Don’t expect used car prices to collapse anytime soon – Jalopnik | CarTailz

Vehicles will go on sale at an AutoNation dealership on April 21, 2022 in Valencia, California.  The auto dealership today released quarterly results showing that sales rose 14 percent to $6.75 billion, beating Wall Street expectations on continued strong demand for new and used cars.

photo: Mario Tama (Getty Images)

used car prices probably won’t come down sometime soon, CEO Elon Musk takes position in his $56 billion Tesla pays trialand Jaguar Land RoverThe company’s CEO announces that he will step down at the end of the year. All these stories and more in The morning shift for Wednesday November 16, 2022.

1st gear: Used car prices will probably not go down

I’m sorry to be the bearer of bad news, but used car prices are unlikely to fall dramatically in the next few months. JD Power says that’s because continued strong demand for new vehicles.

JD Power says the only way to bring used car prices down and “get this sorted out [backlog of sales] pretty quick” would be if automakers could start producing vehicles at 2018 levels. That’s a big request all is going on in the world right now. Out of Automotive News:

[Tyson Jominy, vice president of data and analytics at J.D. Power] said one reason he’s optimistic that used vehicle retail prices will be sustainable — more so than in 2021, when they continued to rise — is that the number of vehicles flowing back into the market remains fairly limited, and leading up to that no way around.

[…]

“Vehicles – there are a lot fewer of them coming back each year based on other metrics we’ve seen.” [the person] said.

In particular, leased vehicles between one and three years old will be “very hard to find” by 2025, he added.

In terms of wholesale prices, they’re now hovering around the $25,000 mark. That’s about three grand down from this time last year. However, that’s still a big jump from the roughly $15,000 price tag they had beforehand to this summit.

2nd gear: Musk takes position in $56 billion Tesla lawsuit

Tesla CEO is Elon Musk take stood in court in Delaware on Wednesday to defend his $56 billion salary package. based on specific performance goals.

In 2018, a Tesla shareholder sued Musk and the board. Richard Tornetta is now hoping to prove that the CEO used his influence on the board to set the terms of the package. It was reportedly not necessary for him to work full-time at Tesla. Out of Reuters:

Tornetta has asked the court to overturn the 2018 package, which Tornetta’s attorney Greg Varallo said was $20 billion more than Delaware’s annual gross domestic product.

Musk’s legal team and Tesla directors, who are also defendants, framed the pay package as a bold set of goals that would result in a 10x growth in Tesla stock value from around $50 billion to more than $600 billion. dollars worked.

They have argued that the plan was developed by independent board members, advised by outside experts and with input from major shareholders.

On Monday and Tuesday, the court got a taste of Musk’s testimony through short clips from his 2021 testimony in the lawsuit. In a clip, Musk dismissed the idea that the board should have discussed spending more time with Tesla.

[…]

The controversial Tesla package allows Musk to buy 1% of Tesla stock at a deep discount each time escalating performance and financial goals are met. Otherwise Musk gets nothing.

According to court records, Tesla hit 11 of the 12 targets.

All of this is happening, of course, with his messy takeover of Twitter in the background. He reportedly said earlier this week that he would be staying at Twitter’s San Francisco headquarters 24 hours a day to troubleshoot issues there Company.

3rd gear: The CEO of Jaguar-Land Rover resigns

Jaguar-Land Rover CEO Thierry Bolleore is reportedly stepping down personal reasons. The move will take effect on December 31, according to a statement from parent company Tata.

Thereafter, the company’s CFO, Adrian Mardell, will assume the role of interim CEO. He has been with JLR for over 30 years and is currently a member of the Board of Directors. Out of Automotive News:

JLR hired former Renault boss Bollore as CEO in 2020 to help bring Britain’s biggest automaker back to profitability after being hit hard by the COVID-19 pandemic. Almost a year earlier, Bollore had been ousted as Renault CEO amid the fallout from the Carlos Ghosn scandal.

Bollore has overhauled JLR’s business model in an electrics-focused roadmap called “Reimagine.”

[…]

Bollore’s exit comes as JLR fights to ramp up production amid industry-wide supply chain issues and make significant advances in electrification.

“The company’s transformation and acceleration towards a sustainable, profitable future as a modern luxury company is progressing at a rapid pace,” Bollore said in a statement.

[…]

Back in February 2021, Bollore announced Plans for Jaguar to completely phase out internal combustion engines by 2025 and for Land Rover to introduce electrified variants a year earlier.

Like much of the automotive industry, it’s been a pretty tough year for Jaguar-Land Rover. Sales in the US fell 37 percent to just 44,100 vehicles in the first three quarters of this year.

4th gear: Mercedes-Benz lowers prices for electric vehicles in China

Mercedes Benz is slashing the price of two electric vehicles in China by up to $33,000 to boost sales in the country.

The German automaker said so lowered prices for the electric sedans EQE and EQS. The company will also provide subsidies for people who recently bought their car before the discounts were announced. Out of Bloomberg:

The cuts appeared to be immediate, with the EQE being priced at 478,000 yuan ($67,675) at Mercedes Chinese website Wednesday morning compared to 528,000 yuan as recently as Tuesday. The EQS luxury model was listed at 956,000 yuan on Wednesday, up from 1.19 million yuan on Tuesday, a reduction of about $33,000.

Mercedes is making the cuts because sales in China have been disappointing, according to people familiar with the company’s plans, who asked not to be identified as the information is private.

Some retailers have already run promotions to boost sales, with EQS shipments at times falling as low as 100 a month, the people said.

[…]

In a statement to Bloomberg News, Mercedes said the high-end EV segment is still developing in China, especially for cars priced above 1 million yuan.

“Mercedes-Benz continuously observes and analyzes dynamic market developments, including the current positioning of other manufacturers in the luxury segment. On this basis, Mercedes-Benz is repositioning certain EQ models in China.

Bloomberg reports that foreign brands are losing market share to domestic Chinese automakers. These CDM brands accounted for nearly 80 percent of all EV sales in the first seven months of this year.

Mercedes is said to have sold 8,800 electric vehicles in China in the first half of 2022. The Chinese electric vehicle brand BYD, on the other hand, sold around 220,000 electric vehicles in October alone.

5th gear: Ford CEO says company needs to bring jobs in-house

Ford CEO Jim Farley said the automaker needs to build more of its own electric vehicle components in its own factories to ensure “everyone has a role going forward.”

According to Farley, electric vehicles will require 40 percent less labor to build than current internal combustion vehicles. Out of Reuters:

Farley told reporters on the sidelines of the conference that Ford was “going back to our Model A” when the company built many of the components for vehicles itself at the Rouge manufacturing complex in Dearborn, Michigan.

Bringing the production of electric motors, batteries and other components for electric vehicles in-house is necessary to preserve jobs and be competitive, Farley said.

According to Reuters, Tesla builds much of its hardware (including batteries) in-house. Farley wants to follow suit with some of these.

Ford has begun construction of an electric vehicle manufacturing complex called Blue Oval City in western Tennessee. Farley said he would be “thrilled” if workers hired there decided to join a union. But that decision is up to the workers.

Ford and Detroit rivals General Motors Co (GM.N) and Stellantis NV will begin contract talks with the United Auto Workers next year. The changes being driven by the transition to electrification will be the focus of these negotiations. UAW President Ray Curry has said he wants workers at new US EV plants, including joint-venture battery plants, to be organized without secret ballots.

Farley has reportedly brought in a number of executives from other industries to lead electrification and software load. However, he acknowledges that Ford needs to improve internal development of managers.

Back: JK Rowling is unfortunately cemented in our world forever

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