The automotive industry is facing an obstacle in switching to electric vehicles: traditional cars.
\nAs The Wall Street Journal (WSJ) reported Sunday (July 28), pressures on car company profits only add to the challenge of embracing electric vehicles (EVs), with several major automakers recently releasing earnings that missed market expectations.
\nAmong the issues: warranty expenses, overstocked vehicle inventory, and problems with overseas operations. On top of that, the report said, investors are worried that the robust pricing power car companies had during the pandemic is waning.\u00a0
\n\u201cThe results of our competitors are not demonstrating that price pressure is going to vanish,\u201d said Carlos Tavares, chief executive of Stellantis.
\nThe report also noted that Wall Street\u2019s enthusiasm for car companies\u2019 connected car/EV ambitions have faded as well, as demand for electric cars hasn\u2019t taken off as much as expected.
\n\u201cThe overarching feeling for the auto industry is that the good times can\u2019t last,\u201d said Martin French, managing director at auto consulting firm Berylls Strategy Advisors.
\nIn one example of the way carmakers are putting their EV ambitions on hold, Ford announced last week a revised strategy for its Oakville Assembly plant in Canada. That facility was initially designed for EV production, and will now focus on manufacturing larger gasoline-powered versions of Ford\u2019s popular F-Series pickup trucks.
\nAs PYMNTS noted, this marks a shift from Ford\u2019s original intention to launch three-row electric SUVs at Oakville in 2027, a delay attributed to slower-than-expected growth in EV demand.
\nAnd as that report asked, where do developments like these leave the future of EV sales? Jennifer Weiss, co-director, NC Clean Energy Fund, said that educating the public about the benefits of EVs is critical to making them a serious consideration for consumers.
\n\u201cWe have a huge hurdle right now getting people to test drive and trying things out and realizing they can do what they do on a daily basis with an electric vehicle,\u201d she said.
\n\u201cDealerships right now don\u2019t have a lot of electric vehicles on the lots. It\u2019s the chicken and the egg. Until we see a lot more of the electric vehicles actually on the lots so people can test drive them and compare them to a traditional fuel vehicle, I think we have a little bit more of an uphill climb.\u201d
\nThe post Automakers Face Roadblocks in Switching to Electric Vehicles appeared first on PYMNTS.com.
\n", "content_text": "The automotive industry is facing an obstacle in switching to electric vehicles: traditional cars.\nAs The Wall Street Journal (WSJ) reported Sunday (July 28), pressures on car company profits only add to the challenge of embracing electric vehicles (EVs), with several major automakers recently releasing earnings that missed market expectations.\nAmong the issues: warranty expenses, overstocked vehicle inventory, and problems with overseas operations. On top of that, the report said, investors are worried that the robust pricing power car companies had during the pandemic is waning.\u00a0\n\u201cThe results of our competitors are not demonstrating that price pressure is going to vanish,\u201d said Carlos Tavares, chief executive of Stellantis.\nThe report also noted that Wall Street\u2019s enthusiasm for car companies\u2019 connected car/EV ambitions have faded as well, as demand for electric cars hasn\u2019t taken off as much as expected.\n\u201cThe overarching feeling for the auto industry is that the good times can\u2019t last,\u201d said Martin French, managing director at auto consulting firm Berylls Strategy Advisors.\nIn one example of the way carmakers are putting their EV ambitions on hold, Ford announced last week a revised strategy for its Oakville Assembly plant in Canada. That facility was initially designed for EV production, and will now focus on manufacturing larger gasoline-powered versions of Ford\u2019s popular F-Series pickup trucks.\nAs PYMNTS noted, this marks a shift from Ford\u2019s original intention to launch three-row electric SUVs at Oakville in 2027, a delay attributed to slower-than-expected growth in EV demand.\nAnd as that report asked, where do developments like these leave the future of EV sales? Jennifer Weiss, co-director, NC Clean Energy Fund, said that educating the public about the benefits of EVs is critical to making them a serious consideration for consumers.\n\u201cWe have a huge hurdle right now getting people to test drive and trying things out and realizing they can do what they do on a daily basis with an electric vehicle,\u201d she said.\n\u201cDealerships right now don\u2019t have a lot of electric vehicles on the lots. It\u2019s the chicken and the egg. Until we see a lot more of the electric vehicles actually on the lots so people can test drive them and compare them to a traditional fuel vehicle, I think we have a little bit more of an uphill climb.\u201d\nThe post Automakers Face Roadblocks in Switching to Electric Vehicles appeared first on PYMNTS.com.", "date_published": "2024-07-28T20:01:47-04:00", "date_modified": "2024-07-28T20:03:59-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/electric-vehicles-ford-lightning.jpg", "tags": [ "automotive", "Berylls Strategy Advisors", "car sales", "Carlos Tavares", "electric cars", "electric vehicle sales", "electric vehicles", "EV Sales", "EVs", "Martin French", "News", "PYMNTS News", "Stellantis", "Transportation", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2017651", "url": "https://www.pymnts.com/transportation/2024/curbee-launches-platform-to-help-car-dealerships-add-mobile-service/", "title": "Curbee Launches Platform to Help Car Dealerships Add Mobile Service", "content_html": "Curbee has launched its software-as-a-service (SaaS) mobile service technology platform for car dealers nationwide.
\nThis move follows a successful limited launch of the platform in January, the company said in a Friday\u00a0(July 26)\u00a0press release.
\nThe company also said Friday that it has closed on additional funding, bringing its total amount of funding raised externally to $12 million.
\n\u201cOur vision at Curbee is to change car care for good,\u201d\u00a0Denise Leleux, CEO\u00a0of Curbee, said in the release. \u201cThe dealers who have been with us since the beginning of the year are reporting immediate success, to the extent that our investors have injected more funds, allowing us to scale to serve any dealer nationwide.\u201d
\nThe Curbee platform enables established dealerships to add a mobile service business to their existing operation, according to the release. It offers auto dealers an end-to-end mobile service solution that can integrate into existing dealer management software.
\nThe white-labeled mobile service experience offered by Curbee is designed to facilitate easy access for both dealership employees and customers, the release said. It features artificial intelligence (AI)-powered scheduling, predictive maintenance analytics, personalized customer communication tools and direct access to technician training and education programs.
\nCurbee built the platform based on its own experience running a mobile service operation, per the release. The company did so for three years, completing 20,000 visits across 9,000 consumer vehicles and 1,100 fleet and partner vehicles.
\n\u201cAt Curbee, our goals are aligned with those of our customer dealers: empowering them to offer excellent customer satisfaction, maximize revenue and sustain profitability by offering a service today\u2019s vehicle owners demand,\u201d Leleux said in the release. \u201cCurbee is focused on empowering dealerships to succeed in today\u2019s rapidly evolving automotive landscape.\u201d
\nConsumers and fleets alike are increasingly calling on\u00a0mobile service providers that enable them to have work done on their vehicles at their location, at the time that works best for them,\u00a0Wrench CEO\u00a0Ed Petersen told PYMNTS in an interview posted in June 2022.
\n\u201cWe talk to a lot of people, and whether it\u2019s the OEMs, the big independent repair shops or what have you, they know this is where the world is heading,\u201d Petersen said.
\nThe post Curbee Launches Platform to Help Car Dealerships Add Mobile Service appeared first on PYMNTS.com.
