Tesla (ticker:TSLA), the electric car maker, sold 13.3 million shares in its initial public offering on June 29th, a fifth more shares and at a higher price than the originally planned. Offered at $17, above the expected price range of $14 to $16, the stock opened trading at $19 dropped and then raced ahead by 41% to close its first day of trading at $23.89 per share. The IPO raised $226 million. All this on a day when the Dow fell 268 points.
Started by by Pay-Pal co-founder Elon Musk 7 years ago, Tesla came out with its $109,000 Roadster in 2008 and despite the high price tag has sales of over 1,000. I have not driven the Roadster but a good friend who has was blown away by the 3.6 second zero to 60 time and says it compares to the best gas-powered high performance sports cars. (Shown above in September 2009 in Frankfurt.)
The anticipation is that its $50,000 (after rebates and credits) Model S launching in 2 years could be a big hit based on pre-orders. It's being manufactured in the Fremont, California, New United Motor Manufacturing, Inc. (NUMMI) plant where the Toyota Matrix and Pontiac Vibe were made in a GM-Toyota joint venture. (Tesla Model S shown above in Detroit in January.)
(left to right: Mike Michels, Chris Woodyard, Richard Saxton, Jeremy Anwyl, Chris Hosford)
The Society of Professional Journalists - Los Angeles Chapter went up against the NBA Championship Lakers-Celtics' Game 7 on June 17 with an event entitled “Covering the Automotive Industry.” Panelists were Edmunds.com CEO Jeremy Anwyl, Hyundai Motor America Communications VP Chris Hosford, Toyota Motor Sales, U.S.A. VP of External Communications Mike Michels, and USA Today auto writer Chris Woodyard. The panel was moderated by SPJ secretary yours truly.
Anwyl provided attendees with a look at how recent automotive trends from the Edmunds.com data team indicate a possible so-called "double dip recession" because fleet sales have been unusually high due to spending triggered by the federal stimulus package. He warned that when these purchases slow down soon, a sales downturn is inevitable. Many news sources will then report that the Seasonally Adjusted Annual Rate (SAAR) has fallen without noting the actual buying behavior that caused the sales decline. Unseasonably high incentive offerings and other unusual offerings that shift consumer psychology also undermine the accuracy of the SAAR, but reporters tend to cover SAAR as a simple black and white picture of industry health – a practice that is often misleading and potentially damaging to consumer confidence. We'll keep a close eye on June sales numbers this week.
Hyundai's Chris Hosford made the point that like cars themselves, the industry is quite complex, so there's rarely a simple answer to issues that may seem basic. He also pointed out that journalists shouldn’t forget the importance of current technologies despite the allure of future technologies.
Toyota's Mike Michels presented the audience of journalists and educators with a list of ten points worth knowing about the auto industry, including “Autos are everyone’s business” -- meaning the auto industry affects the economy in many more ways than the average person – or reporter – may realize. Michels also discussed recalls, and acknowledged that government regulations regarding timing often result in a recall announcement taking place before a fix is determined, causing potential confusion and uncertainty for consumers and dealers.
USA Today's Chris Woodyard, the only writer on the panel, expressed that a critical part of being an automotive writer is taking very complex issues and breaking them down for readers so that they can understand and draw value from those issues. Woodyard who had covered other beats like retail, says automotive reporting brings you much closer to the executives and also provides the widest variety of story choices because cars are involved in almost everything. He cited a stories about going through the contents of trunk of a car to the latest industry trends.
The key message was use the resources available to research your story - from Edmunds.com data compiled from 14 million views per month to those provided by the media reps like Michels and Hosford.
My thanks to Edmunds.com for hosting this event which ended with 4 minutes left in the game so that many of us could dash upstairs to the big screens to see the Lakers capture another NBA title. I'll be sure to schedule the next event when the L.A. Dodgers or Kings are in a crucial play-off game to bring them luck, too.
The all-new 2011 Honda CR-Z sport hybrid coupe is set to debut at dealers on August 24, 2010, with a manufacturer's suggested retail price (MSRP) starting at $19,200, plus a destination and handling charge of $750.
The gasoline-electric hybrid has a 1.5-liter iVTEC 4-cylinder engine mated to a six-speed manual transmission which works with Honda's Integrated Motor Assist. An automatic Continuously Variable Transmission is available and includes steering wheel-mounted paddle shifters for manual-like gear-ratio control.
A new, exclusive 3-mode drive system allows the driver to configure the vehicle's responsiveness for Sport, Normal or Econ (Economy) driving modes. Driver efficiency tools include Eco Assist™ and Eco Scoring, which together can help drivers find improvements to efficient driving styles, while also comparing economy achievements to previous trips as well as the life of the vehicle.
