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On the surface, Faraday Future appears to been having a run of good luck. It had gotten a major investment from healthcare division of Chinese real estate group Evergrande; testing is continuing on their first EV, the FF 91; and the company has started building pre-production vehicles at its US plant. But trouble always seems to be looming and it has struck once again for the start-up automaker. Yesterday, Reuters reported on a filing made by Evergrande Health for the Hong Kong stock exchange accusing Faraday Future of trying to cancel a deal to sell a 45 percent stake to Evergrande. Back in June, Evergrande Health agreed to buy the 45 percent stake into FF from previous owner Season Smart for $2 billion. It would begin with an $860 million initial payment, followed by installments of $600 million for 2019 and 2020. But Evergrande was notified a month later that FF had spent the $800 million it received from Season Smart back in December and was short on cash. It had agreed to pay $700 million ahead of schedule provided FF met certain undisclosed payment conditions. But FF and CEO Jia Yueting has opened arbitration to nullify the deal as it said Evergrande did not fulfill its end of the bargain - providing the cash. Evergrande sees it very differently, accusing Yueting of manipulating board members to move forward with arbitration. The company also claims that FF wants to revoke Evergrande's ability to approve plans to raise more money. That isn't the only money trouble FF is having. The Verge has learned from sources that a number of vendors and suppliers have not been paid in weeks. Emails that date back to August reveal Faraday Future representatives trying to explain the delay in payments is due to issues in payment processing. There are other excuses, Emphasis mine. One vendor told The Verge that an FF rep suggested they should hire a collection agency. Three other vendors have filed liens with the California Secretary of State - one of those totaling $400,000 for equipment sold to FF. If that wasn't enough trouble for the company, FF's sole preproduction version of the FF91 caught on fire last month. The fire took place a few hours after the vehicle debuted at a “Futurist Day” event for its employees and families. The extent of damage is not clear as FF "made employees sign non-disclosure agreements specifically related to the fire," according to former employees. This is a major setback to the company's plan to begin production later this year. Source: Reuters, The Verge View full article

Tesla is asking suppliers to refund some of the cash on past work as a way to make the automaker profitable. The Wall Street Journal obtained a memo that was sent to a Tesla supplier last week. The company requested that the supplier return " a meaningful amount of money of its payments since 2016." The memo goes onto say that the request is essential to Tesla's "continued operation" and would "continue the long-term growth between both players." Its unclear how many suppliers received this memo. Tesla's list of suppliers include Magna, Panasonic, and Robert Bosch GmbH. Tesla declined to comment on the memo, but did confirm that it is seeking price cuts from suppliers on various projects, some which date back to 2016. The company said such requests are a standard part of negotiations with suppliers. Supply-chain consultants say this is normal for automakers to request price reductions on current projects. Asking for money back on a completed one is very unusual. “It’s simply ludicrous and it just shows that Tesla is desperate right now. They’re worried about their profitability but they don’t care about their suppliers’ profitability,” said Dennis Virag, a manufacturing consultant. This report casts serious questions as to Tesla's money situation. The company has been burning through a billion dollars per quarter, and finished the first quarter with $2.7 billion cash on hand. Source: Wall Street Journal (Subscription Required) View full article

The Geneva Motor Show saw Mercedes introduce their new AMG GT 4-Door and BMW revealing their M8 Gran Coupe concept. We still find ourselves scratching our heads as to why these vehicles exist in the first place, but a new Bloomberg report explains an interesting reason as to why automakers are building them. These high-performance models with high price-tags will help generate the cash needed to develop electric vehicles. BMW for example is in the midst of its largest rollout of new models and variants. Most of them will be higher-margin to help get more cash into their coffers. "The market for high-end, high-performance four-door coupes will get significantly more crowded," said Tim Urquhart, an automotive analyst with market researcher IHS Markit. "They are high-value models aimed at boosting margins and brand prestige" and have proved "popular with sports- and supercar owners who need a four-door when they start a family." It doesn't hurt that four-door coupes are easy to develop since they share platforms and engines with regular sedans. All that's needed is a sleek body. Source: Bloomberg via Automotive News (Subscription Required) View full article