\n", "content_text": "Curbee has launched its software-as-a-service (SaaS) mobile service technology platform for car dealers nationwide.\nThis move follows a successful limited launch of the platform in January, the company said in a Friday\u00a0(July 26)\u00a0press release.\nThe company also said Friday that it has closed on additional funding, bringing its total amount of funding raised externally to $12 million.\n\u201cOur vision at Curbee is to change car care for good,\u201d\u00a0Denise Leleux, CEO\u00a0of Curbee, said in the release. \u201cThe dealers who have been with us since the beginning of the year are reporting immediate success, to the extent that our investors have injected more funds, allowing us to scale to serve any dealer nationwide.\u201d\nThe Curbee platform enables established dealerships to add a mobile service business to their existing operation, according to the release. It offers auto dealers an end-to-end mobile service solution that can integrate into existing dealer management software.\nThe white-labeled mobile service experience offered by Curbee is designed to facilitate easy access for both dealership employees and customers, the release said. It features artificial intelligence (AI)-powered scheduling, predictive maintenance analytics, personalized customer communication tools and direct access to technician training and education programs.\nCurbee built the platform based on its own experience running a mobile service operation, per the release. The company did so for three years, completing 20,000 visits across 9,000 consumer vehicles and 1,100 fleet and partner vehicles.\n\u201cAt Curbee, our goals are aligned with those of our customer dealers: empowering them to offer excellent customer satisfaction, maximize revenue and sustain profitability by offering a service today\u2019s vehicle owners demand,\u201d Leleux said in the release. \u201cCurbee is focused on empowering dealerships to succeed in today\u2019s rapidly evolving automotive landscape.\u201d\nConsumers and fleets alike are increasingly calling on\u00a0mobile service providers that enable them to have work done on their vehicles at their location, at the time that works best for them,\u00a0Wrench CEO\u00a0Ed Petersen told PYMNTS in an interview posted in June 2022.\n\u201cWe talk to a lot of people, and whether it\u2019s the OEMs, the big independent repair shops or what have you, they know this is where the world is heading,\u201d Petersen said.\nThe post Curbee Launches Platform to Help Car Dealerships Add Mobile Service appeared first on PYMNTS.com.", "date_published": "2024-07-26T18:11:15-04:00", "date_modified": "2024-07-28T22:04:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Curbee.jpg", "tags": [ "automotive", "B2B", "B2B Payments", "car dealerships", "car services", "commercial payments", "Curbee", "digital transformation", "News", "PYMNTS News", "Transportation", "What's Hot", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2016991", "url": "https://www.pymnts.com/transportation/2024/gm-eyes-winning-new-customers-as-ev-sales-soar/", "title": "GM Eyes \u2018Winning New Customers\u2019 as EV Sales Soar", "content_html": "General Motors Chairman and CEO Mary Barra is focused on \u201cwinning new customers\u201d as electric vehicle (EV) sales soared during the second quarter.
\nIn the second quarter GM reported a 40% year-over-year growth in U.S. EV deliveries, outpacing the industry\u2019s 11% increase. The Cadillac Lyriq\u00a0emerged as the top luxury EV in 22 states. GM is scaling production of models like the Chevrolet Equinox EV and preparing for upcoming launches such as the GMC Sierra EV and Cadillac Optiq\u00a0to drive future growth. Despite market adjustments, GM remains focused on sustainable growth and profitability in the EV sector, supported by strategic partnerships and advancements in battery technology.
\nNext year, Barra noted, GM will follow with the Cadillac Celestiq, adding the company would then have a \u201cbeautifully designed EV\u201d in every global luxury SUV segment.
\n\u201cWe\u2019re going to focus on winning new customers with these nameplates, as well as with the next generation Chevrolet Bolt EV because they represent the largest growth opportunities for us,\u201d Barra said during the company\u2019s Q2 earnings call on July 23.
\n\u201cBut we\u2019ve also made adjustments to ensure we have a balanced approach as the market develops. This includes deferring Buick\u2019s first EV which had been planned for 2024. As we\u2019re expanding choice, other barriers to EV adoption like public charging access are also improving.\u201d
\nGM\u2019s EV portfolio is expanding successfully and capturing greater market share, Barra noted, adding, \u201cthese initial outcomes are promising, as disciplined volume expansion is crucial for achieving positive variable profits from our EV portfolio by the fourth quarter, while also bolstering our strong ICE (internal combustion engine) margins.\u201d
\nEarly EV sales are \u201cmostly incremental,\u201d Barra added, as 54% of customers are new to GM. \u201cWe\u2019re working to increase our conquest rate by raising awareness and launching new models. Our best-selling EV so far this year is the Cadillac Lyriq and it is now the market-leading luxury EV in 22 states including Florida, Texas and Michigan.\u201d
\nThe GMC Hummer EV and the Chevrolet Blazer EV are also building momentum, she said. To unleash the next cycle of EV growth, \u201cwe\u2019re scaling production of the Chevrolet Equinox EV with its unique combination of performance, technology, range and affordability. We delivered our first 1,000 units late in the second quarter and the reaction from customers, dealers and the media is very strong.\u201d
\nIn fact, according to Barra, one product reviewer said, \u201cChevy seems positioned to grab a piece of the pie that no one else has quite grabbed onto yet, and we think that is spot on.\u201d
\nGM is working to finalize commercial agreements with Tesla to give its customers access to their charging network. \u201cThe Ionna fast charging venture we joined is expected to bring its first chargers online before the end of the year, and customers are telling us the drive-thru plazas we\u2019re rolling out with Pilot company are the best public charging experience out there.\u201d
\nGiven GM\u2019s promising EV sales growth and trajectory, Barra said GM is \u201ccommitted to growing responsibly and profitably in any demand environment. Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years.\u201d
\nAs a result, she said GM is adjusting its spending plans to make sure \u201cwe\u2019re capital efficient and moving in lockstep with customers. For example, our Altium cells joint venture continues to ramp up domestic battery cell supply this year, which is helping drive profit improvement in our EV portfolio.\u201d
\nMoving forward, Barra said, \u201cWe\u2019re going to bring additional capacity online in a measured cadence. This will enable us to better optimize our battery chemistry and form factors to meet our customers\u2019 needs on cost and range.\u201d
\nGM also plans to reopen the Orion assembly as a battery electric truck plant in mid-2026, Barra noted, adding, \u201cWe\u2019re confident that we can meet customer demand for standout EV trucks in the interim by leveraging the production capability and flexibility we have in factory zero. We will also continue to take advantage of the flexibility we have to mix production between ICE and EV at key plants.\u201d
\nThe post GM Eyes ‘Winning New Customers’ as EV Sales Soar appeared first on PYMNTS.com.
\n", "content_text": "General Motors Chairman and CEO Mary Barra is focused on \u201cwinning new customers\u201d as electric vehicle (EV) sales soared during the second quarter.\nIn the second quarter GM reported a 40% year-over-year growth in U.S. EV deliveries, outpacing the industry\u2019s 11% increase. The Cadillac Lyriq\u00a0emerged as the top luxury EV in 22 states. GM is scaling production of models like the Chevrolet Equinox EV and preparing for upcoming launches such as the GMC Sierra EV and Cadillac Optiq\u00a0to drive future growth. Despite market adjustments, GM remains focused on sustainable growth and profitability in the EV sector, supported by strategic partnerships and advancements in battery technology.\nNext year, Barra noted, GM will follow with the Cadillac Celestiq, adding the company would then have a \u201cbeautifully designed EV\u201d in every global luxury SUV segment.\n\u201cWe\u2019re going to focus on winning new customers with these nameplates, as well as with the next generation Chevrolet Bolt EV because they represent the largest growth opportunities for us,\u201d Barra said during the company\u2019s Q2 earnings call on July 23. \n\u201cBut we\u2019ve also made adjustments to ensure we have a balanced approach as the market develops. This includes deferring Buick\u2019s first EV which had been planned for 2024. As we\u2019re expanding choice, other barriers to EV adoption like public charging access are also improving.\u201d\nGM\u2019s EV portfolio is expanding successfully and capturing greater market share, Barra noted, adding, \u201cthese initial outcomes are promising, as disciplined volume expansion is crucial for achieving positive variable profits from our EV portfolio by the fourth quarter, while also bolstering our strong ICE (internal combustion engine) margins.\u201d\nEarly EV sales are \u201cmostly incremental,\u201d Barra added, as 54% of customers are new to GM. \u201cWe\u2019re working to increase our conquest rate by raising awareness and launching new models. Our best-selling EV so far this year is the Cadillac Lyriq and it is now the market-leading luxury EV in 22 states including Florida, Texas and Michigan.\u201d\nThe GMC Hummer EV and the Chevrolet Blazer EV are also building momentum, she said. To unleash the next cycle of EV growth, \u201cwe\u2019re scaling production of the Chevrolet Equinox EV with its unique combination of performance, technology, range and affordability. We delivered our first 1,000 units late in the second quarter and the reaction from customers, dealers and the media is very strong.\u201d\nIn fact, according to Barra, one product reviewer said, \u201cChevy seems positioned to grab a piece of the pie that no one else has quite grabbed onto yet, and we think that is spot on.\u201d\nGM is working to finalize commercial agreements with Tesla to give its customers access to their charging network. \u201cThe Ionna fast charging venture we joined is expected to bring its first chargers online before the end of the year, and customers are telling us the drive-thru plazas we\u2019re rolling out with Pilot company are the best public charging experience out there.\u201d\nGiven GM\u2019s promising EV sales growth and trajectory, Barra said GM is \u201ccommitted to growing responsibly and profitably in any demand environment. Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years.\u201d\nAs a result, she said GM is adjusting its spending plans to make sure \u201cwe\u2019re capital efficient and moving in lockstep with customers. For example, our Altium cells joint venture continues to ramp up domestic battery cell supply this year, which is helping drive profit improvement in our EV portfolio.\u201d\nMoving forward, Barra said, \u201cWe\u2019re going to bring additional capacity online in a measured cadence. This will enable us to better optimize our battery chemistry and form factors to meet our customers\u2019 needs on cost and range.\u201d\nGM also plans to reopen the Orion assembly as a battery electric truck plant in mid-2026, Barra noted, adding, \u201cWe\u2019re confident that we can meet customer demand for standout EV trucks in the interim by leveraging the production capability and flexibility we have in factory zero. We will also continue to take advantage of the flexibility we have to mix production between ICE and EV at key plants.\u201d\nThe post GM Eyes ‘Winning New Customers’ as EV Sales Soar appeared first on PYMNTS.com.", "date_published": "2024-07-25T16:37:31-04:00", "date_modified": "2024-07-25T16:37:31-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/GM-EV.jpg", "tags": [ "Cadillac Lyriq", "Earnings", "electric vehicles", "EV", "general motors", "GM", "Mary Barra", "News", "PYMNTS News", "Transportation" ] }, { "id": "https://www.pymnts.com/?p=2015265", "url": "https://www.pymnts.com/transportation/2024/dot-probes-deltas-handling-of-crowdstrike-outage/", "title": "DOT Probes Delta\u2019s Handling of CrowdStrike Outage", "content_html": "Delta Air Lines\u2019 handling of a recent mass IT outage is the target of a federal investigation.