The CR-Z is available in two equipment grades – the CR-Z (base) and the CR-Z EX. Standard features on the CR-Z include an AM/FM/CD/USB audio system with six speakers, automatic climate control, power windows and door locks, remote entry, cruise control, and more.
The CR-Z EX adds a 360-watt AM/FM/CD high-power audio system with seven speakers – including a subwoofer – Bluetooth® HandsFreeLink®, leather-wrapped steering wheel and more. The CR-Z EX is available with the Honda Satellite-Linked Navigation System™ with Voice Recognition.
The 21 highest-ranked models in the 2010 Initial Quality Study:
Sub-Compact Car: 2010 Hyundai Accent Compact Car: 2010 Ford Focus Compact Crossover/SUV: 2010 Toyota FJ Cruiser Compact Multi Purpose Vehicle: 2010 Scion xB Compact Sporty Car: 2010 Mazda MX-5 Miata Entry Premium Car: 2010 Mercedes-Benz C-Class Entry Premium Crossover/SUV: 2010 Acura RDX Compact Premium Sporty Car: 2010 Volvo C70 Midsize Car: 2010 Honda Accord Midsize Crossover/SUV: 2010 Honda Accord Crosstour Midsize Pickup: 2010 Nissan Frontier Midsize Sporty: 2010 Ford Mustang Minivan: 2010 Toyota Sienna Midsize Premium Car: 2010 Lexus GS Midsize Premium Crossover/SUV: 2010 Lexus GX 460 Large Car: 2010 Ford Taurus Large Crossover/SUV: 2010 Chevrolet Tahoe Large Pickup (tie): 2010 Chevrolet Avalanche and 2010 GMC Sierra 1500 Large Premium Car: 2010 Lexus LS 460 Large Premium Crossover/SUV: 2010 Cadillac Escalade
There are 6 Toyota/Lexus/Scion, 4 General Motors, 3 Ford and 3 Honda/Acura vehicles.
This year, consumers were asked to report problems experienced in eight categories:
* Features/Controls/Displays
* Exterior
* Engine/Transmission
* Interior
* The Driving Experience
* Audio/Entertainment/Navigation
* HVAC (Climate controls)
* Seats
Over the years, the most frequent types of problems that owners report will vary. In the 2010 Initial Quality Study, for instance, the top five, most-frequently-reported problems are:
* Excessive wind noise
* Climate controls are difficult to use/see, or are in a poor location
* Hands-free communication system does not recognize user voice commands
* Front audio/entertainment system controls are difficult to use or are in a poor location
* Materials that scuff or soil easily
The 2010 Initial Quality Study is based on responses from more than 82,000 purchasers and lessees of new
2010 model-year cars, trucks and sport utility vehicles surveyed after 90 days of ownership. The study is based on a 228-question battery designed to provide manufacturers with information to identify problems, to drive product improvement, and to improve initial quality for new-vehicle buyers. The study was fielded between February and May 2010.
The all-new 2011 Volkswagen Jetta, at a starting price point of around $16,000, will be available in the U.S. this October. The all-new 2011 Jetta has been completely overhauled, inside and out with its new wheelbase and exterior length significantly bigger than its predecessor. At 182.7-inches long, 57.1 inches tall and 70.1 inches wide, it is more than 3.5 inches longer than its predecessors. The Jetta comes with a 2.0-liter turbodiesel direct injection (TDI) Clean Diesel featuring common rail injection with 236 lbs-ft. of torque. The engine runs as quietly as a gasoline engine, but yields the power of a sports car achieving 0-60 mph in 8.7 seconds. Additional engines include the 2.0, 2.5 R5, and as of 2011, the 2.0 TSI. All Jetta engines will be offered with a manual transmission as standard equipment. An automatic transmission will also be available with each engine version as an option. On the new 2.0-liter TDI and 2.0-liter TSI, Volkswagen will offer the 6-speed DSG – one of the most advanced and efficient automatic transmission systems in the world. In the U.S., S, SE, SEL and TDI versions of the Jetta will be available, as will a 2.0-liter GLI.
This is big news for VW with Jetta accounting for about half of its U.S. sales and the push to grow its business aggressively.
Today's emotional debate over a poorly worded memo on our use of the Chevrolet brand is a good reminder of how passionately people feel about Chevrolet. It is a passion we share and one we do not take for granted.
We love Chevy. In no way are we discouraging customers or fans from using the name. We deeply appreciate the emotional connections that millions of people have for Chevrolet and its products.
