Photo: APThe Morning ShiftAll your daily car news in a comfortable place. Is your time no longer important?
Car sales are in the toilet, Ford thinks he has a plan for all of this, and one of the biggest car purchases in history is off. All this and more in The Morning Shift for March 26, 2020.
1st Equipment: The Sale Of New Cars Is Bad And Worse
It was interesting to look at J.D.’s sales projections. Power among coronaviruses as they engage, get worse and worse. Just three days ago, J.D. Power projected new car sales in March would fall 41 percent compared to a year ago.
Yesterday, the company said an 80 percent drop in sales could be in the offing for states with coronavirus-related blocks.
Auto sales through the week of March 22 decreased 22% year-over-year compared to 40% in some cities on the US West Coast, according to research by JD research firm Power, based on data from the bargain shops around the country.
Last week’s data did not fully account for the various states of the United States that place shelter orders in place at the end of last week.
“We expect to see a much broader and wider impact from these restrictions next week with sales decreasing by 80% or more,” said Tyson Jominy, the firm’s vice president of data and analytics.
Thursday’s best deals: MacBooks, Thermoworks, REI Co-Op, Huckberry, …
Does this trace everything to reality, since who is doing much of anything now, much less to buy a new car? Which doesn’t make it any less surprising. Eighty percent!
2nd Gear: $ 2 Trillion Stimulus Bill Moves More Forward
Potentially billions could end up in the hands of motorists in the form of loans. But don’t call this a lifesaver! No, builders don’t need new help just over a decade after the 2009. salvation. No, they won’t be good! No, they did. General Motors does not know who should hear this but I am not Government Motors thank you very much.
Republican Sen. Pat Toomey said Wednesday the deal, which he called “the largest government intervention in the economy in the history of the world,” sets aside $ 454 billion to make loans or loan guarantees for companies from all sectors, as well as states.
Probably the money will be used to leverage even more borrowed funds from the Federal Reserve, said Toomey, who told reporters at a news conference that the Treasury could then make loans, buy loans or buy corporate debt. could be a major boost for builders.
Industry officials, especially at General Motors Co., were anxious to avoid the appearance of a federal bailout. Sales suffered and the No. 1 car in the United States was named “Government Engines” after the $ 50 billion bailout in 2009.
The United Auto Workers union and the Detroit Three automakers recently discussed sending a letter to Capitol Hill explaining why the industry needed a source of cash, but GM ultimately refused to sign the letter and was not sent, people familiar with the matter said.
The final package does not contain any specific benefits to the builders.
In my opinion, GM’s biggest marketing challenge is not whether he accepts government help or not, but making a single car out of the Corvette and (possibly) Camaro is remotely desirable.
3rd Gear: Ford Thinks It Has A Plan For All This
Ford executives said Thursday that 300 of the company’s top executives will defer up to 50 percent of their salary until $ 7 billion of their debt is paid off. Executive Chairman Bill Ford will defer 100 percent of his salary, according to Automotive News.
All that is a good gesture, but these are deferred, so as not to give up their salary. People like Ford CEO Jim Hackett, who is half-paid his salary, will always shake hands. Hackett had a base salary of $ 1.8 million in 2018, according to Automotive News.
Meanwhile, the company also said Thursday that it plans to reopen a Mexican printing plant on April 6, and five US plants on April 14.
Via Automotive News:
Ford has not offered restart data for Chicago Assembly, Flat Rock Assembly, Michigan Assembly, Louisville Assembly, Cuautitlan Assembly in Mexico or Oakville Assembly in Canada.
“We continue to evaluate public health conditions, as well as the availability of providers, and make plans if necessary,” said Kumar Galhotra, president of North America at Ford.
I remain deeply skeptical that everything will be back to normal anytime soon, and there’s a reason to think Ford agrees too, saying in his press release that he’s not so sure, just saying he “looks” at the plants. to get back on this data, not that I will not be sure. I think we’ll see!
4th Equipment: Ford’s Credit Rating is Junk
Ford’s problems, of course, started way before coronavirus, most recently with the failed launch of the new Explorer. Skeptics have also answered several questions about his $ 11 billion plan to turn his business around, part of which has discontinued all of his Mustang salvage lives.
Coronavirus was just the latest picture, and credit rating agencies are not impressed.
S&P has lowered Ford’s credit rating from a note to BB + and may cut it further, according to a statement. The move follows Moody’s Investor Service, which dropped its valuation for the second time in six months ahead of Wednesday. The two high car ratings will remove their $ 35.8 billion debt from the Bloomberg Barclays investment grade index at the end of the month.
Moody estimated in its Ford downgrade that the company could burn $ 8 billion over the next 12 months due to the decrease in coronavirus in demand, placing a significant increase in the $ 37.7 billion of the compiled company by crossing its credit lines last week. Moody praised Ford for taking the “constructive” step of suspecting its dividend as well.
No wonder Ford is so eager to create plants to go up.
5th Equipment: A $ 1 billion Backed Seller Buys from Another Seller
Asbury Automotive Group, which owns and operates 80 dealerships in the United States, said in December that it would buy more than a dozen dealerships from Park Place Dealerships for $ 1 billion. But it was revealed on Wednesday that the deal was now off. The company did not give a reason but expected that tank car sales had something to do.
The Duluth, Georgia-based retailer has issued a notice to Park Place Dealerships of $ 1 billion, a purchase agreement in total of the money in question that they reached in December, according to a regulatory filing. Asbury will pay Park Place $ 10 million in damages.
Park Place owns 17 franchises that primarily sell European luxury cars including Mercedes-Benz, Jaguar, Land Rover and Porsche brands. When Asbury announced plans for the acquisition late last year, CEO David Hult called Park Place “one of the best and most efficient luxury store operators in the industry.”
Reverse: Natural Torpedo
History in 1941:
Italy attacked the British fleet in Souda Bay, Crete, using detachable warheads to sink a British cruise. This was the first time that manned torpedoes had been deployed in naval warfare, adding a new weapon to the world’s naval arsenal.
The custom torpedo, also known as the “Chariot,” was unique. Primarily used to attack enemy ships still in port, the Chariots needed “pilots” to “guide” their targets. By astride the torpedo in a vehicle that would transport them both, the pilot would guide the missile as close to the target as possible, then ride the vehicle back, usually in a submarine. The Chariot was a huge plus; prior to its development, the closest weapon to the Chariot was the Japanese Kaiten – a human torpedo, or suicide bomb, which had obvious drawbacks.
Neutral: When will you buy a car later?
New or used! What economic factors will go into your decision? It is possible to swallow to live for three blocks along the epicenter of the epicenter of the pandemic in America. And no one is actually stuffing billets under my mattress, so I ask?