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Runtime: 9:46
0:08 Hyundai & Kia Deny Ransomware Attack
0:53 Volkswagen Considers Porsche IPO
1:41 Daimler & Renault Post Polar Opposite Earnings
4:29 Gas Prices to Remain High
5:15 The Onion Skewers Jim Farley
5:53 Mahle Develops New Heat Pump to Boost EV Range
6:52 Honda Names New CEO
7:26 Little Overlap Between J.D. Power & Consumer Report Surveys
8:24 EVs Help Keep Texans Warm
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
HYUNDAI & KIA DENY RANSOMWARE ATTACK
Last weekend, Kia Motors America allegedly got hit with a cyber attack. The IT network that services its dealers went down. So did its UVO connected services for customers. A website called Bleeping Computer reported it was caused by a ransomware attack and that the hackers demanded $20 million or they would leak all the stolen data. Hyundai Motor America also suffered an IT outage. They’ve restored some of the services, and say the rest will be back up soon. Both Kia and Hyundai deny it was a ransomware attack, but we wonder. Bleeping Computer is a website dedicated to tracking cyber attacks and works with European authorities on cyber matters.
VOLKSWAGEN CONSIDERS PORSCHE IPO
Traditional automakers need and want two things. They need to unlock ways to pay for future products and want Wall Street to see them as tech companies, i.e., they want their stock prices higher. And now reports are surfacing that Volkswagen is considering listing Porsche through an IPO or spinning it off completely. Porsche could be worth somewhere between 70 and 100 billion euros, but if VW went the IPO-route it would still want to control a majority stake. Talks are in the very early stages, but even just the news of a possible sale increased VW’s shares by nearly 6%. And you can be sure other automakers are looking for ways to unlock more value.
DAIMLER & RENAULT POST POLAR OPPOSITE EARNINGS
Daimler and Renault posted their earnings from last year and the results are polar opposites of each other. Daimler sold half a million fewer vehicles and its revenue fell 11%. But its earnings before interest and taxes shot up 53% and its net profit jumped 48%. That’s because it was able to slash expenses dramatically. But Renault is a different story. Its sales fell 21%, revenue was down even more, and it lost 8 billion euros. The big problem for Renault is that it doesn’t sell very many cars in China, and none at all in the U.S. And when you’re not a player in the two largest car markets in the world it’s not easy to make money.
| Daimler 2020 Earnings | ||
|---|---|---|
| Sales | 2.8 million | -15% |
| Revenue | €154 billion | -10.6% |
| EBIT | €6.6 billion | +53% |
| Net Profit | €4 billion | +48% |
| Renault 2020 Earnings | ||
| Sales | 2.9 million | -21% |
| Revenue | €43 billion | -22% |
| EBIT | -€2 billion | — |
| Net Profit | -€8 billion | — |
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GAS PRICES TO REMAIN HIGH
Thanks to fracking the United States was a net exporter of oil last year. But that was last year. The Energy Information Agency says this year the U.S. will have to import one million more barrels of oil a day. It’s all got to do with oil prices. They crashed to only $20 a barrel when the pandemic hit last spring. That caused many frackers to cap their wells. But oil prices are going back up and are now at roughly $60 a barrel for West Texas Intermediate. The EIA says that will bring more wells back into production, but it doesn’t see production getting back to pre-Covid levels before the end of next year. That means prices will stay higher at the pump.
THE ONION SKEWERS JIM FARLEY
The Onion, the magazine with scathing satire, just put Ford CEO Jim Farley in its cross-hairs. It ran a story of how Farley stole a battery out of a Toyota Prius for Ford to use in its EV program, while one of his buddies kept an eye out for the cops. It quoted Farley as saying it was time to take action on climate change, and that he could sell the Prius battery for five grand on Craigslist. Farley contacted Autoline Daily to set the record straight. He said the story wasn’t true, because he actually stole that battery out of a Toyota Highlander.
MAHLE DEVELOPS NEW HEAT PUMP TO BOOST EV RANGE
Heating an electric vehicle, especially during the winter, can be a big drain on the battery. So, the supplier MAHLE developed a new generation of a high voltage heat pump that it says can extend the cruising range of an EV by up to 20%. It’s now integrating the electronics that control the temperature right with the heating elements, which creates a smaller, lighter and cheaper unit. The built-in electronics measure resistance in the heating elements to adjust the temperature, so there’s no need for temperature sensors. And we’re going to see more improvements like this as more EVs hit the market.
HONDA NAMES NEW CEO
Honda is shaking up its top management. Toshihiro Mibe is its new President and CEO. He replaces Takahiro Hachigo, who took over the spot in 2015 and who will join the board. Mibe joined Honda in the late 80’s and comes from the R&D side of the business. You know, Honda always does it that way. The CEO always comes from R&D because Honda believes its leader should be intimately familiar with its products, how they’re made and the technology that goes into them.
LITTLE OVERLAP BETWEEN J.D. POWER & CONSUMER REPORT SURVEYS
J.D. Power and Consumer Reports both put out lists ranking the top car brands that it hopes shoppers will use when trying to decide what their next purchase will be. But these can seem confusing. J.D. Power ranks brands based on dependability, while Consumer Reports ranks the most reliable. What’s the difference between dependability and reliability? Not much in my mind, but yet their top brands never really line up with each other. J.D. Power ranks Lexus, Porsche, Kia, Buick and Cadillac as the best brands. CR puts Mazda, BMW, Subaru, Porsche and Honda in its top 5 spots. Yes, I know they look at different criteria for their rankings, but you’d think there would be some more overlap. It just drives the point home that you really need to look at a number of sources when trying to make an informed decision about a big purchase, like a vehicle.
EVs HELP KEEP TEXANS WARM
While electric vehicles lose a lot of range in cold weather, they could also save your life. As you know, Texans are shivering through power outages caused by severe winter weather, which took out a big chunk of the energy grid. One Tesla owner stayed warm by putting his family in his Model 3 with the heat on. No problem, with an electric car you don’t have to worry about getting asphyxiated. And a Ford F-150 Hybrid owner took advantage of the on-board generator to power his house. He says it kept the house warm and they were able to make coffee and watch TV. So there you go, another reason to love your car. It can save your butt in times of declared emergency.
But that wraps up today’s report, thanks for watching and have a great weekend.
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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.
