AD #2790 – Parts Retailers’ Stock Surges; EV Charging Signs Needed; Tesla Builds 1 Millionth Car

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

AUTO STOCKS CRATER
Automotive stocks are taking a beating thanks to fears over the coronavirus. Ford dropped under $6 a share. GM is down 28% in the last month alone. VW, BMW, Daimler and Toyota took a beating too. But one automotive segment is shrugging off the market crash. Bloomberg reports that companies which sell repair parts for cars are zooming ahead. Retailers like AutoZone, O’Reilly and Advance Auto Parts were three of only 9 stocks trading higher in the S&P 500 yesterday afternoon. Investors are betting that the downturn from the coronavirus could scare consumers away from dealerships and will force them to keep their current cars longer. That means they’ll be paying for more repairs and will have to turn to parts suppliers.

VW WINS IN JURY TRIAL
Volkswagen’s first jury trial over its diesel emission cheating came to an end and it was a victory for VW. It will pay $106,000 in damages to 5 owners, who have to split the money. There were a total of 10 owners in this case against VW and they were seeking $373,000 for economic losses and as much as 10 times that amount in punitive damages. But 5 of them were awarded no damages at all. The other 5 got the $106,000 and VW plans to ask the court to reduce that amount. This is just the tip of the iceberg for Volkswagen. There are about 350 other owners who are still suing the automaker over the same issues. If half of those are thrown out as well and the other half get the same settlement, it will cost VW only $3.7 million.

CHINA CAR SALES WON’T BOUNCE BACK SOON
Will car sales in China bounce back now that reported cases of coronavirus are dropping? Don’t count on it, says the consultancy ZoZo Go. People are worried that they haven’t been paid and are not in the mood to buy big ticket items like cars. Most dealerships have skeleton staffs in their service areas, but no sales staff. And what’s happening in China is a direct warning of what will likely happen in North America and Europe if the coronavirus panic continues.

NEEDED: EV CHARGING SIGNS
Many people are reluctant to buy an electric car because they’re worried there aren’t many public charging stations. But little do they know there are more than 25,000 public charging stations for electric cars in the United States? And those stations have over 78,000 chargers. The public is unaware that there are so many places to plug in, because there are no signs that identify where to find a charging station. Most expressway exits have signs that identify where there are fast food restaurants, hotels and gas stations. So what we need now is a simple graphic of an electrical plug at the proper exits so that people know they could recharge their battery there. If people know there are plenty of places to plug in, they’ll be far more comfortable with the idea of buying an electric car.

TESLA BUILDS 1 MILLIONTH CAR
Speaking of selling more EVs, Tesla achieved a major milestone as it built its millionth car, as we learned from a Tweet that Elon Musk posted yesterday. It took Tesla over a decade to hit 1 million, but it will hit two million far faster than thanks to the addition of an assembly plant in China and Germany. It should build its 2 millionth car in less than three years.

DETAILS ON CADILLAC LYRIQ EV
Cadillac was going to publicly reveal its first battery electric utility next month, but cancelled the show due to the coronavirus. That vehicle is called the Lyriq and looks very similar to these renderings that Cadillac released last year. Though it’s the size of a CUV, it almost looks like a sporting brake. The front end uses the design language that’s already showing up on Cadillacs like the XT4 and XT6. An interesting design detail is how the leading edge of the hood and front fenders overlap the front fascia. Those vertical light blades flanking the front end function as daytime running lamps and headlamps. Note the lack of door handles and how the rear view mirrors are actually thin mounts for video cameras. We don’t know if that’s what the production version will actually have, but it sure makes the Lyriq look sleeker. Though Cadillac did not release any renderings of the interior it features one big, curved panoramic screen that is 32 inches long, and looks very similar to the one in the new Escalade. There’s also an iPad-sized screen on the rear seat center armrest with controls for rear seat passengers. No doubt Cadillac wants to have a public blowout extravaganza for the reveal of the Lyriq, but maybe it’s going to have to settle for an on-line reveal instead.

HONDA DROPS CLARITY EV…
Honda will no longer have a full battery electric vehicle in its U.S. lineup. It’s discontinuing the Clarity Electric for the 2020 model year. But the plug-in hybrid and hydrogen powered models will continue to live on. The Clarity Electric didn’t have a whole lot going for it. It was only offered as a lease in California and Oregon and its small battery pack delivered only 89 miles of range. Those were likely big factors in its poor sales. According to WardsIntelligence, Honda only sold 576 Clarity Electrics last year in the U.S. But if you are one of the few that are currently leasing, you can request an extension from Honda.

…AND REFRESHES ODYSSEY
In other Honda news, it’s going to show a refreshed version of the Odyssey at the New York auto show… if it doesn’t get cancelled by the coronavirus. There’s only two images to show, so let’s highlight what we can see in them. A new grille is now topped by a chrome strip, the LED headlights are more powerful, the lower fascia and fog light housings are redesigned and the gloss black trim under the rear window is also accented with chrome. Interior changes include updated climate controls, second-row seatbacks that now fold flat, standard driver assistance features as well as restyled seats and piano black trim on higher level models. The 2021 Odyssey goes on sale later this year.

HE AND SHE TEAM ON AFTER HOURS
She oversees production of the Acura NSX supercar. He is a vice president at Honda of America Mfg., developing the blueprint for Honda’s manufacturing electrification future. We’re talking about Gail and Rob May and they’re our guests on Autoline After Hours this Thursday. So if you want to learn more about the leading edge of Honda’s manufacturing capabilities, join John and Gary for some of the best insights into the automotive industry.

And with that we wrap up today’s report. Thanks for watching and please join us again tomorrow.