Runtime: 6:38
0:26 Strike Looms in Germany
0:44 Public Warming Up to Autonomous Cars
2:01 Nissan’s Self-Parking Slippers
2:44 2019 Jeep Cherokee Updates
4:44 Trump Tax Cuts Boost FCA & Ford Earnings
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On today’s show…the Trump tax cuts are helping Ford and FCA boost their bottom lines…German automakers are facing a strike…and we give you our first impressions of the redesigned Jeep Cherokee. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
STRIKE LOOMS IN GERMANY
Uh-oh the German auto industry could be running into trouble. Labor negotiations between several German automakers and the union IG Metall have hit a snag. Bloomberg reports the dispute is over wages and work hours and the union is threatening to strike if the deadlock can’t be broken.
PUBLIC WARMING UP TO AUTONOMOUS CARS
We’ve reported about the public being wary of riding in a self-driving car. But maybe they’re getting used to the idea. A new survey from AAA shows 63% of respondents say they’re afraid of riding in an autonomous car, but that’s down from 78% just a year ago.
AAH IS BACK!
Don’t forget to join us for Autoline After Hours later this afternoon. One of the topics of discussion will be some of the design issues on the Tesla Model 3 that Munro and Associates discovered as its started to tear down the model for competitive benchmarking. Join John and Gary for some of the best insider information on what’s going on in the automotive industry. That’s 3 pm eastern time, live, later today at www.Autoline.tv.
The world is going crazy over autonomy, and now Nissan is using that technology to organize slippers. You heard me right, slippers, and that’s coming up next.
NISSAN’S SELF PARKING SLIPPERS
Nissan has once again come up with a fun way to use its ProPilot autonomous technology. It’s customary in Japan to remove your shoes at the door and one traditional inn has equipped the slippers you put on in place of your shoes with a version of its parking technology. When someone is done using the slippers, they just push a button and the slippers return themselves to the front door. The low tables and sitting cushions in the tatami rooms will also neatly re-organize themselves when not in use. Nissan is offering a contest for one lucky pair of travelers to stay a night in the hotel and if interested, just follow the link in the transcript or description box to learn more about it.
JEEP CHEROKEE UPDATES
The styling of the Cherokee was polarizing when it first came out in 2014, even Jeep admits that. Since the Cherokee was new to its segment, Jeep felt it needed styling that stood out from the crowd. Sales hit nearly 170,000 units last year, but were down 15%. So now Jeep is toning down the styling. Gone is the pointy noise in favor of a more blunt face, and the lighting is now in a single headlamp assembly. All the sheet metal from the A-pillar forward is brand new. At the rear the big changes are a new set of tail-lights with a new LED lighting signature and the license plate has been moved from the bumper to the tailgate. It might sound odd, but Jeep said it actually gained a few millimeters of trunk space by moving the license plate because it was able to pull the latch rearward. In all, 27-cubic feet of cargo volume was added through small tweaks. While remaining changes to the interior are minimal, an upgraded 7-inch infotainment screen with Android Auto and Apple CarPlay is now standard and an 8.4-inch display is also available. Overall, Jeep feels the new exterior and interior styling makes the Cherokee feel more upscale than before. But the big news for the refreshed Cherokee is the addition of a new 2.0L 4-cylinder turbo engine. It puts out 270-horsepower and nearly 200 lb-ft of torque. My thoughts on the new engine and overall driving experience are embargoed until tomorrow. So, stay tuned.
Coming up next, Ford and Fiat-Chrysler reported their financial earnings and they’re already benefiting from Trump’s tax cuts.
TRUMP TAX CUTS BOOST FCA & FORD EARNINGS
Ford and FCA reported their earnings for last year, and the Trump tax cuts played a role in the results. FCA sold 4.7 million vehicles worldwide, and raked in just over 110 billion euros, about the same as the year before. But FCA boosted its pre-tax earnings to €7 billion, a nice 16% increase. And it’s net profit jump 93% to €3.5 billion. Those are good numbers. And it reduced its debt load by €2.1 billion. FCA now has about €2.4 billion in debt left on the books, but is clearly on the way to achieving its goal of eliminating that debt by the end of this year.
| FCA 2017 EARNINGS | ||
|---|---|---|
| Sales | 4.7 M | —– |
| Revenue | €110.9 B | —– |
| EBIT | €7.0 B | +16% |
| Net Profit | €3.5 B | +93% |
| Source: FCA | ||
Meanwhile Ford sold 6.6 million vehicles worldwide, a drop of about 44,000 units. But it still managed to boost its revenues 3% to more than $156 billion. Its pre-tax profit jumped a nice 19%, but its net profit shot up 65% to $7.6 billion. It’s also giving its UAW line workers $7,500 profit sharing checks.
.tg {border-collapse:collapse;border-spacing:0;} .tg td{font-family:Arial, sans-serif;font-size:14px;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;} .tg th{font-family:Arial, sans-serif;font-size:14px;font-weight:normal;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;} .tg .tg-s6z2{text-align:center} .tg .tg-hgcj{font-weight:bold;text-align:center}| FORD MOTOR COMPANY 2017 EARNINGS | ||
|---|---|---|
| Sales | 6.6 M | —– |
| Revenue | $156.7 B | +3.2% |
| Pre-Tax | $8.1 B | +19.8% |
| Net Profit | $7.6 B | +65.5% |
| Source: Ford | ||
It sure looks like both FCA and Ford are benefiting from corporate tax cuts in the United States. Ford’s income tax bill dropped by more than $1.6 billion. FCA’s tax bill dropped more than €1.3 billion. But FCA is a European company and says only €88 million of its lower tax bill was related to tax cuts in the US.
And that brings us to the end of today’s report.
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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.
