AD #2812 – Automakers Running Out of Cash; VW Starting to Recover in China; Amazon Won’t Compete w/ FedEx & UPS

April 9th, 2020 at 12:12pm

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Listen to “AD #2812 – Automakers Running Out of Cash; VW Starting to Recover in China; Amazon Won't Compete w/ FedEx and UPS” on Spreaker.

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Runtime: 11:32

0:07 Automakers Running Out of Cash
0:46 GM Using Blockchain for HD Maps
1:20 Tesla Has Best Sales Month in China
1:50 VW Starting to Recover in China
2:48 Rivian Delays EV Truck
3:15 Amazon Won’t Compete with FedEx & UPS
3:50 Kia Teams with Electrify America for Fast Charging
4:20 You Said It!
8:25 Customer Support Issues Facing Dealers
10:16 Refreshed Volkswagen Atlas Goes On Sale
10:59 A Gearhead Makes Custom Face Mask

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40 Comments to “AD #2812 – Automakers Running Out of Cash; VW Starting to Recover in China; Amazon Won’t Compete w/ FedEx & UPS”

  1. Kit Gerhart Says:

    When Milton Piontowski bought his ’65 Mustang, “destination charge” may have still been based on the distance the car was shipped. If that were the case, the <400 mile trip for has car probably would have resulted in a lower than average shipping charge. John McElroy, do you know when the "destination charge" started being averaged?

  2. Barry Coles Says:

    John, Thanks for all the auto information you have given me over
    the years. Been watching You since the days of the sunday shows on speed channel or speed vision. Your donation is on the way.

  3. GM Veteran Says:

    Kit – I believe the destination charges started being averaged around 1980. When I worked at a dealership in 1982, they were already in place and were consistent across the country. This was the result of a couple of court cases I was told and the federal gov’t stepped in to regulate it. The manufacturers have latitude in adjusting the charge, but it has to be the same charge per vehicle no matter where the dealership is in the United States (yup, even Alaska and Hawaii). The dealership makes no money on destination charges. They just pass them on.

  4. Kate McLeod Says:

    I have trouble believing that automakers are going to run out of cash–stock buybacks and other ways in which they have put money under the mattress. And excuse me, cutting their salaries 20%? When people are suffering like they are? Give me a better percentage–like work for nothing. They have enough money.

  5. Drew Says:

    Kate, the OEMs are still paying employee wages and health care. They are still paying property taxes and utility bills. They are still paying suppliers to re-tool for 20201 models. Yet, they are receiving no income because the assembly plants are not shipping vehicles.

    Believe it.

  6. John McElroy Says:

    #1. Kit, years ago I was told by Jim Harbour that the railroads would charge automakers a fee to deliver cars based on how far they had to move it. Shipping cars from Detroit to places around the country could get expensive for states that were far away. That’s why automakers started building plants all around the country, even in California. But at some point the railroads began charging flat fees to move cars, and automakers adopted flat fees for destination charges. And they eventually closed down their plants on the west coast. Today, destination charges are much higher than the actual shipping costs, and are a way to sneak in a price hike. (See GM Veteran #3 comments.)

  7. John McElroy Says:

    #4. Kate, In normal times, companies like GM, Toyota and VW burn through more than $2 billion a week. Even if they were able to cut their expenses in half, they’ll still run out of money before the year is out. And you’re right about the 20%. It only applies to their salaries, not their bonuses, which are typically 5x their salaries, if not more.

  8. Kit Gerhart Says:

    3,6 Thanks for info.

  9. WineGeek Says:

    Why can’t VW design anything that looks new and contemporary rather than a box? One model after another they can’t make it look any better than that…wow!

  10. malondro Says:

    Hydroxychloroquine has been shown to be extremely safe and effective against COVID-19, therefore it and should be an over the counter medication the same as Aspirin. The FDA has overstepped their authority by keeping Quinine and several other items from the public. Let’s make this a non-prescription item and get this economy back to work and keep the auto industry viable.

  11. Wim van Acker Says:

    @9: additionally I award them First Prize for Most Boring Interior.

  12. MJB Says:

    John, what in the world happened to that Tesla driving down the road at about the 1:39 mark of the video? One second it was there (as it drove under a pedestrian bridge). The next second it was gone.

