Tag: Auto

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Toyota Overtakes GM as Bestselling Auto Maker in U.S.

Toyota Motor Corp.

has for the first time overtaken

General Motors Co.

as the U.S.’s top-selling car company by annual sales, a change prompted largely by a global computer-chip shortage that dealt an uneven blow to the car business.

The Japanese auto maker, which for decades has worked to expand its presence in the U.S., outsold GM by roughly 114,000 vehicles in 2021. Toyota’s total U.S. sales of 2.3 million rose about 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} compared with 2020, the company said Tuesday.

By contrast, GM reported a nearly 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} slide in results for a total of 2.2 million vehicles sold in 2021, as the semiconductor shortage took a bigger toll on the company’s manufacturing operations and left dealers with fewer vehicles to sell. GM had been the No. 1 auto seller in the U.S. since 1931, according to trade publication Automotive News.

Toyota has largely benefited from its decision to stockpile computer chips, which are used in an array of vehicle electronics. It bet earlier than most other auto makers on a recovering U.S. car market and cut parts and production orders less sharply than rivals, making it better prepared for an eventual surge in consumer demand.

While Toyota executives say they were successful in navigating some of last year’s supply-chain constraints, they don’t view the lead over GM as a permanent shift in the industry’s closely watched sales rankings.

“To be clear, this is not our goal, nor do we see it as sustainable,” said

Jack Hollis,

Toyota’s senior vice president of operations in North America. He added that the company doesn’t expect to use its dethroning of GM last year in its advertising.

A GM spokesman declined to comment on the company’s sales ranking. He said GM has given priority to its bestselling products—large pickup trucks and sport-utility vehicles—and expects sales growth this year as the chip shortage abates.

Other foreign auto makers and electric-car maker

Tesla Inc.

also surged ahead in U.S. sales in 2021, siphoning market share from Detroit, according to company reports and analyst forecasts.

Hyundai Motor Co.

of South Korea, for the second year in a row, notched sizable share gains, selling 738,081 vehicles in 2021 and boosting sales by about 19{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} over the prior year, the company said Tuesday.

Mazda Motor Corp.

and

Honda Motor Co.

also posted stronger-than-average sales last year, company results show.

Need more horsepower? Want automated driving? Auto makers such as Dodge, Polestar and Jeep are exploring over-the-air updates like these as a way to generate new revenue streams and retain brand loyalty. WSJ’s George Downs explores whether car manufacturers excel at software development. Photo illustration: George Downs

Research firm Cox Automotive estimates Tesla’s U.S. sales jumped 61{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} over the prior year, achieving the biggest percentage gain among auto makers. Tesla doesn’t break out U.S. sales.

Overall, auto makers sold just shy of 15 million vehicles in the U.S. last year, according to a forecast from research firm J.D. Power. That total would be up slightly from 2020, when the onset of the Covid-19 pandemic hurt car sales for part of that year. But it is a sharp drop from the mark of 17 million vehicles that the industry had eclipsed for five straight years before that.

Auto stocks rallied Tuesday after the latest sales results and news that

Ford Motor Co.

plans to double production of its new all-electric truck, after a rise in reservations.

SHARE YOUR THOUGHTS

Did you buy a new car in 2021, or do you plan to buy one in 2022? Why, or why not? Join the conversation below.

Ford’s

stock closed nearly 12{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} higher Tuesday. GM’s stock rose 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while Toyota’s American depositary receipts hit a new all-time high of $199.19, up nearly 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} at Tuesday’s close.

U.S. vehicle sales set a blistering pace last spring as American car shoppers surfaced, looking to spend their savings from the pandemic lockdown on new wheels. But by summer, the chip shortage that had been hobbling factory schedules world-wide resulted in nearly bare dealership lots, curbing sales in the second half of 2021.

Forecasters expect another muted year of vehicle sales, even though the chip shortage is expected to gradually ease in coming months. Auto executives have said it could take the entire year to substantially replenish dealership inventories, which likely would curtail sales despite what dealers say is strong underlying demand.

Edmunds.com expects U.S. sales to reach 15.2 million vehicles in 2022, up slightly from the expected final numbers from last year. Analysts at RBC Capital are more bullish, pegging the total at roughly 15.8 million vehicles, with an expected surge later in the year as supply improves.

GM was among the hardest hit by the chip shortage and other supply-chain problems.



Photo:

Mario Tama/Getty Images

Toyota executives said they expected U.S. auto sales to grow to about 16.5 million vehicles this year, lifted by historically low interest rates, record stock-market performance and higher savings rates that would help support shoppers.

Lofty prices are expected to persist, as the seller’s market created by the inventory crunch continues, analysts said. The average price paid for a new vehicle hit a record $45,700 in December, 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} higher than a year earlier, J.D. Power estimates.

