Chevy Bolt recalls alone cost GM $ 800 million

GM’s first major EV project since EV1 has had a tough ride so far. All this and more in The morning shift by August 4, 2021.

1st gear: the Chevy Bolt ain’t cheap … for GM

GM just announced its second quarter results, and that it made a profit of $ 2.8 billion. This treat was also included:

• Revenue of $ 34.2 billion
• Net income of $ 2.8 billion and adjusted EBIT of $ 4.1 billion, including warranty recall fees of $ (1.3) billion, of which $ (0.8) billion was related to the Chevrolet Bolt EV

The Chevy Bolt was meant to be a home run for GM, a mainstream competitor in the EV startup market. Have a series of fire-related recalls undermines everything.

There were bigger callbacks – damn it, GM has been leaking money related to the ignition switch drama for years, as shown in the same earnings report, but I still can’t get over this continuing comedy of mistakes for the car destined to beat. the Tesla Model 3 and no.

The Bolt completely misinterpreted the market (let’s take the top of the line Tesla Model 3 with a no-low-budget sedan!) and I kind of wanted her to succeed in spite of herself. Alas.

2nd gear: benefits for Honda and Toyota too

Automotive companies can’t help but keep making money even though they face colossal supply shortages. With GM, Honda and Toyota have recorded solid profits.

Honda, via Reuters:

Honda posted quarterly profit as its vehicle sales recovered from the impact of the COVID-19 pandemic.

Operating profit for the most recent quarter ended June 30 was 243.21 billion yen ($ 2.23 billion) compared to a loss of 113.7 billion yen a year ago.

Strong sells in the United States during the quarter helped improve Honda’s profits, Kohei Takeuchi, the automaker’s senior general manager, said in a earnings briefing on Wednesday.

Toyota, via Car News:

Toyota Motor Corp. weathered the global pandemic and microchip shortage to achieve a record last quarter operating profit through strong sales and cost control as it was successful in keeping the product pipeline in operation, despite the challenges of varied production.

Operating profit jumped to 997.4 billion yen ($ 9.14 billion) in the company’s first fiscal quarter ended June 30, from 13.9 billion yen (127.4 million dollars) the year before, when the global auto industry was hit by the COVID-19 outbreak.

The results generated a strong operating profit margin of 12.6% for the most recent quarter, up from 0.3% a year earlier, as Toyota strengthened its results despite global headwinds.

These companies warn the bagpiper is expected to arrive by the second half of the year, when car shortages eventually dry up. absolutely.

3rd gear: knock!

There’s a mechanics strike at dealerships around Chicago because Automotive News reports. Mechanic conflicts in Chicago are nothing new.

Auto mechanic working at 56 Chicago area car dealers went on strike on Monday after voting to reject a proposed new contract.

[…]

In its press release, the union said it wanted to resolve three main issues. First, the union wants the NCDC not to facilitate the reduction in the guaranteed weekly wage if a skilled worker fails to meet job expectations due to circumstances beyond their control, such as COVID-19 closures.

Second, union members want the NCDC to pay the agreed health insurance rates. Third, the union wants the NCDC to stop using language that “undermines the negotiation process by allowing it to select what provisions it considers favorable in other agreements.”

Negotiations have been going on for months and the union says the strike is a last resort. No one should have come after them, and we support the workers.

4th gear: Subaru recalls 165,026 cars

Very unfortunately, this hits BRZ owners in addition to anyone who has bought a more normal Subaru. There is a problem with the fuel pressure because Automotive News reports:

The reminder, published on July 29, includes select 2019-2020 Ascent, 2018 Forester and 2018-2020 Impreza, Legacy and Outback vehicles. It also covers BRZ, WRX and Toyota 86 2018-2019 vehicles.

Affected vehicles may have a low pressure fuel pump which may include a turbine made with a lower density.

Dealers will replace the low pressure fuel pump on vehicles free of charge. Notification letters to owners are expected to be mailed on September 13.

5th gear: here’s a good story about how we’re spending less on recreational trails

The marvelous Streetsblog published an article on how the federal government underestimated how Americans use beautiful recreational trails. The fundamental problem is that the government does not invest as much in things like railways or snowmobile trails as we pay taxes on things like, well, gasoline for our snowmobiles. From Streetsblog:

According to a new long-delayed fuel study of the Federal Highway Administration, users of snowmobiles, all-terrain vehicles and other all-terrain vehicles contribute approximately $ 281 million annually to the Highway Trust Fund through gasoline taxes – a staggering amount that defenders, was more than 10% higher than first estimates, and that does not even take into account the massive economic benefits non-motorized trips that take place every day on the same paths.

But under the federal government’s current surface transportation reauthorization bill, the FAST Act, the recreational trails program receives only $ 84 million a year – not enough money to maintain, let alone expand. , the extensive network of urban greenways and essential rural transport links that fund the program. Contrary to what the name might suggest, the Recreational Trails Program is a multi-purpose initiative responsible for funding many key transportation arteries for non-drivers, including segments of the Empire State Trail that cross New York City; about 30 percent of program funding goes specifically to non-motorized transportation, and an additional 40 percent goes to mixed-use trails.

My theory is that more people are using these trails because our roads just aren’t fun to take.

Reverse: I missed this one yesterday

My mother always told me that Reagan fired the air traffic controllers as a fundamental act of destruction against the fabric of American society. It wasn’t the beginning of the end, but some days it feels like it was.

Neutral: what is your favorite GM Oddball?

I have a soft spot for the four cylinder Pontiac Tempest and considered buying one instead of my VW Bug.