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Runtime: 5:53
0:27 Ducati Introduces eAssist Mountain Bike
0:51 Nikola Develops Fuel Cell Semi for Europe
1:27 Automakers to Sell Same Chinese Model
2:39 Ferrari’s Earnings Don’t Look Good
3:24 Hyundai Has Big Problems in China
4:32 Brazil Market Clawing Its Way Back
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On today’s show… Ferrari doubled its profits last quarter, but don’t get too excited… Hyundai runs into big problems in China… and Ducati comes out with an electric mountain bike. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
DUCATI INTRODUCES ELECTRIC MOUNTAIN BIKE
Here’s a tale of polar opposites when it comes to electric vehicles. Ducati just introduced an electric-assist mountain bike, called the MIG-RR. It was created with Thok E-bikes and provides boost up to 15 miles per hour. But it’s going to put a dent in your wallet. It costs just over $7,000.
NIKOLA DEVELOPS HYDROGEN SEMI FOR EUROPE
At the other end of the spectrum Nikola Motors, the company developing hydrogen powered semi-trucks, just created a specific semi for Europe. Called the Tre, it has 500 to 1,000 horsepower and a range between 310 and 745 miles, depending on the setup. It will have redundant braking, steering, batteries and fuel cell, which will allow it to have true Level 5 autonomy. Production is expected to kickoff in 2022 or 2023, around the same time as its U.S. version.
AUTOMAKERS TO SELL SAME CHINESE MODEL
Speaking of electrics, automakers are under the gun to meet specific market share targets in China. So FCA, Honda, Mitsubishi and Toyota are all going to sell a version of the Trumpchi GS4 crossover. Trumpchi is owned by GAC, which is a joint venture partner with all those automakers. Styling will be nearly identical, except that the name of the local joint venture will be on the liftgate. The big difference will be powertrain. Toyota will sell a full electric version, Mitsubishi will have an EV and hybrid variant and FCA and Honda have opted for a hybrid powertrain. The move will give the automakers more time to develop their own electric models for the Chinese market.
Coming up next, Ferrari managed to double its profits but we’ll tell you how they really did it.
FERRARI EARNINGS DON’T LOOK GOOD
Ferrari reported its third quarter earnings yesterday and the numbers do not look very good. It sold 2,262 cars up more than 10%. But revenue was only up a fraction of a percent. That’s because sales of engines to Maserati dropped. Maserati sales are plunging in Europe and China. Ferrari barely improved its earnings before interest and taxes, but its net profit more than doubled. Don’t get too excited. That’s because of a one-time tax write-off the Italian government granted to companies that earn a lot of income from patents, copyrights, and trademarks. If not for that, net profits would have been up a few percent.
| Ferrari Q3, 2018 EARNINGS | ||
|---|---|---|
| Sales | 2,262 | +10.5% |
| Revenue | €838 Million | +0.2% |
| EBIT | €203 Million | +0.5% |
| Net Profit | €287 Million | +103% |
HYUNDAI HAS BIG PROBLEMS IN CHINA
Hyundai is running into big problems in China. Reuters reports that a Hyundai dealership offering 25% discounts was only selling 100 cars a month, while a nearby Nissan dealer was selling 400 cars a month. Hyundai’s newest assembly plant in China is only operating at 30% capacity, which means it’s bleeding red ink. A general rule of thumb in the industry is that a plant has to operate at 80% capacity to break even. Here’s our Autoline Insight. Foreign automakers can only survive in China if they have aspirational brands. If all they’re going to do is compete on price they stand no chance against low-cost Chinese companies.
We’ll be back with more right after this.
BRAZIL MARKET CLAWING ITS WAY BACK
Brazil is in a lot of economic and political turmoil, but car sales there are clawing their way back. Sales of passenger cars shot up 21% last month, while light trucks were up 24%. Sales are on track to hit 2.5 million light vehicles this year. The top automakers in Brazil are General Motors, FCA, the Volkswagen Group, the Renault-Nissan-Mitsubishi alliance, and the Ford Motor Company.
| Brazil LV Sales Q3, 2018 | |
|---|---|
| General Motors | 44,082 |
| FCA | 41,559 |
| VW Group | 38,309 |
| Renault Alliance | 30,316 |
| Ford | 21,714 |
Hey don’t forget to set a reminder to watch Autoline After Hours at 3PM eastern time on Thursday. That’s when we’ll go live with Mike O’Brien, the head of product planning for Hyundai Motor America. He’s even bringing a Hyundai Veloster N with him to the studio. So, if you have any questions about the automaker’s new performance brand, any of its other vehicles or where it’s headed in the future send them to viewermail@autoline.tv. Or you could always hit us up on social media. Just look for the links below.
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.