Record used-vehicle pricing is contributing to strong new-car prices, J.D. Power said, because buyers trading in their old vehicles have more money to work with. The average trade-in vehicle in December was worth about $10,200, up from about $4,600 a year earlier, the firm said.

“Pent-up consumer demand will keep inventory levels near historical lows,” likely leading to more record pricing this year, said

Thomas King,

president of data and analytics at J.D. Power.

The uneven disruption to production schedules jumbled the pecking order among auto makers in 2021. While the chip shortage and other supply-chain problems have affected all auto makers, GM and Ford were among the hardest hit, each having scrapped more than 600,000 planned vehicles in North America, according to research firm AutoForecast Solutions LLC.

Stellantis

NV, the global auto maker that owns Jeep, Ram and other U.S.-sold auto brands, was also disproportionately affected by the chip crisis. It reported total U.S. sales of about 1.78 million for 2021, down 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from the prior year.

Ford plans to report 2021 sales results on Wednesday.

On Tuesday, the Dearborn, Mich., auto maker said it planned to double its goal for manufacturing its new electric version of the F-150 pickup truck, targeting 150,000 a year. Ford said the increased production plans reflect high demand for the model, with about 200,000 reservations placed to buy one of the trucks.

Other sales winners included Asian and European brands, as well as Tesla, which said Sunday that global deliveries jumped 87{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in 2021, to 936,000 vehicles. Tesla doesn’t break out sales figures regionally. Cox estimated that its U.S. market share rose to 2.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} last year—about even with

Mercedes-Benz

—from 1.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Randy Parker,

head of national sales for Hyundai Motor America, said the auto maker took several steps to counter the market challenges, including leaning more on online sales operations and encouraging dealers to line up sales for vehicles that have yet to hit the lot.

He said he expects Hyundai to keep sharpening its efforts into 2022, aiming to build on its recent share gains.

“I don’t believe in coincidences,” Mr. Parker said. “I think that we adapted to the crisis extremely well.”

—Ben Foldy

contributed to this article.

How the Global Chip Shortage Affects You

Write to Mike Colias at Mike.Colias@wsj.com and Christina Rogers at christina.rogers@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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The Auto Sector Is Electrified as GM, Ford, and Sony Join Tesla’s Party

It’s all go in the autos sector at the start of 2022.


Toyota sped past


General Motors as the top-selling car company in the U.S. in 2021 as the Japanese auto maker’s sales accelerated. In contrast, GM’s U.S. sales went into reverse, partly due to the global chip shortage. GM has held the top spot in the U.S. since 1931, according to Automotive News. Forward-looking investors didn’t seem too concerned, as the stock changed gear, jumping 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Tuesday. It could go up another gear as the Detroit auto maker is expected to unveil an all-electric Chevy Silverado Wednesday.


Ford has also been quick off the start line in 2022, announcing plans to double annual production of its F-150 Lightning electric pickup truck to 150,000, due to growing demand. The stock climbed 12{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} Tuesday to its highest close in more than 20 years.


Tesla stock also began the year with a bang, surging 13.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Monday after reporting record fourth-quarter deliveries.

As if all that wasn’t enough to turn petrol heads,


Sony announced plans to explore the commercial launch of electric vehicles at the CES trade show in Las Vegas. The Japanese conglomerate, which also unveiled a new prototype electric SUV, will launch Sony Mobility in the spring, a new company aimed at muscling into the EV space.

It isn’t just car makers getting in on the action. Chip maker


Qualcomm’s CEO, Cristiano Amon, said he sees growing opportunities in cars, in an interview with Barron’s, following new partnerships with


Honda,


Renault, and


Volvo.

After a year blighted by semiconductor shortages, production delays, and struggling sales, 2022 was also going to be a big one for the auto industry. It’s off to a blistering start.

—Callum Keown

*** Join MarketWatch personal-finance reporter Jacob Passy today at noon as he talks to Michael Fratantoni, chief economist at the Mortgage Bankers Association, about the implications for the housing and mortgage markets of rising interest rates in 2022. Sign up here.

***

Insurance to Pay for More Expensive At-Home Covid Tests

Insurance companies will be required to reimburse consumers for at-home Covid-19 test kit purchases starting next week.


Walmart and


Kroger raised the price of a two-test kit by


Abbott Laboratories after the end of an agreement with the government to sell them at cost.

  • Walmart, Kroger, and


    Amazon.com     had a deal to sell Abbott’s BinaxNOW tests for $14 but that expired in December The Wall Street Journal reported. Walmart now sells them for $19.98, while Kroger charges $23.99.

  • The U.S. has doubled its purchase of


    Pfizer’s     Covid-19 antiviral pills to treat high-risk individuals, to 20 million treatments. President Joe Biden said the first batch of pills went out Christmas Eve, and more will ship this week.

  • The U.S. reported 1,082,549 new coronavirus infections on Monday, including the delayed count from the holiday weekend, according to Johns Hopkins University. The total is more than double the previous record set five days ago.

