Report: Tesla Losing $4,000 on Each Car, and is Burning Cash Faster

After Tesla Motors announced last week that it had lost $184 million in the second quarter of this year on lower vehicle deliveries and higher spending on its factory ahead of a new model, analysts say the company could have a bumpier road ahead if it can’t raise cash soon.

According to a Reuters report, Tesla is losing $4,000 on each car it sells, and the company’s ability to raise capital could be severely hampered by its spending now and its inability to create positive cash flow in a luxury market that is extremely favorable.

“A capital raise, given the way they’re burning cash today, given the fact that they have future investment needs, seems very likely at some point,” UBS Securities analyst Colin Langan told Reuters.

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Suzuki May Finally Climb Out From Under VW

Hedge fund investor Daniel Loeb has purchased a minority stake in Suzuki Motor Corp., which may mean the automaker could have a ruling on its nearly 5-year arbitration with Volkswagen, Bloomberg Business is reporting.

The unspecified investment in Suzuki by the billionaire Loeb, who is one of Japan’s wealthy business elite, could be a sign that a ruling following June’s completion of arbitration is imminent. For years, Suzuki remained “paralyzed” as the procedure slogged on.

Suzuki has a significant automotive presence in emerging markets and India.

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Canada, Ontario Governments Kick in Millions for Toyota Plant Upgrades

Federal and provincial governments in Canada have offered more than $100 million (USD $77 million) for improvements to the Cambridge and Woodstock plants, CTV news is reporting.

The incentives are part of a $421 million (USD $323 million) investment that will be used for light metal stamping in Woodstock, which makes the RAV4, and plant improvements in Cambridge, which produces the soon-to-be-gone Toyota Corolla and Lexus RX vehicles. Toyota has said it will move the Corolla to Mexico, but hasn’t announced what would replace it at the Cambridge plant.

The Canadian government tipped in $34 million in 2013 for improvements to the Cambridge plant to produce the RX 450h.

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Senate Committee Approves Bill to Help Detroit Make Hybrids

A U.S. Senate committee for transportation passed along a bill Thursday that included provisions to help domestic automakers develop and build cleaner vehicles, the Detroit News is reporting.

The proposal, dubbed the Vehicle Innovation Act, was included in a larger clean energy bill taken up by the committee. The Vehicle Innovation Act would set aside $313.6 million next year for research and development of hybrid technology, battery development and alternative fuels such as natural gas. Funding would increase by 4 percent every year up to 2020.

Nearly all major U.S. automotive lobbies representing manufacturers supported the proposal.

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Jeep Posts Biggest Ever Quarterly Sales Total in US

Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government.

Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter last year, the Detroit Free Press reported.

The earnings beat expectations for the company, whose profit margins are still below the other domestic automakers. FCA reports its margin was 7.7 percent in the second quarter, up from 4.9 percent last year, but well behind the double-digit margins of Ford and General Motors.

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Fiat Chrysler's Product Pipeline Drier Than California for 2016

Fiat Chrysler Automobiles may have only one new model built in North America over the next 18 months after executives pushed back development of others due to brisk sales of current models, Reuters is reporting.

The redesigned Chrysler Town and Country minivan may be the only new car built stateside that FCA plans to launch in the next 18 months, sources told Reuters. The company is planning to bring to the United States three Italian cars — the Fiat Spider, Maserati’s crossover and the Alfa Romeo Giulia — in the same timeframe.

This is the part where we would like to mention that a new Jeep Grand Cherokee and Wrangler are seriously overdue.

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Ford Posts $1.9B Second Quarter Profit, Largest Since 2000

Ford announced that it made a $1.9 billion net-adjusted profit in the second quarter of 2015, marking the largest gain for the automaker since 2000, according to Automotive News.

The profit represents a 44-percent gain over last year despite dipping global sales and a stronger U.S. dollar hampering exports. Ford said it was selling cars for more money and offering fewer incentives, despite recent reports of F-150 incentives topping nearly $11,000 in some places.

