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Desperate Times Need Desperate Measures

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Automotive Auto Parts companies

The last two weeks were the worst for the US labor market. Approximately 10 million people lost their jobs. Although this is what we feared, no one expected that it would happen this fast. By the looks of it, the worst possible scenario is becoming true. Ex Federal Reserve President Janet Yellen said she thinks that the current unemployment rate is probably 12% – 13% and that it will continue to rise. If she is right, it means that we crossed the last recession record. Namely, during the crisis of 2008-2009, the unemployment rate was not higher than 10%. But this is not all. She also added she believes that GDP will contract at least 30% in Q2 2020. If this ends up being the case, the US economy will lose approximately 1.6 trillion USD.

How bad is it?

Just to put this number into perspective, Ford Motor (NYSE: F), General Motors (NYSE: GM), Fiat Chrysler (NYSE: FCAU), Toyota Motor Corporation (NYSE: TM), Honda Motor Co. (NYSE: HMC), Volkswagen AG (OTC: VWAGY), Hyundai Motor Company (OTC: HYMTF) had combined yearly revenues that amounted to approximately 1.2 trillion USD last year.

Carmakers are not immune to the crisis of this magnitude

Light vehicle sales in March 2020 fell approximately 37%. This fall will probably continue in April. The number of infected people and COVID-19 victims in the US is rising exponentially every day. President Trump recently warned us all by saying that “very, very painful two or three weeks” are ahead. Those are clear signs that the economy will not reopen until the end of April, maybe even longer if the curve does not start to flatten soon. Consequently, carmakers decided to join the crowd in this massive layoffs’ stampede.

Layoffs

Nissan Motor Co (OTC: NSANY) announced it plans to lay off about 10,000 people. Plants in Mississippi and Tennessee will be affected by those measures. Nissan invested a lot of money there to produce SUVs, sedans and electric cars but factories are idled due to the COVID outbreak. They will not reopen until the end of April. Consequently, management decided to dismiss production workers. In the meantime, people will get unemployment benefits. The company said it will hire them again when production restarts.

Honda Motor Co. officials said they will place more than half of all US employees on temporary leave. In other words, the number of workers will fall from 20,000 to only 10,000 until the end of April. The crisis forced Honda to lay off full-time employees even in Ohio. Unprecedented move that never happened so far. Since the company started producing motorcycles in Ohio, back in 1979, it never happened that Honda laid off full-time production workers in this factory. It was something the company was so proud of. Unfortunately, this move was inevitable this time. The carmaker instructed employees to apply for state and federal unemployment benefits.

Last week Tesla Inc (NASDAQ: TSLA) also said it will reduce the number of workers in its factory in Reno, Nevada by 75%. Yes, it is quite brutal.

To sum up, layoffs firstly happened in retail business, hotels and restaurants. Now it started to happen in the automotive industry as well. Fasten your seat belt, unpaved road might be ahead!

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

BenzingaEditorial

The EV Age Is Dawning Well Ahead of Schedule

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Worksport Terravis Charging System

Electric vehicles have arrived. They have a critical role in addressing climate change by reducing local air pollution. As for the corresponding infrastructure, the European Union has nearly 200,000 chargers and the US is far behind with less than half of that. According to Transport & Environment, the EU alone needs 3 million. If elected for President of the United States, Joe Biden plans to install half a million chargers as part of a larger investment in EVs that will result in one million well-paying employment opportunities with the goal to re-establish the US as a leader in the auto industry globally.

Although there’s a long way to go to an EV future, both US and EU automakers are racing full speed ahead.

GM announces its first EV factory

General Motors (NYSE: GM) just announced its Detroit-Hamtramck Assembly Center will be transformed to Factory Zero. GM’s zero-crashes, zero-emissions and zero-congestion future is one step closer as the factory will begin producing the GMC HUMMER EV pickup in late 2021. The Detroit giant plans to invest $2.2 billion to convert the plant to an all EV production center. GM remains committed to source 100 percent of its U.S. facilities with renewable energy by 2030, with all global facilities reaching the same destination by 2040.

 Worksport

Worksport Ltd,, (OTC:WKSP) just announced it has signed an agreement with Hercules Electric Mobility Inc., Detroit, Michigan. Worksport’s TerraVis™ tonneau cover solar charging system will become the Tier One OEM supply partner for Hercules’ forthcoming Alpha Electric Pickup. An agreement between the two companies is expected to generate up to US$70 million in future revenues for Worksport™.  The economic value of this one relationship is expected to be of profound significance for Worksport and its future growth and development, according to its CEO Steven Rossi. Hercules will integrate the solar charging tonneau cover into its core architecture to give freedom to Hercules drivers, specifically “plug freedom.” Worksport entered the most exciting period since inception and it now has a well-established partner and a project that will quickly demonstrate the TerraVis™ system’s attractive and leading-edge approach to providing solar power to the light truck industry.

