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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: your radio, this is a Bloomberg Business Flash and I'm

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Speaker 1: record as investors assessk the health of the world's biggest

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Speaker 1: economy amid disappointing reports from companies. We checked the markets

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Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. SNP

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Speaker 1: EVENI future is now up a point. Dowie Mini futures

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Speaker 1: have twenty three and nasac emny futures have one decks.

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Speaker 1: In Germany's a one point three per set ten your

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Speaker 1: treasury of four thirty seconds, the YELD one point seven

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Speaker 1: two per set non max Scrude oil up one percent

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Speaker 1: or forty eight cents to fifty dollar seventeen cents of

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Speaker 1: barrel Co Max scold on half percent or six dollars

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Speaker 1: thirty cents at one ten announced the euro at all

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Speaker 1: our thirteen fifty eight the N one oh seven points

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Speaker 1: right five three And that's a Bloomberg business flash, Tom

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Speaker 1: and Mike Karen Mosco, thank you very much. It is

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Speaker 1: General Motors investor day, Mary Barrow, the CEO, just concluding

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Speaker 1: a press briefing. Earlier. She spoke with our David Weston

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Speaker 1: and suggested that GM's future is bright and she doesn't

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Speaker 1: quite understand why the stock price is not higher right now,

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Speaker 1: GM going for down a penny from yesterday, going for

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Speaker 1: thirty fifteen. I'm sorry, it's up a penny for me yesterday,

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Speaker 1: about sixteen cents from yesterday. But anyway, stocks down about

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Speaker 1: twelve percent so far this here. Kevin Tynan covers the

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Speaker 1: auto industry for Bloomberg Intelligence. He joins us now as

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Speaker 1: Mary Barrow meets with analysts. Kevin, does she have a

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Speaker 1: point of perhaps about their stock? Oh? Absolutely, I think

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Speaker 1: if you look at valuishing across the industry, you can

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Speaker 1: make that argument for a lot of companies except for

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Speaker 1: probably one of them. UM and I think the concern,

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Speaker 1: Mike is that, uh, demand is at a peak globally

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Speaker 1: and especially in the profit center, which is the is

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Speaker 1: North America, and that when we go through the trough

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Speaker 1: and come back out and start the up cycle, the

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Speaker 1: industry is going to be very different. And the question

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Speaker 1: or the concern that investors have right now is that

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Speaker 1: where are these companies. How well prepared will they be

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Speaker 1: when we come out on the other side of this cycle, UM,

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Speaker 1: for what the auto industry will be at that point

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Speaker 1: in time, Well, what do you see, uh, the auto

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Speaker 1: industry becoming at that time? We've been in this seventeen

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Speaker 1: million sales figure for a while. Everybody seems to be happy,

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Speaker 1: right I think. I think the issue is that even

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Speaker 1: if we sustain that seventeen million level UM, the pressure

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Speaker 1: is to the downside in terms of volumes. So if

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Speaker 1: ride sharing autonomous vehicles basically mean we don't need to

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Speaker 1: be purchasing or the consumer doesn't need to be purchasing

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Speaker 1: as many vehicles every year, UM, it's it's sort of

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Speaker 1: the need for a stress test for the automakers to say,

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Speaker 1: you know, ten eleven million units is okay, we can

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Speaker 1: still be profitable at that level. But I think the

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Speaker 1: thing to keep in mind is that as as the

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Speaker 1: industry goes through a cycle, we've seen all this talk

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Speaker 1: of autonomous self drive and connectivity ride sharing because there

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Speaker 1: was a rationalization of the cost structure when demand was

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Speaker 1: so low. When profitability returned, there was all this investment.

