Tag: carmaker (Page 2 of 2)

Tesla Sedans Regain Consumer Reports Recommended Status

November 14, 2019 / WIL BALDWIN

DETROIT (Reuters) – Tesla Inc’s <TSLA> Model 3 and S sedans both regained “recommended” status in Consumer Reports magazine’s annual reliability survey, allowing the electric carmaker’s overall standing to rise slightly.

Tesla’s ranking improved four spots to No. 23 out of 30 brands in the U.S. market as it worked to resolve production problems with the Model 3, said Jake Fisher, senior director of auto testing at Consumer Reports. Both the Model 3 and S raised their reliability ratings to “average.”

“People really like their cars,” he said of Tesla owners. “Hopefully, if that frantic rate of change can slow down a bit, they can maintain reliability.”

Tesla has touted the popularity of the Model S, listed in the top ranks of a different Consumer Reports survey, on owner satisfaction, every year since 2013 when the carmaker was first included.

Fisher cautioned he expected Tesla’s reliability to remain fluid given its inconsistent track record.

Tesla’s Model X SUV still ranks among the least reliable models, according to the annual survey released on Thursday.

The poll predicts which new cars will give owners fewer or more problems, based on data collected for more than 400,000 vehicles. Its scorecard is influential among consumers and industry executives.

Reliability rankings tend to suffer when automakers offer new or redesigned models, which dragged down Volkswagen AG’s <VWAGY> namesake and Audi brands. The VW brand slid nine spots to No. 27, while Audi fell seven spots to No. 14.

Brands with no major changes to their lineups, such as Fiat Chrysler Automobiles’ <FCAU> Dodge and Chrysler, made significant gains. Dodge was the highest ranked U.S. brand at No. 8, making the biggest gain of 13 spots. Chrysler rose seven spots to No. 19, while Jeep finished at No. 26.

Ford Motor Co’s <F> Lincoln and Ford brands were No. 15 and 16, while General Motors Co’s <GM> Buick, GMC, Chevrolet and Cadillac brands ranked No. 18, 22, 25 and last at 30, respectively.

The reliability of full-sized pickups, the most popular vehicles in the U.S. market, was weak. Ford’s F-150 and FCA’s Ram trucks were rated “well below average,” while GM’s pickups – the Chevrolet Silverado and GMC Sierra – both had “below average” reliability.

Toyota Motor Corp’s <TM> Lexus luxury brand finished atop the survey, followed by Mazda Motor Corp <MZDAY> and the Toyota brand.

(Reporting by Ben Klayman in Detroit; Editing by Richard Chang)

Germany to Hike Electric Car Subsidies as VW Launches Car

November 4, 2019 / WIL BALDWIN

– Germany to expand electric car infrastructure

– German Chancellor asks industry to help with charging

– Volkswagen unveils start of production of its ID.3 electric car

BERLIN, Nov 4 (Reuters) – Germany plans to increase by half the grants available to buyers of electric cars over the five years from 2020, according to a government document seen by Reuters, the latest in a series of measures to speed the adoption of low-emissions vehicles.

According to the document, due to be discussed at a meeting of high-level government and car-company officials on Monday evening, grants for plug-in hybrids will rise from 3,000 to 4,500 euros. For vehicles priced over 40,000 euros the grants will rise to 5,000 euros.

The government wants to have 10 million electric vehicles on the roads by 2030, part of an offensive designed to turn round the German car industry’s perceived laggard status in e-mobility compared to its rivals in the United States and China.

The paper came to light on the day that Chancellor Angela Merkel gave a speech at Volkswagen’s Zwickau factory, where the German watched the carmaker start mass production of its ID.3 electric car, a vehicle costing around 30,000 euros.

“We can now say that Zwickau is a pillar of today’s German auto industry and of its future,” Merkel said at the launch. “Our task as politicians is to create a framework where new technological innovations can take hold.”

Merkel said the government would invest 3.5 billion euros ($3.90 billion) to 2035 in building charging stations for electric cars.

On Sunday she had said Germany needed 1 million charging stations by 2030 and urged carmakers and utility companies to play their part in helping to build the necessary infrastructure.