  • U.S. residents aged 16 and older who received their second dose of the Pfizer-


    BioNTech     Covid-19 vaccine can get a booster shot five months later, rather than six, the Centers for Disease Control and Prevention said. The CDC also recommended third doses for immunocompromised children aged five to 11.

What’s Next: A CDC vaccine advisory panel will meet Wednesday to consider boosters for 12- to 15-year-olds. The Food and Drug Administration authorized booster doses of the Pfizer-BioNTech Covid-19 vaccine on Monday, but the CDC’s approval is needed before they become available.

—Janet H. Cho

***

Consumer Tech Sales Expected to Slow in 2022

U.S. consumer tech retail sales will slow to 2.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} growth to $505 billion this year, after a 9.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain last year, according to the Consumer Technology Association’s forecast released ahead of the CES tech trade show opening Wednesday in Las Vegas.

  • Tech sales soared during the pandemic when people worked and attended classes from home, and more companies increased their digital commerce. The CTA sees software and services growth slowing to 6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in 2022, from 11.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in 2021. Hardware growth will trickle to 1.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, down from last year’s 9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

  • Steve Koenig, CTA’s vice president for research, noted that the hardware business is being hampered by higher shipping costs and semiconductor shortages, with average lead times for semiconductors stretching to 22 weeks in late 2021, compared with less than 12 weeks in 2020.

  • Electric and autonomous cars, trucks, bikes, and boats headline this year’s show, including


    Deere’s     autonomous tractor with an attached tillage implement. Julian Sanchez, Deere’s director of emerging technologies, told Barron’s that tillage is a labor-intensive process to prepare the soil for next year’s planting.

  • Deere said its tractor can run “fully driverless” around the clock, with six stereo cameras to detect holes, debris, and other obstacles, and could improve productivity by as much as 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Deere wants to design its tractor to perform tasks such as planting and spreading herbicides.

What’s Next: Koenig said the real solution to the global chip shortage is new manufacturing facilities planned by


Intel,


Samsung Electronics,


Taiwan Semiconductor and others, which will reduce reliance on chips from East Asia. But those are all still several years away.

—Eric J. Savitz and Janet H. Cho

***

‘Help Wanted’ Drops Most in Food Service and Accommodation

The food service and accommodation industry made up the biggest decline in job openings in November, dropping to 1.3 million openings from 1.6 million a month earlier, according to Bureau of Labor Statistics data released Tuesday. Overall, job openings dropped to 10.6 million from 11.1 million in October.

  • About 4.5 million people quit their jobs in November, a record quit rate of 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The November Job Openings and Labor Turnover Survey doesn’t include the effects of the Omicron coronavirus variant, which began spreading in December and comprised an estimated 95.4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of cases by Jan. 1.

  • Daniel Zhao, senior economist at careers website Glassdoor, told MarketWatch the slowdown in job openings is “a natural response to the pandemic worsening as employers hesitate to go full force on hiring” until conditions improve. Employers are “desperate” to keep their workers.

  • One


    McDonald’s     franchisee in Altamont, Ill., northeast of St. Louis, is offering free iPhones to new hires who stay at least six months, with a sign in the window saying: “Now Hiring. Free iPhone.”


    Chipotle     and


    Yum! Brands    ’ Taco Bell are offering cash bonuses, raises and tuition benefits.

  • Leisure and hospitality also raised their average hourly pay by 12.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year. Demand for leisure and hospitality workers remains strong, but jobs have declined from a peak of 1.9 million in July 2021, wrote Nick Bunker, director of economic research at Indeed Hiring Lab.

What’s Next: On Friday, the Labor Department reports December employment figures, including nonfarm payrolls, labor-force participation rate, and the unemployment rate. Economists will be looking for corroboration that labor demand has cooled.

—Lisa Beilfuss and Janet H. Cho

***

KFC to Offer Beyond Meat’s Plant-Based Fried Chicken

KFC will start selling fake chicken made by Beyond Meat in its restaurants nationally next Monday, for a limited time until supplies run out, the two companies announced, calling it a “Kentucky Fried Miracle.”

  • The Yum! Brands company has been testing plant-based chicken products in its restaurants since 2019, in locations such as Atlanta, Nashville, and Charlotte. It also tested the plant-based fried chicken in Southern California in 2020, selling out in a week.

  • Beyond Meat stock soared 9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Tuesday after word of the offering. The two companies made an agreement a year ago where Beyond would make meat substitutes for KFC, Taco Bell, and Pizza Hut.

  • The two are counting on a number of people choosing to eat more plant-based food in the New Year. Mexican food chain Chipotle unveiled its plant-based chorizo sausage on Monday.

  • Beyond Meat had initial success in grocery stores and then faltered. Its shares are down 50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in the past year, and the company reported disappointing third-quarter results, with a gloomy sales outlook.