In global markets, we are establishing a significant presence for Chevrolet, and need to move toward a consistent brand name for advertising and marketing purposes. The memo in question was one step in that process.
We hope people around the world will continue to fall in love with Chevrolets and smile when they call their favorite car, truck or crossover a "Chevy."
The all-new 2011 Chevrolet Cruze will begin arriving in U.S. dealerships this September, starting at $16,995, including destination. This is the long-awaited Opel-based Chevy replacing the Cobalt. GM is betting on the Cruze to attract customers from the popular top-selling Japanese models to carry the brand.
The 2011 Cruze will be offered for retail sale in four models:
The Cruze LS with a 136 horsepower 1.8L Ecotec engine starts at $16,995, and has 10 air bags, StabiliTrak electronic stability control with rollover sensing, traction control, anti-lock brakes, collapsible pedal system, power rear-door child safety locks and standard OnStar, with a six-month subscription including Turn-by-Turn navigation.
The Cruze LT which starts at $18,895, Cruze Eco at $18,895 and the Cruze LTZ at $22,695 all will have the 138 horsepower 1.4L Ecotec turbo engine that's expected to get 40 miles per gallon highway. The LTZ will have a six-way power driver seat, leather seating surfaces, leather-wrapped steering wheel and shift knob, cruise control, Bluetooth phone connectivity, USB port with audio interface, steering-wheel mounted audio controls, remote vehicle start, standard automatic climate control, auto-dimming inside rearview mirror, and ultrasonic rear-parking assist.
Available options features on Cruze include in-dash navigation system with 40-gigabyte hard drive, enabling pause-and-play radio, downloading of audio CDs, or transferring MP3 files from a USB memory device, Pioneer Audio system, with nine speakers and 250-watt amplifier, heated leather seats, ultrasonic rear park assist and RS Appearance package, including rocker moldings, unique front and rear fascias, front fog lamps, and rear spoiler.
The all-new 2012 Lexus LFA supercarpowered by a new high-revving 552 horsepower 4.8-liter V10 engine has an MSRP of $375,000 (excluding delivery, processing and handling fee). The engine is mated to a six-speed Automated Sequential Gearbox with paddle shifters that enables ultra-quick gear shifts of 0.2 seconds with four driving modes – AUTO, SPORT, NORMAL and WET.
The LFA Lexus performance flagship for the F portfolio accelerates from 0 to 60 in 3.6 seconds and achieves a maximum speed of 202 mph thanks to an independently controlled throttle body for each cylinder, high-volume 12-hole injectors, dual Variable Valve Timing with intelligence, low-friction engine components, and equal length exhaust manifolds. All LFAs will be hand-built to customer specifications with production beginning in December 2010. (LFA pictured above at 2010 New York Auto Show)
Goodbye Milan, Grand Marquis, Mariner and Mountaineer. Ford will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing the Lincoln brand.
Ford's release says: Mercury originally was created as a premium offering to Ford and was an important source of incremental sales. However, the continued strength of the Ford brand – particularly during the past three years – has accelerated the migration from Mercury to Ford for many customers. Today, Mercury's customer profile, pricing and margins are almost identical to Ford, but Mercury's incremental sales have been declining. The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retiree and friends and family discounts, which Ford anticipates largely can be satisfied by Ford brand vehicles. Of Ford Motor Company's 16 percent market share in the U.S., Mercury accounts for 0.8 percentage points, a level that has been flat or declining for the past several years.
Ford says the Lincoln brand lineup with seven all-new or significantly refreshed vehicles in the next four years as part of an aggressive growth plan focused on standout product design, class-leading technology and new powertrains – all aimed at competing with Cadillac and Lexus in North America.
"We have made tremendous progress on profitably growing the Ford brand during the past few years. Now, it is time to do the same for Lincoln," said Mark Fields, Ford's president of The Americas. "The new Lincoln vehicles will transform luxury for North American premium customers through an unexpected blend of responsive driving enjoyment and warm, inviting comfort. We will also offer our customers a world-class retail experience through a vibrant retail network."
I owned a Mercury Monarch sedan back in the mid-70's with an 8-track tape player and all - nice ride! So my grandkids will have no idea what I'm talking about when I remember my Mercury and Oldsmobile that I once had.
General Motors' Chevrolet, Buick, GMC and Cadillac brands had May 2010 sales of 222,305, a 31.8 percent increase over May 2009. It's the fifth straight month, Chevrolet, Buick, GMC and Cadillac together posted a double digit sales gain. Year-to-date sales for GM's four brands sales are 874,749, a 31 percent increase compared to last year.
