Don't Expect Any Rebadged Nissans or Co-developed Cars in Mitsubishi Showrooms Anytime Soon

Last year, Nissan answered Mitsubishi’s prayers by purchasing a majority stake in the struggling Japanese automaker. The company had started out strong in North America at the dawn of the 20th century, with U.S. sales topping 345,000 in 2002. Six years later, volume had fallen by nearly 85 percent.

Mitsubishi was a dead brand walking, at least on these shores.

Now adopted by a wealthy parent, Mitsubishi has access to Nissan’s technology and platforms, but don’t expect the two automakers to start joint production of new products anytime soon. Only two new models — one with a horrible name, the other a long-delayed niche vehicle — will appear in showrooms before the end of the decade.

Still, Mitsubishi is planning for a 30-percent bump in U.S. sales by early 2020. Product isn’t the sole player in the company’s new growth strategy.

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Ford's CEO Might Execute Lower-margin Vehicles to Boost Profits

Ford’s new CEO, Jim Hackett, has been milling around the company trying to get a sense of what the automaker needs to thrive in today’s car market. Conducting a summer-long assessment of the company’s current status and action points, Hackett is setting himself up with a greater understanding of where Ford stands in order to share his vision of the automaker’s future with investors in early October.

However, we already have some sense of what that future entails. Hackett has already spoken with leadership from the United Auto Workers, easing union fears that he might try to clean house and cut jobs. But his reassurance that there probably won’t be massive layoffs under his leadership doesn’t guarantee low-margin automobiles won’t be at risk.

This isn’t entirely down to Hackett’s management style, either. Investors were becoming annoyed with former CEO Mark Fields’ lofty long-term strategy, which featured fewer near-term goals aimed at bolstering profitability. Some analysts expect Hackett to end production of models that aren’t big earners — which includes just about everything that isn’t an SUV, crossover, or pickup truck.

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With Mercedes-Benz Going Electrified, How Does the Company Avoid Tanking?

Everyone’s doing it. It’s as popular as the fidget spinner and Pokémon Go crazes all those [s]years[/s] months ago. In a rush to signal their environmental bonafides and display their dedication to the Next Big Thing, luxury automakers are tripping over themselves in an effort to promise an all-electrified model lineup as soon as technology and finances allow.

This time, it’s Mercedes-Benz. The world’s oldest car brand doesn’t want its rivals cashing in once governments around the globe start turning off the fossil fuel taps. So, earlier this week, Daimler CEO Dieter Zetsche stepped up and made a promise we’ve heard ad nauseum as of late: every model in the brand’s lineup will soon sport some form of electric propulsion, be it a hybrid setup or full-on battery electric powertrain.

For Mercedes-Benz, this means 50 hybrid or EV models, including at its irrelevant-to-Americans Smart brand. The move isn’t without a steep cost, however — Daimler is bracing for a slashing of vehicle profit margins. In some cases, the green collected from green cars could be half that of a gasoline Benz. What to do?

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Volkswagen Won't Sell Assets to Cough Up Dieselgate Capital, Blames Union Leaders

Financial analysts and industry experts have been expecting Volkswagen to begin selling assets to help cope with the cost of its diesel emissions cheating scandal. The penalty for its deception may have already reached $24.2 billion, and German lawsuits could tack on another $8 billion.

However, Europe’s largest automaker says it’s not interested in selling off properties to recoup losses associated with the scandal. It has another plan to rake in the cash.

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Ford Plans Salaried Position Cull in North America, Asia

A day after media reports described an impending mass layoff of Ford Motor Company employees, the automaker has clarified who gets to keep a job.

While the scale of the job reductions is less than previously reported — a 10-percent global workforce reduction is off the table — Ford does plan to cull its salaried North American and Asian workforce by one-tenth in a bid to cut costs.

The move comes after last week’s tense shareholders meeting during which investors and analysts grilled CEO Mark Fields over the company’s sinking market valuation. Since taking the helm three years ago, Fields has seen the company’s stock price sink by roughly 40 percent. Hourly workers aren’t affected by the plan, though the same can’t be said for white-collar employees.