\nThe investigation is to \u201censure the airline is following the law and taking care of its passengers during continued widespread disruptions,\u201d Department of Transportation (DOT) Secretary Pete Buttigieg wrote on X (formerly Twitter) Tuesday (July 23) morning.
\n\u201cAll airline passengers have the right to be treated fairly, and I will make sure that right is upheld,\u201d he continued.
\n\n\n\n.@USDOT has opened an investigation into Delta Air Lines to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.
\nAll airline passengers have the right to be treated fairly, and I will make sure that right is upheld.
\n\u2014 Secretary Pete Buttigieg (@SecretaryPete) July 23, 2024
The announcement comes as Delta continues to deal with the fallout of what has been called \u201cthe worst IT outage in history,\u201d triggered when a software update by security company CrowdStrike took down Microsoft\u2019s systems.
\n\u201cBanks, airlines, hospitals, fast food chains, retailers, even the Paris Olympics, and nearly any and every business relying on a Microsoft Windows computer system found themselves grappling with a massive disruption that brought critical services to a standstill,\u201d PYMNTS wrote last week.
\nAccording to a report by Bloomberg News, Delta said it is \u201cfully cooperating\u201d with the DOT investigation and remains \u201centirely focused\u201d on restoring operations. More than half of its systems rely on Windows, the report said.
\nBloomberg also cited data from tracking service FlightAware showing that Delta had canceled 440 daily flights as of mid-morning Tuesday, or 12% of its normal schedule, bringing its total number of canceled flights to around 5,400. Other major airlines \u2014 American, United, and Southwest \u2014 had under 100 canceled flights the same day.
\nDelta CEO Ed Bastian had told several news media outlets on Monday (July 22) that it would take \u201canother couple of days\u201d to get all the airline\u2019s operations running smoothly.
\nAs PYMNTS wrote last week, the CrowdStrike incident shines a spotlight on the pervasive reliance on access to IT infrastructure in today\u2019s digital economy and highlights fact that \u2014 as within the digital payments and commerce landscape \u2014 when systems go down, organizations need to make sure they have an analog backup in place.
\n\u201cIt\u2019s really a core lesson in the ability to not have a single point of failure,\u201d said CompoSecure/Arculus Chief Product and Innovation Officer Adam Lowe. \u201cIf you look at the systems and look at the way the tool affected the problem, it did not affect Linux servers. It did not affect Mac systems. It only affected Windows. That\u2019s a challenge and it\u2019s a lesson in picking alternatives to critical systems.\u201d
\nThe post DOT Probes Delta’s Handling of CrowdStrike Outage appeared first on PYMNTS.com.
\n", "content_text": "Delta Air Lines\u2019 handling of a recent mass IT outage is the target of a federal investigation.\nThe investigation is to \u201censure the airline is following the law and taking care of its passengers during continued widespread disruptions,\u201d Department of Transportation (DOT) Secretary Pete Buttigieg wrote on X (formerly Twitter) Tuesday (July 23) morning.\n\u201cAll airline passengers have the right to be treated fairly, and I will make sure that right is upheld,\u201d he continued.\n\n.@USDOT has opened an investigation into Delta Air Lines to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.\nAll airline passengers have the right to be treated fairly, and I will make sure that right is upheld.\n\u2014 Secretary Pete Buttigieg (@SecretaryPete) July 23, 2024\n\nThe announcement comes as Delta continues to deal with the fallout of what has been called \u201cthe worst IT outage in history,\u201d triggered when a software update by security company CrowdStrike took down Microsoft\u2019s systems.\n\u201cBanks, airlines, hospitals, fast food chains, retailers, even the Paris Olympics, and nearly any and every business relying on a Microsoft Windows computer system found themselves grappling with a massive disruption that brought critical services to a standstill,\u201d PYMNTS wrote last week.\nAccording to a report by Bloomberg News, Delta said it is \u201cfully cooperating\u201d with the DOT investigation and remains \u201centirely focused\u201d on restoring operations. More than half of its systems rely on Windows, the report said.\nBloomberg also cited data from tracking service FlightAware showing that Delta had canceled 440 daily flights as of mid-morning Tuesday, or 12% of its normal schedule, bringing its total number of canceled flights to around 5,400. Other major airlines \u2014 American, United, and Southwest \u2014 had under 100 canceled flights the same day.\nDelta CEO Ed Bastian had told several news media outlets on Monday (July 22) that it would take \u201canother couple of days\u201d to get all the airline\u2019s operations running smoothly.\nAs PYMNTS wrote last week, the CrowdStrike incident shines a spotlight on the pervasive reliance on access to IT infrastructure in today\u2019s digital economy and highlights fact that \u2014 as within the digital payments and commerce landscape \u2014 when systems go down, organizations need to make sure they have an analog backup in place.\n\u201cIt\u2019s really a core lesson in the ability to not have a single point of failure,\u201d said CompoSecure/Arculus Chief Product and Innovation Officer Adam Lowe. \u201cIf you look at the systems and look at the way the tool affected the problem, it did not affect Linux servers. It did not affect Mac systems. It only affected Windows. That\u2019s a challenge and it\u2019s a lesson in picking alternatives to critical systems.\u201d\nThe post DOT Probes Delta’s Handling of CrowdStrike Outage appeared first on PYMNTS.com.", "date_published": "2024-07-23T13:19:14-04:00", "date_modified": "2024-07-23T13:19:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Delta-Air-Lines.jpg", "tags": [ "airlines", "Connected Economy", "CrowdStrike", "Crowdstrike outage", "Delta", "Delta Air Lines", "Department of Transportation", "IT", "News", "PYMNTS News", "Technology", "travel", "What's Hot", "Transportation" ] }, { "id": "https://www.pymnts.com/?p=2014692", "url": "https://www.pymnts.com/transportation/2024/ev-ambitions-on-hold-ford-delays-canadian-electric-suv-production/", "title": "EV Ambitions on Hold: Ford Delays Canadian Electric SUV Production", "content_html": "Ford has announced its revised strategy for its Oakville Assembly plant in Canada, originally slated for electric vehicle (EV) production. Instead, the facility will focus on manufacturing larger gasoline-powered versions of its popular F-Series pickup trucks.
\nFord\u2019s decision follows second-quarter EV sales in the U.S. Ford led the pack among traditional automakers, with EV sales soaring 61% year over year to 23,957 units. This helped propel the company\u2019s overall sales growth for the quarter and solidified its position as the second-largest EV seller in the U.S., ahead of General Motors.
