The outside firm Nikola hired to conduct the internal investigation looking into the validity of claims made by ousted founder Trevor Milton has reached a conclusion. Milton does appear to have been fabricating the status of the company’s technology and how far along its prototypes were. But Nikola wasn’t helping and ended up being implicated in a few falsehoods of its own.
Some wealthy individual lying to a sea of people for the sake of making money is hardly news, however. The entire world runs on politicians and business people going back on promises made months earlier and clarifying statements that never seem to illuminate anything. What makes Milton’s offense so bad is that he seems to have used the power of lying to mislead investors who might have otherwise made money. Nikola shares never truly recovered from the exposé published by Hindenburg Research as part of its plan to short the company, and those who never bothered to question the legitimacy of its technical claims before investing are suddenly very interested in knowing everything about the business.
With the novel coronavirus forcing the economy to grind to a halt, just about every industry on Earth is affected, almost all negatively. The auto industry is no exception.
Production is halting around the world, and it seems likely that car dealers will be closing, either voluntarily or via government order, at some point soon – at least on the sales side (vehicle service is arguably essential).
People are being ordered to stay home, people are losing their jobs, and with a few exceptions – say a first-responder who absolutely needs a car right now – there will be almost no vehicle sales, new or used, for the next two months or longer.
Even as bad as things got in 2007-2009, sales never ground to a halt.
Midsize Sedan Deathwatch #14: July 2017 Sales Plunge by a Fifth, Everybody Falls Except the Dodge Avenger
Every midsize car on sale in the United States reported declining year-over-year volume in July 2017. Every car except the Dodge Avenger, which came back from the dead with 10 reported sales after a nine-month hiatus. 2014 was the Avenger’s last model year.
But forget that sales stat quirk — Pentastar Avenger Blacktop Edition, be still my soul. Every other midsize nameplate generated fewer sales in July 2017 than July 2016, with losses piling up fastest at Ford and Hyundai, with the Fusion and Sonata, respectively.
Between major Fusion and Sonata losses and decreased volume everywhere else, U.S. midsize car volume fell by a fifth in July 2017 — a 36,000-unit decline.
Midsize car sales volume decreased by nearly 200,000 units in the United States during the first-half of 2017.
Year-over-year, that 18-percent decline was caused by virtually every member of America’s midsize sedan fleet. Escaping unscathed, on its own, was the Volkswagen Passat, though Passat sales are significantly lower than they were in 2012, 2013, 2014, and 2015.
Aside from the Passat, midsize cars are selling much less often this year than last at every competing automaker; from the top-selling Toyota Camry to the slow-selling Mazda 6, from the all-wheel-drive-optional Ford Fusion to the all-wheel-drive-standard Subaru Legacy; from the new-last-year Chevrolet Malibu to the never-again-new Chrysler 200.
Most automakers, however, are blessed to possess similarly priced compact crossovers that are making up all, much, or some of the slack.
There will always be a place in the American market for the conventional midsize sedan.
Despite harsh declines in recent months, consumers are still on track to register more than 2 million midsize cars in calendar year 2016. In fact, a handful of nameplates — Accord, Legacy, Malibu — are attracting more buyers this year than they did in the first two-thirds of 2015.
But U.S. sales of midsize cars are now falling with a special kind of speed, plunging 26 percent in August, a loss of nearly 58,000 sales over the span of just one month.
I’ve always had a soft spot for Volvo, that’s probably why I’ve owned two and chose European Delivery on one of them. But Volvo has a problem. It’s not the product. It’s not even the brand positioning. It’s a lack of advertising and visibility. Let’s dive deep into my mind as I pontificate about Volvo’s destiny.
The grim reaper may not be at American Suzuki’s door step after all. We’ve learned ASMC is healthier, at least financially, than we thought. But, in order to be profitable last year, ASMC had to completely cut almost every non-essential (and some essential) function of their business.
While a number of automakers have been complicit (and still are) when it comes to badge engineering, Suzuki in North America has been on the forefront of whoring out or johning platforms since its introduction in the 80s. The ‘Japanese brand that could’ has either slapped the stylized S on Daewoos and Nissans or let GM have their dirty ways with the grilles of small Suzuki cars and SUVs.
Yesterday, a whirlwind of spy shots uncovered what looks to be the SX4 replacement Suzuki will start shipping to lots later this year. So far, observations of the new pint-sized every man rally car look promising, including possible turbo power and a handsome, if unremarkable, interior. But, will it be enough to satiate the appetite of Anglo American tastes? Or does American Suzuki need to focus more on the brand image train?
The General’s downward spiral from its zenith as one of the most powerful and respected companies in America into Chapter 11 was an agonizingly slow affair, requiring decades and a fair number of billion-dollar miscalculations. Today’s question offers many choices: which GM vehicle caused the most damage to the company’s bottom line and/or image? I’m going to present a few examples from my own list, not necessarily in order of severity.
It’s T minus 11 days before Congress does the thumbs-up thumbs-down thing on the artist formerly known as the world’s largest automaker. GM is up shit creek without a paddle. The United Auto Workers aren’t going to agree to parity with the transplant assembly workers, as required. The bondholders aren’t going to exchange debt for equity, as required. The company doesn’t have a clue what to do about its brands or products, as required. There is no way whatsoever for GM to prove to your elected officials that it has a hope in hell of repaying the $13.4b loans already made—never mind the $100b or so needed to keep the ailing American automaker in business for another year. So GM CEO Rick Wagoner is doing the only thing he knows how to do, that he can do: cutting expenses. This time, it’s white collar workers for one simple reason: that’s all that’s left. Bloomberg tells of the $14m per year CEO’s decision to throw his remaining management to the wolves . . .
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- Lorenzo They may as well put a conventional key ignition in a steel box with a padlock. Anything electronic is more likely to lock out the owner than someone trying to steal the car.
- Lorenzo Another misleading article. If they're giving away Chargers, people can drive that when they need longer range, and leave the EV for grocery runs and zipping around town. But they're not giving away Chargers, thy're giving away chargers. What a letdown. What good are chargers in California or Nashville when the power goes out?
- Luke42 I'm only buying EVs from here on out (when I have the option), so whoever backs off on their EV plans loses a shot at my business.
- Dusterdude When there is a strike the union leadership talk about “brothers and sisters “ . They should give up that charade . Bottom line is they are trying to wring out every last penny they can and could care less ( putting it politely) about the future of the industry 5 - 10 years+ down the road
- Ronin They all will back off, because the consumer demand is not there. Even now the market is being artificially propped up by gov subsidies.