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Ford Likely to Eliminate 10 Percent of Global Workforce: Report

The Ford Motor Company is allegedly preparing for a sweeping reduction of its global workforce. Harder days for the auto industry have been a long time coming, but reports claim the impending layoffs are specifically related to shoring up finances and turning around the company’s lagging stock valuation — meaning Ford could be the canary in the coal mine or a lone company desperate to bolster its own profitability and get angry shareholders off its back.

While the automaker has not yet confirmed the cuts, there is every indication an announcement will be made soon. When confronted with the matter, representatives have been careful to make noncommittal statements and doubly cautious not to deny anything.

“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” Ford said in an official statement. “Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation.”

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Tumbling Profits Force Toyota CEO Into Crisis Mode

Even as it develops efficient new platforms and streamlines its operation where it can, Toyota finds itself against the ropes as a falling yen and rising costs sends profits tumbling. Its end-of-fiscal-year financial statements, released today, are enough to send bean counters to the medicine cabinet in search of antacid, while the company’s president warns of more trouble ahead.

To Akio Toyoda, the increasingly gloomy picture has all the hallmarks of a failing sports team.

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Ford Board to Grill Fields on Mobility Strategy After a Sucky First Quarter

The board of directors at Ford Motor Company will be seeking answers from CEO Mark Fields on how the brand’s mobility strategy played a role in its lackluster annual earnings report. Inside sources claim board members made extra time leading up to Thursday’s annual shareholders meeting to discuss the company’s future with the CEO.

Fields has promoted Ford’s evolution into a mobility company ever since taking the helm in 2014 — something investors haven’t been particularly receptive of. During Fields’ tenure as CEO, shares in the company have fallen by 35 percent. However, with tech-focused companies typically receiving above-average valuations, the methodology behind his strategy appears sound. Ford has spent billions on the development of autonomous technology and showcased mobility concepts that even Tesla hasn’t bothered with.

While many seem too impractical or far-fetched to deserve serious attention, the capital behind its self-driving efforts have kept Ford near the front of the pack in the autonomous race. So, what’s the problem?

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What's Working at Ferrari: Profit Rises Along With Demand

Thanks to the increasing wealth of the world’s elite, supercars have remained in fashion. Ferrari profits surged upward in the first quarter of 2017 as the Italian automaker continued a scheme designed to gradually accelerate volume.

The brand’s net income over the first three months of 2017 climbed to 124 million euros ($135 million) from 78 million euros during same period last year. Meanwhile, overall revenue increased 22 percent to €821 million, helped largely by engine sales to Fiat Chrysler’s Maserati — the car you buy when you wanted a Ferrari, but fell just shy of being able to afford one.

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Detroit Money City: GM Leads the Pack as Ford Profit Sinks

What a difference a few (hundred thousand) recalls make. In a sales market best described as stagnant, a widespread vehicle glitch can dog an automaker’s balance sheet. That seems to be the case at Ford Motor Company, which saw its first-quarter profit fall 35 percent on a combination of factors — not the least of which was a pair of recalls of engine fires and faulty door latches.

Elsewhere in the domestic market, General Motors rode to the financial finish line with a record post-bankruptcy net income while Fiat Chrysler Automobiles climbed further into the black.

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Porsche Rakes in $17,250 on Every Car It Sells

While still exclusive, Porsche is gradually becoming a more populous and profitable brand. It delivered 238,000 vehicles last year and posted an operating profit of $4.1 billion — a 14-percent increase over 2015’s accounting.

A little back-of-the-envelope math places the per-car profit at roughly $17,250. As a premium automaker, you’d expect it to rake it in on every vehicle sold. However, Porsche doesn’t limit production to the same extent that Ferrari does in order to maintain artificially high prices. And it absolutely decimates other premium brands that offer exclusivity at a higher volume. BMW and Mercedes-Benz both hover at around $5,000 in profit per car.

Porsche seems to have struck an ideal balance. While its per-car profit was actually higher a few years ago — $23,000 in 2013 — it wasn’t making quite as much money overall. At the time, Bentley pulled in roughly 21 grand per unit and sold fewer vehicles overall. Since then, Porsche has shifted some of its focus downmarket, introduced the Macan, expanded its volume, increased income, and still managed to maintain a sweet profit margin on every vehicle sold.