\nThe decision to focus on larger, gasoline-powered versions of its F-Series pickups in Canada marks a shift from Ford\u2019s initial plan to launch three-row electric SUVs at Oakville in 2027, a delay attributed to slower-than-expected growth in electric vehicle demand, as stated in April. Despite this adjustment, Ford reiterated its commitment to the electric vehicle segment without specifying the new production location.
\nThe global slowdown in electric vehicle demand has prompted industry leaders like Tesla and BYD to slash prices to stimulate sales, while traditional automakers such as Ford and GM recalibrate their electric vehicle ambitions. Ford reported substantial losses in its EV business in recent years, projecting further financial challenges in 2024, reinforcing its commitment to launching profitable next-generation EVs.
\nFord has increasingly focused on hybrid vehicle production to appeal to consumers not yet ready to fully embrace electric vehicles. The company aims to quadruple hybrid production in the near term, buoyed by robust demand for its profitable F-150 trucks, produced across assembly plants in Kentucky, Ohio, and now Oakville.
\nAmid financial pressures in its EV sector, Ford\u2019s commercial business has emerged as a profit center, with the company banking on software-related services to drive future profitability. The division achieved operating profit margins nearing 17% in the last quarter, underscoring its strategic importance within Ford\u2019s broader portfolio.
\nSome key EV developments this month include:
\nSo, where does that leave the trajectory of EV sales?
\nAccording to Jennifer Weiss, co-director, NC Clean Energy Fund, educating the public about the benefits of EVs is crucial to making them a serious consideration for consumers.
\n\u201cWe have a huge hurdle right now getting people to test drive and trying things out and realizing they can do what they do on a daily basis with an electric vehicle,\u201d she noted.
\n\u201cDealerships right now don\u2019t have a lot of electric vehicles on the lots. It\u2019s the chicken and the egg. Until we see a lot more of the electric vehicles actually on the lots so people can test drive them and compare them to a traditional fuel vehicle, I think we have a little bit more of an uphill climb.\u201d
\nThe post EV Ambitions on Hold: Ford Delays Canadian Electric SUV Production appeared first on PYMNTS.com.
\n", "content_text": "Ford has announced its revised strategy for its Oakville Assembly plant in Canada, originally slated for electric vehicle (EV) production. Instead, the facility will focus on manufacturing larger gasoline-powered versions of its popular F-Series pickup trucks.\nFord\u2019s decision follows second-quarter EV sales in the U.S. Ford led the pack among traditional automakers, with EV sales soaring 61% year over year to 23,957 units. This helped propel the company\u2019s overall sales growth for the quarter and solidified its position as the second-largest EV seller in the U.S., ahead of General Motors. \nThe decision to focus on larger, gasoline-powered versions of its F-Series pickups in Canada marks a shift from Ford\u2019s initial plan to launch three-row electric SUVs at Oakville in 2027, a delay attributed to slower-than-expected growth in electric vehicle demand, as stated in April. Despite this adjustment, Ford reiterated its commitment to the electric vehicle segment without specifying the new production location.\nThe global slowdown in electric vehicle demand has prompted industry leaders like Tesla and BYD to slash prices to stimulate sales, while traditional automakers such as Ford and GM recalibrate their electric vehicle ambitions. Ford reported substantial losses in its EV business in recent years, projecting further financial challenges in 2024, reinforcing its commitment to launching profitable next-generation EVs.\nFord has increasingly focused on hybrid vehicle production to appeal to consumers not yet ready to fully embrace electric vehicles. The company aims to quadruple hybrid production in the near term, buoyed by robust demand for its profitable F-150 trucks, produced across assembly plants in Kentucky, Ohio, and now Oakville.\nAmid financial pressures in its EV sector, Ford\u2019s commercial business has emerged as a profit center, with the company banking on software-related services to drive future profitability. The division achieved operating profit margins nearing 17% in the last quarter, underscoring its strategic importance within Ford\u2019s broader portfolio.\nSome key EV developments this month include:\n\nOnline car marketplace\u00a0Carvana unveiled new tools for a smoother electric vehicle buying and selling experience.\nStarbucks announced plans to partner with Mercedes-Benz High-Power Charging to install EV chargers at more than 100 of its stores across the U.S. This initiative kicks off along Interstate 5, a key travel route on the West Coast.\nIn a bid to attract high-income EV owners, shopping centers worldwide are embracing EV charging stations. The trend gained momentum earlier this month when BP Pulse, BP\u2019s EV charging unit, announced a partnership with Simon Property Group, the U.S.\u2019s largest mall developer. \nThe federal government will grant car and auto parts factories in eight states $1.7 billion to begin producing electric vehicles and other clean energy technology, the Biden administration announced July 11.\n\nSo, where does that leave the trajectory of EV sales?\nAccording to Jennifer Weiss, co-director, NC Clean Energy Fund, educating the public about the benefits of EVs is crucial to making them a serious consideration for consumers.\n\u201cWe have a huge hurdle right now getting people to test drive and trying things out and realizing they can do what they do on a daily basis with an electric vehicle,\u201d she noted. \n\u201cDealerships right now don\u2019t have a lot of electric vehicles on the lots. It\u2019s the chicken and the egg. Until we see a lot more of the electric vehicles actually on the lots so people can test drive them and compare them to a traditional fuel vehicle, I think we have a little bit more of an uphill climb.\u201d\nThe post EV Ambitions on Hold: Ford Delays Canadian Electric SUV Production appeared first on PYMNTS.com.", "date_published": "2024-07-22T16:26:26-04:00", "date_modified": "2024-07-22T16:26:26-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Ford-F-150-Lightning.jpg", "tags": [ "BP Pulse", "Carvana", "electric vehicles", "EV", "F-Series Trucks", "Ford", "general motors", "GM", "Jennifer Weiss", "Mercedes Benz", "NC Clean Energy Fund", "News", "Oakville Assembly plant", "PYMNTS News", "simon property group", "starbucks", "Transportation" ] }, { "id": "https://www.pymnts.com/?p=2011968", "url": "https://www.pymnts.com/transportation/2024/fleetio-adds-on-site-fuel-management-to-fleet-maintenance-software/", "title": "Fleetio Adds On-Site Fuel Management to Fleet Maintenance Software", "content_html": "Fleetio has added two new integrations to its fleet maintenance management software.
\nThese integrations with FuelCloud and Fill-Rite will help businesses with on-site bulk tank fueling streamline fuel management, gain insights and optimize fleet fueling operations, the company said in a Tuesday (July 16) press release.
\n\u201cAdding these capabilities to our growing suite of solutions helps fleets control costs and minimize exposure to market fluctuations,\u201d Jake Martino, vice president, partnerships at Fleetio, said in the release.
\nFuelCloud provides on-site fuel management solutions, while Fill-Rite offers on-site fuel dispensing systems, according to the release. The integrations come at no additional charge to the companies\u2019 mutual customers.
\nWith these integrations, transactions automatically flow into Fleetio, ensuring fuel data stays up to date and eliminating the process of managing import templates and spreadsheets, the release said.
\nIn addition, the integrations provide a comprehensive view of fuel expenses by automatically capturing site and tank information for each transaction, per the release.
\nThe integrations also provide insights into fuel consumption, clarify how fuel contributes to overall operating costs and prevent fuel theft by sending alerts when discrepancies are detected \u2014 such as when the report fuel volume exceeds an asset\u2019s tank capacity, the release said.
\n\u201cFleetio is committed to equipping fleet operators with the tools and insights they need to succeed,\u201d the company said in the release. \u201cThis addition marks a significant step for streamlined on-site fuel management.\u201d
\nFleet management is inching toward becoming a beacon of connectivity, PYMNTS reported in February.
\nOn July 2, FleetUp and RoadFlex said they have integrated their solutions to automate fleet expense management and fuel management, from data collection to reporting.
\nBy combining FleetUp\u2019s fleet and asset management solution and RoadFlex\u2019s fleet expense management and fuel card solutions, the companies aim to ensure fleet cards are used only by the appropriate employees and vehicles, block and flag suspicious transactions, and alert managers if the wrong fuel type is purchased for a vehicle.
\nIn June, Motive began offering its card customers its Missed Savings solution that uses shared fleet and spend management data to automatically determine where fuel spending is being wasted.
\nThe post Fleetio Adds On-Site Fuel Management to Fleet Maintenance Software appeared first on PYMNTS.com.
