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Trump Tweet Sends Workhorse Penny Stock Surging

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Workhorse

President Trump is known for tweeting about just about everything. However, it seems when he tweets about the economy, it can have a profound impact. Today, electric truck company Workhorse saw a 200% surge in stock prices after a tweet from Trump.

GM Plans to Sell Plant to Workhorse

General Motors is in talks with Workhorse to sell its Ohio plant to the electric truck company. This comes after GM announced plans to close the Lordstown, Ohio plant, along with three others in the United States.

GM is doing this to free up more cash for the development of its own electric and self-driving cars. Instead of allowing the plant to go used, GM began talking with Workhorse about a possible sale.

Tom Colton, the head of investor relations for Workhorse, confirmed the talks were in the preliminary stage. It currently does not know when the plant will open, when jobs would start, or how many people the company will look to employ.

Not everyone is excited about the sale though. The United Autoworkers Union has made it known it isn’t in favor of the plant being sold. “The UAW’s position is unequivocal: General Motors should assign a product to the Lordstown facility and continue operating it,” the union said in a statement.

The UAW filed a federal lawsuit against GM in February to keep the Lordstown plant open. Union representatives hope to push GM to begin building its new vehicles there. Those talks will not commence until July, making it unsure whether Workhorse will be moving there or not (yet).

Despite the lawsuit and pushback from the Union, GM does not plan to have a future in Lordstown. It does plan to hire another 450 workers at three other locations in the state of Ohio though, investing $700 million into its Ohio plants.

Mike DeWine, the Governor of Ohio, said the news from GM is still good for the three cities with plants (Parma, Moraine, Toledo). If Workhorse buys the plant, DeWine said, Ohio could still expect hundreds of jobs to be added in Lordstown.

Workhorse Stock Prices Soar

Workhorse is a growing company and would be a great addition to Ohio. The company is currently working on switching from traditional vans and trucks to electric. Later this year, it will begin production on electric delivery vans for the United Parcel Service (UPS).

“Based on media reports and comments from the US Postal Service, testing for the next generation vehicle is done and a request for production is due later this year,” Cowen analyst Jeffrey Osborne stated.

After Trump tweeted about the potential talks to move Workhorse to the Ohio plant, shares surged more than 214 percent. The company opened on Wednesday at 82 cents and closed the day at $2.65. The daily volume of shares increased as well. On average, it has been at 345,127 daily shares over the past month. By the end of the trading day, the volume was up to 45.9 million shares.

“This potential agreement creates a positive outcome for all parties involved and will help solidify the leadership of Workhorse’s role in the EV community,” Workhorse CEO Duane Hughes stated in a press release.

How Trump’s Tweets Have Impacted The Market

This isn’t the first time a tweet from President Trump has had an impact on the stock market. In fact, it happens so often, Bloomberg created an interactive graph to see what tweets were sent out when the DOW goes up or down.

There are few things that have been traditional about Trump’s presidency, but his presence on Twitter makes it doubly so. If you’re investing, it may be a good idea to keep an eye on POTUS’ tweets.

Readers, what do you think about GM’s decision to sell its Ohio plant and the Workhorse surge?

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Ford, GM, Nissan Announce Cars They Will Discontinue in 2019

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Ford GM Nissan

Automakers like Ford, GM, Nissan, and Chevy have begun announcing cars they will discontinue in the coming year. Many of the companies’ most popular models will no longer be in production starting in 2019. Manufacturers have begun to take these models to the chopping block because the needs of the buyer have changed drastically. So, which cars will fall off the production line this year and what is replacing them?

Ford, GM, Nissan, Chevy Say Goodbye to Old Models

Much of this shift is due to the rise in popularity of SUVs and crossovers. It is estimated that 1 in 2 vehicles that will be sold in 2019 will be an SUV or crossover, according to Edmunds. Both of these vehicles offer more space and a fuel economy much better than it was years ago.

Most people seem to be shifting away from compact cars, hatchbacks, and other types of passenger cars. Several of the vehicles on the list of those to be hacked in 2019 are also hybrids. That may come as a surprise to some. However, with gas prices under $3 a gallon in most places in the U.S., many consumers are no longer looking for a break when it comes to gasoline.

