2006 Ford F250 Lariat on 2040-cars

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Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Recharge Wrap-up: Atieva making EV with former Tesla talent, Holland lowers PHEV incentives

A reduction of tax incentives on company cars in Holland is expected to put the brakes on plug-in hybrid sales. Cars are taxed at an average of 25 percent, with plug-in hybrids taxed at just seven or 14 percent, depending on emissions. Taxes on PHEV company cars will increase to 14 and 21 percent. With company car leases making up a third of vehicle sales in 2014, the uptake on PHEVs "will likely go back to regular volumes," according to Volvo's Christiaan Krouwel. It could be a boon for battery electric cars, as their tax rate will remain at four percent for company cars. Read more at Automotive News Europe. Ford is testing cylinder deactivation in its 1.0-liter EcoBoost engine. On-road prototype testing has shown improvements in fuel economy of as much as six percent. Ford engineers developed a system using a new dual mass flywheel, pendulum absorber, and tuned clutch disc to allow cylinder deactivation under a wider range of speed and engine loads with less NVH. "The highest priority in the development of new combustion engines for automotive applications is the ongoing reduction of fuel consumption," says Ford's Andreas Schamel, presenting Ford's findings to the Vienna Motor Symposium. Read more at Green Car Congress or in the press release from Ford. Atieva is building an EV with the help of numerous former Tesla employees. The Silicon Valley-based startup was founded in 2007 by a former Tesla vice president, and its roster includes 12 other former Tesla employees. Already well funded, Atieva is now looking to fill its ranks with more talent, with 32 engineering positions, two recruiter positions and other job openings posted at its website. As for the EV it is working on, Atieva says it is "redefining what a car can be, by building an iconic new vehicle from the ground up." Read more at Charged EVs. Testing shows that Joule ethanol, made from recycled CO2, meets standards for use in the US and Europe. In partnership with Audi, Joule has been working toward making its recycled CO2 fuels ready for commercialization. "We are pleased to achieve another critical step towards our planned near-term delivery of fuel-grade ethanol from recycled CO2," says Joule President and CEO Serge Tchuruk. "Using waste CO2 as a feedstock, our technology has the two-fold advantage of reducing greenhouse gas emissions and producing cost-competitive, drop-in fuels." Joule will use these test results to get government approval for the use of its ethanol in highway fuel.

Mopar Hellephant is sold out, but here are 4 other awesome crate V8s to try

Despite a relatively enormous $30,000 price tag, Mopar's 1,000-horsepower supercharged Hellephant crate engine sold out in just 48 hours. Some enthusiasts may have missed out on the crazy engine due to lack of funds, or they just assumed there would still be some Hellephants down the line. But worry not, swap-happy gearheads. There are plenty of V8s in the world to pick from, and we highlighted four favorites. They're not as powerful, but they're all cheaper, and still have a lot to offer. Mopar 6.2L Hellcrate Odds are a lot of prospective Hellephant buyers were Mopar fans to begin with, so we'll start the list with the next-most-potent offering: the Hellcrate. This is the same supercharged 6.2-liter V8 found under the hood of the Dodge Charger and Challenger Hellcats and the Grand Cherokee Trackhawk. It makes 707 horsepower and 650 pound-feet of torque like those cars, too. It's also about $10,000 cheaper than the Hellephant engine at $20,020, and that leftover money can be used to finish the project or for aftermarket upgrades to get it closer to the Hellephant's output. GM LS9 6.2L The Hellcrate isn't the only factory supercharged crate engine on the market. From General Motors comes the supercharged 6.2-liter LS9 V8. This is the engine that was used in the C6 Corvette ZR1. At 638 horsepower and 604 pound-feet of torque, it doesn't make as much power or torque as the Hellcrate. But it does boast a dry sump oil system. So instead of pumping oil out of a pan at the bottom, the engine uses an oil tank mounted remotely that pumps oil into the engine. This means the engine is shorter overall, and can be mounted lower for a better center of gravity. It also means that there's almost no risk of running the engine dry in hard cornering, as could happen with a normal oil sump where the oil can slosh to the side without the oil pump. Basically, it offers some major benefits if you want supercharged V8 power for a road course car. It's also a tad cheaper than the Hellcrate at $18,149. But get one while you can, because GM is only selling what's left from when it was building the C6 ZR1. Ford Aluminator 5.2XS Our pick from the Blue Oval lacks a supercharger, but it's still pretty sweet.