VW

Volkswagen (OTC: VWAGY) plans to begin selling the ID.4, an “intelligent design” sport EV in the United States next year. When the ID.3 was initially launched with the 1st Edition, the platform looked promising, but the price was too close to the Tesla (NASDAQ: TSLA) Model 3. But, the Germain giant has announced a sub-$39,000 Life version of the ID.3, which is a much more tempting proposition. As electric cars become more mainstream, the industry is rapidly approaching the point where owning an EV will be just as cheap or even cheaper than owning an ICE vehicle.

Outlook

Last year, global EV sales increased 40% YoY as they reached a volume of 2.1 million. Until now, 2020 has been far kinder to EVs than it has been to traditional cars. A decade ago, there were only 17,000 electric cars on the roads across the globe. By 2019, that figure expanded to 7.2 million. Rest assured, the age of EVs is dawning well ahead of schedule.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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Worksport™ Announces Supply Partnership with Hercules Electric Mobility for its TerraVis™ Solar Truck Bed Tonneau System

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Worksport

TORONTO – Oct. 19, 2020 (IAM NEWSWIRE) – Worksport Ltd,, (OTC:WKSP) (or the “Company”) has signed an agreement with Hercules Electric Mobility Inc., Detroit, Michigan, for Worksport’s groundbreaking TerraVis™ tonneau cover solar charging system to become the Tier One OEM supply partner for Hercules’ forthcoming Alpha Electric Pickup, with over US $27 million in early customer reservations .

The announcement today reveals Hercules as Worksport’s partner in an agreement between the two companies that is expected to generate up to US$70 million in future revenues for Worksport™. A Sept. 3 news release and a subsequent follow up story on Sept. 15 had said that ‘the terms of the agreement are expected to be disclosed in mid-September.’ However, since then, causing a delay in the announcement, the two companies have broadened their discussions, relating to additional deployments for the TerraVis system, merging and up-listing on a senior exchange, and manufacturing collaboration.

“Although we understand the delay of over one month is challenging in today’s volatile market, we appreciate shareholders patience in allowing us to arrive at today’s milestone,” said Worksport CEO Steven Rossi. “We will continue to work tirelessly in progressing our business and keeping our valued shareholders up to date.”

“The economic value of this one relationship is expected to be of profound significance for Worksport and its future growth and development,” added Rossi. “The announced $70 million in projected revenues in the first contract is just the beginning, and it is likely to expand over the longer-term. We’re proud to work with Hercules because of its management’s long history with developing and launching major vehicle platforms.”

The TerraVis™ system will be exclusively configured and uniquely crafted for Hercules’ highly innovative EV pickup Truck, the Alpha. The durable and technologically advanced TerraVis™ system will be the very first to provide a meaningful source of recharge, multiple configurations for work and sport and a fusion of cutting edge solar power, storage, and delivery. The platform takes advantage of a standard pick-up truck’s practical capabilities, while also utilizing the power of more sustainable and renewable energy. Proprietary, high efficiency solar panels built into the rugged tonneau cover—the likes of which Worksport has become widely known for—will collect the sun’s rays and store energy in multiple portable battery banks.

The anticipated Hercules and Worksport long-term partnership, a pioneering automotive industry agreement, combines factory installed solar charging and structural tonneau covers with a new type of performance electric pickup truck. The companies will co-develop TerraVis™ technology on the Hercules Alpha with deployment on future SUVs and marine applications. Hercules is developing and deploying high-technology solutions integrating clean power and mobility, to create better products in a multitude of customer-selected configurations.  Worksport is working towards a similar goal to reduce pickup drivers’ carbon footprint through use of its TerraVis™ solar tonneau cover and battery/inverter module for existing light trucks, as well as a number of useful accessories.  Hercules and Worksport look forward to jointly launching the Hercules Alpha solar charging.

“We are pleased to be working with the team at Worksport to bring solar charging to our Hercules products,” said Hercules CEO James Breyer, who co-founded the company in 2018 after a successful career in the automotive industry. “It will be part of a luxury experience without plug-anxiety, due to the solar charging truck bed cover. With the Worksport solar solution, our customers can enjoy their on- and off-road activities while adding to their electric charge at the same time.”

“Hercules is taking an unconventional approach, using available services, expertise, and industry capacity to launch products quickly and efficiently,” Breyer added. “This allows Hercules to bring eco-utility vehicles to market faster and with higher levels of personalization and craftsmanship. It also means we don’t have to add redundant manufacturing capacity where it isn’t needed. The Worksport partnership is an example of this approach. Worksport developed a unique product and it is something that will make our electric trucks distinct from all others. We will collaborate on cost optimization and continuous improvement for projects that achieve performance and price advantages against the other industry available cover options.”

Hercules will integrate the solar charging tonneau cover into its core architecture to give freedom to Hercules drivers, specifically “plug freedom.” The solar cover’s overall charging is similar power to a level 1 cord plugged into a standard 110VAC outlet.”