Ford said revenues in North America surged 10 percent, which helped the company beat Wall Street’s expectations.

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No, Fiat Chrysler Probably Won't Go Broke Buying Back Used Cars

After this morning’s announcement that Fiat Chrysler Automobiles would be subject to one of the largest civil penalties for an automaker, reports that the automaker could be on the hook for $2.5 billion in cars aren’t true , the automaker said today.

“While such amounts may exceed the $20 million, contrary to certain reports, FCA US does not expect that the net cost of providing these additional alternatives will be material to its financial position, liquidity or results of operations,” the automaker said in a statement.

In other words, expect to find some screaming deals on Ram trucks in the next few months.

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Car Building in Ontario Could Die, and They Probably Can't Save It

Ontario’s debt is swelling and as home to eight manufacturing plants — the largest complex in North America — automakers may have a tough time keeping plants open in Canada’s most-populous province.

According to a story by the Financial Post, Ontario is moving forward with an ambitious plan to revamp roads and mass transit systems despite its debt being downgraded by Standard & Poor’s bond index. The broad public spending plan also extends to other sectors, despite high unemployment numbers and slumping manufacturing jobs.

Automakers such as Fiat Chrysler Automobiles have called on the provincial government to cut back on public programs and reduce costs on utilities in an effort to keep car building in the province profitable. This year, Chevrolet will shift production of its Camaro to Michigan. On the whole, Oshawa GM production has a dark cloud lingering overhead until the company decides what to do with the facility in 2016.

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TrueCar Shares Plunge on Missed Earnings Call

TrueCar CEO Scott Painter said his company will miss expected earnings for the second quarter, and said the company needed a “wake-up” in his call, Automotive News is reporting.

The news sent shares of TrueCar plummeting more than 35 percent. TrueCar closed Friday down 3.81 down to $6.87 per share.

Painter said a lack of marketing was to blame for the company’s struggles in the second quarter, not the recent highly publicized split with AutoNation.

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Fiat Chrysler Files IPO to Spin-off Ferrari

Fiat Chrysler Automobiles formally filed its initial public offering on Thursday to spin off Ferrari into its own separate company.

The filing doesn’t specify price or number of shares to be offered when the shares are publicly available sometime after Oct. 13.

Roughly 10 percent of the company will be publicly traded, with the rest of the company remaining under control of existing FCA shareholders and Piero Lardi Ferrari, Enzo Ferrari’s son and current vice chairman.

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Magna Completes $1.9B Acquisition of Transmission-maker Getrag

Supplier and sometimes-assembler Magna International will buy German transmission-maker Getrag for roughly $1.9 billion, the Detroit News is reporting.

The deal would firmly plant Canadian-based Magna International as the world’s second-largest parts supplier behind Robert Bosch GmbH and ahead of ZF, which recently purchased TRW Automotive for $12.4 billion earlier this year.

“The trend among the suppliers is that we now have to be bigger as the auto makers go to us to do more for them,” Magna Chief Executive Don Walker told the Wall Street Journal on Thursday.

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Volvo Buys Polestar, Maybe Won't Be Unicorn After All

Volvo has purchased Swedish high-performance tuner Polestar, the automaker announced Tuesday. The company will own and operate Polestar as an in-house performance division much like Ford’s SVT division or Subaru’s STI group (anything other than another Mercedes-AMG or BMW M Division reference).

You could be forgiven for thinking Volvo owned Polestar already — the Swedish automaker already exclusively contracted with the Swedish tuner in 2013 to produce the V60 and S60 Polestar editions and the two have worked together since the 1990s.

Volvo said in the medium-term it would double output of Polestar branded cars — which could mean more than 80 sedans and 40 wagons a year coming to the United States.