What Vehicles Are Being Discontinued?

Automakers do not discontinue vehicles without putting a lot of thought into it. Remember, automakers invest quite a bit of time and money into marketing and developing new cars. Volkswagen, for example, will be discontinuing the Beetle (for a little while). The 2019 model will be the last one made until smaller vehicles regain popularity.

Ford GM Nissan

Cadillac CT6 and XTS

Both the Cadillac CT6 and XTS are being discontinued in 2019. Essentially, both of these luxury SUVs debuted at a bad time for the market. Luxury buyers with that amount of cash are buying SUVs for the most part.

Cadillac ATS

Cadillac will also discontinue the ATS next year. It was designed as a luxury sedan that would compete with BMW’s 3-series. However, it could not compete with similar vehicles on the market.

Chevrolet Impala

This isn’t the first time Chevy has made the decision to pull the Impala off the production line, so don’t be surprised if you see it pop up again. In the current climate, the Impala could not compete with the overall downfall of the sedan in the car-buying world.

Chevrolet Cruze

Another car Chevy is tossing out is the Cruze. Although the car was popular at first, sales have suffered recently due to the boom in popularity of the SUV.

Chevrolet Volt

The Volt is being taken out of production in 2019 as well. Like many other first-generation hybrids, it never reached the level of popularity GM hoped for. Because of that, GM has switched its focus to battery-powered cars.

Ford GM Nissan

Ford Taurus

Like the Impala, this is not the first time Ford has shown the Taurus the chopping block. It may be the last time though. At one time the sedan was extremely popular, however, those days are gone.

Ford Focus

Another Ford vehicle being taken out of production is the Focus. Like many other manufacturers, Ford is shifting towards SUVs and pickup trucks. As of early December, Ford only had 12,000 Focus cars left.

Ford C-Max

Ford is also discontinuing the C-Max in 2019. The car had a strong start but because of the decline in popularity of vehicles like it and the CR-Z Ford is taking it off the production line.

Ford GM Nissan

Honda CR-Z

Speaking of the CR-Z, Honda is also pulling the popular car model off the line too. The compact hybrid entered the market just as hybrids were declining.

Hyundai Azera

Hyundai is also sending one of its cars to the chopping block in 2019 too. After 2018, there will be no more new Azera models produced. Instead, the manufacturer is focusing on the Genesis.

Nissan Juke

Nissan has announced only one car being put out of production. The Juke is being kicked out for a new crossover called the Nissan Kicks.

Toyota Prius

The popular Prius will be put out of production this year as well. Actually, it hasn’t been manufactured since 2017 but the car is still registering sales.

Ford GM Nissan

Volkswagen Beetle

Volkswagen will be putting the Beetle out of production once again. It is one of the most iconic vehicles in history though, so you’ll probably see new Beetles in the future – don’t worry.

Volkswagen Touareg

VW is also nixing the Touareg in 2019. The company plans to continue selling it in foreign markets but it will no longer be available in the U.S. Instead, Volkswagen will be focusing on larger SUV models, such as the Tiguan and Atlas. The car company has plans to introduce new SUV models to the market as well.

Goodbye Isn’t Forever in the Car Industry

With the auto industry, goodbye doesn’t necessarily last forever. Many automakers have relaunched popular old models if the time is right. Some manufacturers are doing just that in 2019. Ford will revive the Ranger pickup truck and Honda is bringing back the Passport SUV. Toyota will be relaunching its Supra sports car. So, if one of your favorite cars is getting the ax in 2019, don’t worry. There’s a chance you’ll be seeing it again in the future.

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GM Leads the Quest for Self-Driving Cars with Hands-Free Cadillac

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GM Cadillac introducing a hands off self driving car in 2017
It may not be a 100% self-driving car, but when GM releases the Super Cruise Cadillac in 2017, it’ll be the closest we’ve seen yet to this once futuristic technology. They’re calling it “semi-autonomous” which means the car can drive itself in traffic, at speeds of up to 70 mph, without the driver putting their hands on the wheel to steer, or their foot in the pedal to brake or accelerate.