As part of an auto industry push, BMW plans to build 4,000 electric car charging stations, a source familiar with the discussions said on Monday.

In September, at the Frankfurt auto show, Europe’s carmakers warned governments that the EU rules could be disastrous for profits and jobs because mainstream customers were not buying electric vehicles.

German carmakers are accelerating plans to launch electric vehicles, under pressure from a European Union mandate to deliver a 37.5% cut in carbon dioxide emissions between 2021 and 2030, on top of a 40% cut in emissions between 2007 and 2021.

($1 = 0.8970 euros)

(Reporting by Markus Wacket in Berlin and Joern Poltz in Munich, writing by Thomas Escritt and Edward Taylor; editing by Paul Carrel)

Labour Judge Rules That Tesla Broke Labour Law

September 28, 2019 / WIL BALDWIN

Tesla charging station is pictured during the media day for the Shanghai auto show in Shanghai

(Reuters) – Electric carmaker Tesla Inc <TSLA> interfered with legitimate union organising and must read a notice to workers explaining their rights in a meeting requiring attendance from Chief Executive Elon Musk, a U.S. labour judge ruled on Friday.

The company committed a series of violations of the National Labor Relations Act in 2017 and 2018, Amita Baman Tracy, a California administrative law judge ruled in a court filing.

Among the violations of the law cited in the filing was a tweet sent by Musk in May 2018.

“Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare”, Musk wrote in the tweet http://bit.ly/2nR14f9 from last year.

The tweet amounted to “threatening employees” with loss of stock options if they vote in favour of the union, the judge said in her ruling on Friday.

The ruling has called on the electric carmaker to hold a meeting at its California assembly plant where either Musk or his agent must inform the workers that the National Labor Relations Board has concluded that Tesla broke the law.

Tesla did not immediately respond to a Reuters request for comment on Friday’s ruling.

In the past, the company has been plagued by safety complaints brought by workers, allegations that Tesla denies. Workers have said that long hours and pressure to deliver vehicles quickly takes a toll, and some have pushed for a union.

(Reporting by Kanishka Singh in Bengaluru; Editing by Sandra Maler)

Tesla Scouting Sites for Possible Factory in Germany

August 25, 2019 / WIL BALDWIN

FRANKFURT (Reuters) – Electric carmaker Tesla <TSLA> is scouting out locations for a possible factory in the German state of North Rhine-Westphalia (NRW), Germany’s most populous state, daily Rheinische Post reported on Sunday, citing people familiar with the matter.

First inspections have taken place, the paper said.

Tesla spokespeople in Europe were not immediately available for comment.

Tesla Chief Executive Elon Musk said in a tweet in April that the company was “considering” building a factory in Germany.

Last year, Musk said Germany was a leading choice in Europe to build a Gigafactory, adding “the German-French border makes sense, near the Benelux countries”.

NRW, Germany’s most populous state, shares borders with the Netherlands and Belgium.

Tesla is also looking at the German state of Lower Saxony, which shares a border with the Netherlands, its Economy Minister Bernd Althusmann said earlier this week.

(Reporting by Christoph Steitz; Editing by Frances Kerry)

Daimler Cuts 2019 Profit Outlook on Diesel Issues

June 23, 2019 / WIL BALDWIN

FRANKFURT (Reuters) – Daimler has cut its earnings outlook for this year after lifting provisions for issues related to its diesel vehicles by “a high three-digit million euro amount”, the carmaker said on Sunday.

Group earnings before interest and tax for 2019 are now expected to be at last year’s level. Previously, the carmaker had expected the figure to be “slightly higher”.

The revision is related to an increase in expected expenses linked to “various ongoing governmental proceedings and measures with regard to Mercedes-Benz diesel vehicles,” the company said.

A spokesman declined to elaborate on the nature of those issues.

However, Sunday’s profit warning follows news over the weekend that Daimler must recall 60,000 Mercedes diesel cars in Germany after regulators found that they were fitted with software aimed at distorting emissions tests.

The transportation ministry said it was expanding its investigation into further models.

The company also said it was reducing its forecast for the return on sales for Mercedes-Benz vans.