    It couldn’t have turned the corner, or the camera would have caught it. Bizzare…

    CGI error?

  13. Wim van Acker Says:

    @10: stop peddling nonsense. https://www.webmd.com/lung/news/20200324/man-dies-after-taking-chloroquine-for-coronavirus

  14. Kit Gerhart Says:

    10, Unfortunately, it looks like the comments here need to be moderated, with dangerous stuff like this appearing.

  15. Drew Says:

    @10 – Please leave the decision about drugs and drug safety to the true life heroes in the scientific medical community.

  16. MERKUR DRIVER Says:

    15) Totally agree. We in this comment section are not doctors

    13) Just pointing out your reference article outlines a person who ingested fish tank cleaner because he did not realize it was the wrong form of Chloroquine. Hydroxychlorquine, as 10 correctly stated, has shown to save lives and is definitely not nonsense when prescribed by a doctor. Here is the most recent example:

    https://theminnesotasun.com/2020/04/08/michigan-dem-says-chloroquine-saved-her-life-thanks-trump-for-making-it-a-priority/

  17. walter Says:

    John,
    Listen daily in Canada. Question, on your show #2812 in the Tesla clip the car disappears in the video, where did it go?

  18. Kit Gerhart Says:

    16 Trump has hyped both chloroquine and hydroxychloroquine. In any case, that linked site is not an unbiased source of information. Even their web site admits it.

    “Michael Patrick Leahy is the CEO and Editor-in-chief of Star News Digital Media, which owns and operates a family of state focused conservative news sites, including The Tennessee Star, The Ohio Star, The Michigan Star and The Minnesota Sun,”

  19. Kit Gerhart Says:

    17 A special trick brought to us by modern technology. I thought is was kind of humorous.

  20. Wim van Acker Says:

    @16: exactly, when prescribed by a physician it may work. Or not; many clinical trials are underway and the results of the trials are needed to be able to draw conclusions. Self medication by laymen may cause kidney failure and other negative side effects, or death. That was the reason why malondro’s statement “therefore it and should be an over the counter medication” is nonsense.

    The current Emergency Use Authorization stipulates clearly that a physician is needed to assess and prescribe, if at all. See https://www.fda.gov/media/136534/download

  21. Jonathan Says:

    No profit in hcd and zpack for big pharma…thats why there is a slow roll by our so called government representatives for this therapy.

    Big pharma rules with their lovby efforts. Some people arent in the game so they believe their is possible complications and dangers to hcd combined with z pack and zinc.

    Just use the dam inexpensive readily available safe off label use and lets get this country back on track..

    Jmo

  22. MERKUR DRIVER Says:

    18) Your right. That Michigan lawmaker died. That newspaper totally covered it up for political reasons LOL

  23. Wim van Acker Says:

    @21, as to your statement “No profit in hcd and zpack for big pharma…thats why there is a slow roll by our so called government representatives for this therapy.”: market capitalization Novartis $215 BB (world’s third largest pharma company), market cap Sanovi $ 57 BB, Bayer $15 BB, Mylan $8 BB, Teva $11 BB.

  24. Kit Gerhart Says:

    22 No on knows what the chemical did, or didn’t do, just that she used it, didn’t die, and thinks it worked.

    BTW, it’s not a newspaper. It’s a right-wing web site.

  25. Bob Wilson Says:

    The YouTube channel, “Munro Live,” has been a god-send during the lock down. Even Elon has enjoyed it (see web link) and recently shared that the Model Y will get a ‘sound cover’ for the heat-pump to make it as quiet as the Model 3 A/C compressor.

    I appreciate Doug and the many YouTube reviewers who look at cars from the owner/operator side. In contrast, Sandy Munro provides details that otherwise would only be seen in a mangled crash or accident shop repair and replace.

    There was a recent report that the major manufacturers are spending ~$1,000 per car on advertising. Of course, Autoline.TV is their best buy but buying a Munro teardown would rank second.

  26. Kit Gerhart Says:

    25 Here’s an interesting chart of advertising cost per car, by brand, of the “big spenders” on a per-car basis.

    https://www.statista.com/statistics/261771/ad-spend-per-vehicle-sold-of-selected-automobile-manufacturers-in-the-us/

  27. Kit Gerhart Says:

    26 Maybe you only get about one free view per month. I checked it again, and would have needed to pay. Anyway, Genesis spends the most per car on advertising, followed by Lincoln.