Ford, Lincoln and Mercury sold 192,253 new vehicles in May, a 23 percent increase versus a year ago. Year-to-date sales total 783,845, up 31 percent.
Toyota Motor Sales, U.S.A., reported May sales of 162,813 vehicles, up 6.7 percent over the year-ago month. Year-to-date, sales of Toyota, Lexus and Scion brands are 705,938, up 11.4 percent over the first five months of 2009.
American Honda posted May sales of 117,173 vehicles, an increase of 19.1 percent. Year-to-date sales of Honda and Acura vehicles is 487,282, an increase of 14.1 percent versus last year.
Chrysler Group LLC reported total U.S. sales for May of 104,819, an increase of 33 percent versus May 2009 making it the second consecutive year-over-year percentage sales improvement, and the first time that monthly sales have topped the 100,000 threshold since March 2009. Year-to-date Chrysler sales are 434,731, an 8 percent increase over last year
Nissan North America reported May 2010 sales of 83,764, an increase of 24.1 percent, compared with May 2009. Year-to-date, Nissan and Infiniti sales are 375,762, up 29.8 percent.
Hyundai Motor America had sales of 49,045 vehicles in May, a 33 percent increase versus May 2009 and an all-time May sales record for Hyundai. Year-to-date, Hyundai sales are up 23 percent compared with 2009.
Kia Motors America announced the best May sales ever of 31,431, a 20.6-percent increase over the same period last year, while surpassing the previous May sales record of 31,047 set in 2008. Year-to-date sales
are up 14.6 percent.
Volkswagen of America reported May 2010 sales of 23,543, a 20.3 percent increase over May 2009, and its eleventh consecutive month of sales growth. Year-to-date, Volkswagen's sales are 104,961, a 34.6 rise percent versus the same timeframe in 2009. Separately, Audi of America sold 9,205 luxury cars and SUVs in May 2010, topping the previous May record of 8,788 vehicles sold in May 2007. Through the first five months of this year, Audi has sold 39,839, a 31.4% increase over 2009.
Subaru of America sold 23,667 vehicles in May 2010, a 35-percent increase over May 2009 sales. Year-to-date sales total 104,359, up 40 percent from the same period last year.
BMW Group in the U.S. (BMW and MINI combined) reported May sales of 22,092 vehicles, down 3.9 percent compared to May 2009. Year-to-date, the BMW Group total sales of 98,254 is up 5 percent from
the same period last year.
Mazda North American Operations reported May 2010 sales of 22,605, a 35.2 percent jump and through the first half of the year, Mazda sales are 97,481, 12.5 percent more than at the same time last year.
Mercedes-Benz USA reported May sales of 19,176, an increase of 26.7%. smart USA recorded 695 sales in May bringing the total to 19,871 for both smart and Mercedes-Benz brands. Year-to-date smart
sales are 2,772, down 62.8 percent from May 2009. On a year-to-date basis, Mercedes-Benz and smart sales are 88,177, up 13.9 percent.
Mitsubishi Motors North America announced May 2010 sales of 4,737, an increase of 8.8 percent compared to May 2009 and for the year Mitsubishi has sold 22,292 vehicles.
American Suzuki May 2010 sales were 1,903, down 26 percent from a year ago. Year-to-date Suzuki sales are 9,514, a 53 percent plummet from the first five months of 2009.
Art Linkletter (right in 2006), legendary star of radio and television, died peacefully at home with his family on Wednesday, May 26. He was 97 years old. Just one month earlier, while being honored at an event, he was asked what he considered his greatest life accomplishment. He responded - “Family”.
I had the extreme pleasure and fortune of knowing Art Linkletter and he was amazing not only what he did and how driven he was up until the end but his accomplishments, repertoire of jokes and humor and infectious positive warm likable personality were truly unique and wonderful. He will truly be missed.
Born in Moosejaw, Saskatchewan in 1912, Art was abandoned as an orphan and later adopted by a traveling minister and his wife. Fully intent on becoming a college professor, Art majored in English and Psychology and graduated from San Diego State College in 1934 with a B.A. degree. However during his last year in college, Art was offered a job as a radio announcer at Station KGB – a CBS outlet in San Diego. By the time he graduated, he was promoted to chief announcer and decided to remain in broadcasting.