How did it manage that? Basically, the same way Ford wrangles its F-150.

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Ford is Either Playing the Long Game Well or the Short Game Poorly

General Motors and the Ford Motor Company both saw U.S. sales declines in the third quarter, but GM was the only one achieving earnings that widely beat expectations. Still, which company is playing the game better is up for debate.

This could turn out to be an Ant and the Grasshopper situation if there is another economic downturn on the horizon. The ant-like Ford could be more ready for an economic winter, while the improvident Grasshopper Motors is left out in the cold with acres of unsellable vehicles — forced to eat its own legs for sustenance.

Of course, if there isn’t an economic downturn, Ford is going to look like a lame duck next to GM’s golden goose.

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Toyota Climbs Ladder of Most Valuable Brands, Tesla Cracks the Top 100

Interbrand released its annual list of the world’s top 100 brands, a ranking that now contains an independent automaker.

While Toyota climbs one spot to the No. 5 position (the highest of all automakers), Tesla has muscled its way onto the field, slotting at No. 100. Volkswagen continues the brand value descent it began last year, falling from No. 35 to No. 40 and posting a value decline of 9 percent.

There’s grim news for GM, as none of its brands made the list this year.

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GM Thrilled by Earnings Boost, Despite Stagnant Global Sales

General Motors is busy phoning friends and posting on its Facebook wall after it made record net revenue in the second quarter of 2016 and boosted its net profit by 157 percent.

A net revenue of $42.4 billion is a high point for the company, even though the automaker’s global sales were flat compared to this time last year, with 2.4 million vehicles sold. Is it any wonder GM isn’t concerned about its falling market share?

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Ford's in the Money: Automaker Posts Record Profits Because You Love Trucks

News from Dearborn this morning will please recent purchasers of F-150s, Transits, and Fiestas — Ford Motor Company is absolutely on fire financially, earning $2.5 billion in a very large first quarter.

Ford’s pre-tax profit of $3.8 billion was a record for the company.

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  • Kip65688146 "Everyone is worried about the public stations, but why don't we focus on the low hanging fruit: home charging? "BAM!!!!!!!!!!!!!!!!!!.............This guy gets it!I'll add current battery tech means EV's in their current state are not replacements for ICE Cars & trucks but make a good argument as 2rd or 3rd vehicles in mulit-car households which is hardly a niche market.
  • 2ACL Looking forward to the next part. I didn't like the first generation, but the second-generation was on my radar; I like the low-key, yet elegant styling, and the automotive media raved that the road-handling was significantly cleaned up from its nautical predecessor's. I'd still consider one if a replacement event unexpectedly befell my TL, but developments since have made that something of a long shot.
  • Deanst “Switching to EVs will be end of the Dodge brand. Nobody wants EVs.”Tesla, a brand which only sells EVs, is the number 1 luxury vehicle seller in America. But do go on…….
  • Randall Tefft Sundeen Oldsmobile was ALWAYS my favorite GM marque ! I remember as a kid you couldn't walk down the street without tripping on one! In 1977 and 1984 respectively olds sold. Million units, GM's second biggest seller as well as being the test brand for new options (Why take a risk with Cadillac?) The first CLUTCHLESS MANUAL , the first ELECTRIC POWER WINDOWS the first AUTOMATIC not to mention in 1974 the first airbag. Iam fortunate enough to live in a warm climate where old cars are plentiful sadly very few Oldsmobiles. Many features we take for granted were developed by this special brand
  • Conundrum Some parts of the US are in a bad way due to drought and climate change as well, but Posky manages to avoid mentioning Lake Meade, Musk going bananas over no water for his Nevada gigafactory, a few wildfires and floods here and there. No let's have a chuckle over China's experience instead, and chuck in the name Toyota in the headline as a draw. Musk is demanding China ensures his Shanghai factory gets plent 'o power, because that's what spoilt billionaires do. Me, me, me first. Doesn't work when everyone's gasping for breath.Kind of seems to me that avoiding the obvious is the American way. Let's burn some more coal and make things much better! Yeah!Meanwhile, apparently whoever runs this website on a technical basis needs to go back to training school.meanwhileThe way this site "operates", which it mainly doesn't, is a complete farce!Let's have an opinionated article on that.