    25 Interesting video. I certainly disagree with his idea of compromising both trunks, so the same tub could be used for both, but there’s a lot of good information there. I’d seriously consider a Model Y, if I’d have a place to charge it.

  28. Earl Says:

    #10 #16 #18. I would stay clear of anything “:The Loose Cannon”:says like what have you got to lose.

  29. John Keynes Says:

    I think covering our face and hands even hair when going out is necessary since some people may catch the virus without showing any symptoms. I just got some from epidemiology.amotx.com in case my family would like to go out for some necessities.

  30. Bob Wilson Says:

    To counter misinformation, I am posting this paper about “SARS-CoV-2″ (see web link.) Published April 9 2020, it gives technical details and what caught my eye:

    “. . . successful standardized treatment protocols for severe cases are recommended globally to fight the COVID-19 pandemic. The combined use of anti-inflammatory and antiviral drugs may be more effective than using either modality alone. Based on in vitro evidence for inhibiting SARS-CoV-2 replication and blocking SARS-CoV-2 infection-induced pro-inflammatory cytokine production . . .”

    The virus attacks the lungs and can trigger a near lethal immune response. Be skeptical of “magic bullet” claims from non-medical sources who will take the money and bury their failures.

  31. ChuckGrenci Says:

    Some C8 news: 2695 customer cars have been built and most have left the Bowling Green plant for delivery before the shutdown took effect, no known workers at the plant had contracted the virus prior to shutting down, production resumption is tentatively early May with obvious review pending conditions. When production resumes, efforts to start a second shift will move forward (as this was in the plans from the beginning). Finally, convertible production still has no start date.

  32. Bob Wilson Says:

    #30 – Interesting as Tesla China has the potential to import Model 3 into the USA.

  33. Kit Gerhart Says:

    I just watched yesterday’s AAH, and Doug DeMuro was interesting. He has the best job in the world, getting people to let him drive and talk about their million+ dollar cars, and other cars of all kinds.

    One thing I am curious about is the Mercedes Metris van, which Doug hates. I know nothing about the Metris, but Doug has made me curious.

  34. Larry D. Says:

    31 and soon the Model Y too, I believe they will also make the Y in China, they will work at full capacity and still have double the demand in Shanghai. Maybe they should build another gigafactory in Beijing.

    I had seen many DeMuro videos and have posted some here. He sure gets some excellent cars to drive, no Hyundai Elantras or Kia RIos (haven’t seen an overpriced 4-cyl failed VOlvo either)

    I’ ll go see AAA when I get the time.

  35. Kit Gerhart Says:

    33 Doug has done videos on a number of recent Volvos, including this one, which he kind of liked.

    https://youtu.be/Gad0TXRVblk

  36. Larry D. Says:

    https://europe.autonews.com/sales-market/tesla-gains-sales-some-eu-markets-despite-crisis?utm_source=daily&utm_medium=email&utm_campaign=20200409&utm_content=hero-headline

    Self-explanatory. This crisis sure has been much less worse for Tesla, for a million reasons, than for dirty ICE makers. Including SAFETY reasons, many Tesla owners never need to fuel outside their homes, and do not have to hold the dirty pumps and insert their cc in the virus-full slot etc etc.

  37. Larry D. Says:

    34 I was sure you’d take the bait, which was adding the failed VOlvo to the humble Hyundais.

    I only click on reviews of interesting and ‘got to have them’ cars, not of Hyundais or VOlvos I would never bother to buy, new or used.

    So I may have a biased sample.

    In addition, I find Muro’s grading scheme ludicrous (at the end of each video)

  38. Larry D. Says:

    Ι started the AAH video but just could not bear it. Muro is far more annoying when he babbles on and on than when he is actually reviewing a beautiful car in a video. So I turned it off and will put some music on from Utube (which means classical).

  39. Kit Gerhart Says:

    DeMuro’s videos are mainly for entertainment, but have some useful information. It is clear that his “Doug number” ratings are non-serious, when he calls a million+ dollar car a good value.

  40. JWH Says:

    John – Regarding Destination Charges – In addition to being averaged no matter where the vehicle is sold in the U.S. I was advised many years ago that it also includes freight charges that the OEM’s pay to get material from the supply base to the assembly plant.