What’s Next: McDonald’s has been testing a plant-based burger called McPlant in eight locations and is expected to expand the rollout this year, possibly by the end of the first quarter, as a limited time offer.

—Liz Moyer

***

First Signals Emerge That Inflation Might Near Peak

Data released this week seem to indicate inflation might be nearing its peak in Western economies.

  • The Institute for Supply Management’s composite index, a key U.S. business survey, stood at 58.7 in December, falling short of expectations but showing a continued expansion for U.S. factories.

  • The data also showed that manufacturers’ input prices and supplier delivery delays declined month on month. That was “the biggest monthly drop in the prices paid measure in over a decade, and leaves it at its lowest level since November 2020,” Deutsche Bank analysts wrote.

  • The same trend is at work at the global level, with the JPMorgan global manufacturing purchasing managers index also indicating that supply-chain bottlenecks seem to be fading, even though they haven’t disappeared.

  • The minutes of the last Federal Reserve meeting, to be released later Wednesday, will give an idea of how fast and strong the U.S. central bank intends to keep tightening its policy to tame inflation, which it no longer sees as “transitory.”

What’s Next: Prices keep rising, but maybe at a slower pace than in the past few months, prompting France’s top central banker to declare that inflation is now “close to its peak,” after data showed December inflation stable compared with November.

—Pierre Briançon

***

Dear Quentin,

I grew up thinking we were the perfect family. My parents were married for 60 years, and my siblings have always been very close. My mom passed away a few years ago. For fun, we all took one of those DNA tests and, shockingly, I found out that I was the product of an affair.

While I haven’t been able to confirm 100{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, I have a good idea of who my biological dad is through some mutual relatives and friends. I do remember him and his family. Here’s the kicker, he won’t discuss anything with me.

In fact, his first question was, “What do you want?” Honestly, I really wanted answers. I can’t get them from mom and don’t want to break my father’s heart. I don’t know if he knows or not. He’s elderly and not well.

While my father—the one I’ve only known to raise me—is alive, I don’t know if I want a relationship with my half siblings or not. It’s all very overwhelming. However, my biological father is also elderly and in poor health.

My siblings have counseled me to consider what I may be entitled to as an inheritance as this man is actually very well off, and always has been. Ironically, my parents purchased a home from him and his wife many years ago.

I don’t even know what I may be entitled to, whether I want it or not, whether I want any relationships, etc. Can you help guide me on the financial side of this affair?

—Confused

Read The Moneyist’s response here.

—Quentin Fottrell

***

—Newsletter edited by Liz Moyer, Camilla Imperiali, Steve Goldstein, Rupert Steiner

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Sanjiv Bhasin | Auto stocks to buy: 5 must-buy stocks in auto sector now: Sanjiv Bhasin

“This is the time to place your revenue the place your mouth is. I would undoubtedly be searching at a ton of the banks, industrials and outperformance from below onwards for India is on the playing cards in 2022. Equities will outperform all asset lessons at least for the upcoming two many years,” claims Sanjiv Bhasin, Director, IIFL Securities.

Heading into 2022 right after a 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} up transfer in the Nifty, are triggers however positioned for a far better go in advance?
You explained 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} up but you have not found a 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} slide which has been very, really hurting in the previous one particular thirty day period. This is the lull before the storm. The FTSE and the Dow Jones are hitting new highs as the range of Omicron variant infected hit new highs but the quantities are slipping pretty sharply also. In India, in the next two months, we will see significant figures but this could be the end of the pandemic and it may well direct to an endemic stage. So I am exceptionally bullish searching at new highs just before the Price range. This is the time to place your cash the place your mouth is. I would definitely be hunting at a large amount of the banking institutions, industrials and outperformance from right here onwards for India is on the cards in 2022.

Ought to just one reduce return anticipations even while the direction may possibly be larger?
We are in the most effective of the bull marketplace, the likes of which we have in no way witnessed.I think the next three yrs will be a bull market. Of program, a single simply cannot have the tempo which we saw previous 12 months and there will be bouts of profit scheduling or income chasing and other alpha but a person has to be stock precise and 1 of our particulars would be the financial institutions. They have been hit for no cause. Weaker sectors like energy, metal, cement have all outperformed. So NPAs are at a document very low and are likely to be there. Price tag of funds is the lowest and the arrival of retail investing can be a set off.



The next sector would be autos which have been strike by the chip scarcity. We are not looking at the index offering 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from below it’s possible on the playing cards but I would say that equities are in a really sweet spot for the following two-a few several years. Do not undermine a very little bit of tapering or inflation going high due to the fact that is a sign of progress. Equities will outperform all asset lessons at least for the next two years.

