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0:54 GM Dangles $25 Million Carrot for Ammann
1:32 FCA Workers Get $6,000 In Profit Sharing
2:08 Tesla Cuts Model 3 Price
3:04 Ram 1500 Multifunction Tailgate
3:39 Daimler Reports Mixed Earnings
4:08 FCA Up In 2018 But Lowers Guidance For 2019
4:41 E-Scooter Injuries on The Rise
5:40 Mercedes Protects F1 Team from Cyber Attacks
6:16 Ram Reveals Chassis Cab HD Trucks
6:52 New Tacoma Looks Like Old One
7:19 Sequoia Added to TRD Pro Lineup
This is Autoline Daily reporting on the global automotive industry.
Hi I’m Sean McElroy. It’s February 7th, 2019. And now the news.
Are we about to see the end of the ICE Age? That’s going to be the topic on Autoline After Hours this afternoon. We’ll be talking about the internal combustion engine and whether or not battery costs are really coming down to the point where EVs will cost the same as piston engine cars. Is that really happening, or is it just a bunch of hype? Our guest for the show is Brett Smith, a powertrain expert from the Center for Automotive Research. So, if you want to get in on the action, send your questions to viewermail@autoline,tv or hit us up on social media. It all kicks off at 3PM eastern time on our website, Autoline.tv
GM DANGLES $25 MILLION CARROT FOR AMMANN
Dan Ammann, the former president of General Motors, who was assigned to run GM Cruise, could get a Silicon Valley payout bonanza if and when he takes the company public. He got $25 million worth of stock, but it only pays out if Cruise does an IPO within 10 years. He also got over 100,000 in options to buy the stock after it goes public, but they only pay out if he raises the value of Cruise which is currently valued at $14.6 billion. And that’s how they do it in the Valley. You take a start-up public and they hand you a big bag of money.
FCA WORKERS GET $6,000 IN PROFIT SHARING
Speaking of payouts, Fiat-Chrysler’s UAW workers will get profit sharing checks of $6,000. That compares to the $7,600 UAW workers got from Ford, and the $10,750 that GM paid out. The difference is due to different profit levels at each company and slightly different formulas that each contract has. These profit sharing checks are like getting a $2 an hour raise at FCA, a $3.70 raise at Ford and a $5.30 raise at GM.
TESLA CUTS MODEL 3 PRICE
Tesla just chopped the price of its Models 3 yet again. As you know, Tesla is running out of its federal tax credits. It was at $7,500 but has now dropped to $3,750 and that will be gone by the end of the year. So the base price of the Model 3 is now down to $42,900, not including any tax credits. Elon Musk says the company is “doing everything we can” to bring the price of the Model 3 down to $35,000.
E-scooters are a cheap, easy way to get around but they’re cracking open a lot of skulls. More on that, right after this.
RAM 1500 MULTIFUNCTION TAILGATE
We’ve seen multi-function tailgates from GM and Honda and now Ram is adding the feature to the 2019 1500. Unlike its competitors, the Ram tailgate features a 60:40 split to swing open. And it doesn’t require the trailer and hitch to be removed before opening it. The doors open 88 degrees and in total it has four configurations, open flat, open left door, open right door and open both. The multifunction tailgate will be available on all 1500 models in the second quarter of the year.
DAIMLER REPORTS MIXED EARNINGS
Daimler reported its earnings and the results are mixed. The company sold 3.4 million vehicles in 2018, up 2%. Revenue hit 167 billion euros, up 2%. But its EBIT profit plunged 22% and its net profit fell by nearly 30%. The company blames the drop on the new WLTP test procedure in Europe, trade disputes and the move away from diesels.
|DAIMLER 2018 EARNINGS|
|Net Profit||€7.6 B||-29%|
FCA UP IN 2018 BUT LOWERS GUIDANCE FOR 2019
FCA also reported its 2018 earnings. It sold 4.8 million vehicles worldwide, up 2%. It raked in over 115 billion euros in revenue, up 4%. It posted an EBIT profit of 7.3 billion euros up 3%. And its net profit of 5 billion euros was up 34%. But the company lowered its earning guidance for 2019 and the market did not like hearing that, and its stock dropped 10% on the news.
|FCA 2018 EARNINGS|
|Net Profit||€5.0 B||+34%|
E-SCOOTER INJURIES ON THE RISE
Over the last year and a half, the popularity of shared e-scooters has exploded in the U.S. But they’re leading to a growing number of injuries. According to Consumer Reports, since late 2017, an estimated 1,500 people have been injured riding the scooters. Some are minor, like scrapes and bruises, but some riders have suffered broken bones and head injuries. Consumer Reports contacted hospitals and public agencies for the study but most don’t specifically track e-scooter injuries so the number could be higher.
Coming up next, Mercedes is trying to protect its Formula One team from cyber-attacks.
MERCEDES PROTECTS F1 TEAM FROM CYBER ATTACKS
Formula One is a highly competitive sport where teams treat their know-how like it’s a matter of national security. But with people and facilities spread all over the world, keeping their Intellectual Property safe can be very difficult, especially in the age of hackers. So Mercedes-AMG Petronas teamed up with CrowdStrike, a leader in cyber security, to protect the team from cyber-attacks over the next several seasons. I could try and sound smart and try to explain exactly how the system works. However, I don’t know what any of it means. But it does appear to be secure.
RAM REVEALS CHASSIS CAB HD TRUCKS
The heavy duty pickup war is red hot. And it’s no wonder when some estimate that the operating profit on each large truck is at least $12,000. Now Ram has unveiled the chassis cab version of its big trucks at the Chicago Auto Show. It claims best-in-class towing of 35,220 pounds, which just ekes out the Silverado HD shown on Tuesday and you can still get the well-appointed interior with the giant center screen. The chassis cab trucks go on sale in the second quarter.
NEW TACOMA LOOKS LIKE OLD ONE
Speaking of Chicago, Toyota had a couple of reveals. Here’s the new Tacoma, or at least we think it is. Somebody tell us what’s new because it looks way too frickin’ close to what they already have in the showrooms. Toyota says it updated the multimedia system and now offers an optional larger display screen.
SEQUOIA ADDED TO TRD PRO LINEUP
Toyota also added the Sequoia to its TRD Pro lineup for the first time. The 7-passenger SUV gets Fox shocks, front skid plate, an available cat-back exhaust and a number of TRD touches inside and out.
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.