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Ferrari Filing 'Days Away' Says FCA Boss Marchionne

Speaking to reporters in Toronto on Friday, Fiat Chrysler Automobile chief Sergio Marchionne said the official filing to spin off Ferrari could happen within the next few days.

“We are days away from filing the prospectus,” Marchionne said, according to the Detroit News.

The future standalone supercar maker will make available 10 percent of the company through its initial public offering, which is widely expected in October. The remainder of the company will be held by Fiat investors and Enzo Ferrari’s son, Piero Lardi Ferrari, who is vice chairman of the company.

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Ferrari Worth Over $11 Billion, Says FCA Boss Sergio Marchionne

Speaking at an unrelated Fiat 500 reveal last week, Fiat-Chrysler chief Sergio Marchionne said Ferrari is worth about $11 billion and he expects the prancing horse’s IPO to garner about $1.1 billion went it goes up for sale in October.

“There are clear expectations from ourselves as Ferrari brand is unique,” Marchionne said, according to Bloomberg News. “There is also a scarcity value as we are just selling a 10 percent stake.”

Marchionne’s estimate is roughly double what brokers said the Maranello-based manufacturer could be worth almost a year ago.

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Mahindra-Pininfarina Deal Rejected By Creditors

Mahindra’s attempt to buy Italian design firm Pininfarina collapsed over the weekend due to opposition by the latter’s creditors.

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Mass Transit In Greece Free This Week Due To Economic Crisis

Some transit authorities offer free service to encourage ridership. Greece is offering free service this week because no one has money.

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Toyota's Akio Toyoda Banked $2.84M In 2014

In a regulatory filing made Wednesday, Toyota President Akio Toyoda made ¥352 million ($2.84 million USD) in total 2014 compensation.

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Renault-Nissan's Carlos Ghosn Banks $16M In 2014

Renault-Nissan CEO Carlos Ghosn did well for himself in 2014, banking around $16 million in compensation compared to the salaries of other automotive CEOs.

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General Motors, FCA Recruit Advisors Amid Merger Standoff

The Lifetime movie starring FCA has reached the “dangerous stalker” phase, as the automaker and General Motors recruit advisors amid a merger standoff.

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Billionaire Investor Kirk Kerkorian Dead At 98

Billionaire investor Kirk Kerkorian died Tuesday at the age of 98, leaving behind a legacy which included the automotive industry in his twilight years.

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Mexico, Southeastern US Besting Canada, Detroit In Auto Manufacturing

Despite being unified on the trading front, Mexico and the Southeastern United States are besting Canada and Detroit in the automotive industry game.

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Straubel: Tesla Model 3 Hitting Showrooms In Sedan, Crossover Variants

Tesla dropped a bombshell at a conference in Washington Monday, when Chief Technical Officer J.B. Straubel said the Model 3 would be two separate models.

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Survival Of Canadian Auto Industry Hinging On FCA Brampton Reinvestment

The fate of Canada’s auto industry is linked to whether or not the nation’s leaders can convince FCA to reinvest into its Brampton, Ontario facility.

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Attractive Leases Mean Lower Mileage Caps In Exchange For Low Payments

Leases are red-hot these days, but those signing up for temporary ownership of their rides will be facing lower mileage caps in exchange for low payments.

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Kitsap Transit Eyeing Liquor Advertising To Improve Bottom Line

Faced with a potential budget shortfall in the coming years, Kitsap Co., Wash.-based Kitsap Transit is eyeing liquor adverts to help with the bottom line.

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Takata Close To Installment Agreement With Automakers Over Airbag Recalls

Like consumers making payments over several months for their purchases, Takata is asking automakers to pay its part of the airbag recall in installments.

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General Motors Investing $1B Into Warren Tech Center, Adding 2,600 Jobs

General Motors announced Thursday it will invest $1 billion into its Warren Tech Center in Warren, Mich., adding 2,600 jobs through 2018.

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Oil Bull Market Rally Could Soon Falter Without China

Those hoping to make it big on oil commodities would do well to bet against the bulls on parade, as China won’t be around to keep prices afloat this time.