Tesla is known for building quick vehicles, but they're also known for burning through a lot of cash. Bloomberg recently crunched some numbers on how fast Tesla goes through money and the amount is quite shocking. According to their data, Tesla has been burning through $8,000 per minute (about $480,000 in an hour) for the past 12 months. At this rate, Bloomberg predicts that Tesla could run out of money by next August. Tesla spending money like it is going out of style is not all that surprising. The automaker is trying to ramp up production of the Model 3 along with dealing with various issues. Still, the $8,000 per minute figure gives us an idea of how far Tesla still has to go before exiting what it calls 'production hell'. Investors still are bullish on the electric car builder, with a share price of $317.81 at the close of trading yesterday. Tesla also has a market capitalization of more than $53 billion, beating the likes of Ford ($48 billion). The difference being is that Ford is able to consistently make a profit. Tesla says they have enough cash to meet its target of building 5,000 Model 3 sedans per week by the end of March, and expects to “generate significant cash flows from operating activities” afterward. The company is also reservations on their Roadster due in 2020* to help raise funds. Buyers will need to plop down $50,000 for the standard model or $250,000 for the Founders Edition. Tesla will only produce 1,000 models of the Founders Edition, meaning they could possibly produce $250 million in income. “Whether they can last another 10 months or a year, he needs money, and quickly,” said Kevin Tynan, senior analyst with Bloomberg Intelligence. Tynan estimates that Tesla needs to raise $2 billion or more in capital by mid-2018 to stay afloat. Source: Bloomberg View full article

Nearly 20 years ago, GMC decided to create a luxury version of its Yukon SUV called the Denali by putting on some chrome wheels and leather upholstery. Today, Denali is available on most of GMC's lineup and makes up 25 percent of total sales. It also makes GMC a lot of money. Motor Authority reports that the Denali trim gives GMC highest transaction price of any non-luxury brand in the industry. To put it another way, if GMC was its own automaker, it would be ranked 150th in the Fortune 500 list. How is this possible? You only need to look at GMC's top vehicles. Close to three out of four Yukons sold are Denali with price tags beginning at $65,000 and climbing. 50 percent of Sierra HDs are Denalis with average transaction prices ranging from $60,000 to $75,000. Source: Motor Authority View full article