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Speaker 1: That investment isn't going to be as intense through the

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Speaker 1: bottom of the cycle. So to think that technology and

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Speaker 1: and and the new iteration of the auto industry is

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Speaker 1: going to can tenure while while volume declines, I think

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Speaker 1: it's incorrect. Well, I mean, and again it's always odd

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Speaker 1: to talk about Kevin and that revenue is gone from

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Speaker 1: a hundred and five billion up to a hundred and

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Speaker 1: fifty five billion, and EBA does up. You know, it's

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Speaker 1: up a modest amount, but it's still eleven cents on that.

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Speaker 1: You know, EBA does eleven cents on the dollar. Kind

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Speaker 1: of business. I mean, it's a multi business to begin with.

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Speaker 1: Is the the ownership psychology there? I mean, we've the

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Speaker 1: stereotype GM is sevent suv and pickup trucks. You say,

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Speaker 1: most of us don't perceive that. We still think it's

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Speaker 1: a sexy hostmobile, cutlass convertible with the girl inside it. Okay, fine,

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Speaker 1: but as the ownership a real trend that all of

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Speaker 1: these companies have to deal with. Yeah, and and it is.

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Speaker 1: And I think in the series that David Weston did

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Speaker 1: and he's talking to Dan Ammon and and and dadam

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Speaker 1: makes it very point is that, you know, don't think

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Speaker 1: so much about car ownership, think about miles traveled. We

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Speaker 1: still as a as a nation, as a as a planet,

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Speaker 1: have to cover that. So if ride sharing or autonomous

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Speaker 1: or self driving vehicles increase accessibility for people, there's this

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Speaker 1: whole new flock of shoppers or consumers that need to

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Speaker 1: get around. So the ownership may be different in terms

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Speaker 1: of the consumer and personally having a car sit in

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Speaker 1: the parking lot here for eleven hours, um, but we

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Speaker 1: still need to get around. And and that's what the

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Speaker 1: transition is right now. What are these companies going to

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Speaker 1: be on the other side of that? How are they

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Speaker 1: going to cover the same, if not more? In Dan

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Speaker 1: amm and Destimation and mine as well, more miles traveled

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Speaker 1: per year by the consumer. It's one of the things

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Speaker 1: that is talking about, you know, look to the future. Um,

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Speaker 1: she's she's so that they're gonna cut fleet sales and

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Speaker 1: make themselves the most fuel efficient automaker across the board.

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Speaker 1: But isn't that the strategy also of Ford. It is

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Speaker 1: and I think though her points were well made in

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Speaker 1: that in the urban centers, fuel efficiency rides, sharing those

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Speaker 1: kind of things are going to be become important. That's

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Speaker 1: not really where their strength is. UM and I think

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Speaker 1: it will be a long time and probably through several

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Speaker 1: cycles where the fuel efficiency the Chevrolet Vault, the Bolt

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Speaker 1: will actually um will be what funds the additional truck

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Speaker 1: sales and uh, you know in terms of cafe corporate

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Speaker 1: average fuel economy. By by being involved in that space,

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Speaker 1: the hundred and six MPGe of Chevrolet Vault, it will

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Speaker 1: enable them to sell five or six more Chevrolet Silverados,

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Speaker 1: which will be especially in in in the middle of

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Speaker 1: the country, which will be the trend for several more

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Speaker 1: side goals. This doesn't happen tomorrow, UM And I think

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Speaker 1: what what GM and Ford and everybody else is trying

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Speaker 1: to do, UM, maybe maybe a little bit covertly, is

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Speaker 1: to say, well, we'll be involved in this plug in

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Speaker 1: or this e V technology and get credit for two

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Speaker 1: of these things starting in and it will enable us

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Speaker 1: to sell our very profitable pickup truck and suv. Kevin,

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Speaker 1: thank you so much. Kevin Tynan with Bloomberg Intelligence on

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Speaker 1: general motors and the challenges of the ownership in the

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Speaker 1: coming years ahead. Futures Up to Death. Features of gold

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Speaker 1: Troup forty two. The Ounce down five dollars, Michael McKee,

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Speaker 1: Tom King, Bloomberg's Advance. We're counting down to the opening bell,

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