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General Motors Set To Announce Major Investment For Warren Tech Center

General Motors is expected to announce Thursday its plans for the Warren Tech Center, including its proposed $1-billion investment into the facility.

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Riviera Tool's Old Penny Stock Erupts After Tesla Purchase Announcement

Tesla’s announcement Thursday of its purchase of Riviera Tool LLC sent shares of the supplier’s old penny stock soaring, but it may have been for nothing.

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Fitch: Marginal Losses Projected For Subprime Auto Loans In 2015

Despite the risks subprime auto loans carry, the market is likely to experience only marginal losses through 2015 according to a recent analyst forecast.

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Luxury Brands Doing Well On The Back Of Lower-End Models

Want to know why Mercedes, Audi, Lexus and all of the other luxury players are doing so well these days? Because of less-costly, lower-end luxury models.

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GM Gives Away 2016 Chevrolet Malibu, Invests $174 Million In Kansas

In celebration of a key milestone, General Motors CEO Mary Barra gave away a 2016 Chevrolet Malibu Monday, a feat that could never happen with the old Malibu, even with Oprah’s help.

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Gales: Lotus Will Show Profit By End Of FY 2016

After going broke for so long, Lotus Cars CEO Jean-Marc Gales says his company will be back in the black by March 2017, when FY 2016 ends.

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AAA: Average Annual Driving Costs Fall 2 Percent In 2015

According to AAA’s 2015 Your Driving Costs study, annual driving costs costs fell 2 percent to an average of $8,698 in 2015.

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City Officials Ready To Approve Incentives For Arlington Assembly Expansion Plan

City officials in Arlington, Texas will vote Tuesday evening to approve incentives for General Motors’ $1.2-billion expansion of Arlington Assembly.

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Norway Set To Review EV Incentives Amid Soaring Sales

The law of unintended consequences has found another victim in Norway as the nation re-assesses its electric vehicle incentives amid soaring sales.

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Ford To Announce $2.5B Investment In Mexico On 90th Anniversary

This Friday, Ford will announce a $2.5-billion investment plan for two of its factories in Mexico.

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Reedy: CarMax Lending Arm Won't Fully Play In Subprime Market

Though CarMax’s lending arm will press forward with its subprime lending test program, it won’t be a major player in the subprime game.

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ChemChina, Finanzaria Buying Pirelli In €7.1B Takeover Deal

Should things go as planned, China National Chemical Corp. — ChemChina — will buy into Pirelli in a €7.1 billion ($7.7 billion USD) deal.

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More US Consumers Signing Long-Term Auto Loans

In the past, six-year auto loans were few and far between. Today, more of those loans are being issued, with seven- and eight-year loans gaining popularity.

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House Republicans Gunning For End Of Auto Technology Loan Program

Should Republicans in the U.S. House have their way, the loan program meant to foster development of advanced automotive technologies would be killed.

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US New-Truck Leases Rise Thanks To Higher Residuals, Transactions, More Content

Forget about leasing Benzes and Lexuses: trucks are the new hotness, thanks to higher residuals and transaction prices, as well as more content.

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Ally Financial Offering 84-Month Loans Amid Industry Risk Concerns

Though most lenders aren’t comfortable with the idea of 84-month auto loans, Ally Financial is going full steam ahead with such loans.

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Auto Lending Rising As Access To Credit Opens Up

With auto lending easier to come by these days, bank regulators and analysts are keeping their eyes open for potential signs of trouble.

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Study: Millennial Fastest-Growing Auto Lending Segment

Alleged to not be interested in cars or driving them, millennials are the fastest-growing segment of car buyers as far as lending goes, per a new study.

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Buffett, Soros Boost Stakes In General Motors In Q4 2014

While Harry J. Wilson wants General Motors to buy-back $8 billion in shares, Warren Buffett and George Soros have boosted their stakes in the company.