\n", "content_text": "Fleetio has added two new integrations to its fleet maintenance management software.\nThese integrations with FuelCloud and Fill-Rite will help businesses with on-site bulk tank fueling streamline fuel management, gain insights and optimize fleet fueling operations, the company said in a Tuesday (July 16) press release.\n\u201cAdding these capabilities to our growing suite of solutions helps fleets control costs and minimize exposure to market fluctuations,\u201d Jake Martino, vice president, partnerships at Fleetio, said in the release.\nFuelCloud provides on-site fuel management solutions, while Fill-Rite offers on-site fuel dispensing systems, according to the release. The integrations come at no additional charge to the companies\u2019 mutual customers.\nWith these integrations, transactions automatically flow into Fleetio, ensuring fuel data stays up to date and eliminating the process of managing import templates and spreadsheets, the release said.\nIn addition, the integrations provide a comprehensive view of fuel expenses by automatically capturing site and tank information for each transaction, per the release.\nThe integrations also provide insights into fuel consumption, clarify how fuel contributes to overall operating costs and prevent fuel theft by sending alerts when discrepancies are detected \u2014 such as when the report fuel volume exceeds an asset\u2019s tank capacity, the release said.\n\u201cFleetio is committed to equipping fleet operators with the tools and insights they need to succeed,\u201d the company said in the release. \u201cThis addition marks a significant step for streamlined on-site fuel management.\u201d\nFleet management is inching toward becoming a beacon of connectivity, PYMNTS reported in February.\nOn July 2, FleetUp and RoadFlex said they have integrated their solutions to automate fleet expense management and fuel management, from data collection to reporting.\nBy combining FleetUp\u2019s fleet and asset management solution and RoadFlex\u2019s fleet expense management and fuel card solutions, the companies aim to ensure fleet cards are used only by the appropriate employees and vehicles, block and flag suspicious transactions, and alert managers if the wrong fuel type is purchased for a vehicle.\nIn June, Motive began offering its card customers its Missed Savings solution that uses shared fleet and spend management data to automatically determine where fuel spending is being wasted.\n\nThe post Fleetio Adds On-Site Fuel Management to Fleet Maintenance Software appeared first on PYMNTS.com.", "date_published": "2024-07-16T19:48:51-04:00", "date_modified": "2024-07-16T22:45:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Fleetio-fuel-management-fleets.jpg", "tags": [ "B2B", "B2B Payments", "commercial payments", "Fill-Rite", "Fleet Management", "Fleetio", "Fleets", "freight", "fuel management", "FuelCloud", "News", "PYMNTS News", "What's Hot In B2B", "Transportation" ] }, { "id": "https://www.pymnts.com/?p=1971429", "url": "https://www.pymnts.com/transportation/2024/ev-sales-tick-up-as-payment-challenges-define-the-road-ahead/", "title": "EV Sales Tick Up as Payment Challenges Define the Road Ahead", "content_html": "As U.S. consumers take to the road this summer, the state of electric vehicles hangs in the balance and the payments industry grapples with the issues that will provide the right platform for its growth.
\nFirst, the sales update. As the major car companies report their second-quarter 2024 sales, the results for overall electric vehicle (EV) sales are mixed with some very bright spots to report. Ford\u2019s EV sales surged 61% year over year in Q2, with 23,957 units sold, leading to the automaker\u2019s overall growth for the quarter. This performance allowed Ford to maintain its position as the second-largest EV seller in the U.S., ahead of GM but still trailing Tesla. The F-150 Lightning saw a 77% sales increase, remaining the top-selling electric truck. The Mustang Mach-E and E-Transit also experienced significant growth, up 46% and 96% respectively. In the first half of 2024, Ford sold 44,180 EVs, a 72% increase from last year. In a recent interview, Ford Motor Company CEO Jim Farley emphasized the company\u2019s strategy to introduce smaller, more affordable EVs to compete globally while still expanding the overall audience.
\n\u201cYou have to make a radical change as an [automaker] to get to a profitable EV. The first thing we have to do is really put all of our capital toward smaller, more affordable EVs,\u201d Farley told CNBC recently. \u201cThat\u2019s the duty cycle that we\u2019ve now found that really matches. These big, huge, enormous EVs, they\u2019re never going to make money. The battery is $50,000. \u2026 The batteries will never be affordable.\u201d
\nTesla delivered 443,956 electric vehicles globally in Q2, exceeding Wall Street\u2019s estimate of 439,302. Despite this, deliveries fell 4.8% year-over-year, following an 8.5% decline in Q1. This marks the longest streak of quarterly delivery declines since 2012. Tesla\u2019s production also decreased by 14% to 410,831 units, influenced by a factory shutdown in Germany and shipment disruptions. However, Tesla\u2019s expected focus on affordable cars and its energy storage segment could drive future growth.
\nGM reported selling 21,930 electric vehicles in the second quarter of 2024, a 40% increase from the same period in 2023, driven by the Cadillac Lyriq and Chevrolet Blazer EVs. This total includes 490 electric delivery trucks from its BrightDrop subsidiary. In the first half of 2024, GM\u2019s EV sales reached 38,355, up 6% from 36,322 units in the first half of 2023, with 746 units sold at BrightDrop. All EVs sold this year utilize GM\u2019s new Ultium propulsion system, replacing the previous Bolt and Bolt EUV models. GM plans to reintroduce the Bolt with Ultium technology in 2025.
\nPart of the consumer apprehension about buying more EVs lands in the lap of the ability to access EV charging stations and then the ability to pay for that service. JD Power released a report in May that reinforce those concerns. \u201cAs the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns and a lack of knowledge regarding the EV ownership proposition, including incentives,\u201d said\u00a0Stewart Stropp, executive director of EV intelligence at J.D. Power.
\nThe ability to pay at the EV charging station has been addressed by several payment companies. For example, Visa advises its merchants that the success of a charging station often hinges on the ease of payment for customers. It recommends installing Visa-accepting terminals and offering contactless payment options can enhance the experience, while digital payment solutions, such as mobile app payments, should be complemented with tap-to-pay options for accessibility. Using the correct merchant code (MCC 5552) is crucial for bank rewards and reducing service issues. Clear checkout processes, whether estimating charges or using set amounts, Visa suggests, should be communicated to customers, with additional compliance for European merchants regarding customer authentication.
\nThe payment issue has also been addressed in a recent U.S. Department of Energy report. \u201cBest Practices for Payment Systems at Public Electric Vehicle Charging Stations,\u201d authored by Kristi Moriarty and John Smart, addresses significant challenges in the payment processes at public EV charging stations. Key issues include the reliability of network connections, the robustness of hardware, and the integration of payment systems. The report emphasizes the necessity of strong network connections, suggesting the use of external antennas and redundant SIM cards to enhance connectivity. It also highlights the importance of durable, weather-resistant card readers and recommends regular maintenance to ensure functionality.
\nA crucial point from the report states, \u201cFailure to accept and process payment is a cause of public electric vehicle (EV) charging session failures,\u201d underscoring the need for reliable payment solutions to avoid service disruptions. The report also recommends standardized procedures for user interfaces to reduce customer confusion and improve overall user experience.
\nThe post EV Sales Tick Up as Payment Challenges Define the Road Ahead appeared first on PYMNTS.com.