It now sees a return between minus 2% and minus 4%, below its previous forecast of a return on sales of 0% to 2%.

(Reporting by Tom Sims; Editing by Jan Harvey)

Fiat Chrysler Signs EV Charge Point Deals with Enel, Engie

June 14, 2019 / WIL BALDWIN

FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at its U.S. headquarters in Auburn Hills, Michigan

MILAN (Reuters) – Carmaker Fiat Chrysler (FCA) has signed an agreement with European utilities Enel and Engie to help offer its customers charging points for electric vehicles (EV) it is planning to roll out.

FCA, which is lagging rivals in developing electrified vehicles, said last June it would invest 9 billion euros ($10 billion) over the next five years to introduce hybrid and electric cars across all regions.

Last month, the Italian-American carmaker proposed a merger with French rival Renault in part to share the costs of developing a new series of electric cars. Merger talks collapsed earlier this month.

In a statement, FCA said the main aim of its partnerships with Enel and Engie was to be able to offer private and public charging stations to support the sales of its soon-to-be-launched fully electric Fiat 500 BEV and plug-in hybrid Jeep Renegade PHEV.

“We are assembling an eco-system of partners, products and services across multiple markets to meet and exceed the rapidly evolving expectations of our customers for electrified vehicles,” FCA Chief Executive Mike Manley said.

The deal also includes developing services such as apps to allow clients to locate public charging points.

Enel, through its Enel X unit, will work with FCA in Italy, Spain and Portugal, while Engie will work with the carmaker in 14 other European markets.

(Reporting by Stephen Jewkes; Editing by Mark Potter)

Tesla Shares Skid After First-Quarter Deliveries Disappoint

April 5, 2019 / WIL BALDWIN

FILE PHOTO: A Tesla logo is seen at a groundbreaking ceremony of Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song/File Photo

(Reuters) – Tesla Inc shares fell more than 8 percent on Thursday after a bigger-than-expected drop in first-quarter deliveries, led by waning demand for its luxury Model S and X vehicles, added to worries about the electric carmaker’s finances.

At least four Wall Street brokerages cut their price targets on the company’s stock, citing concerns about profitability and revenue after deliveries of the higher-priced luxury cars more than halved compared to the fourth quarter.

RBC analysts called Model S/X deliveries “very disappointing” and estimated the numbers would translate to a more than $1 billion shortfall in revenue compared to previous estimates.

The company had already flagged in February that it expected to post a first-quarter loss as it launched its cheaper $35,000 version of the Model 3 sedan.

In the quarter, Tesla delivered 50,900 Model 3s, the linchpin of its growth strategy, falling short of analysts’ estimates of 58,900, according to IBES data from Refinitiv.

Tesla also pinned the blame for the first-quarter delivery drop to longer transit times, which analysts said could impact cash flow, even though the company claimed it had sufficient cash on hand.

The company said it had delivered only half of the quarter’s numbers by March 21, with 10,600 vehicles still in transit at the end of the quarter. By comparison, only 1,900 vehicles were in transit at the end of the fourth quarter.

Cowen and Co analysts said that the delivery and transit details suggested “cash was likely dangerously low” after Tesla paid off a $920 million convertible bond obligation in cash in the beginning of March.

Still, there were no new downgrades by brokerages on Tesla shares. The company is currently rated “buy” or higher by 12 of the 30 brokerages covering the company, 7 “hold” and 11 “sell” or lower.

The carmaker reaffirmed its forecast to deliver between 360,000 and 400,000 vehicles this year, and said U.S. orders for the new Model 3 outpaced what the company was able to fulfill in the quarter.

Nord LB analyst Frank Schwope called the numbers “more shocking than disappointing” and said there remain doubts whether Tesla could deliver 400,000 cars this year.

Lawyers for Tesla chief Elon Musk will argue on Thursday that he did not violate a fraud settlement with the U.S. Securities and Exchange Commission and should not be held in contempt, the latest twist in a high-profile battle between the billionaire and the government.