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WSJ To Tesla: Cast Aside Corporate Welfare To Improve Image

Despite its visions of having a valuation on par with Apple within a decade, Tesla’s subsistence on subsidies may be hard for some to swallow.

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Tesla's Q4 2014 Sees $108M Loss Despite Strong Demand For S, X

Tesla’s Q4 2014 didn’t go so well despite strong demand for its Model S, losing $108 million in earnings over the quarter.

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Wilson: $8B Stock Buyback Would Boost General Motors' Value

The man who helped General Motors restructure in 2009 now wants the automaker to buy back $8 billion in shares to help boost its value.

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Lenders: Subprime Auto Lending Increase Not A New Bubble

Though subprime auto lending is growing, lenders believe a new credit bubble isn’t on the horizon as it was in the runup to the Great Recession.

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Credit Suisse Picks Tesla As One Of Its Favorites For 2015

Looking for new stock to add to your portfolio in 2015? Credit Suisse has one for your consideration: Tesla.

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Tesla Share Price Plummets After Musk's NAIAS 2015 Visit

Tesla shareholders felt lighter Wednesday after the automaker’s stock price fell from just over $200/share to $186.09/share after CEO Elon Musk’s announcement at the 2015 Automotive News World Congress in Detroit — held during the 2015 Detroit Auto Show — that his company wouldn’t be profitable until the start of the 2020s.

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Honda Investing $340M For Increased Fuel-Efficient Engine Production

Honda announced Tuesday it would invest $340 million into its Anna, Ohio engine plant to help increase production of its family of fuel-efficient engines.

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US Treasury: Over $9B Lost In Auto Industry Bailout

The final tally is in: American taxpayers lost $9.26 billion from the Bush II/Obama-led rescue of the U.S. auto industry.

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Ally Leaves Government Ownership, US Treasury Exits Auto Industry

With its GMAC Financial leather jacket burning in the closet while a supermodel lip-syncs in the tub, Ally Financial is at last free from government ownership.

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Trucks, SUVs Best Premium Sedans In Over $50K US Segment

Keep those Benzes, BMWs and Audis in the garage, son: $50,000-plus trucks and SUVs are where it’s at for the ballers and players these days.

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Richardville: Michigan Doesn't Allow 'Predatory Lending'

Michigan Senate Majority Leader Randy Richardville of Monroe, the senator behind the bill that would allow auto title loan companies to do an end-run around the state’s title loan ban by posing as pawnbrokers, proclaimed the 276-percent interest loans the title companies would provide consumers weren’t predatory.

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Aston Martin Plans To Raise Financing For Portfolio Expansion

Aston Martin is preparing to crowdfund the old-fashioned way — shares and bonds — its portfolio expansion, per sources close to the automaker.

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  • Ajla So a $10K+ transmission repair?
  • Kwik_Shift_Pro4X I've mentioned before about being very underwhelmed by the Hornet for a $50000+ all in price tag. Just wasn't for me. I'd prefer a Mazda CX-5 or even a Rogue.
  • MaintenanceCosts Other sources seem to think that the "electric Highlander" will be built on TNGA and that the other 3-row will be on an all-new EV-specific platform. In that case, why bother building the first one at all?
  • THX1136 Two thoughts as I read through the article. 1) I really like the fins on this compared to the others. For me this is a jet while the others were propeller driven craft in appearance.2) The mention of the wider whitewalls brought to mind a vague memory. After the wider version fell out of favor I seem to remember that one could buy add-on wide whitewalls only that fit on top of the tire so the older look could be maintained. I remember they would look relatively okay until the add-on would start to ripple and bow out indicating their exact nature. Thanks for the write up, Corey. Looking forward to what's next.
  • Analoggrotto It's bad enough we have to read your endless Hyundai Kia Genesis shilling, we don't want to hear actually it too. We spend good money on speakers, headphones and amplifiers!