Ford raises the price of the base F-150 Lightning Pro for second time in two monthsPorsche now Europe’s most valuable car manufacturer After the IPO and Honda plans to drastically cut car production at two plants in Japan this October. All this automotive goodness and more Morning shift For Thursday, October 6, 2022.
1st Gear: Ford F-150 Lightning Pro prices BRRRRRR
Ford is once again raising the price of the entry-level F-150 Lightning Pro. It’s the second price increase in as many months, and Ford says it’s due to rising material costs and supply chain issues.
The base-level electric truck will now set buyers back $53,769 to start, incl the $1,795 destination fee. That’s up from a base price of $48,769 with an August destination. When the Lightning Pro first went on sale, it was priced under $40,000. From Automotive News:
Ford said at the time that it was able to price the Lightning so aggressively because of its scale and sharing some common parts with its existing full-size pickups.
“We have an aluminum body car that is already the market leader. We didn’t need to redo everything,” Darren Palmer, Ford’s vice president of EV programs, said at the time. “As a result, we can offer a car at that price with this whole lineup and make money from it.”
However, executives have noted in recent months that rising commodity costs have eroded early profits in the Mustang Mach-E and other EVs.
Auto News Ford says inflation-adjusted supplier costs will be about $1 billion higher than expected in the third quarter of 2022. and waiting for 50,000 unfinished car parts. Most of them are said to be pickup trucks and other utility vehicles.
2nd Gear: Move over VW, Porsche is the new top dog
Porsche has now become the most valuable car manufacturer in Europe. On Thursday, it passed former parent company Volkswagen. Currently, the value of the brand is 85 billion euros (about 84 billion dollars).
In comparison, Volkswagen only estimated at 77.7 billion euros. The five most valuable car manufacturers in Europe are Mercedes-Benz (57.2 billion euros), BMW (47.5 billion euros) and Stellantis (39.7 billion euros). From Reuters:
“Inflation data from Europe and the US, recent concerns about energy supplies in Europe and last Thursday’s escalation of the war in Ukraine led to volatility, necessitating small-scale stabilization measures,” a Volkswagen spokesman said.
Shares bought from Sept. 29 to Oct. 4 accounted for about 11% of total trading volume after listing, the spokesman added, comprising about 34 million shares.
In total, up to 14.85 million shares worth €1.2 billion can be acquired with Greenshoe options within four weeks of the offering as a stabilization measure.
You know, good for Porsche. It is rare that such a weakling works so well. Also, before you get mad at me in the comments, I promise this is sarcasm. Adjust the text time as the Volkswagen overtakes the Porsche and we’re doing laps.
3rd Gear: Honda cuts Japanese production
Honda has announced that it will cut car production by 40 percent at its two plants in Japan for the rest of October. This is a departure from previous plans as the company deals with supply chain issues. Wild, I know.
Two production lines at Honda’s Suzuka plant in Japan will cut output by about 20 percent in October. It’s a small potato compared to the cuts he’ll see at another plant in Sayama Prefecture. Honda plans to cut production there by about 40 percent for the rest of this month.
The cuts come on top of plans Honda announced in October to cut production at Suzuka by 40 percent and at Saitama by 30 percent over the same period. From Reuters:
Honda attributed delays in receiving parts and logistics to the COVID-19 outbreak and semiconductor shortages. The production cuts will affect vehicles including the Vezel sports car, the Stepwgn minivan and the Civic compact car.
Honda’s production at the two plants returned to normal in June after earlier declines, but began to correct again in July.
The announcement came about a week after it lowered its production target for the month to about 800,000, about 100,000 less than the average monthly production plan.
In a similar but less drastic move, Toyota also cut its October production target by 6.3 percent due to a semiconductor shortage.
4th Gear: $1.6 billion battery plant for Michigan
Our Next Energy Inc. (ONE) one The EV battery startup, which includes a number of former Apple executives, is about to invest $1.6 billion in a Michigan factory with the goal of producing enough batteries to power 200,000 EVs annually.
On Wednesday, the state approved a $200 million grant for the project, which will take place in Van Buren Township, about 10 miles west of the Detroit airport. The goal is for it to be fully operational by the end of 2027 and create 2,112 new jobs. If the company does not meet this business goal, it could result in Michigan clawing back the funds. Trust me The Wall Street Journal:
The investment is part of an influx of battery capacity building in the U.S. as companies race to supply automakers with the cells they’ll need for all their planned EVs. This effort only intensified after the enactment of the Inflation Relief Act, which was intended to jump-start domestic battery production. The law ties consumption tax credits for buying an EV to how much battery material it sources from domestic production.
It literally did the Inflation Reduction Act [our] Mujeeb Ijaz, founder and CEO of the company known as ONE, said in an interview. “We see a lot of focus on the US supply chain and US cell manufacturing.”
The company said it plans to produce a full capacity of 20 gigawatt-hours a year, including lithium-iron phosphate cells, or the equivalent of about 200,000 car battery packs each year. ONE has not announced which automakers it will supply.
The US auto industry has largely focused on another type of cell technology – lithium-ion cells – which have a higher energy density but can also be volatile. So-called LFP technology is less variable and less expensive, but typically has less range. LFP has gotten a new look from some automakers worried about battery fires and some warming to the technology as a temporary solution to some of the raw material shortages hitting the industry.
It is reported that ONE has already raised $197 million and aims to raise about $150 million by the end of this year.
A number of former Apple car employees have also joined the ONE ranks, including Steve Kaye, who joined the company as ONE’s chief technology officer. Steve Zadesky, Apple’s former vice president of special projects, has also joined ONE as a consultant.
5th Gear: GM Financial pays to be ignorant
According to the Justice Department, GM Financial has agreed to pay more than $3.5 million after being accused of violating US federal laws that provide certain benefits and protections to certain eligible service members. From Automotive News:
GM Financial was accused of violating the Military Civilian Relief Act by illegally repossessing 71 military vehicles and illegally denying or mishandling lease termination requests for more than 1,000 vehicles, the Justice Department said in a statement Wednesday.
GM Financial did not immediately respond to a request for comment. It is a wholly owned subsidiary of General Motors and provides financing for the sale and lease of automobiles. In 2021, GM Financial generated more than $13 billion in revenue.
In a complaint filed in U.S. District Court in Dallas, the department alleged that since 2015, GM Financial has improperly denied requests from service members to terminate their leases, charged service members early termination fees or lease payments after the termination date, and charged service members did not provide a timely refund. the amount of rent they paid in advance.
GM Financial has agreed to pay $3.5 million in civil penalties to the affected service members and $65,480 to the US government, and the Justice Department said the company will pay at least $10,000 to each of the 71 service members whose vehicles were illegally repossessed.
After a potential violation of a US military general warrant was brought to the attention of the Justice Department, it launched an investigation. GM Finance.
$3.5 million may not sound like a lot, but I guess it’s something.
Reverse: First Draft Bullet Train written
Neutral: I saw it Don’t worry my love And it stinks
I went into this movie with very low expectations. They were actually so low key that I found myself actually enjoying myself during the movie. I have obviously gone too far in the opposite direction to overcome my bias against it. When it ended the first time, I actually left the theater thinking it was good.
Then… disaster. I thought about it more and realized that it really is a dog. It was a real mess. You should still check it out because it’s always fun to participate in the discourse.