Interesting Car/Truck Manufacturer News

[Weather Man]

KAR Auction Services to acquire BacklotCars
Sep. 8, 2020 7:22 AM ET|About: KAR Auction Services, Inc. (KAR)|By: Jignesh Mehta, SA News Editor


KAR Auction Services (NYSE:KAR) inks an agreement to acquire BacklotCars Inc. for $425M.

BacklotCars is an app and web-based dealer-to-dealer wholesale platform featuring a 24/7 "bid-ask" marketplace and comprehensive vehicle inspections performed by automobile mechanics.

The acquisition will diversify KAR's portfolio of digital capabilities and accelerate the company's strategy to be a leading digital dealer-to-dealer marketplace provider.

Post acquisition, key BacklotCars leadership, including co-founders Justin Davis, Ryan Davis, Josh Parsons and Fabricio Solanes, will remain with the company.

The transaction is expected to close by year-end.

 

[Weather Man]

Are these used or new car dealerships? Big?

Sonic Automotive inaugurates second EchoPark store in Houston
Sep. 8, 2020 7:07 AM ET|About: Sonic Automotive, Inc. (SAH)|By: Niloofer Shaikh, SA News Editor


Sonic Automotive (NYSE:SAH) has opened its second EchoPark store in the Houston market and 11th retail hub location nationwide, demonstrating its commitment for expansion of EchoPark to sell over half a million vehicles annually by 2025 through a 140-plus point nationwide distribution network.

The company has previously announced plans to add 25 EchoPark locations per year from 2021 to 2025.

“The opening of this new Houston location is a critical part of our overall EchoPark expansion strategy,” said David Smith, Sonic’s and EchoPark’s Chief Executive Officer. “This store will not only serve the local community, but it will also enhance our growing nationwide distribution network. This store opening reflects EchoPark’s continued rapid growth and is another step toward achieving our goal of $14B in annual EchoPark revenues by 2025.”

 

[Weather Man]

GM and Nikola soar after striking strategic partnership; GM to take 11% stake
Sep. 8, 2020 7:49 AM ET|About: General Motors Company (GM)|By: Clark Schultz, SA News Editor


Nikola (NASDAQ:NKLA) announces that General Motors (NYSE:GM) will be its strategic manufacturing partner.

The partnership will begin with the Nikola Badger and will carry cost reduction benefits across other models.

Nikola will utilize General Motors' Ultium battery system and Hydrotec fuel cell technology, in what is said to be a key commercialization milestone for GM.

Nikola will exchange $2B in newly issued common stock for the in-kind services and access to General Motors' global safety-tested and validated parts and components. Here's Nikola's 8-K, detailing the sale of 47.7M shares of common stock to GM for $41.93 each. GM will own 11% of Nikola at closing (expected September 30).

General Motors will be subject to a staged lock-up provision beginning in one year and ending in June 2025.

General Motors will engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions.

Shares of Nikola are up 29.40% in premarket trading, while GM is 6.65% higher.

 

[Weather Man]

GM really getting fluffed today.

Nikola deal with GM called a game changer
Sep. 8, 2020 8:27 AM ET|About: Nikola Corporation (NKLA)|By: Clark Schultz, SA News Editor


Wedbush Securities analyst Dan Ives sees significant upside from the announcement today that Nikola (NASDAQ:NKLA) will partner with General Motors (NYSE:GM).

"This news is a huge shot in the arm for Nikola and cements credibility not just for its Badger production slated to begin by the end of 2022 but for its hydrogen fuel cell ambitions and semi truck vision going forward," writes Ives.

He notes that there have been many skeptics around Nikola and its founder Trevor Milton's ambitions over the coming years, which could now be thrown out the window with stalwart GM making a major strategic bet on Nikola for EVs and fuel cells.

"For GM given its strategic goal around EV battery technology for the coming years and its massive $20 billion of investments earmarked for electric and autonomous vehicles by 2025, we view this as a smart strategic bet at the right time."

Investors are a bit charged up on the development, with Nikola up 27.93% premarket and GM 4.85% higher.

 

[Weather Man]

Workhorse trucks to new high after GM-Nikola deal
Sep. 8, 2020 1:51 PM ET|About: Workhorse Group Inc. (WKHS)|By: Clark Schultz, SA News Editor


Workhorse Group (WKHS +16.2%) rallies after the GM-Nikola partnership early in the day renews investor interest in the electric truck and van manufacturer.