In the scenario of the vehicle sector, we are observing disruption with the EV forays. Now Bajaj Automobile is getting into EVs as effectively and location up a new plant at Pune. Wherever do you stand in the two-wheeler space right now?
That will be a element we are not heading to see the ICE go absent and simply because of a pretty strong retail comeback, 2022 will mark the comeback of the retail two wheeler current market since there are elections, a minimal price of money and a fantastic output on the farmer entrance. It will all outcome in getting. Hero Moto has invested in Ather. Ather is an unlisted inventory but it has more income than even Ola on the scooter entrance. Bajaj Vehicle is obtaining into it. So EV is a very attention-grabbing place and 2022 will belong to that.

I would counsel two OEMs which will be critical – one would be

which will cater to equally the EV and the ICE and the second a person would be Amara Raja. It is acquiring into a pretty huge foray with a Norwegian corporation which is the sector chief as significantly as batteries and EVs go. Lithium ion battery is a duopoly of Amara Raja and Exide. So I am really thrilled about Amara Raja. I imagine that could be a large outperformer.

We favor TVS, Bajaj Vehicle and Hero in that order and this is the time for obtaining these shares mainly because as soon as their income start out to pick up thanks to weddings, the farmer starting up to invest, we will see the two-wheelers choose off perfectly. So TVS, Bajaj and Hero in that get but the best picks are Amara Raja and Motherson Sumi.

Posted on

Nutson’s Weekly Auto News Wrap-up December 20-25, 2021


PHOTO

PHOTO

Auto CENTRAL CHICAGO – December 26, 2021 Each and every Sunday Larry Nutson, The Chicago Automobile Dude and Government Producer, with ready support from senior editor Thom Cannell from The Vehicle Channel Michigan Bureau, compile The Car Channel’s “just take” on this earlier week’s automotive information, condensed into easy to digest information Nuggets.

Master Far more: Complete variations of present day information nuggets together with 1000’s of pages of relevant information and opinions, info stored in a million page library released and indexed on The Automobile Channel during the previous 25 yrs. Complete data can be identified by copying a daring headline and then inserting into any Web-site Lookup Box.

Nutson’s Automotive News Wrap-up – 7 days Ending December 25, 2021 Below are the earlier week’s vital, suitable, semi-magic formula, or snappy automotive information, opinions and insider back stories introduced as
expertly crafted straightforward-to-digest news nuggets.

CAFE Lives! * Final vehicle emissions rules comprehensive by the Environmental Safety Company are extra stringent than those at first proposed and set in position underneath previous President Barack Obama. Environmental and community wellbeing groups are placing pressure on President Biden to impose the strongest rule possible, which includes eliminating added incentives and credits that make it simpler for automakers to fulfill the requirements. Less than the last rule, the emissions reduction targets for 2023 to 2026 enhance in stringency from 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in each and every product calendar year to achieve a fuel-economic system fleetwide average of 40 mpg in 2026, in comparison with 38 mpg below an August proposal. The regulations depict the most stringent federal greenhouse fuel emissions requirements to date and occur following a long time of reduce benchmarks put in position by former President Donald Trump. These polices place the fleetwide focus on at 32 mpg.

* Nonetheless, take note this. There is a evident loophole on the textbooks that has been amongst the single biggest contributors to greenhouse fuel emissions in the US around the past 30 years. Whilst the facts are a bit specialized, the upshot is the Biden administration is presenting nevertheless a further policy as a victory in the battle towards local climate change when it is a marginal enhancement at greatest and fails to suitable just one of the most obtrusive coverage troubles that has designed local weather adjust worse. Each individual new motor vehicle customer ought to study this: Listed here

Charger Eiquette* In a current report Wards Intelligence factors out that demand time may be replacing assortment panic as the top rated issue for BEV obtain intenders, modern consumer surveys point out. On typical, industry insiders believe by 2025, BEVs need to recharge to 80{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} ability in just 10-20 minutes, while here as well the sights are relatively divergent across the sector. About one-fifth to a person-third of BEVs available in 2025 are anticipated to have greater-voltage 800-900 volt battery packs that make it possible for for quickly charging, say the bulk of respondents in a study by Wards.

* Investment decision carries on in EVs. The US DoE reports in addition to electric powered auto battery vegetation that are already in operation in the United States, 13 further plants have been introduced and are predicted to be operational in just the subsequent 5 decades. Of the 13 vegetation that are prepared, eight are joint ventures among automakers and battery brands. Numerous of these new crops will be positioned in the Southeast or Midwest.

* From the Detroit Free of charge Push we read through a lot more than 1,000 buyers who assumed they’d get a new all-electric powered Ford Mustang Mach-E this year and qualify for the $7,500 tax credit history might be in for an uncomfortable shock. Ford Motor Co. alerted its dealers to desired seatbelt repair involving specific 2021-22 design 12 months Mach-Es, triggering a hold on any undelivered new autos. Shoppers can even now implement for the federal tax credit rating, it just could shift to calendar yr 2022 for some buyers. The credit is utilized to the calendar year a car or truck is shipped, not requested.