Musk’s fight with the SEC, to play out in a Manhattan federal court hearing, has raised investor worries that it could lead to restrictions on his activities or even his removal from Tesla, while distracting him at a pivotal point in the company’s expansion.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by Shounak Dasgupta)

Tesla Secures Shanghai Site For $2 Billion China Gigafactory

October 17, 2018 / WIL BALDWIN

BEIJING (Reuters) – Tesla Inc has signed an agreement with the Shanghai government for an 860,000 square metre plot of land to build its first overseas Gigafactory, the electric carmaker said in a Chinese social media post on Wednesday.

The land agreement marks a key step towards the firm and its Chief Executive Elon Musk making cars locally in China for the fast-growing market, even as tariffs imposed by Beijing on U.S.-made goods have caused it to hike prices of its imported models.

Tesla signed a long-anticipated deal with Shanghai authorities in July to build its first factory outside the United States, which would double the size of its global manufacturing and help lower the pricetag of Tesla cars sold in the world’s largest auto market.

“Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site,” Robin Ren, Tesla’s vice president of worldwide sales, said in a statement.

Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square metres had been sold at auction at a price of 973 million yuan ($140.51 million).

Tesla signed a deal with Shanghai authorities in July to open a plant in the Chinese city with an annual capacity of 500,000 cars.

The factory will help tap China’s rapidly growing market for so-called new-energy vehicles (NEVs), a category comprising electric battery cars and plug-in electric hybrid vehicles, even as China’s wider car market cools.

NEV sales were up 54.8 percent in September and climbed 81.1 percent in the first nine months of this year to 721,000 vehicles, the country’s top automobile industry association said last week.

Beijing, however, is reining in subsidies for the sector, concerned about overcapacity and “blind development,” with many inside the industry expecting a shake-out to hit the wide array of smaller local electric car start-ups.

Tesla, which started hiring for the new Shanghai factory in August, previously said that it would raise capital from Asian debt markets to fund the construction, which will cost around $2 billion.

By Yilei Sun and Adam Jourdan

($1 = 6.9248 Chinese yuan renminbi)

Chinese EV Maker NIO Stock Rises On U.S. debut

September 12, 2018 / WIL BALDWIN

(Reuters) – Shares of Chinese electric carmaker NIO Inc (NIO.N) recovered sharply from a 15 percent fall in their market debut on Wednesday, a day after the company’s IPO was priced at the lower end of the expected range.

NIO shares rose as much as 11 percent to $6.93 in afternoon trading, giving it a market capitalization of $7.11 billion.

The rebound in shares was a welcome relief for NIO, whose offering came under pressure as investors have turned wary about electric carmakers due to struggles at its chief rival Tesla Inc (TSLA.O).

Investors have worried about Tesla’s cash-burn rate as the company struggles to meet its production targets amid its efforts to become a mass-market automaker.

NIO began deliveries of its ES8 SUVs in June and in August sold 1,121 units. The company plans to launch a second, lower-priced electric sport-utility vehicle, the ES6, by the end of this year.

NIO, founded by Chinese entrepreneur William Li in 2014, incurred a net loss of $502.6 million in the first six months of 2018 on $6.95 million in revenue. It has $677 million in cash and cash equivalents as of June 30.

The listing – the third-biggest in the United States by a Chinese firm this year – comes as Chinese EV makers seek fresh capital to develop new products and finance investments in areas including autonomous driving and battery technologies.

NIO, formerly known as NextEV and backed by Chinese tech heavyweight Tencent Holdings Ltd <0700.HK>, is one of several largely Chinese-funded EV startups betting on the benefits of local production to compete with firms such as Tesla.

Having begun promoting EVs in 2009, China aims to become a dominant global producer as it bids to curb vehicle emissions, boost energy security and promote high-tech industries.

Several EV makers such as WM Motor Technology Co and Xpeng Motor have also raised funds from heavyweight investors including tech giants Alibaba Group Holding Ltd (BABA.N), Baidu Inc (BIDU.O) and Tencent.

Goldman Sachs, JPMorgan and Morgan Stanley led the IPO. Bank of America Merrill Lynch, Credit Suisse, Citigroup, Deutsche Bank and UBS were also part of the process.

(Reporting by Diptendu Lahiri in Bengaluru; Editing by Sriraj Kalluvila and Anil D’Silva)

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