The big thing in pickup trucks at the moment is luxury models. Chevrolet has the Silverado High Country while the Denali has been part of GMC for quite awhile. Ram has quite the variety of luxury pickups with the Laramie Longhorn and Limited. Ford also has a range of luxury trucks from the Lariat to the Platinum. But the blue oval decided that wasn't enough and has introduced the 2016 F-150 Limited. Ford bills the F-150 Limited as the "the most advanced, luxurious F-150 ever." Ford has thrown everything and the kitchen sink in terms of standard equipment. All Limited models get heated and cooled Mojave leather front seats with "multicontour massaging," fiddleback eucalyptus inserts, heated rear seats, SYNC 3 with AppLink, 10-speaker Sony sound system, 360-degree camera system, adaptive cruise control, active park assist, a remote tailgate release, and a laser-engraved VIN plate with production number on the center console lid. The exterior gets a set of 22-inch wheels, a satin chrome finish on a number of exterior pieces such as the grille and door handles; and Limited written across the hood. Power will come from a 3.5L EcoBoost turbo V6 with 365 horsepower and 420 pound-feet of torque. There will be choice of either two or four-wheel drive. Pricing hasn't been announced, but sales are to begin this winter. Why is Ford doing this? It comes down to sales and profit. Ford said 60 percent of F-Series sales were made up of 'high-series trims' - Lariat, King Ranch, and Platinum. This has seen the average transaction price of the F-Series grow 9 percent to $44,100 compared to a year ago. “There’s a lot of people who buy trucks as both a work tool and a status symbol. You have a lot of wealthy businesspeople who have the money to buy an extremely capable and extremely luxurious truck. It’s not any financial stretch for these people to spend 50 or 70 grand,” said Karl Brauer, senior director of insights for Kelley Blue Book to Automotive News. Source: Ford, Automotive News (Subscription Required) Press Release is on Page 2 NEW TOP-OF-THE-LINE FORD F-150 LIMITED IS MOST ADVANCED, LUXURIOUS F-150 EVER New Ford F-150 Limited meets the growing needs of discerning truck customers interested in exclusivity, capability and craftsmanship – those looking to differentiate themselves from buyers of other high-series trucks Innovation comes standard with new F-150 Limited – including SYNC® 3 with AppLink™, and class-exclusive1 features such as a 360-degree camera system, adaptive cruise control, quad-beam LED headlamps, remote tailgate release and multicontour massaging front seats Exclusive exterior and interior design elements include raised LIMITED lettering on the hood, unique custom satin-chrome grille and tailgate, 22-inch wheels, genuine fiddleback eucalyptus, Mojave leather seating surfaces, unique instrument cluster face and laser-engraved VIN plate with production number NEWPORT BEACH, Calif., July 21, 2015 – Ford, America’s truck leader, introduces its most advanced and luxurious truck ever – the Ford F-150 Limited. The new Limited expands the F-150 model lineup – Ford’s toughest, smartest, safest and most capable F-150 ever – with more standard technology and driver convenience features than any other light-duty pickup. The Limited, a 2016 model, goes on sale this winter. “The F-150 Limited sets a new bar for what discerning customers should expect in a high-end truck,” said Raj Nair, Ford group vice president, Global Product Development. “We’re adding segment-exclusive technology, and features that improve productivity, convenience and capability with distinctive style.” There’s a Ford F-150 for every truck customer, beginning with work-ready versions that have a starting MSRP below the Chevrolet Silverado 1500 WT, as well as the popular mid-range F-150 XLT. But the new F-150 Limited meets the growing, untapped needs of luxury customers looking for exclusivity, convenience and fine craftsmanship that’s differentiated from other high-series trucks. F-150 Limited surpasses the well-appointed Lariat, the Western-themed King Ranch and contemporary Platinum edition models. In 1999, the company introduced the special-edition 2000 Harley-Davidson F-150. In 2001, the first King Ranch F-150 arrived. The 2009 F-150 took truck luxury to new heights with the Platinum model, and the first-generation Limited was added with the 2013 model year. Exterior refinements The 2016 Ford F-150 Limited stands out with exclusive 22-inch polished aluminum wheels and raised dimensional LIMITED lettering on the hood, unique grille and satin-finished chrome badge on the tailgate. The chrome front bumper has body-color end caps while the rear bumper is body color; bright belt moldings visually tie the two together. The exterior is further accented by satin-chrome door handles and chrome exhaust tip. Available colors include Shadow Black, Magnetic, Blue Jeans and White Platinum Metallic tri-coat. Top-tier equipment The standard equipment list is a showcase of the best F-150 Limited has to offer to make getting work done easier and with greater comfort. BLIS® with cross-traffic alert, chrome front tow hooks (4x4 only), panoramic vista roof, power-deployable running boards, quad-beam LED headlamps, remote start and tailgate release, as well as an integrated trailer brake controller come standard. A technology package includes a lane-keeping system, 360-degree camera system and dynamic trailer hitch assist. Interior equipment includes heated and cooled black and Mojave leather front seats that are unique in design and feature Limited badging, 10-way power adjustment and class-exclusive1 multicontour massaging. Heated rear seats and SYNC® 3 with AppLink™ are also included. SYNC 3 is Ford’s newest communications and entertainment system that features enhanced voice recognition, high-speed performance, capacitive touch screen and easier-to-understand graphical interface.3 F-150 Limited also includes a Sony® 10-speaker sound system with HD Radio™, subwoofer and single CD player paired with a five-year subscription to SiriusXM Traffic and Travel Link to complete the package. The interior is further differentiated from other F-150 models with a laser-engraved VIN plate on the center console lid including production number. Unique front and rear floor mats, unique instrument cluster face, genuine fiddleback eucalyptus, and aluminum interior accents and unique scuff plates with ice blue backlighting further distinguish the Limited model. All-new, segment-first Pro Trailer Backup Assist is available that makes it easier for drivers of all skill levels to back a trailer up to launch a boat or park in a driveway. The technology allows customers to steer a trailer instinctively by turning a knob left or right to indicate direction; the truck controls its steering and limits vehicle speed. Advanced power and fuel efficiency The 2016 F-150 Limited is powered by the 3.5-liter EcoBoost® V6, which allows for towing of up to 10,100 pounds when properly equipped. This advanced powertrain produces 365 horsepower and 420 lb.-ft. of torque – the latter unsurpassed by any truck with a comparable engine in its class1 – and has an EPA-estimated fuel economy rating of 17 mpg city, 24 mpg highway and 20 mpg combined. The engine is paired with an electronic six-speed automatic transmission with tow/haul and sport modes that features SelectShift® with progressive range select. Four-wheel-drive models are equipped with two-speed automatic four-wheel drive that automatically shifts between two-wheel and four-wheel drive depending on driving surface traction conditions. View full article

By William Maley Staff Writer - CheersandGears.com January 30, 2013 Bloomberg is reporting that Fisker has hired hired Huron Consulting Group Inc. to help with day to day operations and to conserve cash while it goes searching for a partner. As we reported last Monday, Fisker is currently looking for a partner in China. Two people familiar with the situation say Fisker is currently seeking first-round bids by early February. If Fisker doesn't get the funds or has a partner by midyear, the company risks burning through cash a person tells Bloomberg. “We’re making prudent business decisions to help secure an alliance or partnership,” said Fisker spokesman Roger Ormisher. Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article