General Motor’s CEO, Mary Barra, who was only appointed this year, made the announcement about the new technology at the Intelligent Transport System World Congress in Detroit on Sunday saying, “With Super Cruise, when there’s a congestion alert on roads like California’s Santa Monica Freeway, you can let the car take over and drive hands free and feet free through the worst stop-and-go traffic around. If the mood strikes you on the high- speed road from Barstow, California, to Las Vegas, you can take a break from the wheel and pedals and let the car do the work. Having it done for you — that’s true luxury.”

GM also plans to install vehicle to vehicle (V2V) transmitting devices in the next two years. This means cars will be able to “talk” to each other and the road environment, or sense hazards before they arise. It will no doubt be a life-saving technology once it becomes a common feature in the vehicles on our roads.

Talking and self-driving cars are on the horizon, though there are several complications and issues that need to be resolved. The first is safety. The technology in automated cars will need to be perfect 100% of the time. And with a record rate of recalls this year (29 million), GM is very aware they are not there yet.

“It’s critical that it works flawlessly every single time. When you look at what has got to come together to make this happen — not just for straight driving on a section of highway, but for every city situation you can imagine — there’s quite a bit of technology that has to come together to make this work.”

The second is efficacy. Self-driving cars need to communicate with each other. So releasing a car with V2V technology is all very well, but unless every car in a driver’s immediate landscape is equipped with the technology, there will be unavoidable blind spots in the system. For example, if no other V2V cars are released prior to 2017, GM’s Cadillac will be left with only other Cadillac models to “talk” with.

Aware of this chicken and egg situation, Barra issued both a challenge and a plea to other automakers saying, “I am asking all of you to accelerate your work in the field as well. Let’s strive to build cars and trucks that don’t crash. Let’s connect our vehicles.”

Money news reports that GM is not alone in the market, “Automakers around the globe are racing to develop self-driving cars to solve the growing problem of global gridlock and help reduce traffic fatalities. There are now more than 1.1 billion vehicles on the road worldwide, Jon Lauckner, GM’s chief technology officer, told reporters in Detroit Sunday. A recent National Highway Traffic Safety Administration study estimated the economic and societal impact of car crashes in the U.S. is more than $870 billion a year.”

Road safety is a cost to us all. There’s the toll of lost lives, increased insurance premiums and more of our valuable time spent on the roads every year. But will self-driving cars and V2V technology solve this problem? Maybe in the long term – when the technology is both affordable and properly tested. In the meantime, we think it’s best not to take your eyes off the road.

(Photo courtesy of That Hartford Guy)

GM Faulty Ignition Switch Issues Extend to Its Website

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General Motors website ignition switch recall issues
It hasn’t been a good year for General Motors and recalls. Those recall troubles aren’t limited to just vehicles, but also to its website. National Highway Traffic Safety Administration (NHTSA) regulators have called out GM saying people who search its website to see if their car is one which has a defective ignition switch are being told their car is OK, when it’s actually on the recall list.

The Federal regulators say that when the vehicle identification number (VIN) is entered into the GM website to identify those cars that have been recalled and need repairs, the website is giving the incorrect information to some owners. GM maintains a website which is supposed to make it easy for customers to find out if their vehicle has been recalled for any reason. By simply inputting the VIN number of the car, the customer is supposed to be able to see a list of all the recall issues which need to be resolved.

The main concern is some owners have been told their car is not on the recall list when in fact it does have an ignition switch issue. The error was that when parts for the repair weren’t available, the website indicated the vehicle didn’t need to be repaired instead of explaining the parts to repair the car weren’t currently available.

Upon determining the issue, the NHTSA told GM to fix the issue and to notify owners of the possible mistake. GM has indicated that it is making those changes to its website.

All GM owners are being encouraged to go back to the website and enter their VIN number again, even if they had previously done so and were told their car wasn’t part of the recall list. This is to make sure they weren’t one of those told their vehicle was not part of the recall when it actually needs to be repaired. If people are still concerned, they should call GM customer care to talk to a live person who can determine if their car is part of the recall.