Workhorse has some ties to GM as well through the sale of the Lordstown plant.

Alongside the company's recent Q2 earning report, Workhorse noted that it is now the only medium duty BEV OEM permitted and able to sell and deliver its vehicles in all 50 states, which it says should allow it to further distance itself as the first movers in the last-mile EV space

Shares of Workhorse carved out a new high of $23.82 earlier in the session.

 

[Weather Man]

Drove by the Chevy and GMC dealers in St Cloud, MN today. The Chevy dealer looks like their inventory is starting to recover. The GMC lot was utterly devastated, you would think they were not restocking.

 

[stvdman]

LUCID AIR

Just watched their launch. EV's are going to be pretty common soon AND pretty awesome.

2025 we will be bench racing our EV's

https://www.lucidmotors.com/

Starts at $95k.

Is that the way this has to go? Will any start with the "entry level" and then build up to the uber luxury? or will it always start with "unobtainium"?

 

[Weather Man]

Hindenburg's short report on Nikola - key points
Sep. 10, 2020 8:17 AM ET|About: General Motors Company (GM)|By: Clark Schultz, SA News Editor


Nikola (NASDAQ:NKLA) is the target of a short report from Hindenburg Research.

The firm claims it has gathered extensive evidence on false statements by Nikola founder Trevor Milton over an extended period of time.

Some of other key points from the report.

"We have gathered extensive evidence—including recorded phone calls, text messages, private emails and behind-the-scenes photographs—detailing dozens of false statements by Nikola Founder Trevor Milton."

"We have never seen this level of deception at a public company, especially of this size."

"A spokesman for Volvo spin-off Powercell AB, a hydrogen fuel cell technology company that formerly partnered with Nikola, called Nikola’s battery and hydrogen fuel cell claims hot air."

"Nikola’s much-touted multi-billion dollar order book is filled with fluff. U.S. Xpress reportedly accounts for a third of its reservations, representing ~$3.5 billion in orders. U.S. Xpress had only $1.3 million in cash on hand last quarter."

The conclusion stated that General Motors (NYSE:GM) did not do its homework before inking its high-profile deal with Nikola.

Shares of Nikola are down 2.05% premarket to $41.51.

 

[Weather Man]

'We have nothing to hide' - Nikola responds to Hindenburg.
Sep. 11, 2020 8:53 AM ET|About: Nikola Corporation (NKLA)|By: Stephen Alpher, SA News Editor


"This was a hit job for short sale profit driven by greed," says Nikola (NASDAQ:NKLA), the company responding to yesterday's short report by Hindenburg Research. "To be clear, this was not a research report and it is not accurate."

More: "We have nothing to hide and we will refute these allegations. They have already taken up more time and attention than they deserve."

Nikola has retained counsel to look into potential legal recourse, and says it will contact the SEC about the Hindenburg report.

Company CEO Trevor Milton yesterday was out and about on social media, slamming the report.

 

[Weather Man]

General Motors cruises right along despite Nikola speed bump
Sep. 11, 2020 11:25 AM ET|About: General Motors Company (GM)|By: Clark Schultz, SA News Editor


General Motors (GM +0.7%) is higher on the day as the sideshow playing out between Nikola (NKLA -12.9%) and Hindenburg Research devolves into legal threats and Twitter blasts (see Trevor Milton, see Citron Research).

Earlier in the week, JPMorgan noted that GM has more than just the equity stake in Nikola playing to its advantage.

"GM has identified a further $2B of earnings benefits (net of engineering costs) from the sale of the vehicles, batteries, and fuel cells to Nikola at cost plus," noted the firm. Included in the $2B figure is the likely potential for high margin software and service sales to Nikola to support the Badger, such as OnStar, Super Cruise, Over-the-Air updates, etc.

Deutsche Bank also was positive on the GM-Nikola deal. "We view this deal very positively for GM as we believe the unit economics are very favorable for the automaker (high margins and ROIC), and the partnership further positions its Ultium battery as a scalable industry wide platform that can pool together large volumes from several OEMs to improve costs," stated analyst Emmanuel Rosner.

Neither JPMorgan or Deutsche Bank has moved off its bullish stance on the GM-Nikola partnership since the Hindenburg report was posted.

