The used market is finally starting to cool

The used market is finally showing signs of cooling it down, the former president of Mitsubishi has died, and there are mayflies. All that and more Morning shift For August 31, 2020.

1st Gear: Used

Used car market The record has been set Amid an all-summer epidemic, the shutdown of production created a shortage of new cars and economic uncertainty led consumers to turn to used vehicles.

The boom is starting to get cold, though Automotive News:

According to JD Power, wholesale auction prices fell by an average of 0.7 per cent in the week ended August 23. The company reported its first decline since the week ended April 23, and in the first week after wholesale prices were flat or down.

Larry Dixon, senior director of valuation services at JD Power, said: “Prices used after May have only been very strong, white hot after the mid-April rally.” “They grew week by week, week by week, just two weeks ago.”

JD Power is predicting that wholesale prices will continue to be low in September, as paint-up demand cools and coronavirus epidemic-related headwinds rise. The company expects prices to be slightly higher than previous levels of the virus at the end of the year.

I have considered selling my 12-year-old Honda Fit more than once as a local dealer keeps offering to buy it. I’m sure I can get the right price for a well-operated small Honda right now in the New York City era – and yet I don’t let myself go.

2nd gear: Electric cars are more expensive to make than gas cars

This will cut the profit margins of automakers, which is not something you should really pay attention to unless you are a shareholder of automakers. But more often than not, resizing the auto toe industry is an interesting thing to monitor. The biggest cost is the battery.

To Financial Times:

Data compiled by Oliver Weiman, a consultancy for the Financial Times, shows that by 2030, the total cost of building a compact emission-free vehicle will fall by more than a fifth to 16,000,000, representing a 9 percent gap over petrol. Or diesel models.

These findings highlight the risk of profits for groups including Germany’s Volkswagen and France’s PSA, however, the price of electric car batteries – their most expensive component – will be halved in the next few years.

European carmakers, facing a sharp drop in overall demand for their legacy products in the wake of the Covid-19 crisis, will unveil dozens of new electric cars over the next few years.

“Electric vehicles can make money, but less than that [petrol and diesel models] Historically, “said Simon Snnur, Sim Lever Wyman’s automotive partner.

3rd Gear: Mayflies

This story is somewhat strange!

To Automotive News:

G.M. Insects, also known as fishflies, are believed to be responsible for waiting for more than 2,600 black remains of Chevrolet Tahos and GMC Yucans that were built in Arlington, Texas and sent in dollarship.

This disruption has delayed the shipment of a redesigned 2021 SUV for dealerships that are already facing tight inventory levels. Some stores are spending hours carefully removing the substance without damaging the paint.

A Tahoe who arrived at the Ok Art Fairview last week was Pete Eisen Chevrolet, three months after he was hit – he was hit so hard that he had to draw the hood, said sales associate George Eisen, a sales associate. Chrome accents, painted panels, windows and wheels were also scattered.

“We were told everything would be cleared before delivery. We waited three months for nothing.

It all seems credible – insects are a necessary part of our natural environment right now – unless you come to that part in which an expert says, “Hmm.”

The SUV was being stored near the lake after leaving the Arlington plant. Molly KK, an entomologist and expert at the Integrated Pest Management Program at Texas A&M AgriLife in Sio Antonio, said more populations of mayflies are common around the lakes. “The emergence of a large population” doesn’t happen every single year, but it certainly does happen, ”he said.

[…]

Mayfelis “don’t really make a stain,” KK said. “When they come out of the lake, they don’t feed. So there is nothing in their gut so they can get out. “

Regardless, it’s an unfortunate swing in a year when GM and its dealers and everyone else could have used the break.

4th Gear: Former chairman of Mitsubishi Motors has died

Osamu Masuko died of heart failure at the age of 1. He resigned as chairman Earlier this month Because of his health. The company said he died Friday. Masuko’s tenure under Mitsu’s leadership was not exactly a great success.

To Reuters:

Muscovite was at the helm of Mitsubishi during the 2011 scandal in which an automaker was found to have over-mileed its vehicles. The investigation has revealed pressure on slack governance and resource-hungry engineers as a long-term problem in the company.

The scandal – Mitsubishi’s third in two decades – turned a profit and further tarnished the automaker’s brand. At the height of the turmoil, Nissan offered a lifeline to its smaller rival, offering it ડો 2.2 billion for a 34% controlled stake.

The deal was agreed between Masuko and then Nissan CEO Ghosn, and brought Mitsubishi as a junior partner in the Nissan-Renault .comotive alliance.

Masuko later condemned his relationship with Ghosn after his arrest in 2018 for suspected financial misconduct in Japan.

Mitsubishi Motors continues to make even the simplest of products and has not really tried for years. She really is a model for all of us.

5th Gear: Ford is happy to outsource its batteries

Tesla, GM, Volkswagen and Daimler are all pouring money into their own battery plants, but Ford says it is happy to continue outsourcing its batteries for cars like the Mustang Mach Mach-E. For now. The company is wary of technological migration.

To Automotive News:

Ford’s head of product development and procurement, How Thai-Tang, said in an analyst’s call this month that Ford needs to build 100,000 to 150,000 EVs annually to make its own battery plant meaningful.

“Initially we don’t have that amount to do justice to those capital expenditures,” he added, adding that local content requirements in North America and China further complicate the issue. “There is insufficient proportion for an OEM other than a full-line battery-electric manufacturer like Tesla to justify those costs.”

[…]

Thai-Tang said, “It gives us the ability to access the latest technology and innovation in multiple suppliers.” So I know that the state of the art is from Korean suppliers, Japanese suppliers, Chinese suppliers and I can compare their notes better than theirs. And then, of course, we have competitive stress in dealing with multiple suppliers, which allows us to reduce costs. “

Despite insisting the supply base is ready, Ford has said tight battery supply will limit the next Mustang Mach-E globally in its first year of production.

The automotive news analyst calls this strategic decision a “crapshoot” and thinks it is appropriate. Companies are betting billions of dollars, and no one really knows how to get out of it yet, no one really knows. Not even Tesla, despite its recent upsurge.

Contrast: Solar car

This may never happen in my lifetime but shish we have been trying for a while.