The ignition switch defect has been linked to at least 13 deaths and has been known since 2001, although GM didn’t recall them until this year. The defective switches can accidentally be jarred out of the proper “run” position while a person is driving. When this happens, power to steering and brakes stops as the engine shuts off making it difficult to steer and stop the vehicle. In addition, the engine shutting off disables the airbags even though the car still might be moving at a high speed with impeded control.

GM has recalled 2.6 million vehicles in February and March 2014 worldwide with this defective ignition switch (2.19 in the US) to replace it. They then recalled another 6.59 million in June with the same issue. One of the issues in getting the switches replaced has been supply. With so many vehicles needing a new ignition switch, the manufacturer has taken months to get the supplies needed.

In all, GM has recalled 29 million vehicles this year for a number of different safety issues.

(Photo courtesy of jm3 on Flickr)

GM Recalls Over 20 Million Vehicles This Year Including Popular Models

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General Motors recalls 2014 and 2015 suv and 4x4 pickups for a total of more than 20 million this year
It hasn’t been the best of years for General Motors when it comes to the reliability of their vehicles. The company announced three new recalls on Friday, bringing the total number of recalls for the year to 48. Those 48 recalls include over 20 million vehicles in all, nearly doubling the most recalls made by the company in a single year, and the year isn’t quite half over. To put it into another perspective, the entire auto industry combined recalled 22 million vehicles in 2013. For owners of GM vehicles, the company has set up a website where you can enter your vehicle’s VIN number to see if it has been recalled. You can access that site here.

Besides the continuing embarrassment of all the recalls, it’s been a costly endeavor for the company as well. GM has set aside a whopping $2 billion for recall repairs through the second quarter ending Monday, and that amount doesn’t include money for the recalled vehicles announced on Friday.

The latest recall involves nearly 430,000 of some of GM’s most popular vehicles from the 2014 – 2015 model years in the US and Canada. These include both Sport Utility Vehicles (SUVs) and 4×4 pickup trucks. The latest issue is a possible software malfunction which can cause the vehicles to slip out of park into the neutral position. This would cause the wheels to lose power if the car was running, or could possibly send the car rolling away from its parked position if the emergency brake wasn’t engaged.

The following GM vehicles have the potential software issue:

  • Chevrolet Silverado (2014 and 2015)
  • GMC Sierra (2014 and 2015)
  • Chevrolet Tahoe (2015)
  • Chevrolet Suburban (2015)
  • GMC Yukon (2015)
  • GMC Yukon XL (2015)

GM has said their dealers will have to recalibrate the software for the vehicle’s transfer case control module in order to fix the software issue. While the issue is known to exist, GM has said they are not aware of any crashes or injuries which have been a result of a software glitch.

In addition, GM is recalling 30,000 Chevrolet Cruze sedans (2013-2014 model year) which have air bag inflator issues. GM says these inflators have the potential to either fail or rupture. If this happens, metal pieces from the faulty system could be propelled toward the driver and cause injury. GM has said that it’s currently aware of a single injury related to the issue. The Chevrolet Cruze is GM’s top-selling car in the US, selling approximately a quarter of a million units in 2013.

In addition to the Cruze, SUV and 4×4 recalls, there were two smaller recalls also announced on Friday. One involved the windshield wipers of 4,800 Chevrolet SS and Caprice police cars, and the other involves the suspension of 2,000 2014 Chevrolet Corvettes with FE1 or FE3 suspensions which need shock absorbers replaced.

June sales are scheduled to be announced for carmakers this coming Tuesday, and the outlook for GM isn’t good. Until this point, there hasn’t been a noticeable effect on demand for their vehicles due to all the recalls, but that might change with this month’s announcement. Part of the issue is, according to Truecar, GM has cut the incentives offered on new cars by almost 12% compared to the same time in 2013. The general consensus is GM is looking for ways to offset the $2 billion it’s already charged off to pay for fixing all the recalled vehicles, but this drop in incentives could also have a significant impact on sales.

(Photo courtesy of Andrea_44)