• FORD CEO: EV JOURNEY ‘HUMBLING’
• USED EVs NOW ‘SPECTACULAR BARGAINS’
• NOTTINGHAM ARENA RENEWS MOTORPOINT NAMING RIGHTS
• AUTO RETAIL LIVE TO HELP RETAILERS HIT TARGETS
• AUSTRALIANS GET ‘RIGHT TO DISCONNECT’ AFTER HOURS
• US SHAREHOLDERS SUE STELLANTIS
• STOCKWATCH
• COMING UP
• FOUR BIGGEST PENSION REGRETS REVEALED
• NEW RECORD FOR OVER-60 SELF-EMPLOYED

Ford CEO: EV journey ‘humbling’

“Overall, the EV journey has been humbling,” Ford CEO Jim Farley has said. Last week, it scrapped plans for a three-row electric SUV, taking a $1.9bn hit, and also said it would cut the share of capital spending dedicated to EVs from 40% to 30%. Last month, the OEM reported a $1.1bn quarterly loss from its Model e electric car division. It expects to lose between $5bn and $5.5bn for the full year.

The American giant has backed away from an earlier target of turning a profit on EVs in 2026.

Ford has also been setting aside increasing amounts for warranty claims, rising from $4.8bn in 2014 to $11.5bn in 2023. The amount Ford has paid out each year for repairs has also grown, from $2.9bn to $4.8bn, reports the FT. Issues involve models launched as long ago as 2016.

Last month, Ford missed Q2 earnings expectations after an $800m jump in warranty costs. This saw its stock slide 18%, its biggest one-day drop since 2008.

Ford revealed it is working with retailers to address quality problems; for the past year, the OEM has been requiring retailers to report problems on vehicles that customers brought in within three months of purchase. Farley has also held back launches to improve quality, something Morningstar praised as “the right course of action”.

Even so, the “double blow” of EVs and warranty claims has “raised sharp questions about its strategy, execution and shareholder returns,” reports the FT.

Farley said remaking Ford to cut costs, improve quality, increase digital subscription revenue and hit a 10% operating margin by 2026 involved “growing pains”.

https://tinyurl.com/4s6tuwxm

 

Used EVs now ‘spectacular bargains’

Used EVs have been described as ‘spectacular bargains’ after valuations have fallen so much, they have reached near-parity with petrol cars. The Kia e-Niro, Tesla Model 3 and MG5 were all highlighted in the Guardian’s report, with prices starting from under £15,000 – but although cars sold privately can cost even less, it added such models would be “without the consumer protection of buying from a dealer”.

https://tinyurl.com/4s3z57xe

 

Nottingham Arena renews Motorpoint naming rights

Motorpoint has extended its naming rights partnership with Nottingham Arena for another six years. It has been known as the Motorpoint Arena Nottingham since 2015. “As part of this renewal, we’ll be focusing our efforts on offering event goers something extra when visiting the arena,” said Motorpoint chief digital officer Andrew Thomson.

https://tinyurl.com/3u3afv58

 

Auto Retail Live to help retailers hit targets

Join Hendy Group commercial operations director Mark Busby, Marubeni Auto Investment UK COO Jason Cranswick and Auto Trader performance director Bex Kennett at 9am on 10 September to hear expert insight on where the market is now, what consumer demand looks like and how retailers can hit increasingly touch OEM targets. The expert panel will also be on hand during the free webinar to answer your questions: sign up here

 

WORLD NEWS

Australians get ‘right to disconnect’ after hours

Australians now have the right to ignore communications from their employer after hours if they choose to, without fear of being punished by bosses. The law does not ban employers from contacting them after hours, but failure to comply with the Fair Work Commission (FWC) rules could result in fines of almost £10k for an employee and over £71k for a company.

https://tinyurl.com/mv7p76uc

 

US shareholders sue Stellantis

Stellantis is being sued by US shareholders who say it defrauded them by concealing rising inventories and other weaknesses, before posting weak earnings that caused a fall in its share price. The federal lawsuit said Stellantis artificially inflated its stock price for much of 2024 through ‘overwhelmingly positive’ assessments about inventories, pricing power, new products and operating margin.

“This lawsuit is without merit,” said Stellantis.

https://tinyurl.com/3d3n6azu

 

 

 

STOCKWATCH

Closing prices on 23 August 2024 and weekly change

Auto Trader Group 844.0p (+18.2p / +2.1%)

Caffyns 460.0p (n/c)

Halfords 141.6p (+2.2p / +1.5%)

Inchcape 848.0p (+21.5p / +2.5%)

Motorpoint 142.5p (+1.25p / +0.8%)

Pinewood 350.0p (-4.5p / -1.2%)

Vertu 72.0p (+1.0p /+1.3%)

 

 

COMING UP

Wednesday, BRC shop price index

Friday, UK consumer credit

 

 

MONEY MATTERS

Four biggest pension regrets revealed

The four biggest pension regrets are not saving enough, paying too much in fees, not making a plan and taking out money early, a Hargreaves Lansdown survey revealed. 4 in 10 of retired people said they had regrets about their pension.

To maintain a moderate lifestyle in retirement, you need a £495k pot, says wealth manager Evelyn Partners – and four in five workers are not on track to achieve this. The FCA adds customers pay an average 1.9% a year on advice and portfolio charges, despite some products charging just 0.15% a year.

https://tinyurl.com/2zdpe3fc

 

New record for over-60 self-employed

The UK has a record 991,000 self-employed workers aged 60 or over. The number is up more than a third over the past decade. The trend is allowing older workers to pursue an entrepreneurial passion and “leverage their skills, experience and network to make an impact” – although some may be forced to generate an income due to the cost of living crisis as they are unable to secure a full-time job.

The total number of self-employed workers is around 4.3 million.

https://tinyurl.com/yhvus9ez

 

ISSN 3049-5725