October 31, 2020

Electric bicycle sales are higher than ever, but it’s created a new problem

While the COVID-19 pandemic shook the world and the e-bike industry with it, the pandemic also led to a huge surge in electric bicycle sales.

Nearly every company that offered electric bicycles soon found themselves with empty shelves and warehouses.

Between people being at home with more time on their hands, riders exiting lockdowns and itching to spend more time outdoors, and commuters looking for socially distant ways to get to work while avoiding public transportation, e-bike sales have never been higher.

But now that’s created a new problem in the industry: supporting all of those customers.

Large e-bike companies who count their customer base in the thousands and tens of thousands were already tasked with managing a carefully orchestrated customer service balance.

But now those systems have been pushed past the breaking point as countless new riders receive bike boxes at their doorstep, a small portion of which inevitably

Read More

Solid Preliminary Results Drive Group 1 Automotive 20% Higher

What happened

Shares of Group 1 Automotive (NYSE:GPI), owner and operator of 186 automotive dealerships, jumped over 20% higher Tuesday after the company released preliminary third-quarter results that included a number of positive developments for investors.

So what

The COVID-19 pandemic hit the automotive industry with plunging showroom traffic and production disruptions that have had negative ripple effects since March. However, demand for new vehicles has broadly rebounded and Group 1 Automotive’s preliminary third-quarter results support the idea the industry is gaining momentum. Management expects third-quarter adjusted earnings per share to check in between $6.40 to $6.80, well above analysts’ estimates of $3.73 per share. The upbeat third-quarter earnings weren’t the only positive development as management noted that higher gross margin helped offset lower sales volumes. Management also announced a $200 million share repurchase authorization and expects to reinstate its quarterly cash dividend in mid-November.

rows of vehicles on a dealership lot

Image source: Getty Images.

Read More

UK car makers face higher tariffs after EU ‘rejects car parts deal’

a car parked in a parking lot full of cars: Trade body the Society of Motor Manufacturers and Traders called for the sector to be prioritised in the negotiations (Gareth Fuller/PA)

© Gareth Fuller
Trade body the Society of Motor Manufacturers and Traders called for the sector to be prioritised in the negotiations (Gareth Fuller/PA)

British car manufacturers could still face higher export tariffs even if there is a post-Brexit trade deal with the EU, according to a letter to the car industry from Britain’s chief Brexit negotiator.

In the letter seen by the BBC, Lord David Frost said the European Commission had rejected proposals for components from non-EU countries used on UK car production lines to be considered British.

Lord Frost admitted in the letter to the car industry that the UK had failed to persuade the EU to agree to the idea – adding that they “obviously cannot insist on it”.

This means that even if a zero tariffs trade deal is agreed between the two parties, UK-manufactured vehicles that do not have enough British components will attract tariffs

Read More