On Seeking Alpha, the last five articles on Nikola have been bearish even before Hindenburg decided to join the debate.

 

[SecondhandSnake]

Starts at $95k.

Is that the way this has to go? Will any start with the "entry level" and then build up to the uber luxury? or will it always start with "unobtainium"?

I mean we already had the "entry level" in cars like the Bolt/Volt and Leaf, and to a lesser extent the Model 3. If anything that's pretty remarkable. Entry level just isn't as exciting, or profitable. New technology tends to start on the upper tiers as a differentiator and where the profit margins support it. Think about the digital dashes of the 80s.

 

[Weather Man]

Hummer EV will be unveiled with 'Crab Mode' in October
Sep. 15, 2020 3:36 AM ET|About: General Motors Company (GM)|By: Yoel Minkoff, SA News Editor


General Motors (NYSE:GM) will reveal the GMC Hummer EV online on Oct. 20, marking one of the cornerstones in the automaker's $20B push into electric vehicles.

It will be the first vehicle to market GM's next-generation Ultium battery system, which uses a pack that can scale up to 200kWh.

Another feature, called Crab Mode, will allow the truck to rotate all four wheels at once, enabling it to move in a diagonal direction.

The Hummer EV is slated to go into production in late 2021, which is right around when Tesla's Cybertruck is supposed to hit the road and just a few months after Rivian will start shipping its own electric pickup and SUV.

 

[Weather Man]

Sonic Automotive on watch after solid guidance update
Sep. 15, 2020 7:17 AM ET|About: Sonic Automotive, Inc. (SAH)|By: Clark Schultz, SA News Editor


Sonic Automotive (NYSE:SAH) updates guidance based on results for July, August and September to date.

Those results included new vehicle unit sales falling 17% in July, 21% in August and 9% in September to date. Used vehicle sales were down 5% in July, 9% lower in August and up 6% in September to date.

Sonic currently expects to report Q3 EPS in the range of $1.08-$1.15 vs. $1.08 consensus.

CEO update: "We are very pleased with our operating performance in the third quarter to date, continuing our recovery from the challenges our industry faced earlier this year. Consumer demand for new and used vehicles and parts and service repair work has continued to improve steadily in recent weeks, particularly when factoring in the timing of this year’s Labor Day weekend sales compared to the prior year. Additionally, our commitment to increasing operating efficiency at both our franchised and EchoPark stores continues to drive enhanced profitability."

 

[Weather Man]

GM considers flying taxis program as part of EV future
Sep. 15, 2020 1:16 PM ET|About: General Motors Company (GM)|By: Clark Schultz, SA News Editor


General Motors (GM +1.6%) is exploring options in the aerial taxi market as part of a push to look for growth in next-gen transportation markets, sources tip Reuters.

CEO Mary Barra made a reference to the air taxi market in a RBC conference appearance yesterday.

"We believe strongly in our EV future and not just for vehicles... The strength and flexibility of our Ultium battery system opens doors for many uses including aerial mobility," she noted.

Electric air taxis could be used to fly low-level routes in areas that would make sense like a medical facility or corporate complex, mass-market uses aren't seen for quite a while.

 

[Weather Man]

Nikola's partners are called the key for the road ahead
Sep. 15, 2020 10:38 AM ET|About: Nikola Corporation (NKLA)|By: Clark Schultz, SA News Editor


The Wall Street Journal takes its turn at dissecting the Nikola (NKLA -6.9%) vs. Hindenburg battle.

"Hindenburg’s 67-page report argued that the company is an 'intricate fraud' If this allegation is true, it wouldn’t seem to be accounting fraud in the style of this year’s Wirecard debacle, but rather securities fraud, in which investors lose money based on false information," writes WSJ's Stephen Wilmot.

He notes that while Nikola will have a problem if it is found to have misled investors in some way, it will have an even bigger problem if technology suppliers decide they too have been misled. So far, so good on that front. Wilmot says General Motors reiterated its confidence in Nikola after the Hindenburg allegations, but investors need to watch carefully for any hints that partners are quietly backing away. Without them, Nikola would amount to little, according to Wilmot.

GM CEO Mary Barra was nothing but positive yesterday during her talk at the RBC Capital Markets Global Industrials Virtual Conference.

