AD #2836 – Failing Rental Co’s Will Hurt Sales; New Police Chevy Tahoe; Lordstown Partners w/ Elaphe on Hub Motors

May 13th, 2020 at 11:43am

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Listen to “AD #2836 – Failing Rental Co.s Will Hurt Sales; New Police Chevy Tahoe; Lordstown Partners w/ Elaphe on Hub Motors” on Spreaker.

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Runtime: 11:31

0:07 U.S. Pollution Levels See Big Drop
1:12 Failing Rental Companies Will Hurt Sales
2:07 Traffic Levels Start Picking Back Up
2:39 Elon Musk Talks to Texas Governor About Moving
4:02 Toyota Cuts Travel & Meeting Time
5:02 Designers Straying From Their Signature Style
7:46 Chevy Reveals New Police Tahoe
8:28 Lotus Highlights Aerodynamics of Evija EV Hypercar
9:22 Lordstown Partners with Elaphe on Hub Motors
10:03 A Car Show for Diecast Cars

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26 Comments to “AD #2836 – Failing Rental Co’s Will Hurt Sales; New Police Chevy Tahoe; Lordstown Partners w/ Elaphe on Hub Motors”

  1. Larry D. Says:

    Texas is important and good for Tesla, but not the perfect fit. BEVs do best in small states with short distances, and NEW ENGLAND would be the best of all. Of course, the NE States are in a permanent decline, population and industry-wise, not a growth market like Texas, whose population has been exploding. FLorida and Arizona would also be good fits for Tesla for many reasons just as texas.

  2. Larry D. Says:

    Don’t worry about auto sales, they will come back in the US and even more in EUROPE and other places where people used to use a lot of mass transit. The CV has RADICALLY changed these patterns, now people use their CARS all the time, especially in hard hit Europe. They will use therm not only for daily commutes but ALSO for vacations, instead of planes, ships and trains. ‘

    Worry about the AIRLINES and the CRUISE industry, until a vaccine is found (maybe by year’s end)

  3. MERKUR DRIVER Says:

    I was looking to buy a Hertz Edition ZL1 Camaro later this year when they were offered for sale. Would pair nicely with my Hertz Mustang. Looks like I might have to plan on buying it earlier if they start selling off their fleet.

  4. Ziggy Says:

    “The daily rental companies actually make their money by selling cars, not by renting them. The rental fees just pay for depreciation and maintenance. But used car prices have collapsed and that’s really hurting all the rental companies. This is setting off alarm bells in the auto industry. In the U.S. market alone, the daily rental companies buy almost 2 million vehicles a year.” I didn’t know this, thanks John!

  5. clem zahrobsky Says:

    You get more done working at home because you don’t have all the office distractions like BSing about the what happened in the game last night and going for coffee breaks.

  6. Kit Gerhart Says:

    1 The location of customers has little to do with where car manufacturers locate. They want proximity to suppliers, weak laws, and low/no taxes, along with the big bribes from governments to locate in their area. According to this, and a couple other articles I saw about a planned Toyota/Mazda plant, they bypassed NC largely because of proximity to suppliers.

    https://www.wral.com/reports-nc-loses-toyota-mazda-car-plant-to-alabama/17247853/

    There is little, or no automotive industry in Florida, and there is not likely to ever be, given the “corner of the continent” location, poorly located for access to suppliers, and for delivery of finished cars.

  7. Kit Gerhart Says:

    5. Very true, and you avoid those unpleasant commutes, if in an urban area.

  8. Kit Gerhart Says:

    2. How will all of these people use their cars for commuting in cities, when there is no place to park them? It’s bad in that regard already. I guess 100 story parking garages could pop up, but not overnight, and that wouldn’t help much with the traffic gridlock itself.

    I see “telecommuting” as a much bigger change. Probably the top 90% of most “sky scrapers” in cities is offices, and most office work can be done remotely, given today’s technology.

  9. Dave Says:

    Tesla to Austin which is full of hardware & software engineers.[a silicon valley so to speak] less tax, lower cost of living, near by SpaceX plants, Waco is on I35 for fast shipment of parts, close to many entertainment venues for staff that’s a no brainer

  10. ChuckGrenci Says:

    I think working at home gives you the freedom to venture a little off the track of a boss looking over your shoulder and can try to think a little (more) outside the box. Also, some of the designers are internally driven and may actually spend more time on a project (not just their 8 hours at the office) on a project (especially one that they are championing). And you can try things at home that might be scrutinized at work by supervisors and other designers; there would be more freedom of creativity.

  11. ArtG. Says:

    6. Not a car mfr., but certainly the case for Jack Daniel’s whiskey, which is made in a dry county.

  12. Kit Gerhart Says:

    11. Yep, kind of like Tesla in Texas. If they made cars there, with the current laws, they wouldn’t be able to sell them locally.

    9. Toyota and GM have assembly plants in Texas, building pickup trucks and SUVs. There are a number of suppliers in Texas, and two major border towns in Mexico have suppliers’ factories, at least for GM. Tesla may not use many, or any of these suppliers, being relatively vertically integrated.

    Austin would be the best “cultural” fit of any Texas city for Tesla employees, at least the engineering people. To the extent that location of customer base matters, where they are in CA would be much better.

  13. MJB Says:

    #5. Agreed.