* Typical Motors reopened the Corvette plant in Bowling Green, Kentucky that was shut in the wake of tornado hurt. Substantial-pace winds moreover a hearth on the roof from the tornado that roared as a result of the area compelled the plant to close for a 7 days. Experiences vary on the amount of destroyed Corvettes, but additional than 100 cars have been weakened past repair and will be scrapped.

* Automotive News studies that GM has delayed output of the Chevrolet Bolt EV right up until February. GM also has suspended sale of the Bolt EV. The automaker in August widened its recall of the Bolt to additional than 140,000 autos to switch battery modules soon after a collection of fires. The National Highway Traffic Basic safety Administration has an ongoing investigation into the battery fires.

* A Quotewizard.com research says your car’s make and model is an essential issue in identifying what you pay for vehicle insurance coverage. The Tesla Model 3 is the most high-priced well-known car to insure. The Jeep Cherokee and Subaru Forester are the cheapest well-liked cars and trucks to insure. Have appear at the facts In this article

* Automakers are progressively turning to way of living events to arrive at new buyers. Previously in December at 2021 Artwork Basel Miami, BMW, Lamborghini, Lexus, Lincoln, Lucid and Mercedes-Benz all have been existing in South Beach with motor vehicle displays. BMW chose Art Basel fairly than an automobile clearly show to reveal the Principle XM, the to start with electrified M design.

* At the forthcoming CES 2022 in Las Vegas, Nevada, on January 5-8, 2022 Stellantis shows will consist of Citroën Ami city EV, Citroën long run mobility notion, 2022 Jeep Grand Cherokee 4xe outfitted with Uconnect 5 in-car or truck-engineering program, DS Cars Formulation E race motor vehicle, Fiat New 500 and a Chrysler Airflow notion vehicle.

* Automotive News reports Basic Motors and Waymo are the hottest businesses to terminate CES strategies above COVID-19-similar problems. GM CEO Mary Barra had been scheduled to give a keynote speech at the yearly convention on Jan. 5, for the duration of which the corporation would have proven its electric powered Silverado pickup for the very first time. Barra will still make the speech and presentation more than the online, a spokesman stated. Waymo experienced planned to screen its new Course 8 Freightliner Cascadia truck for the 1st time. Designed with redundant autonomous methods in collaboration with Daimler Vans, the system is a lynchpin of Waymo’s emphasis on self-driving trucking. Twitter, T-Mobile, Amazon and Meta (Fb) said they would not participate mainly because of health and fitness worries. Technology-focused media outlets these kinds of as TechCrunch and The Verge have also withdrawn.

* Dodge declared a new Direct Relationship overall performance areas lineup, pieces catalog and technical hotline. Immediate Link is the Dodge brand’s unique resource of factory-backed overall performance parts, that will include things like: New “Tuner” and “Stage” kits that can strengthen the Dodge Challenger SRT Hellcat Redeye and Challenger SRT Hellcat up to 885 horsepower and 750-additionally horsepower, respectively 14 new functionality kits for the output Dodge Challenger 13 new race-prepared kits and 4 graphics deals for the Dodge Challenger Mopar Drag Pak. The new Immediate Connection elements catalog, is offered for obtain at Dodge.com/dodge-muscle.

* Tesla is below pressure from U.S. basic safety regulators since it will allow video clip video games to be performed on heart infotainment screens even though cars are transferring. In response Tesla has agreed to cease permitting the video games to be performed with its “Passenger Enjoy” feature. A software update sent out about the online will lockout the aspect.

* Ford is recalling almost 185,000 F-150 comprehensive-dimension pickups. The 2021 and 2022 design-yr vans have driveshaft challenges that could trigger it to fracture. The situation only has an effect on specified F-150 Crew Taxi 4×4 pickups.

* Autoweek stories two-time CART winner and previous F1 racer Alex Zanardi carries on to recuperate from a close to-deadly handbike crash in which he was struck by a auto whilst racing in Italy in June, 2020. His loved ones is joyful to report that at the very least now he has been capable to transfer from a rehabilitation clinic to his house. Spouse Daniela gave an update on Zanardi’s situation that was released currently on a BMW Group web page. Zanardi, who was a 15-time winner in Indy vehicles, is a BMW Team Ambassador.

* Shunji Tanaka, a key designer of the iconic Mazda Miata, has died. He was 75. Tanaka led the exterior and inside structure of the Mazda MX-5 Miata, a lightweight Japanese roadster influenced by postwar-period British sporting activities cars and trucks. The vehicle went on sale in the U.S. in May well 1989 with a commencing price of $13,800 and a 1.6-liter 4-cylinder motor with 116 hp.

Satisfied Xmas!

Remain harmless. Be Well.

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November U.S. auto sales: Toyota, Honda, Hyundai, Kia sales fall 4th straight month; Ford rises 5.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Supply-chain disruptions, driven by the ongoing shortage of microchips that has dented new-vehicle stockpiles, undercut U.S. sales at Toyota Motor Corp., American Honda, Hyundai and Kia for the fourth straight month in November.

