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Runtime: 8:35
0:07 Tesla to Report 2019 Earnings Tonight
1:23 Coronavirus Disrupts Auto Industry
2:41 Cadillac Updates Super Cruise
3:19 Hyundai Ioniq EV Range Boost
3:58 Karma Plans Electric Pickup
4:19 Lordstown To Debut Electric Truck at Detroit Auto Show
5:06 GM Working to Cut EV Charging Time
5:50 Nissan Offers Severance Packages to Workers
6:30 Jeep Idles Cherokee Production
7:03 Global Car Parc Explodes
7:30 Big Shift in U.S. Vehicle Preference Since 2000
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This is Autoline Daily reporting on all aspects of the global automotive industry.
TESLA TO REPORT 2019 EARNINGS TONIGHT
All eyes in the industry will be on Tesla tonight, when the company will announce its financial earnings for last year. Analysts are expecting earnings to be a bit below what the company earned before on a per share basis, but they’re also expecting several surprises from Elon Musk. First, they expect him to say that the Model Y will go on sale in a couple of months. In the past, he said that the Model Y would outsell all of Tesla’s other models put together. Second, they think that Musk will announce limited availability of full-self-driving, or what Tesla calls FSD. This gives the company’s Autopilot system more autonomous capability. Bloomberg reports that this could unlock over $600 million in deferred revenue this year from customers who have already paid for the feature. Tesla can’t book it as revenue until it actually provides the service, which is why they call if deferred revenue. Analysts also want to see what kind of revenue Tesla earned from selling EV credits to other automakers. It could be over half a billion dollars. So could this be it? Will Tesla finally report that it turned a profit for a full year? And if it does, what will that do to the price of its stock?
CORONAVIRUS DISRUPTS AUTO INDUSTRY
The deadly coronavirus that’s wreaking havoc in China is now disrupting the auto industry in the country. Toyota, Ford and Renault have halted production for the next two weeks. Most other major automakers have restricted or banned employees from travelling to China. And Honda and PSA are withdrawing some employees as well. The city of Wuhan is the epicenter of the coronavirus, which is a major industrial hub in China where many automakers have operations located. So far, the virus has killed 130 people.
And don’t forget to join us for Autoline After Hours this week. Our special guest is Aaron Jefferson from the supplier ZF. He’ll talk about the company’s Level 2 autonomous system and why that’s where the money is at, instead of with Level 4 or 5 systems. So if you have any questions send them our way to viewermail@autoline.tv. And join us at 3PM eastern time tomorrow afternoon.
CADILLAC UPDATES SUPER CRUISE
Cadillac is adding an updated version of Super Cruise to the 2021 CT4, CT5 and Escalade. The most noticeable update is the automated lane change feature. By tapping the turn signal to indicate a lane change, the vehicle automatically merges into the desired lane, as long as it’s clear. Other updates to Super Cruise include, a more comprehensive map to improve functionality in turns and highway interchanges, improved software for better steering and speed control, and enhancements to make it easier to use the system. The updated Super Cruise will be available in the second half of the year.
HYUNDAI IONIQ EV RANGE BOOST
Hyundai is upgrading the electric version of the Ioniq for 2020, most notably a larger battery pack. It now comes with a 38.3-kWh battery, which was increased from 28-kWh. It boosts the EVs range from 124 miles to 170. But the bigger battery also boosts the price. The Ioniq Electric now starts at just over $33,000 before incentives, which is nearly $3,000 more than before. Other upgrades include new optional driver assistance features, a larger display screen and Harman Kardon audio system.
KARMA PLANS ELECTRIC PICKUP
Electric pickups are a hot topic today. Karma Automotive says it plans to show off a concept toward the end of this year. The teaser shown here is from a few years ago, but from the little information we have, it will be built on a new AWD platform at its plant in California and will be priced below the $135,000 Revero.
LORDSTOWN TO DEBUT ELECTRIC TRUCK AT DETROIT AUTO SHOW
And Lordstown Motors, which bought GM’s old plant in Lordstown, Ohio, will show a drivable version of its Endurance electric truck at the Detroit auto show in June. Unlike the other battery powered pickups we’ve seen, the Endurance is only being billed as a commercial vehicle. It features 4 in-wheel hub motors, which produce up to 600 horsepower and help provide a towing capacity of 7,500 pounds. It has not released battery size, but is aiming for at least 250 miles of range. Starting price is pegged at $52,500. And to help meet its goal of starting production by the end of the year, Lordstown Motors is pursuing a $200 million loan from a U.S. Energy Department program.
GM WORKING TO CUT EV CHARGING TIME
And in other EV news, the Detroit Bureau reports that GM is working to significantly cut charging times. It will work in steps to achieve a 90% charge in 10 minutes, which is much closer in-line with the time it takes to fill a tank of gas. To hit those targets, GM will likely need 800-volt electronics, up from 400- today and would probably be on a vehicle with a roughly 60-kWh battery pack. The first steps will be taken when GM starts rolling out its third-generation electric vehicles in 2023.
NISSAN OFFERS SEVERANCE PACKAGES TO WORKERS
As we reported last week, Nissan is struggling in the U.S. Last month sales plummeted 27% and 2019 sales were down 10%. So to cut costs and get its workforce in-line with lower sales, the company is offering voluntary severance packages to both blue and white collar workers in the U.S. over the age of 52. The company didn’t share how many employees its targeting to leave or how much it plans to save. In addition to that, Nissan is also cutting two sales regions and it will no longer report U.S. sales on a monthly basis, instead it will release quarterly reports.
JEEP IDLES CHEROKEE PRODUCTION
And another brand we reported about being in trouble last week, is also making a cost cutting move. Bloomberg reports Jeep is idling its plant in Illinois that builds the Cherokee for a week in February. It’s the third time in the last six months Jeep has idled that factory. Sales of the Cherokee dropped 20% in 2019, so it’s not a surprise to see the company idle the plant. Overall, Jeep sales in the U.S. fell 5% last year and the only model to post a gain was the Grand Cherokee.
GLOBAL CAR PARC EXPLODES
The growth in automotive sales since the year 2000 is breathtaking. Twenty years ago there were 760 million cars, trucks and buses in the world. Today, according to data from Wards Intelligence, that number stands at 1.4 billion. We here at Autoline are all in favor of a healthy automotive industry, but we also believe that we’re coming close to the saturation point for planet Earth.
BIG SHIFT IN U.S. VEHICLE PREFERENCE SINCE 2000
It’s amazing to see how much the U.S. market changed in the last 20 years. There are now more than 263 million cars, trucks and buses registered in the U.S., 41 million more than there were in the year 2000. No surprise there. But let’s dive a bit deeper into the numbers. In the year 2000, there were 133 million passenger cars on the road. Today, there are only 111 million. Conversely, there were 87 million trucks in 2000 while today, there are more than 151 million. If that doesn’t drive home the massive switch in consumer preferences, what does?
But that’s it for today, 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.