Canada: Rivian R1T Overland Concept


Rivian hasn't even launched any vehicles, and it's already building special editions and devising expensive accessories for its R1T electric pickup.

The latest is a camping special, not sized for a giant slide-in camper, but outfitted with a bed-top tent and an integrated slide-out kitchen for camping or tailgating cookouts.

The R1T has a unique "gear tunnel" underneath the front of the bed. It's big enough for a few sets of golf clubs and has access via fold-down doors on either end that double as sturdy, flat steps to give owners a boost into the bed. That is where Rivian installed a slide-out kitchen to wow visitors to the Overland Expo outside of Flagstaff, Arizona, last weekend. The kitchen includes storage drawers and cupboards, as well as a two-burner induction cooktop that runs on the truck's big 135-kilowatt-hour or optional 180 kWh battery.

The removable kitchen isn't the only accessory Rivian has shown for the R1T. At the Overland show, the truck was also fitted with an accessory tent mounted on racks that sit over the bed, as well as a roof rack to mount off-road accessories such as a "come-along" hand winch.

In February, the company also revealed a patent for various types of removable batteries that fit in the pickup bed, either like a traditional toolbox behind the cab or lying flat across the bed floor to take up a little depth, without impinging on bed length.

The R1T is scheduled to go on sale late next year and be followed by the R1S SUV less than a year later.

Source: The Car Connection


Moody's cut its rating on Nissan Motor Co by one notch on Friday, citing weak sales in the United States and casting a shadow on the Japanese automaker's move to improve its business following a decline in its annual profit. Nissan reported a 45% plunge in annual operating profit in the year ending March, and forecast a 28% drop in profit this fiscal year. Moody's cut its rating of Nissan's credit to "A3" from "A2", adding that the outlook was negative.

Source: Reuters


Tata Motors, the Indian Auto giant, announced its Q4 2019 (ended March 2019) and FY 2019 results on May 20, 2019, followed by a conference call with analysts. For the year, the company missed consensus for revenue and reported $43.7 billion, down by 1.3% y-o-y. The decrease was driven largely by a fall in sales volume of Jaguar Land Rover. The earnings missed consensus and were recorded at $-0.24, lower than the $1.50 per share in FY 2018.

Source: Forbes


Canadian dealers and automakers could face some tough choices if the Canadian dollar continues to fall against its U.S. counterpart, industry experts say. with 70-80 percent of vehicles sold in Canada coming from outside the country — mainly from the United States but also from Europe and Asia — an unfavorable exchange rate becomes a critical factor in their cost. "There's no doubt the value of the dollar does affect pricing in Canada," said Dennis DesRosiers, president of DesRosiers Automotive Consultants in Richmond Hill, Ont. The only remaining question is who pays: the automaker, the dealer or the consumer? If the automaker passes the price increase along to the consumer, it risks losing market share. If it swallows the higher cost, that hurts its profit margin, DesRosiers said. The loonie slumped to a near four-month low of US74.04 in April after the Bank of Canada said economic growth this year would be slower than expected and held its trendsetting interest rate at 1.75 percent. Thursday, the loonie closed at US74.19.

One cent equals $250

DesRosiers estimates that for every US one-cent decline in the value of the Canadian dollar, the imported cost of a vehicle rises by $250 to $300. His figures assume an average retail price of $35,000, including cars and light trucks, with an average import cost of $21,000.

Most automakers don't like to raise the manufacturer's suggested retail price, especially when the market is soft, said Brian Murphy, vice-president of research at Canadian Black Book, a dealers' guide to new- and used-car prices. Instead, they will use other strategies to cut costs, such as reducing incentives or making more standard features optional, Murphy said. The industry typically tries to manage short-term swings in currency valuations, but "ultimately it's the consumer that pays," said Don Romano, CEO of Hyundai Canada. Since 2014, when the value of the Canadian dollar reached US 90 cents, Canadians' buying power has fallen, Romano said. "We're paying more for everything," he said, "not just cars." Prices don't immediately increase, but since 2016, the average transaction price of a car sold in Canada has risen to $35,200 from $33,000, Romano said, citing figures supplied by the California-based market researcher J.D. Power.

What's for sale affected

The biggest impact of the low dollar on Canadian auto dealers is the availability of product from the manufacturers, said Shahin Alizadeh, president, and CEO of Downtown Autogroup in Toronto, which sells 12 brands across 11 dealerships. "If the car is hot in the U.S., imagine having a 35 percent advantage in making a decision where does the product land, especially in the luxury brands," Alizadeh told Automotive News Canada. "Why would they want to collect Canadian dollars?" On the flip side, a higher U.S. dollar benefits Canadian dealers by boosting demand for Canadian-owned used vehicles from American buyers, Alizadeh said.

Automakers with assembly plants in Canada can benefit from a lower Canadian dollar, depending on how many parts they import, because they sell 85 percent of what they make outside the country, most of it to the United States, said David Adams, CEO of Global Automakers of Canada (GAC). Toyota, Honda, Ford, General Motors and Fiat Chrysler Automobiles all have assembly plants in Canada.