But there was another clear sign that the U.S. market is bottoming out. The seasonally adjusted annualized rate of sales (or SAAR), came in at 13.1 million units — unchanged from October, according to Motor Intelligence. The SAAR was 16.1 million a year ago.

Among automakers that reported November results, sales slipped 14 percent, but LMC said overall sales fell 16 percent, which was worse than previous forecasts that called for a drop of 11-12 percent.

For the recent month, volume dropped 25 percent at Toyota Motor, 17 percent at American Honda, 20 percent at Hyundai — its biggest decline of the current slump — and 5.4 percent at Kia last month, the companies said Wednesday.

Deliveries at Subaru skidded for the sixth consecutive month, down 35 percent in November.

Volvo, the last major automaker to report November results, on Friday said deliveries plunged 34 percent to 7,667 units.

Meanwhile, Ford Motor Co. said Thursday it was the top-selling automaker in the U.S. for a third consecutive month, posting a 5.8 percent increase in November light-vehicle sales that contrasted with declines for nearly all other companies that reported monthly results.

Ford’s utility vehicle sales jumped 21 percent from a year ago, and F-Series pickup sales rose 15 percent despite the ongoing microchip shortage that has thinned dealership inventories. The automaker said sales of its electrified vehicles grew at triple the rate of those from other manufacturers.

Ford said its total light-vehicle sales of 157,417 was enough to beat all other automakers, including General Motors and others that report on a quarterly basis, based on numbers those companies provide privately to analysts and industry data trackers. The last time Ford had such a streak at No. 1 was 1974, company officials said.

Toyota Motor, which has overtaken longtime U.S. market leader General Motors this year, has been forced to cut output in recent months because of tight chip supplies. It has now posted declines of 22 percent or more three consecutive months. Sales last month dropped 24 percent at the Toyota brand and 32 percent at Lexus.

The Toyota brand was hampered by a 47 percent drop in November car deliveries, with Corolla sales skidding 63 percent to 8,906 and Camry off 34 percent to 19,261 units. The brand’s top-selling light trucks also saw double-digit declines: RAV4, off 14 percent; Highlander, down 13 percent; and Tacoma, off 21 percent.

Toyota said it had 116,638 cars and light trucks in inventory — or an 18-day supply — at the end of November, down 67 percent from 349,639 units a year earlier.

Honda said volume dropped 17 percent at the Honda division and 21 percent at Acura, with American Honda car volume off 24 percent and light-truck deliveries down 13 percent. Honda Civic sales slid 26 percent and CR-V volume dropped 19 percent.

Hyundai said it ended November with just 17,096 units in stock, down from 19,894 at the end of October and 145,885 at the close of Nov. 2020. Some of the company’s top-sellers posted notable declines last month; Elantra, down 42 percent; Sonata, off 56 percent; Santa Fe, down 24 percent and Kona, off 37 percent.

Hyundai’s fleet shipments also dropped sharply last month — 97 percent, and represented less than 1 percent of overall volume.

Randy Parker, senior vice president for national sales at Hyundai Motor America, said “consumer demand remains exceptionally high” but “lingering availability issues persisted into November.”

At Kia, some of the brand’s key models — led by the Telluride, Seltos, Sportage and Soul — all posted declines. The company said it sold 77 percent of available U.S. inventory in November.

Three of Subaru top U.S. sellers — the Outback, down 19 percent; Crosstrek, off 51 percent and Forester, down 70 percent — suffered significant declines last month, leaving the company on pace to post back-to-back declines in annual U.S. volume for the first time since the 1990s.

Mazda said volume dropped 5.3 percent in November, its third straight decline.

Genesis, helped by an expanding product lineup, continued to rack up major gains, with November volume advancing 435 percent to 5,002 sedans and crossovers. 

General Motors, Stellantis, Nissan Motor Co., Volkswagen Group and the rest of the industry post U.S. sales quarterly.

Analysts had expected a more substantial finish to 2021 fueled by traditional year-end holiday discounts — after volume dropped 14 percent in 2020 at the onset of the pandemic.

The emergence of another COVID-19 variant also threatens to upend the spotty recovery to the extent supply chains and manpower are impacted by new travel and other possible operating restrictions.

Retail inventories remained below 1 million units in November for the fourth straight month, J.D. Power and LMC Automotive said.

“The typical Black Friday sales surge will be difficult to support,” this year, said J.D. Power analyst Thomas King. “The traditional year-end sales push will be somewhat non-traditional.”

Industry sales rose 13 percent through September behind a strong first quarter and a 4.96 percent rise in the second quarter, followed by a 13 percent decline in the third quarter.

Still, November sales are expected to increase slightly from October, rising less than a percent to reach an estimated 1.05 million, Cox Automotive said.

