GM's Q3 earnings reveal a significant profit drop due to EV write-offs and tariffs, yet its stock rose on raised profit guidance. The US and Australia signed a rare earth minerals deal to reduce reliance on China, though supply challenges remain. Tesla faces shareholder pushback over Elon Musk's pay package, with Musk hinting at possible departure if rejected. Nissan leverages Chinese partnerships for new electrified commercial vehicles, while Toyota plans a new smaller Land Cruiser FJ for emerging markets. Bridgestone is developing a tire recycling plant using pyrolysis to create raw materials for new tires.
Topics:gm earningsrare earth minerals dealtesla executive pay controversynissan china partnershipstoyota land cruiser fjbridgestone tire recyclingus tariffselectric vehicle investmentsautomotive supply chainauto industry trade policies
- U.S. Gives OEMs Tariff Relief - U.S. and Australia Sign Rare Earth Deal - GM Earnings Plunge, But Stock Goes Up - CATL Profits Up 41% - No New Product for Alfa Until 2027 - Another Advisor Against Musk's Pay Package - Musk Says Pay Me Or I'm Out - Nissan's New Frontier Developed in China - Toyota Reveals All-New Land Cruiser FJ - Bridgestone Starts Recycling Old Tires
"...g markets. For example, the wheelbase of The land Cruiser FJ is about ten and a half inches shorter than the t..."
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Speaker 1: This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry. The US auto industry has been
hit hard by terraffs, so now the Trump administration is providing some relief. Automakers can get a tariff offset that's
equal to three point seventy five percent of the price of a vehicle assembled in the US. So for a
fifty thousand dollars vehicle, that's a tariff offset worth one thousand, eight hundred and seventy five dollars. While that was already announced,
it was only going to be in place for two years.
Now the administration is extending that for five years. Moreover,
the same three point seventy five percent tariff offset will apply to engines assembled in the US, and the administration is also going to cut the terraff on some aluminum and steel imported from Canada and Mexico. They currently face
a fifty percent tariff, but that should now drop to twenty five percent. As China clamps down on exports of
rare earth minerals, automakers are scrambling for alternate sources. Today
there isn't much available. China dominates the mining and processing
of rare earths. But the Trump administration just signed a
deal with Australia where the US and Australia will each invest a billion dollars to expand mining and processing for rare earth in Australia. Automakers will likely continue to face
shortages if China continues to restrict exports, since it could take several years before the Australian supply chain comes up to speed. General Motors posted its third quarter earnings. Even
though GM's bottom line took a big hit because of the one point six billion dollar EV write off and the cost of tariffs. Wall Street loved what it saw.
GM stock was up more than six percent in pre market trading. Now, let's get to the numbers. GMS sold
nine hundred and seventy seven thousand vehicles in the last three months, down by fifty six thousand vehicles that brought more than forty eight billion dollars in revenue, down a fraction from last year. It posted an operating profit of
a billion dollars, down more than seventy percent, and a net profit of one point three billion, down more than fifty six percent. Obviously, investors were looking past these numbers
and focused on GM's announcement that it's raising its guidance for the year. It previously forecast net profits of ten
to twelve and a half billion dollars. Now it's up
that to twelve to thirteen billion, and that's what investors like to see. COTL, the giant Chinese battery maker, also
reported its Q three earnings. Net profit shot up forty
one percent, hitting two point six billion dollars. That's pretty
impressive considering its revenue grew thirteen percent, hitting fourteen point six billion, and investors love these numbers. Coatl stock is
up forty percent this year. Alpha Romeo revealed the refreshed
version of the Tanale earlier this month, but that's the only new model the brand will have for some time.
Alpha CEO says it won't have any new product until the end of twenty twenty seven because it scrapped plans to go EVI only by twenty thirty stilland to CEO Antonio Filosa, will unveil a new strategic plan for Alpha in the first half of next year that will include new products as well as new internal and dealer organizations.
Alpha's sales in the US have been slowed by tariffs through September, the brand is only sold about forty eight hundred vehicles, down thirty percent from last year, but over in Europe Alpha is having more success. Through August, it
sold forty one thy two hundred vehicles, up thirty seven percent from a year ago.
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Speaker 1: Another proxy advisor to shareholders is urging Tesla investors to vote against Elon musk trillion dollar pay package. Glass Lewis
is joining Institutional Shareholders Services and being concerned over the size of the pay and design of the plan. Tesla
responded to Glass Lewis saying it's quote misguided and ignores the company's strong financial results under Musk's leadership. But as
we reported yesterday, these proxy advisors might not have much sway with shareholders. In twenty eighteen, both Glass Lewis and
Iss also recommended that investors reject must pay package at the time, but three quarters of shareholders voted for it anyway.
But if shareholders do listen to the recommendation and reject must pay package, Elon is not so subtly hinting he could leave Tesla. Some investors are concerned that the package
still allows must to potentially earn tens of billions of dollars without meeting most of the plant's targets. Responding to
a commenter on x who was voicing that concern, Must quote, Tesla is worth more than all other automotive companies combined.
Which of those CEOs would you like to run Tesla?
It won't be me, who knows how serious he is, but Elon has also threatened in the past to make products outside of Tesla if he doesn't receive more equity in the company. Nissan is really leveraging Chinese partnerships to
launch new models. The automaker created a new R and
D center in China that's developing new light commercial vehicles for Nissan that are electrified, like the plug in hybrid version of the Frontier that had unveiled at the Shanghai Auto Show in April. One advantage of these partnerships is
increased speed, and Nissan is already taking orders for that new version of the Frontier, with pre sales kicking off in China at the end of the month. However, these
vehicles being developed in the new R and D Center can also be exported from China to help support Nissan's global commercial vehicle operations, and beyond commercial vehicles, it's launching a number of newer upgraded sedans, including ICP HAVE and pure electric versions with its joint venture partner Dong Fong, and with these moves, Nissan will be looking to boost its sales in China, which are down eight percent so far this year. Toyota is going to expand the land
Cruiser lineup in the middle of next year with an all new FJ version depending on the market. Toyota currently
offers the land Cruiser seventy, two fifty, and three hundred series.
The seventy is basically the same land Cruiser that's been around since nineteen eighty four. The two fifty series, which
is the version that's sold in the US, and the three hundred series are newer and are based on Toyota's large truck and suv platform. However, this new FJ version
rides on the automaker's IMV platform, which is also body on frame but is quite a bit smaller and is meant for emerging markets. For example, the wheelbase of The
land Cruiser FJ is about ten and a half inches shorter than the two fifty series. It will be made
in Thailand and sold in Japan, Asia, Africa, the Middle East and Latin America. Toyota confirmed it will not be
offered in Europe or the US, even calling it too small for the US market, although there must be other reasons as well, because the land Cruiser FJ is longer and taller than a two door Ford Bronco. Power will
come from a two point seven liter gasoline engine that makes about one hundred and sixty horse power, and it's made it to a six B transmission which can send power to all four wheels through a part time four wheel drive system. The new land Cruiser FJ will be
offered in two body styles when it launches, and the more off road Focus version can also be fitted with a number of off road accessories like an engine snorkel and a roof rack. Bridgestone, which is one of our sponsors,
broke ground on a pilot plant in Japan that will recycle end of life tires. It will use a process
called pyrolysis, which involves heating the tires in an oxygen free environment to break them down to their original materials.
Bridgestone will then collect oil and carbon black to use as raw materials to make new tires. Operations are scheduled
to kick off in twenty twenty seven and it will have the capacity to process seventy five hundred tons of tires a year. And that brings us to the end
of today's show. Thanks for making autoline a part of
your day.
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