Most automakers use foreign-exchange hedging to minimize the impact of currency fluctuations on their business, Adams said. It's too soon to say what impact the lower loonie is having on Canadian new-car dealers, said Oumar Dicko, an economist with the Canadian Automobile Dealers Association (CADA). "We have not heard this concern from our dealers. That's not to say it's not there."

The Canadian dollar is expected to end the year at about US 75.5 cents, said Jennifer Lee, senior economist with BMO Capital Markets. That could change depending on how the Canadian economy performs and whether the U.S. dollar strengthens. Sales of new vehicles in Canada are expected to fall to 1.93 million units in 2019 from 1.98 million in 2018 and 2017's all-time high of 2.04 million, said Scotiabank economist Juan Manuel Herrera.

Source: Automotive News Canada


When the U.S. auto industry was looking down a barrel in 2008, General Motors did the unthinkable and quietly proposed a merger with cross-town rival Ford Motor. It didn't happen – GM ended up filing for Chapter 11, while Ford managed to avoid a bailout. But the fact they even broached the matter spoke volumes about the pressures those rivals were under.

Now, Europe's auto industry has its own pause-and-gasp-for-breath equivalent. On Monday, Fiat Chrysler Automobiles said it hopes to merge with Renault to form the world's third-largest carmaker (or by far the largest if you include Renault's alliance partner Nissan, which arguably one should).

There are attractions in collaboration, but this merger proposal goes well beyond a more limited alliance or partnership. So why is Fiat's billionaire chairman, John Elkann, taking such a big risk? Unlike their U.S. counterparts in 2008, neither Fiat nor Renault is losing money or facing imminent collapse. But both face painful industry upheaval: car sales are slowing, just as the costs of developing electric vehicles and of complying with ever-stricter emissions targets are surging. Fiat thinks the answer is to achieve huge scale and thereby share the financial burden in meeting those challenges. Is it?

Due to its limited financial resources, Fiat is a laggard in electric vehicles while Renault is an acknowledged leader. But thanks to its acquired Jeep and Ram brands, Fiat has a very profitable truck and SUV business in the U.S. By contrast, Fiat's European operations are hardly profitable, which may explain why it picked Renault as a potential merger partner over Peugeot SA, whose sales are more heavily skewed toward Europe.

Cost savings?

Then there are the cost and investment savings, which Fiat estimates could total 5 billion euros ($5.6 billion) annually. There are reasons to be skeptical about that figure. No factory closures are planned, which is typically one of the quickest and most painful ways to slash expenses. Instead, the savings are expected to come from common purchasing, shared vehicle platforms, and R&D. Factoring the lengthy timespan the synergies will take to achieve, plus integration costs and that headline figure might be worth only about 3.5 billion euros of value creation to each side, by my rough calculations.

Before today, both companies were valued at just 4 times estimated earnings -- poor even by the standards of the auto industry. Doubtless, the merged entity would hope to enjoy a stock market re-rating which might improve the financial benefits of a deal to about 5 billion euros for each side. For all that promise, Fiat and Renault each gained only about 2 billion euros of market value on Monday in European markets. That discount doubtless reflects the risk that the deal may not happen or deliver the promised benefits.

Governance risks

Merging the two companies would create huge complexity and governance risks that the promised large slate of independent board members might still struggle to alleviate.

Neither side was likely to countenance being the junior partner in a tie-up. It's fortunate, then, that Fiat and Renault's market capitalization weren't all far apart, so a merger of equals is possible, at least on paper. The slight valuation disparity would be offset by a cash payment to Fiat shareholders.

But mergers of equals rarely work, and automotive M&A especially has a poor track record. Fiat's acquisition of Chrysler was a success, but Daimler's earlier acquisition of Chrysler was a disaster. It's odd that Fiat has pitched a merger while Renault is in a tussle with its alliance partner Nissan. Perhaps the Japanese will view this as a helpful distraction that will stop Renault's managers trying to deepen their alliance for the time being. A merger with Fiat would also dilute the influence of the French state, which currently holds 15 percent of Renault's shares and even more of the voting rights. However, it's also possible Nissan will see this is an attempt to swing the weight of the Renault-Nissan alliance even more toward Europe. As with the alliance, politics presents a huge challenge to this merger. Expect France and Italian interests to battle for every cent of investment spending. If job cuts become a necessity, things could get even more tense. But politics also explains why this deal is even being discussed. By demonizing diesel vehicles while clamping down on carbon emissions, governments have backed carmakers into a corner. As in 2008, this is what happens when an industry gets desperate.

Source: Automotive News Europe


The latest vehicle sales forecast from J.D. Power and LMC Automotive shows a new-car market challenged by "rising inventories of unsold vehicles." But some dealers are getting a shot in the arm from their used-car sales, which for franchised dealers have grown nearly 6% month-to-date, according to J.D. Power — though other analyses show mixed results for the overall used retail market. Starting with the new-car side, J.D. Power and LMC are predicting 1,226,800 retail new-car sales for May, which would be a 3.1% year-over-year dip and the fifth straight month of softer sales.

Source: Auto Remarketing

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions