Tesla Model 3 production falls short of targets in Q3

Published: Monday, October 02, 2017 @ 4:46 PM
Updated: Monday, October 02, 2017 @ 4:45 PM

Tesla Inc. missed its third-quarter production goals for its new Model 3 sedan, leaving customers and analysts to wonder if the company will meet future targets for the hotly anticipated electric car.

Tesla said it delivered 220 Model 3 cars in the quarter. It has produced a total of 260 Model 3s at its Fremont, California, factory since production began in early July.

At that time, Tesla CEO Elon Musk tweeted that the company should be making 100 Model 3s in August and "above 1,500" in September. He also said the company would likely be making 20,000 Model 3s per month by December.

But Musk also warned, in late July, that Tesla would go through "at least six months of manufacturing hell" as it ramped up production of the Model 3. He said there is always a risk of machines breaking down or suppliers not coming through with parts.

On Monday, Tesla blamed "production bottlenecks" for the slow rollout. But it said it was confident it could fix those issues.

"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain," the company said in a statement. "We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term."

More than 500,000 people are on a waiting list to get a Model 3. The car, which is half the price of Tesla's previous models, is critical for the company's goal of moving from a niche manufacturer of luxury cars to a mainstream automaker.

Akshay Anand, an analyst at Kelley Blue Book, said vehicle production is one of the most complex tasks a company can undertake, and he noted that Tesla had slow production ramp-ups for its previous vehicles, the Model S sedan and Model X SUV.

"This is just one quarter, but if production misses continue into the fourth quarter and even beyond, Tesla will be in a much more precarious position since their future largely relies on the Model 3 being a success," Anand said.

Despite its issues with the Model 3, Tesla said it delivered a record number of vehicles in the third quarter. The Palo Alto, California-based company delivered 26,150 vehicles in the July-September period, up 4.5 percent from the same quarter a year ago. A little over half of those were Model S sedans; the rest were Model X SUVs and the handful of Model 3s.

Tesla said it expects to deliver about 100,000 Model S and X vehicles in 2017, which would be a 31 percent increase over 2016.

Tesla's shares fell 1 percent to $336.79 in after-hours trading.

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New Dayton-area manufacturer pledges 100 jobs

Published: Thursday, June 21, 2018 @ 3:46 PM


            The exterior of Hematite’s Lau Parkway facility on a rainy day. THOMAS GNAU/STAFF
The exterior of Hematite’s Lau Parkway facility on a rainy day. THOMAS GNAU/STAFF

For one of the Miami Valley’s newest manufacturers, the building is over and the work begins.

Actually, much of the building still remains for new Englewood auto supplier Hematite, which had an open house at its new Lau Parkway facility Thursday. And in a sense, the work really began with a groundbreaking last June.

Hematite has invested $14 million into its 106,000-square-foot production site and expects to invest another $5 million by 2020.

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The Canadian-owned company uses recycled materials to treat vehicle under-bodies and craft acoustic components that affect how much noise penetrates a vehicle. The business also makes air- and water-management parts.

Eighteen Englewood employees today work to supply Toyota with parts. By 2021, the Hematite facility should have about 100 employees serving North American customers.

“Supplying the auto industry is not an easy task,” said Jacques Nadeau, Hematite chief operating officer.

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The company considers itself an environmental champion, using materials that might otherwise have ended up in a landfill.

“The environmental aspects of our industry are not something we can forget,” said Jonathan Bridges, director of automotive for JobsOhio, the state’s private development corporation.

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A new local auto parts supplier is a big deal. Though the Dayton area is no longer home to a full vehicle assembly plant and a cohort of Delphi plants — in the late 1990s, the area at one point had some 15,000 Delphi workers — the Dayton Development Coalition and Montgomery County officials have pursued deals with foreign transplants and domestic companies that make parts, such as Fuyao Glass America, which has 2,300 employees in Moraine.

“The Dayton region likes to make things,” Julie Sullivan, vice president of development for the coalition, said at Hematite’s groundbreaking last June. “We always have. And we’re good at it. “

In 2017, Montgomery County commissioners approved $400,000 to Englewood to assist in the plant’s building.

“It has been years and years of working and building to get here,” John Pavanel, Hematite president, said Thursday.

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JUST IN: Mexican restaurant to build new area location

Published: Thursday, June 21, 2018 @ 8:57 AM

Contributed
Contributed

La Piñata Mexican Grill & Bar has plans to build a new standalone restaurant in Centerville.

The restaurant has submitted plans to build the restaurant at the intersection of Sheehan Road and Ohio 48 at the site of a former Coldwell Banker location.

» RELATED: Bill’s Donuts to close for renovations

La Piñata has a location just a block away at 1069 S Main St. in the same shopping center as the Kroger Marketplace. City officials said that restaurant will be closed when the new building is built.

Plans show the new restaurant will have an outside patio that will seat 36 and the inside will seat 127. It will also include a new “tequila bar” and will have enough space so that on busy days workers aren’t “trying to play Tetris” to get around the restaurant, said co-owner of the family business Javier Mata.

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The new location should open by the end of the year at the latest, said Mata. Mata expects the restaurant will need to close for around three days to make the move.

Coldwell Banker Heritage opened a new modern office at 8534 Yankee St. that it renamed it Coldwell Banker at Yankee Centre.

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Kroger’s new approach to stocking shelves is boosting its earnings

Published: Thursday, June 21, 2018 @ 12:11 PM


            JAROD THRUSH / STAFF
JAROD THRUSH / STAFF

Shares of Kroger Co. surged Thursday after the company topped Wall Street expectations and gave an upbeat outlook.

The grocery store has been making more investments in online offerings while shedding more traditional convenience stores in an effort to become more competitive. Earlier this year it sold its convenience store unit for $2.15 billion and then went on to increase its investment in British online grocer Ocado.

Kroger has invested more than $53 million in its regional presence in recent years. It has 44 supermarkets, 12 locations with ClickList services and another 10 locations with Starbucks services. The popular grocer employs more than 8,100 associates in the Dayton region.

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It also bought meal-kit seller Home Chef as competitors including Albertsons and Amazon also expand into that market.

The stock gained $2.90, or 11 percent, to $29.12 in premarket trading.

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The Cincinnati company’s profit surged to $2.03 billion, or $2.37 per share, mainly on the sale of its convenience store unit. Earnings, adjusted for non-recurring gains, came to 73 cents per share.

Revenue rose 3.4 percent to $37.53 billion.

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Analysts expected profit of 63 cents per share and revenue of $37.21 billion.

Other key figures include a 66 percent boost in digital sales and a 1.9 percent boost in same store sales, topping expectations for 1.5 percent growth.

The company tightened guidance and now expects between $2 and $2.15 per share in profit for the year. The low end of the range had been $1.95 per share.

Kroger shares have dropped nearly 5 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 3.5 percent. The stock has risen 17 percent in the last 12 months.

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New study lowers chemical water safety standards to Dayton’s current levels

Published: Thursday, June 21, 2018 @ 10:34 AM

Water well field at Huffman Dam is operated by the city of Dayton. TY GREENLEES / STAFF
Water well field at Huffman Dam is operated by the city of Dayton. TY GREENLEES / STAFF

A new study on potentially dangerous substances found in water is coinciding with the city of Dayton’s own recent findings in a startling coincidence.

Paul Buszka, a supervisory hydrologist with the U.S. Geological Survey in Indianapolis, pointed to the release Wednesday of a draft study about the risks posed by PFAS substances (polyfluoralkyl) from the federal Agency for Toxic Substances and Disease Registry. 

The study lowers the level at which no harm would be expected into the single digit parts-per-trillion (ppt) range.

RELATEDExpert: Dayton’s water should be monitored 

According to the study, the proposed “minimum risk levels” of PFAS equate to about 7-ppt and 11-ppt for two compounds.

Those levels are close to levels of similar compounds found in local water this year.

Dayton and Montgomery County have been sending customers notices with the results of recent testing of treated water leaving the city’s Ottawa Water Treatment Plant. The results of March testing show PFAS detected at a level of 7 to 13 parts per trillion.

Experts are reacting to the new study carefully.

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“If you’re getting close to those levels — and again this (draft study) was just released — just the idea that those compounds are present is a reason for people to sample and to understand the extent of the issue better,” Buszka said in an interview. “That’s probably as far as I would go with it.”

He referred further questions to the Ohio Environmental Protection Agency.

An Ohio EPA spokesman took questions about the study but had no immediate responses. 

 

“Looks like the lower exposure levels may be of concern, although I have not had time to read carefully, only skim,” said Rita Loch-Caruso, a professor of toxicology and water expert at the University of Michigan.

RELATEDDayton water chemicals prompt warning to local residents 

“So what advice to give? It is hard to say without a more careful review,” Loch-Caruso added.

U.S. Rep. Mike Turner, R-Dayton, applauded the release of the draft findings Thursday.

“This is a matter of public health and safety,” Turner said in a statement. “Based on this information, I encourage federal, state, and local environmental regulators to examine whether they are appropriately communicating the risks presented by and adequately addressing the presence of PFOS and PFOA in drinking water. We must ensure agencies at all levels are using the most reliable data and best available science to ensure our drinking water remains safe.”

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