Car dealerships run dry and bank
The demand for cars and trucks is on the rise, but the inventory of cars and trucks is not. All this and more The morning shift by April 26, 2021.
1st gear: … and bank
Auto dealers across the country are struggling to fill their lots because Automotive news described in a new report “Buyers Plenty, But Dealers Are Running On Empty,” detailing how demand came from the depths of the pandemic, but the offer does not have:
Vince’s GM center is not bankrupt. But the dealership lot in eastern Colorado is so unusually rare that some customers have assumed.
While the assembly lines of many North American factories have been shut down because they cannot get enough microchips and demand for new vehicles is booming again, Vince Schreivogel is one of many dealers in across the country disconcertingly watching their inventory waste away.
“First, [customers] I couldn’t believe we couldn’t get stuff but it came true where they went online and no one else got them either, ”said Schreivogel, who had less than 20 new vehicles. in stock last week.
However, not everyone suffers, because Reuters emphasizes that “US auto dealers win because chip shortage increases vehicle profits.” The report explains that dealers who are able to get vehicles in stock are selling them for what they want:
Mike Bowsher shakes his head in astonishment when he hears that another customer at one of his Buick-GMC dealers near Atlanta has agreed to pay the total sticker price of over $ 71,000 for a top SUV. GMC Yukon XL Denali range which is still being assembled at General Motors (GM.N) factory.
Customers know what Bowsher has to offer by scanning the online inventories of its six stores in the area, and they’re often willing to wait longer than a week and pay top dollar to get the vehicle of their choice.
“I sell about 150% of what I have in the field,” Bowsher said. “We sell products so high up in the pipeline that they’re spending money on ‘going’, which is in the plant.”
I’m upset that even a global pandemic hasn’t completely ended the concession model.
2nd gear: chip ratio
The reason for these shortages, of course, is that there is a global shortage of semiconductor chips. Auto industry stopped ordering as demand for vehicles dried up at the start of the pandemic; when car manufacturers started ordering chips again, they found that the electronics industry had purchased the entire supply. Oops!
The current news is that there are closures and delays at US factories, as Automotive news details:
Ford and Stellantis account for most of the roughly 80,000 vehicles pulled from North American production schedules last week due to the microchip shortage, according to an April 23 tally from AutoForecast Solutions.
Ford said last week that its Chicago and Flat Rock plants, as well as the sides of the F-150 and Transit vans at its Kansas City plant would go down in the weeks of May 3 and 10 as the automaker continues to shut down. ‘be hit by the semiconductor crisis. .
At the same time, 30,000 Stellantis vehicles were affected in North America, including 14,700 Jeep Grand Cherokee mid-size SUVs and 5,600 Dodge Durango large SUVs (Detroit), and more than 2,200 Ram 1500 pickup trucks (Warren, Michigan).
General Motors has also taken a hit. It had to cut 4,900 Chevrolet Express and 1,800 GMC Savana vans (Wentzville, Mo.).
3rd gear: Uber and Lyft have a driver problem
Wrinkle-hail companies have operated roughly at this basic principle: the more badly we treat our drivers, the better we are treated by investors. It is perfectly clear to anyone who takes stock of this situation that ultimately something has to give.
The current problem is that Uber and Lyft are running out of drivers and have a hard time attracting them because Business intern reports:
Last month, the number of drivers on the road for Uber and Lyft in the United States was 35% lower than it was in January of last year, according to data from Gridwise, an app for drivers of ridehail. That’s a slight improvement from the worst lows in the pandemic, but it gives some idea of the work companies still need to do to be fully operational. Still less than two-thirds of the number of pre-pandemic drivers drive for apps, according to the data.
Both companies are spending heavily to get drivers back on the road as they see increased demand for motorcyclists in the United States, supported by falling COVID-19 rates due to increased vaccinations. Uber and Lyft have launched high-priced public campaigns, offering driver incentives and short-term deals to take more passengers. Investors have been bullish on both companies in recent months, viewing them as strong companies in a post-pandemic economy, with increased income and reduction of losses. The two have started to signal investors that they could become profitable in the near future.
But even if the demand for motorcyclists continues to increase, companies will not be able to recover if they cannot get enough riders. Interviews with carpool drivers reveal litany of worries and complaints preventing them from getting back on the road. Among the main ones is security against infection by passengers, but also reliability of income.
My mother always tells a story of how many of her friends in New York in the ‘The 70s came in search of a quick and easy job taxi drivers…until each of them is held at the tip of a knife. None of them returned to the concert. I sense some parallels.
4th gear: switching to hydrogen won’t be easy for the shipping industry
While we like to focus on relatively small auto fuel consumption and emissions, a lot of our climate catastrophe comes down to the big ships. Stop these things from burning oil will not be easy, because the Financial Times details:
“It will not be an easy sector to decarbonize,” said Bud Darr, executive vice president of Mediterranean Shipping Company, the world’s second largest container shipping group. “The need for autonomy in maritime transport forces us to transport a large quantity of fuel. We need a large-scale range of alternative fuels and we urgently need them. We keep an open mind and explore all possible solutions. “
Hydrogen has a low energy density compared to heavy fuel oil. Its storage in its liquid form below -253 ° C requires heavy cryogenic tanks which take up valuable space, which makes it impractical for large freighters.
“With the current state of technology, we cannot use hydrogen to power our ships,” said Morten Bo Christiansen, head of decarbonization at AP Moller-Maersk, MSC’s biggest rival.
Trendy tech today uses ammonia to power these ships, but no one has really made it work and it smells horrible as well.
5th gear: French fossil fuel giant withdraws from Mozambique
Mozambique was not a French colony, but it has just driven out its big oil company Total. Well, the government of Mozambique did not. The Mozambican government was really very satisfied with the start a $ 20 billion liquid natural gas project on its coast. Insurgents, like the Financial Times call them, attacked and killed enough peoplethe for Total to declare a force majeure and withdraw from his contract. By the FT:
The French energy major said on Monday she had activated the contractual exit “in view of the evolving security situation” in Mozambique’s northernmost region, Cabo Delgado, where insurgents ravaged last month a city adjacent to the $ 20 billion project.
The Palma attack killed dozens of people, including foreign workers, and left thousands homeless, prompting Total to withdraw all staff from the neighboring Afungi peninsula project.
The discoveries of vast offshore gas reserves over the past decade have promised to transform the economy of one of the poorest countries in the world.
This is a somewhat puzzling case, as the US media say that the Islamic State is behind these attacks, but BBC Africa has a good article explaining how this is not the case.
Reverse: ‘clean’ energy is hit by public relations
Neutral: how are your pandemic plans?
I have two horrible bikes in near-finished states on my porch, which makes me feel like the bike equivalent of a guy with an El Camino on my lawn. What are you doing?