts Workforce
0:57 Prosecutors Allege FCA/UAW Conspiracy
2:00 Ferrari To Offer Bridgestone Run-Flat Tires
2:35 Used Car Prices Hit Record High
3:50 Toyota Makes Big Bet on Mobility
4:19 Volvo S60 Polestar Details

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17 Comments to “AD #2374 – Ferrari To Offer Bridgestone Run-Flat Tires, Tesla Cuts Workforce, Used Car Prices Hit Record High”

  1. Ron Paris Says:

    With regard to increasing used car prices, how does “a growing number of near-new vehicles coming off-lease” push prices up? Doesn’t that generally have the opposite effect?

  2. GM Veteran Says:

    So, the S60 trim level just below the Polestar trim will have 400 hp next year? That is quite a bump up! The current Polestar S60 offers 362 hp and the R-Design trim level just below that offers 302 hp. Not sure the gold bits and 15 extra ponies will be worth the price premium. In the current model, that premium is $12,500.

  3. Fred Schmidt Says:

    #1 I doesn’t seem to make sense to me either. The only factor could be dealers giving higher trade in price to lure buyers to buy a new car. This could lead to used cars averaging higher in price to buyers. I think this would be temporary until these used cars start to back up at dealers because of the very same price inflation.

  4. Chuck Grenci Says:

    Some of those off-lease cars also enter the used car segment as CPO (certified pre-owned); that also helps maintain a higher residual (as the guarantee is usually amortized in the price). I, also, don’t see how that raises ‘other’ used car prices (but I don’t think I’d argue against John on this one).

  5. Kevin Says:

    #1 I think what they are saying is that when you add a lot of high value late model cars to the used car fleet, the average cost of a used car, including the new one, rises.

  6. JWH Says:

    Run Flat tires – Interesting that Ferrari is now using run flats – Chevrolet has been using them on the Corvette for a few years & I don’t have any major complaints on our 2016. The run flat products seem to be improving with each redesign which is what we would hope for. When we have to replace tires we will probably stick with run flats due to the potential risk of requiring a tow truck with standard tires.

  7. Drew Says:

    @1, 3, 4 – Leasing and rebates over the past 5 years (or so) resulted in people driving more expensive new vehicles (both in terms of series/option content and vehicle segment type). As those vehicles enter the used car market, I’m not surprised they are generating higher revenue. And a growing portion of the population find 2-3 year old vehicles with a year of remaining warranty or CPO to be a good value at 70% of the price of new vehicles.

  8. Ron Paris Says:

    I’d like to hear JM weigh in on this (#1).

  9. phred Says:

    Thr ride sharing mobility service companies that are now the rage for major car manufacturers is nothing more than “poaching” the classic cab company market segment as a group. With individual and group “seating” in a new car.. why “hail a cab”?

  10. Lambo2015 Says:

    I wonder if there are many people who are upside down in their current vehicle but want an SUV or CUV even if it’s used. But if the gap in value is rolled into their new purchase that too would falsely inflate used car prices.

  11. Tom Cain Says:

    Doesn’t seem like a big deal to me that Tesla is laying off 9%. Every big company I worked for would annually lay off the bottom 10% to clean out the cruft.

  12. Bob Wilson Says:

    One of the hardest decisions is to layoff workers. Since these are not production workers, it sounds as if the designers of future vehicles is being eviscerated. Model Y, Tesla semi, and Tesla pickup are at risk. But in the world of ‘short term’, quarter-by-quarter planning, it doesn’t matter beyond getting Model 3 out for delivery.

    In six months, December/January, Tesla can rebuild their design and prototype staff . . . assuming they get 5k/week with acceptable quality. We’ll have to wait and watch.

    Bob Wilson

  13. Lambo2015 Says:

    #11 Tom, I think that was Johns point. Tesla which has always been held to a higher standard and gave the impression it’s different than all the other OEs. So it’s not a big deal as just proves it’s operating like all the others at least when it comes to how they treat their salary staff

  14. Kit Gerhart Says:

    6) I replaced the original run flat tires on my 2010 Mini with non run flat Pirellis. The ride is somewhat better, and there is less road noise, but the change wasn’t dramatic. I’d like to know how much difference non run flats would make with my Corvette, also a 2016, but I probably won’t find out, not having a spare. The Mini has a spare, and I have no idea why they even used run flats OEM.

  15. Chuck Grenci Says:

    Run flats on a Ferrari: I would be in glee if a Ferrari were in my garage. Oh, for sure, I’d put some miles on it but I’m thinking I’m going to be just looking/staring and saying, oh boy, it’s in there (my garage) for a lot of my experience. I’m also thinking them run flats will do just fine (more than fine actually).

  16. Bob Wilson Says:

    In contrast to Detroit and Paris autoshows losing presenters, there is a big EV show at Silverstone. I don’t know if there will be a second but it appears this show has the enthusiasm missing from the others.

    Bob Wilson

  17. ARHPG Says:

    When you’ve lost hundreds of millions of dollars, quarter-after-quarter, since day-one at Tesla, there comes a time when eventually you will have to show a profit. Musk surely realizes that time is growing short to turn Tesla around, but I’m surmising that by the time Tesla works out the production problems and gets things on track, he will have a boat-load of competition to stifle production in other ways; sort of too little, too late. But each month, Musk always seems to find a way around the problems by keeping investors and fans off balance with an exciting new introduction. This time he took a more conventional path by laying of excess white-collar employees to save money.