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Weekly Recap: Tesla loses money, still dominates the news

Some people get an inordinate amount of attention. In politics, it's Donald Trump. In football, it's Jim Harbaugh. And in the auto world, it's Elon Musk and his always-fascinating electric car company, Tesla Motors. General Motors is spending $877 million to upgrade a factory. So what! US auto sales are up. Who cares? Tesla has a metal snake that will recharge your car! So was the week in Tesla – er, the industry. Snarkiness aside, Tesla did dominate the news cycle, led by the announcement the company lost $184 million in the second quarter. Tesla also said it expects to deliver between 50,000 and 55,000 vehicles this year, and is preparing for a full launch of the Model X crossover in September. Musk also made news during the earnings call by simply not answering a question about ride sharing, leading to speculation Tesla could be considering its own operation. While the financials were the arguably the most important company news, reports of a Model S cyber hacking were more compelling fodder for Tesla followers. Researchers were able to attack the sedan and bring it to a stop, though they required access to the car first. Tesla says it already has deployed a remedy for the situation. On a lighter note, Tesla published a video of its metal charger prototype that autonomously uncoils like a snake to power up the company's vehicles, provoking plenty of humorous comments and comparisons. Watch it and decide for yourself. While some of this might seem trivial, much of Tesla's recent attention has been warranted. It's the first startup US automaker in decades to launch from nothing and actually gain traction in the market. Sure, Musk is a lightning rod and Tesla always seems to be in the spotlight. But amid all of the publicity, it easy to lose sight of the new reality: Tesla is a force. OTHER NEWS & NOTES 2016 Chevy Volt lights up 106 MPGe The Chevy Volt's vitals are looking healthier for 2016. The second-generation plug-in hybrid racks up a gaudy 106 miles per gallon equivalent, which is an increase of eight MPGe from the 2015 model. The new Volt can travel 53 miles on electricity, a significant jump from the 2015 Volt's 38-mile range. The new car also has a 420-mile total range when factoring in the capability of the gasoline engine, which is 40 miles greater than the current car offers.

Mazda goes on engineer hiring binge as recovery picks up speed

Japan's larger automakers - companies like Toyota, Honda and Nissan - have tremendous engineering talent at their disposal. That's largely because, selling as many cars as they do, they've got more revenues to tap into. Logic might dictate, then, that smaller automakers like Mazda, which no longer has the deep pockets afforded to it by its former partnership with Ford, might have less of a budget and workforce for engineering. But Mazda has been raking in record profits, and it plans on cashing those revenues in by hiring a substantial new pool of engineers.
According to Automotive News, Mazda is preparing to hire as many as 185 new engineers over the next two years - almost four times as many as the 50 engineers it previously targeted. Many of those engineers will be put to work developing the second-generation, Skyactiv 2 technologies that are on the drawing board while the first round of Skyactiv features are still being rolled out.
The boost in recruitment is enabled by a positive fiscal year that ended last March, marking the first profits Mazda had logged in four years. Sources anticipate that the fiscal year culminating at the end of this month will mark the company's most profitable yet, netting over a billion dollars to eclipse the fiscal year that ended in 2008 when it recorded $872.5 million in profits.

Mazda and Toyota formally announce plans to 'make cars better'

Following Monday's report that Toyota and Mazda could be expanding their cooperation, the two Japanese automakers have made it official, issuing a joint press release announcing a "mutually beneficial long-term partnership" that will "make cars better." The two companies will set up a joint committee to figure out the strengths and weaknesses of each party. As we explained yesterday, that likely means Mazda will benefit from Toyota's plug-in-hybrid and fuel-cell tech, while the world's largest automaker can take advantage of the Zoom-Zoom automaker's line of efficient Skyactiv engines. "I am delighted that our two companies can share the same vision and work together to make cars better. I can think of nothing more wonderful than showing the world – together – that the next 100 years of cars will be just as fun as the first," Toyota President Akio Toyoda said in the attached joint statement. Mazda President and CEO Masamichi Kogai echoed that sentiment, saying: "I hope that by working together to make cars better, we can raise the value of cars in the eyes of consumers while also enhancing the manufacturing capabilities of our home, Hiroshima, and all the communities we are involved in as well." Scroll down for the official joint press release. Toyota and Mazda Team Up to Make Cars Better Tokyo, Japan, May 13, 2015-Toyota Motor Corporation and Mazda Motor Corporation today entered an agreement to build a mutually beneficial long term partnership. By leveraging the resources of both companies to complement and enhance each other's products and technologies, the partnership will result in more appealing cars that meet the diverse needs and tastes of customers all over the world. A joint committee will now be set up to evaluate how best to utilize each company's respective strengths. The committee will encourage broad and meaningful collaboration across a range of fields, including environmental and advanced safety technologies. Marking the agreement, Toyota President Akio Toyoda said: "As evidenced by their SKYACTIV Technologies and KODO-Soul of Motion design, Mazda has proven that it always thinks of what is coming next for vehicles and technology, while still managing to stay true to its basic carmaking roots. In this way, Mazda very much practices what Toyota holds dear: making ever-better cars. I am delighted that our two companies can share the same vision and work together to make cars better.