“In Hercules we have found the ideal development partner for the TerraVis™ system,” Rossi said. “James Breyer is one of the automotive industry’s most respected executives, with achievements that include perfecting electric vehicles at the two largest Detroit auto manufacturers. We will mutually pursue necessary funding, investment, and working capital for overall project success, including cross-introductions to investment partners. The partnership and products are so innovative that we have no doubts that we will secure financing in the near term. Discussions with financial institutions have already begun.”

While at Ford Research Lab, Breyer was instrumental in launching fuel-cell, hybrid, and electric vehicles, including the Fuel-Cell Focus and others.  He also led development of the Volt powertrain and global EV powertrains such as Spark EV. He is complimented by co-founders Julie Tolley and Greg Weber.

“With the recent TerraVis™ reveal, Worksport enters the most exciting period since inception,” said Worksport CEO Steven Rossi. “We now have the perfect, well established partner and a project that will quickly demonstrate the TerraVis™ system’s attractive and leading-edge approach to providing solar power to the light truck industry. At the same time, Worksport will continue to focus on growth as the lead innovator and manufacturer in the Global Automotive Market for tonneau covers for electric and conventional light trucks. Other important announcements are expected soon.”

Worksport

Any interested investors or shareholders are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram as well as sign up for the company’s newsletters on both www.worksport.com and www.goterravis.com, to stay up to date on all of the latest news.

About Worksport Ltd.

Worksport Ltd., an innovative manufacturer of high quality, functional, and aggressively priced tonneau/truck bed covers for light trucks like the F150, Sierra, Silverado, Canyon, RAM, and Ford F-Series. For more information please visit www.worksport.com. Currently listed on the OTCQB Market under the trading symbol “WKSP.”

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:

Mr. Steven Rossi
CEO & Director

LinkedIn

Twitter
Worksport, Ltd

T: 1-888-554-8789
E: srossi@worksport.com

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport, Ltd. operations or to the environment in which it operates, which are based on Franchise Holdings International Inc. operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport, Ltd’s ’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport, Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

 

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BenzingaEditorial

Airlines- There Will Be Tears

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Airliners Stock News Corona

United Airlines (NASDAQ: UAL) posted its third huge quarterly loss of the year, saying it is ready to “turn the page” and prepare for a recovery from the worst financial crisis ever faced by the airline industry. United is the second US airline to report results after Delta Air Lines (NYSE: DAL) announced a $2.1 billion operating loss Tuesday. US airlines are expected to report about $10 billion in losses for the quarter.

United Airlines

Revenue tumbled 78% which is, at the very least, less than the 87% drop in the previous, second, quarter. But, when the revenue from passengers is adjusted for UA’s 70% reduction in capacity, it fell only 47%. United believes this to be the smallest drop of any major US airline on that basis.

Net loss of $1.8 billion, however, exceeded the previous quarter’s loss. But this wasn’t a surprise considering the circumstances and shares did not see any significant change following the report. However, excluding special items, the loss was $2.4 billion which is slightly less than the $2.6 billion from the previous quarter but also a bit more than analysts’ forecasts.

Even though the negative impact of the pandemic will persist in the near term, United is focused to bring its furloughed employees back to work and position itself to emerge as the global leader in aviation. CEO Scott Kirby said the company succeeded to trim the amount of cash it is burning from $40 million a day in the prior quarter to a daily average of $25 million.

The cash drain was stopped partly because 9,000 employees left the company voluntarily and United reached deals with several of its unions through which it both reduced labor costs and lowered the number of involuntary furloughs. But, as soon as federal prohibitions against involuntary job cuts in the industry ended in September, United furloughed an additional 13,000 employees immediately on October 1st in attempt to continue reducing the cash burn. But unlike Delta which expects to stop spending more cash than it earns by spring, United gave no end date for its own cash burn.

Since March, United has raised $22 billion in cash through a sale of stock, the mortgaging of its frequent flyer program, federal loans, grants and other borrowing. It ended the quarter with $13 billion in cash. Moreover, it is able to borrow an additional $6 billion. With these actions combined, United believes it can fly through the current storm.

Delta posts another massive loss

Delta’s third-quarter revenue came up short of analysts’ expectations at $3.06 billion. This is more than a 75% drop from the same period last year. Its net loss amounted to $5.4 billion which is quite a sharp contrast compared to a profit of $1.5 billion in the year-earlier period.

Delta has lost more than $11 billion in the last two quarters that were swiped by the pandemic. The carrier cut its cash burn to $18 million a day in September from $27 million at the end of the previous quarter.

Outlook

Although travelers are getting less scared of flying and demand is slowly starting to recover, the carrier warned it could take years for sales to recover. Delta’s president warned that the recovery could take as long as 2 years or even more. There is more turbulence ahead.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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