\n", "content_text": "As U.S. consumers take to the road this summer, the state of electric vehicles hangs in the balance and the payments industry grapples with the issues that will provide the right platform for its growth.\nFirst, the sales update. As the major car companies report their second-quarter 2024 sales, the results for overall electric vehicle (EV) sales are mixed with some very bright spots to report. Ford\u2019s EV sales surged 61% year over year in Q2, with 23,957 units sold, leading to the automaker\u2019s overall growth for the quarter. This performance allowed Ford to maintain its position as the second-largest EV seller in the U.S., ahead of GM but still trailing Tesla. The F-150 Lightning saw a 77% sales increase, remaining the top-selling electric truck. The Mustang Mach-E and E-Transit also experienced significant growth, up 46% and 96% respectively. In the first half of 2024, Ford sold 44,180 EVs, a 72% increase from last year. In a recent interview, Ford Motor Company CEO Jim Farley emphasized the company\u2019s strategy to introduce smaller, more affordable EVs to compete globally while still expanding the overall audience.\n\u201cYou have to make a radical change as an [automaker] to get to a profitable EV. The first thing we have to do is really put all of our capital toward smaller, more affordable EVs,\u201d Farley told CNBC recently. \u201cThat\u2019s the duty cycle that we\u2019ve now found that really matches. These big, huge, enormous EVs, they\u2019re never going to make money. The battery is $50,000. \u2026 The batteries will never be affordable.\u201d\nTesla delivered 443,956 electric vehicles globally in Q2, exceeding Wall Street\u2019s estimate of 439,302. Despite this, deliveries fell 4.8% year-over-year, following an 8.5% decline in Q1. This marks the longest streak of quarterly delivery declines since 2012. Tesla\u2019s production also decreased by 14% to 410,831 units, influenced by a factory shutdown in Germany and shipment disruptions. However, Tesla\u2019s expected focus on affordable cars and its energy storage segment could drive future growth.\nGM reported selling 21,930 electric vehicles in the second quarter of 2024, a 40% increase from the same period in 2023, driven by the Cadillac Lyriq and Chevrolet Blazer EVs. This total includes 490 electric delivery trucks from its BrightDrop subsidiary. In the first half of 2024, GM\u2019s EV sales reached 38,355, up 6% from 36,322 units in the first half of 2023, with 746 units sold at BrightDrop. All EVs sold this year utilize GM\u2019s new Ultium propulsion system, replacing the previous Bolt and Bolt EUV models. GM plans to reintroduce the Bolt with Ultium technology in 2025.\nPayment Issues\nPart of the consumer apprehension about buying more EVs lands in the lap of the ability to access EV charging stations and then the ability to pay for that service. JD Power released a report in May that reinforce those concerns. \u201cAs the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns and a lack of knowledge regarding the EV ownership proposition, including incentives,\u201d said\u00a0Stewart Stropp, executive director of EV intelligence at J.D. Power.\nThe ability to pay at the EV charging station has been addressed by several payment companies. For example, Visa advises its merchants that the success of a charging station often hinges on the ease of payment for customers. It recommends installing Visa-accepting terminals and offering contactless payment options can enhance the experience, while digital payment solutions, such as mobile app payments, should be complemented with tap-to-pay options for accessibility. Using the correct merchant code (MCC 5552) is crucial for bank rewards and reducing service issues. Clear checkout processes, whether estimating charges or using set amounts, Visa suggests, should be communicated to customers, with additional compliance for European merchants regarding customer authentication.\nThe payment issue has also been addressed in a recent U.S. Department of Energy report. \u201cBest Practices for Payment Systems at Public Electric Vehicle Charging Stations,\u201d authored by Kristi Moriarty and John Smart, addresses significant challenges in the payment processes at public EV charging stations. Key issues include the reliability of network connections, the robustness of hardware, and the integration of payment systems. The report emphasizes the necessity of strong network connections, suggesting the use of external antennas and redundant SIM cards to enhance connectivity. It also highlights the importance of durable, weather-resistant card readers and recommends regular maintenance to ensure functionality.\nA crucial point from the report states, \u201cFailure to accept and process payment is a cause of public electric vehicle (EV) charging session failures,\u201d underscoring the need for reliable payment solutions to avoid service disruptions. The report also recommends standardized procedures for user interfaces to reduce customer confusion and improve overall user experience.\nThe post EV Sales Tick Up as Payment Challenges Define the Road Ahead appeared first on PYMNTS.com.", "date_published": "2024-07-05T04:00:57-04:00", "date_modified": "2024-07-04T15:04:34-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/EV-sales-payment.png", "tags": [ "automakers", "automotive", "connected cars", "electric cars", "electric vehicles", "EV Sales", "EVs", "Featured News", "Ford", "Ford Motor Company", "general motors", "GM", "News", "payments", "PYMNTS News", "Retail", "Technology", "Tesla", "U.S. Department of Energy", "Transportation" ] }, { "id": "https://www.pymnts.com/?p=1967951", "url": "https://www.pymnts.com/transportation/2024/southwest-expects-lower-pricing-power-as-airlines-add-capacity/", "title": "Southwest Expects Lower Pricing Power as Airlines Add Capacity", "content_html": "Southwest Airlines is experiencing reduced pricing power because airlines have added flights and seats.
\nThe company said in a Wednesday (June 26) filing with the Securities and Exchange Commission (SEC) that it has changed its outlook for revenue per available seat mile (RASM) in the current quarter from its previous estimate of a year-over-year drop of 1.5% to 3.5% to its current estimate of a drop of 4.0% to 4.5%.
\n\u201cThe reduction in the company\u2019s RASM expectations was driven primarily by complexities in adapting its revenue management to current booking patterns in this dynamic environment,\u201d Southwest Airlines said in the filing. \u201cDespite lowered expectations, the company continues to expect an all-time quarterly record for operating revenue in second quarter 2024.\u201d
\nRASM is viewed as a measure of pricing power, and Southwest\u2019s lowered outlook for its RASM comes at a time when travel is booming, the New York Post reported Wednesday.
\nThe report attributed the airline\u2019s projected drop to the industry adding flights and seats, thereby cutting their pricing power even though airlines expect to see a record amount of travel this summer.
\nSouthwest\u2019s pricing issues have also been caused by the airline\u2019s difficulties in predicting demand trends, which have left it unable to sell the number of seats it expected to sell, Reuters reported Wednesday.
\nAcross the industry, airlines increased their capacity, which led to their having to lower fares and suffer reduced profits, CNBC reported Wednesday.
\nUnited Airlines is among the members of the industry expecting to see another summer of record travel this year.
\nIn its Wednesday SEC filing, Southwest Airlines said it is working to improve its financial results and will share details of its plans during its next earnings report and in a September investor day.
\n\u201cThe company remain intensely focused on improving its financial results and creating value for its shareholders as it continues to develop and implement its portfolio of strategic initiatives aimed at enhancing the customer experience; delivering operational excellence; creating new and meaningful revenue opportunities; expanding margins; and achieving return on invested capital well above the company\u2019s weighted average cost of capital,\u201d the company said.
\nThe post Southwest Expects Lower Pricing Power as Airlines Add Capacity appeared first on PYMNTS.com.
\n", "content_text": "Southwest Airlines is experiencing reduced pricing power because airlines have added flights and seats.\nThe company said in a Wednesday (June 26) filing with the Securities and Exchange Commission (SEC) that it has changed its outlook for revenue per available seat mile (RASM) in the current quarter from its previous estimate of a year-over-year drop of 1.5% to 3.5% to its current estimate of a drop of 4.0% to 4.5%.\n\u201cThe reduction in the company\u2019s RASM expectations was driven primarily by complexities in adapting its revenue management to current booking patterns in this dynamic environment,\u201d Southwest Airlines said in the filing. \u201cDespite lowered expectations, the company continues to expect an all-time quarterly record for operating revenue in second quarter 2024.\u201d\nRASM is viewed as a measure of pricing power, and Southwest\u2019s lowered outlook for its RASM comes at a time when travel is booming, the New York Post reported Wednesday.\nThe report attributed the airline\u2019s projected drop to the industry adding flights and seats, thereby cutting their pricing power even though airlines expect to see a record amount of travel this summer.\nSouthwest\u2019s pricing issues have also been caused by the airline\u2019s difficulties in predicting demand trends, which have left it unable to sell the number of seats it expected to sell, Reuters reported Wednesday.\nAcross the industry, airlines increased their capacity, which led to their having to lower fares and suffer reduced profits, CNBC reported Wednesday.\nUnited Airlines is among the members of the industry expecting to see another summer of record travel this year.\nIn its Wednesday SEC filing, Southwest Airlines said it is working to improve its financial results and will share details of its plans during its next earnings report and in a September investor day.\n\u201cThe company remain intensely focused on improving its financial results and creating value for its shareholders as it continues to develop and implement its portfolio of strategic initiatives aimed at enhancing the customer experience; delivering operational excellence; creating new and meaningful revenue opportunities; expanding margins; and achieving return on invested capital well above the company\u2019s weighted average cost of capital,\u201d the company said.\nThe post Southwest Expects Lower Pricing Power as Airlines Add Capacity appeared first on PYMNTS.com.", "date_published": "2024-06-26T22:03:10-04:00", "date_modified": "2024-06-26T22:03:10-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/Southwest-Airlines.jpg", "tags": [ "airline industry", "News", "pricing power", "PYMNTS News", "RASM", "revenue per available seat mile", "Southwest Airlines", "Transportation", "travel industry", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1943856", "url": "https://www.pymnts.com/transportation/2024/carvana-expects-new-car-production-to-boost-used-car-sales/", "title": "Carvana Expects New Car Production to Boost Used Car Sales", "content_html": "Carvana\u00a0reportedly expects that as more new vehicles are built, the company\u2019s used car business will benefit.