“The market is stuck in low gear,” said Cox Automotive Senior Economist Charlie Chesbrough. “There are potential buyers out there, but many are waiting on the sidelines, put off by limited selection and high prices.”

Even amid tight supplies, some automakers continue to pitch deals to keep consumers and buyers engaged.

Hyundai and Ford last month offered 0 percent financing and waived payments up to 90 days on select models, and BMW dangled up to $2,500 off on select new models through Nov. 30.

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Why auto executives are optimistic about long-term profits

Most auto executives are optimistic about the industry’s long-term profitability and the adoption of electric vehicles, even as they remain concerned about short-term problems such as the tight labor market and microchip shortage, a new survey of industry leaders found.

According to KPMG‘s 2021 Global Automotive Executive Survey, 53 percent of respondents said they were extremely or somewhat confident that the industry would achieve more profitable growth over the next five years, compared with 38 percent who said they were concerned. KPMG surveyed 1,118 executives around the world in August, ranging from CEOs to department heads at automakers, suppliers, startups and other companies.

“With all of the massive changes expected to happen in our industry, there is this sense of dynamism in the industry that I feel like is there now,” said Gary Silberg, global head of automotive at KPMG International.

Executives in the U.S. and China appeared to be the most optimistic about profitability moving forward, the data showed. Silberg attributed the optimism among American executives to the growth of EV and mobility startups around the country and investments in those areas by traditional automakers.

“You see a big delta in the views of the world around optimism and profitability when you get into Europe, India and elsewhere,” he said.

Semiconductor, trade concerns

The profit optimism comes even as executives signal major concerns about various issues in the short term. The vast majority of executives said they were concerned about supply continuity for semiconductors and commodities such as steel and aluminum, as well as rare earth elements, lithium and other components needed for batteries.

At the same time, 57 percent of executives said they expected the cost and complexity of tariffs, trade rules and regulations to significantly or somewhat increase over the next five years, compared with just 17 percent who expect them to decrease.

“There is definitely concern on the supply chain moving forward,” Silberg said. “That was the dichotomy for the industry: long-term optimism but near-term concern.”

As the industry navigates the semiconductor shortage and the COVID-19 pandemic, 82 percent of executives said they believed their companies were at least moderately prepared for the industry’s next major crisis, compared with 15 percent who said they were slightly prepared or 3 percent who were not at all prepared. American executives again signaled more optimism than the rest of the world, with KPMG saying there was a 58-point disparity between those who said they were prepared and those who said they were not.

EV adoption

As the industry prepares to roll out dozens of electric vehicles in the coming years and as governments implement EV mandates and targets, auto executives on average say they expect the EV market to take off worldwide over the next decade.

On average, executives said they expected 52 percent of all new vehicles sold in the U.S., China and Japan to be electric by 2030. Western European EV sales are expected to make up 48 percent of the market by then, compared with 41 percent of sales in Brazil and 39 percent in India.

Still, Silberg said views from executives on how big of a share of the market EVs will gain varied wildly, with answers ranging anywhere from 5 percent to 90 percent.

“It’s all over the board,” Silberg said. EV market share will be “up, but there is no consensus on what it might end up being.”

Most executives (77 percent) said they believed EVs could achieve “widespread adoption” within 10 years even without “government intervention,” though 91 percent said consumer subsidies for EVs were helpful.

Still, they pinpointed a potential roadblock in EV adoption: charging times. According to the survey, 77 percent of executives think consumers will be willing to wait only 30 minutes or less for a charge of 80 percent or better.

Achieving that would require the installation of more DC fast-charging stations, Silberg said. Fewer than 20 percent of EV chargers in the U.S. today are fast charging, according to KPMG, and they can cost as much $100,000 to install.

Direct-to-consumer sales
Industry leaders expect automotive retail to continue evolving. The survey found 78 percent of executives think the majority of new-vehicle purchases worldwide will be completed online by 2030.

At the same time, 46 percent of executives think 60 percent or more of all new-vehicle sales will be by automakers directly to consumers in their home markets by 2030. Another 28 percent think between 40 and 59 percent of sales will be direct to consumer, and just 3 percent of executives think fewer than 1 in 5 sales will be direct.

About 74 percent of executives said they think a “seamless and hassle-free” experience will be very or extremely important to consumers looking to purchase a vehicle in the next five years, outpacing factors such as driving performance (71 percent) and brand or image (64 percent).

“There’s a sense, globally and not just in the U.S., that if you go to the dealer, people are fed up with that experience,” Silberg said. “You see it in this data. Those that can give a seamless, great experience are going to win in the marketplace.”

KPMG said one-third of the survey’s respondents were CEOs, presidents or chairmen, while 29 percent were C-level executives. The rest was made up of the heads and managers of business units and department heads. About three out of four respondents were from China, the U.S. or Europe, with companies ranging from less than $100 million in annual revenue to more than $10 billion.