 

[Weather Man]

GM plans to build its own EV drive systems
Sep. 16, 2020 7:36 AM ET|About: General Motors Company (GM)|By: Clark Schultz, SA News Editor


General Motors (NYSE:GM) is expected to announce that it will produce five interchangeable drive units and three motors off the company's Ultium Drive system.

GM says the new electric drive systems will have a versatile enough power output to be used from vehicles ranging from pickup trucks to performance vehicles.

The Ultium system is something GM Mary Barra has been talking up for quite a while, including earlier this week at the RBC Capital Markets Global Industrials Virtual Conference.

"Ultium isn't just a differentiator for General Motors, it is an industry leading platform technology that has significant market potential outside of General Motors, as our recent agreements with Nikola and Honda demonstrated. We will build on our long-term relationship with Honda and our new newly formed deal with Nikola, when other companies choose our platform and our battery technology, because it improves our scale which leads to lower costs, making it even more attractive for industry partners," noted Barra.

 

[Weather Man]

Ford aims for electric F-150 to be the blue collar winner
Sep. 17, 2020 12:39 PM ET|About: Ford Motor Company (F)|By: Clark Schultz, SA News Editor


Ford (F +3.6%) plans for its all-electric F-150 to continue the tradition of being known as a truck for workers in a differentiation from the recreational alternatives from upcoming from Tesla (NASDAQ:TSLA) and General Motors (NYSE:GM).

"While all other electric pickups are competing for lifestyle customers, the all-electric F-150 is designed and engineered for hard working customers that need a truck to do a job," highlighted Ford exec Kumar Galhotra at a media briefing.

"We have a very substantial amount of brand equity in the 'Built Ford Tough' F-150 both in terms of design language, capability and the name itself," he said.

Ford is confident the electric F-150 will dazzle in terms of hauling and towing capabilities.

 

[Weather Man]

Ford to build electric F-150s in Michigan
Sep. 17, 2020 10:17 AM ET|About: Ford Motor Company (F)|By: Clark Schultz, SA News Editor


Ford (F +1.2%) plans to spend $700M to expand its River Rouge plant near Dearborn, Michigan to make electric pickup trucks.

Ford expects to begin making battery-powered versions of the F-150 pickup at the facility by the middle part of 2022.

"We are proud to once again build and innovate for the future here at the Rouge with the debut of our all-new F-150 and the construction of a modern new manufacturing center to build the first-ever all-electric F-150," says Ford Executive Chairman said Bill Ford.

 

[Weather Man]

LMP Automotive pushes ahead with digital launches
Sep. 17, 2020 4:07 PM ET|About: LMP Automotive Holdings, ... (LMPX)|By: Clark Schultz, SA News Editor


LMP Automotive (NASDAQ:LMPX) says its new interactive subscription leasing e-commerce app called LMP Motors is now available in the Apple App and Google Play Stores.

CEO update: "We see the immense opportunity that exists within our industry that we are exploiting through continued focused growth and the activation of our e-commerce sales, subscription, and dealership acquisition strategy. We are seeing a robust acquisition market as we continue to build our pipeline of prospective dealership acquisitions and intend on accelerating our acquisition strategy moving forward. Looking forward, we are as optimistic as ever and focused on our next-generation of innovation and growth as we roll-out e-commerce home delivery, site-to-store, and ship-from-store delivery strategies for our customers and demonstrate the value of our e-commerce hybrid model at the growing list of auto dealerships we intend to acquire."

In the coming weeks, LMP expects to launch its next generation, interactive e-commerce website with similar functionality as the LMP Motors App.

 

[Weather Man]

GMC, Chevrolet diesel pickup prices cut by $1,500 as they power conquest sales

......The turbocharged 3.0-liter inline-six cylinder motor is optional on several trim levels of the GMC Sierra and Chevrolet Silverado 1500 pickups and delivers best-in-class fuel economy of up to 33 mpg on the highway.

When the diesel was originally launched in 2020, GM priced it the same as the 6.2-liter V8 that is the larger of the two eight-cylinder engines that are also offered in the trucks, but is now dropping the price by $1,500 on both the remaining 2020 and upcoming 2021 models.

GMC and Buick VP Duncan Aldred told the Detroit Free Press that the engine has been a potent conquest weapon.

“Over half of the people buying the diesel are new to the GMC brand," Aldred said.

According to Automotive News, about 10 percent of Sierra 1500 buyers have been choosing the diesel option. The new pricing makes it a $995 step up from the available 5.3-liter V8.......