    I find it no surprise at all that designers are doing their best work from home. As an architectural designer I can attest to the fact that when working in collaboration with other designers, you have to constantly make compromises to concepts and ideas of your own to accommodate the critiques of the rest of the design team.

    Having this time away from the somewhat (might I say) stifling environment of constant peer revue allows the designers to reconnect (on some level) to what it was like when they were still in design school.

    As much thought and planning is put into collaborative work spaces by employers these days, there still is no substitute for the comfort, familiarity and freedom of a home office.

  14. bradley cross Says:

    Some folks work well from home whilst others do not for various reasons.
    Also depends on the role.
    Will certainly make office politics interesting as those working from home generally go nowhere.

    I could see Tesla moving their HQ to Texas but it would ideally have to be near universities with computer degrees. You can bet they would be allowed to sell their cars in Texas then.

  15. Barry Rector Says:

    John,
    With so many people working from home and not in their offices, I was wondering if the Autoline crew is rethinking how programming will be done? So far, I think you and your crew are doing a fantastic job under these circumstances and sure want you to continue. Thanks for all the hard work everyone is doing behind the scenes!

  16. wmb Says:

    #10, 13, 14

    I agree too! I work in an office and sometimes it’s seems that the office politics get in the way of real work. From the cliques, in office gossip and back bitting, being at home away from that, could definitely clear up one’s focus, even while teleconferencing. There can also be draw backs with distraction of another kind and procrastination too.

    Regarding Elon Musk,IMHO, he does more harm by forcing the governments hand the way he did, as well as the officials by giving in to him. How many times has Musk’s own words come back to hurt him or his company? To move his manufacturing from California to Texas, would cost millions of dollars (profit money that is just starting to round in good), could disrupt production and distribution, as well as push back the introduction of new vehicles even farther then Covid-19 already has! What will they do in Texas, build a new plant? Again, that’s more more from the profits they just started recording. For what? So that they can start production a week or so ahead of other automakers? What if the employees that he rushes back to work, get the viruse as a result of the facility not offering the protection that his works need. It’s not like starting a week or so later would make a difference in that regard. Couldn’t that open Tesla up to lawsuits? But should one of his workers get the virus, he could say that they restarted operations when Tesla and other OEM’s felt it was safe to do so. The way it is now, perceptually, if a worker got the virus, it may seem like the company was reckless, going against what leaders and other automakers thought were best practices! And for those leaders to acquiesce to his demands, what’s next? What if he wants something else and he threatens to move production? What about other companies that do the same? What if Tesla, now that they gave in, Still decides to leave California? IMHO, it would have been best for all parties to privately discuss these matters and not do so in this public form as they have.

  17. Fltrucker Says:

    Comments on Tesla
    Why isn’t the factory located in Nevada?
    The battery factory is already located in Nevada.
    The closer the factory to the batteries, the less shipping costs for supplies.
    Also, in Nevada, there are no state corporate taxes.
    Nevada is a much easier work environment.
    Your employee’s cost of living would be much cheaper.
    Long term costs, such as energy, are much less.

  18. Kit Gerhart Says:

    17. They got the former NUMMI factory in California almost for free, probably with bribes to go there, like Indiana, South Carolina, and other states give for the transplants. I’d think that if Tesla moved, NV would make the most sense, for the reasons you state, except that other places might be more appealing to employees, except those into casino gambling.

  19. Bob Wilson Says:

    Tesla is big enough to need two, separate factories in the USA as well as the planned Gigafactories on each continent. Fremont sits on or near active fault lines . . . it is just a matter of time.

    In order of personal preferences: Nevada, Kansas City, Saint Louis, and Texas. The last three need to incorporate battery manufacturing.

  20. Larry D. Says:

    Τesla will open a “Gallery” Store in MI.

    I hear this was after strong pressure from Cwolf and Joe.

  21. Larry D. Says:

    7 a ton of people cannot work from home. If they could, I imagine their employer would want them there, instead of paying rent and utilities and buy computers for them at the business location, AND they would prefer to skip the long commute and if they have pre-school kids at home, to keep an eye on what the sitter is doing with them.

  22. Larry D. Says:

    12 Texas is a big pickup market, and Tesla’s pickup does not look very mainstream to me, I would be surprised if it has Model 3 or Y mass market kind of sales.

  23. Larry D. Says:

    https://www.thetruthaboutcars.com/2020/05/closest-thing-youll-find-to-a-tesla-dealership-lands-in-michigan/

  24. Larry D. Says:

    The good thing about Tesla Gallery stores is that they offer Test Drives. This should hook a whole lot of auto enthusiasts and high tech fans to then place their orders, and the store can do deliveries too, I believe.

  25. Larry D. Says:

    Putting a $350 limit (current prices?) on die cast models, will deprive you of some of the greatest, most detailed and true, die cast models of ALL TIME, which routinely go for $800 and $900 (and more) on E-bay.

    Models such as the superbly detailed, Legendary Mercedes 600 Grosser PULLMAN from 1963-81, the only Mercedes built WITHOUT beancounting constraints, just the BEST the engineers and artists could do at the time, with matching detailed luggage and spare tire and all that.

    Also some recent Rolls Models (die cast) also with excellent detail and features. .

  26. Kit Gerhart Says:

    25. Are those $800+ models on ebay “collectables” from years past? If they cost no more than $350 when new, they would be eligible.

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