Art was a star in show business for more than 75 years. His best known shows established records for longevity. People Are Funny ran on NBC-TV and Radio for 19 years and was rated in the Top 10 for more than 11 years. House Party ran on CBS-TV and Radio for 26 years and was one of the top daytime shows from the day of its first broadcast in 1945. It won 2 Emmy Awards, as well as numerous other nominations for awards. In addition, Art starred in and co-produced many television specials, as well as acting in half a dozen dramatic shows and motion pictures. Art also performed as the Master of Ceremonies for the opening day of Disneyland in 1955. He returned decades later to officiate at the fiftieth anniversary celebration of the Park on his 95th birthday. He was a well known author having written 16 books. His best known book was one of the top nonfiction bestsellers in the history of publishing – Kids Say the Darndest Things. The book led all sellers for 2 years and is #14 on the list of all non-fiction published in the United States. The format of amusing anecdotes for this book was taken from interviewing over 25,000 children on his program, “House Party”. His latest book How to Make the Rest of Your Life the Best of Your Life with Mark Victor Hansen was published in 2006.
Mr. Linkletter was on friendly terms with all of the U S Presidents from Harry Truman to George W. Bush. Many of them selected him to serve on a variety of committees and commissions. Some of those included: National Advisory Council for Drug Abuse Prevention; the Presidential Commission to Improve Reading in the U.S.; Ambassador and Commissioner General to the Australian World’s Fair and the National Committee on Volunteerism. In 2003 he was awarded the National Humanities Medal by President George W. Bush.
Art will be remembered for many things, but one of his favorite expressions was, “Things turn out best for the people who make the best of the way things turn out.”
The all-new 2011 Jeep Grand Cherokee has started production in Chrysler's nearly 3-million-square-foot Jefferson North Detroit Assembly Plant and a second shift with 1,080 employees will be added beginning July 19 to produce the vehicle.
Sergio Marchionne, Chrysler Group LLC CEO says "the production launch of the all-new 2011 Jeep Grand Cherokee signals the rebirth of the Chrysler Group" calling the Jeep Grand Cherokee "a signature vehicle for Chrysler. It represents the best of this Company, the direction we're moving toward producing high quality, technologically advanced vehicles. We are confident the Grand Cherokee will receive the proper recognition for what it stands for when it hits the road in June."
The all-new 2011 Jeep Grand Cherokee is powered by a 290-horsepower 3.6-liter Pentastar V-6 engine delivering up to 23 mpg and over 500 miles on one tank of gas. More than 45 safety and security features are available including standard Active Head Restraints, full-length side-curtain and seat-mounted side thorax air bags, Electronic Stability Control, Electronic Roll Mitigation, Hill-start Assist, and Trailer-sway Control. The Grand Cherokee has the new Jeep Quadra-Lift Air Suspension and Selec-Terrain systems and a 7,400 lb. towing capability. Numerous advanced technology features are offered, including a Blind-spot/Rear Cross-path detection system and Adaptive Cruise Control with Forward Collision Warning, live mobile TV, SIRIUS Backseat TV and UConnect™ Web, which transforms the vehicle into a "hot spot" to deliver the Internet directly to the vehicle.
The all-new 2011 Jeep Grand Cherokee will be available in 3 models: Laredo, Limited and Overland with the 2011 Jeep Grand Cherokee Laredo 4x2 starting at $30,995 - $495 less than the outgoing model. Laredo 4x4 pricing starts at $32,995 - $465 lower than the outgoing model.
I waited for the crowds to die down and went to see the movie Iron Man 2 which took in $211 million in its first two weeks in U.S. theaters. There's lots of product placement, especially on the car front. The film features Iron Man Tony Stark (Robert Downey Jr.) driving an Audi R8 as he did in the first Iron Man film but this time it's the convertible R8 5.2 FSI quattro which starts at $146,000 and has a 525 horsepower V10 engine able to thrust the R8 5.2 to 60 mph in only 3.7 seconds on the way up to a top track speed of 196.4 mph. Bentley, another VW brand, also makes an appearance as it drives head on into Formula One traffic at the Monaco Grand Prix.
A cameo appearance is made by Elon Musk (pictured on the left), a real life Iron Man who is behind the electric Tesla vehicles. In Iron Man 2, Musk says he working on an electric airplane and, in reality, he tells me he'll start that project in a year or two. As with electric cars, I'm sure range, recharging and batteries will also be big issues for electric jets.
Tesla News
On Thursday Tesla Motors said it purchased the former NUMMI factory in Fremont, California, where it will build the Model S sedan and future Tesla vehicles. As recently as April, the NUMMI factory was used by Toyota to produce the Corolla and Tacoma. It's billed as one of the largest, most advanced and cleanest automotive production plants in the world capable of producing half a million vehicles per year or approximately 1 percent of total worldwide car production. Last August, GM stopped making the Pontiac Vibe, the re-badged Toyota Matrix, at the Fremont plant which is conveniently close to Tesla's Palo Alto headquarters.