\n\u201cThere will likely be much more car production, and that will probably bode well,\u201d Carvana CEO Ernest Garcia III\u00a0told reporters Tuesday (May 14) at an Automotive Press Association event near Detroit, Bloomberg\u00a0reported\u00a0Tuesday.
\nOnline car shopping guide\u00a0Edmunds\u00a0said in April that\u00a0new vehicle\u00a0inventory was \u201crebounding.\u201d
\n\u201cCompelling new product launches combined with the reintroduction of incentives and rebounding inventory in the new vehicle market are all positive signs for shoppers, but elevated interest rates have dampened any positive market momentum,\u201d\u00a0Jessica Caldwell, head of insights at Edmunds, said in an April 2 press release.
\nGarcia said May 1 during Carvana\u2019s quarterly earnings call that the\u00a0used car\u00a0retailer\u2019s inventory had been \u201cconstrained.\u201d
\n\u201cOur inventory is currently smaller than we would like, resulting in less selection available to our customers,\u201d Garcia said during the call. \u201cAll else constant, we believe this is negatively impacting our sales volumes today.\u201d
\nTo address this challenge, Carvana has been ramping up production nationwide to expand selection levels for customers in the near term, enhancing its reconditioning capabilities that are crucial for scaling but require substantial physical infrastructure and regulatory approvals, and leveraging its existing infrastructure and developing a playbook to optimize reconditioning operations, Garcia said.
\nCarvana has also been\u00a0sourcing cars\u00a0for resale by enabling potential sellers to offer their cars and complete the deal from their desktop or mobile device. The company also uses sophisticated bidding algorithms to optimize its gross profit per unit (GPU).
\nFor inspecting and reconditioning used vehicles to prepare them for resale, Carvana\u2019s proprietary CARLI technology streamlines inspection processes, systemizes parts ordering and tracking, and uses machine learning (ML) to identify and manage costs.
\n\u201cWe have seen a more than $900 step-down in non-vehicle retail cost of sales since our peak over a year ago, and I think that\u2019s been driven by many sources: getting better at managing the process of reconditioning, getting better at parts procurement and efficiency, and a number of things,\u201d Carvana Chief Financial Officer\u00a0Mark Jenkins\u00a0said in February.
\nThe post Carvana Expects New Car Production to Boost Used Car Sales appeared first on PYMNTS.com.
\n", "content_text": "Carvana\u00a0reportedly expects that as more new vehicles are built, the company\u2019s used car business will benefit.\n\u201cThere will likely be much more car production, and that will probably bode well,\u201d Carvana CEO Ernest Garcia III\u00a0told reporters Tuesday (May 14) at an Automotive Press Association event near Detroit, Bloomberg\u00a0reported\u00a0Tuesday.\nOnline car shopping guide\u00a0Edmunds\u00a0said in April that\u00a0new vehicle\u00a0inventory was \u201crebounding.\u201d\n\u201cCompelling new product launches combined with the reintroduction of incentives and rebounding inventory in the new vehicle market are all positive signs for shoppers, but elevated interest rates have dampened any positive market momentum,\u201d\u00a0Jessica Caldwell, head of insights at Edmunds, said in an April 2 press release.\nGarcia said May 1 during Carvana\u2019s quarterly earnings call that the\u00a0used car\u00a0retailer\u2019s inventory had been \u201cconstrained.\u201d\n\u201cOur inventory is currently smaller than we would like, resulting in less selection available to our customers,\u201d Garcia said during the call. \u201cAll else constant, we believe this is negatively impacting our sales volumes today.\u201d\nTo address this challenge, Carvana has been ramping up production nationwide to expand selection levels for customers in the near term, enhancing its reconditioning capabilities that are crucial for scaling but require substantial physical infrastructure and regulatory approvals, and leveraging its existing infrastructure and developing a playbook to optimize reconditioning operations, Garcia said.\nCarvana has also been\u00a0sourcing cars\u00a0for resale by enabling potential sellers to offer their cars and complete the deal from their desktop or mobile device. The company also uses sophisticated bidding algorithms to optimize its gross profit per unit (GPU).\nFor inspecting and reconditioning used vehicles to prepare them for resale, Carvana\u2019s proprietary CARLI technology streamlines inspection processes, systemizes parts ordering and tracking, and uses machine learning (ML) to identify and manage costs.\n\u201cWe have seen a more than $900 step-down in non-vehicle retail cost of sales since our peak over a year ago, and I think that\u2019s been driven by many sources: getting better at managing the process of reconditioning, getting better at parts procurement and efficiency, and a number of things,\u201d Carvana Chief Financial Officer\u00a0Mark Jenkins\u00a0said in February.\nThe post Carvana Expects New Car Production to Boost Used Car Sales appeared first on PYMNTS.com.", "date_published": "2024-05-14T18:25:02-04:00", "date_modified": "2024-05-14T18:49:37-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/11/Carvana-3.jpg", "tags": [ "auto sales", "car sales", "cars", "Carvana", "Commerce", "new car sales", "new cars", "News", "PYMNTS News", "Retail", "used car sales", "What's Hot", "Transportation" ] }, { "id": "https://www.pymnts.com/?p=1941335", "url": "https://www.pymnts.com/transportation/2024/teslas-autopilot-scandal-puts-future-of-autonomous-transport-under-microscope/", "title": "Tesla\u2019s Autopilot Scandal Puts Future of Autonomous Transport Under Microscope", "content_html": "If you take your hands off the wheel, you might crash.\u00a0
\nThat proverbial piece of advice, commonly leveled at business leaders and managers, has taken on a new meaning in light of the U.S.\u00a0Department of Justice\u2018s (DOJ)\u00a0investigation\u00a0revealed Wednesday (May 8) into electric vehicle (EV) automaker Tesla\u2019s Autopilot and Full Self-Driving (FSD) systems.\u00a0
\nThe EV giant, known for its innovative approach to automotive technology, is currently under the microscope of U.S. federal prosecutors, as well as the U.S.\u00a0National Highway Traffic Safety Administration\u00a0(NHTSA). The NHTSA wants Tesla to\u00a0share\u00a0more information related to its autopilot system after crashes continued occurring despite a December recall of more than two million vehicles.\u00a0
\nAt the heart of the controversies is Tesla\u2019s Autopilot system, a driver assistance feature that has been available in Tesla vehicles for several years, and the more advanced Full Self-Driving package, which the company has been selling as an optional add-on. Despite their names, neither system can fully automate the driving process without human supervision, a point of contention that has raised questions about the accuracy of Tesla\u2019s promotional materials and public statements.
\nThe DOJ and NHTSA did not immediately reply to PYMNTS\u2019 request for comment.
\nThe implications of the federal investigations are significant, not only for Tesla but also for the broader automotive and technology industries. As companies continue to push the boundaries of autonomous vehicle capabilities, the outcome of this probe could set important precedents for how such technologies are developed, marketed and regulated in the future.
\nRead more:\u00a0From Factories to the Fast Lane, Unpacking Autonomy\u2019s Potential
\nDuring Tesla\u2019s most recent earnings call, Musk\u00a0described the car company\u00a0as a next-generation autonomy and artificial intelligence (AI) platform, and not an EV manufacturer, and the CEO has become increasingly focused on self-driving technology as Tesla\u2019s own car sales and profit slump.
\nThe DOJ is reportedly investigating whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles\u2019 self-driving capabilities.
\nThe term \u201cwire fraud\u201d typically refers to any fraudulent scheme to intentionally deprive someone of money or property using electronic communication or information technology. The rise of online commerce and electronic banking further expanded the opportunities for wire fraud, as criminals become increasingly able to exploit vulnerabilities in online payment systems or use stolen financial information to conduct fraudulent transactions remotely.\u00a0
\nIn the Tesla case, wire fraud would involve the company\u2019s deception in interstate communications by misleading consumers about its driver-assistance systems.\u00a0
\nThe probes are just the latest obstacle for the EV pioneer, which has also been undergoing a headcount reduction designed to cut its workforce by 10%.\u00a0
\nThe company\u2019s stock, which had been trading significantly down, jumped double digits on the news that Tesla plans to showcase\u00a0its purpose-built\u00a0robotaxi\u00a0in August and that the company\u2019s production was accelerating on a new, lower-cost Tesla model, PYMNTS reported April 24.\u00a0
\nAs the investigations unfold, Tesla finds itself at a critical juncture. The company\u2019s response to the allegations and its cooperation with regulatory authorities will be closely watched by investors, consumers and industry observers alike.\u00a0
\nRead more:\u00a0Musk\u2019s Master Robotaxi Plan: Giving Tesla the Uber, Airbnb Treatment
\nTesla isn\u2019t the only company struggling with its autonomous vehicle (AV) offerings. As PYMNTS reported, in another example of the challenges facing the autonomous mobility sector, Hyundai-backed self-driving car startup\u00a0Motional\u00a0on Tuesday\u00a0announced that it was delaying its driverless taxi fleet, explaining that \u201clarge-scale deployment of AVs remains a goal for the future, not the present.\u201d
\nFor comparison\u2019s sake, Motional\u2019s autonomous vehicles are rated as a\u00a0Level 4 equivalent, while Tesla\u2019s autopilot capabilities are ranked at just Level 2.\u00a0\u00a0\u00a0
\nBut that doesn\u2019t mean there isn\u2019t hope for the industry. On \u00a0Tuesday (May 7), Wayve, a software startup focused on self-driving cars, raised a whopping\u00a0$1.05 billion Series C round to continue developing a \u201cGPT for driving\u201d AI system that can empower any vehicle to see, think and drive through any environment by reimagining autonomous mobility through embodied intelligence.\u00a0
\nOn Wednesday, Daimler Truck\u00a0unveiled a \u201cdemonstration vehicle\u201d for an\u00a0autonomous freight vehicle that has the potential to evolve into a modular, scalable platform that is propulsion agnostic for flexible use in different trucking applications \u2014 and is planned to launch in 2027.\u00a0
\n\u201cTogether with Torc, we are making significant progress towards introducing autonomous trucks in the U.S. by 2027,\u201d said Joanna Buttler, head of Global Autonomous Technology Group at Daimler Truck. \u201cWhile we target autonomous trucks with conventional propulsion technology for this first market launch, we always look further into the future. We will employ an iterative approach to the development, testing and optimization of autonomous-electric technology, while exploring the most promising use cases in collaboration with our fleet customers.\u201d
\nThe post Tesla\u2019s Autopilot Scandal Puts Future of Autonomous Transport Under Microscope appeared first on PYMNTS.com.
\n", "content_text": "If you take your hands off the wheel, you might crash.\u00a0\nThat proverbial piece of advice, commonly leveled at business leaders and managers, has taken on a new meaning in light of the U.S.\u00a0Department of Justice\u2018s (DOJ)\u00a0investigation\u00a0revealed Wednesday (May 8) into electric vehicle (EV) automaker Tesla\u2019s Autopilot and Full Self-Driving (FSD) systems.\u00a0\nThe EV giant, known for its innovative approach to automotive technology, is currently under the microscope of U.S. federal prosecutors, as well as the U.S.\u00a0National Highway Traffic Safety Administration\u00a0(NHTSA). The NHTSA wants Tesla to\u00a0share\u00a0more information related to its autopilot system after crashes continued occurring despite a December recall of more than two million vehicles.\u00a0\nAt the heart of the controversies is Tesla\u2019s Autopilot system, a driver assistance feature that has been available in Tesla vehicles for several years, and the more advanced Full Self-Driving package, which the company has been selling as an optional add-on. Despite their names, neither system can fully automate the driving process without human supervision, a point of contention that has raised questions about the accuracy of Tesla\u2019s promotional materials and public statements.\nThe DOJ and NHTSA did not immediately reply to PYMNTS\u2019 request for comment.\nThe implications of the federal investigations are significant, not only for Tesla but also for the broader automotive and technology industries. As companies continue to push the boundaries of autonomous vehicle capabilities, the outcome of this probe could set important precedents for how such technologies are developed, marketed and regulated in the future.\nRead more:\u00a0From Factories to the Fast Lane, Unpacking Autonomy\u2019s Potential\nTesla Being Tested by Federal Investigations\nDuring Tesla\u2019s most recent earnings call, Musk\u00a0described the car company\u00a0as a next-generation autonomy and artificial intelligence (AI) platform, and not an EV manufacturer, and the CEO has become increasingly focused on self-driving technology as Tesla\u2019s own car sales and profit slump.\nThe DOJ is reportedly investigating whether Tesla committed securities or wire fraud by misleading investors and consumers about its electric vehicles\u2019 self-driving capabilities.\nThe term \u201cwire fraud\u201d typically refers to any fraudulent scheme to intentionally deprive someone of money or property using electronic communication or information technology. The rise of online commerce and electronic banking further expanded the opportunities for wire fraud, as criminals become increasingly able to exploit vulnerabilities in online payment systems or use stolen financial information to conduct fraudulent transactions remotely.\u00a0\nIn the Tesla case, wire fraud would involve the company\u2019s deception in interstate communications by misleading consumers about its driver-assistance systems.\u00a0\nThe probes are just the latest obstacle for the EV pioneer, which has also been undergoing a headcount reduction designed to cut its workforce by 10%.\u00a0\nThe company\u2019s stock, which had been trading significantly down, jumped double digits on the news that Tesla plans to showcase\u00a0its purpose-built\u00a0robotaxi\u00a0in August and that the company\u2019s production was accelerating on a new, lower-cost Tesla model, PYMNTS reported April 24.\u00a0\nAs the investigations unfold, Tesla finds itself at a critical juncture. The company\u2019s response to the allegations and its cooperation with regulatory authorities will be closely watched by investors, consumers and industry observers alike.\u00a0\nRead more:\u00a0Musk\u2019s Master Robotaxi Plan: Giving Tesla the Uber, Airbnb Treatment\nNavigating the Autonomy Landscape\u00a0\nTesla isn\u2019t the only company struggling with its autonomous vehicle (AV) offerings. As PYMNTS reported, in another example of the challenges facing the autonomous mobility sector, Hyundai-backed self-driving car startup\u00a0Motional\u00a0on Tuesday\u00a0announced that it was delaying its driverless taxi fleet, explaining that \u201clarge-scale deployment of AVs remains a goal for the future, not the present.\u201d\nFor comparison\u2019s sake, Motional\u2019s autonomous vehicles are rated as a\u00a0Level 4 equivalent, while Tesla\u2019s autopilot capabilities are ranked at just Level 2.\u00a0\u00a0\u00a0\nBut that doesn\u2019t mean there isn\u2019t hope for the industry. On \u00a0Tuesday (May 7), Wayve, a software startup focused on self-driving cars, raised a whopping\u00a0$1.05 billion Series C round to continue developing a \u201cGPT for driving\u201d AI system that can empower any vehicle to see, think and drive through any environment by reimagining autonomous mobility through embodied intelligence.\u00a0\nOn Wednesday, Daimler Truck\u00a0unveiled a \u201cdemonstration vehicle\u201d for an\u00a0autonomous freight vehicle that has the potential to evolve into a modular, scalable platform that is propulsion agnostic for flexible use in different trucking applications \u2014 and is planned to launch in 2027.\u00a0\n\u201cTogether with Torc, we are making significant progress towards introducing autonomous trucks in the U.S. by 2027,\u201d said Joanna Buttler, head of Global Autonomous Technology Group at Daimler Truck. \u201cWhile we target autonomous trucks with conventional propulsion technology for this first market launch, we always look further into the future. We will employ an iterative approach to the development, testing and optimization of autonomous-electric technology, while exploring the most promising use cases in collaboration with our fleet customers.\u201d\nThe post Tesla\u2019s Autopilot Scandal Puts Future of Autonomous Transport Under Microscope appeared first on PYMNTS.com.", "date_published": "2024-05-09T11:39:49-04:00", "date_modified": "2024-05-09T11:39:49-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/Tesla-self-driving-cars.jpg", "tags": [ "autonomous cars", "Department of Justice", "DoJ", "electric vehicles", "EV", "fraud", "investigations", "News", "PYMNTS News", "Self-Driving Cars", "Tesla", "Transportation", "wire fraud" ] } ] }