By on May 19, 2022

Mercedes-Benz has said it will cut back its entry-level offers to better prioritize premium vehicles with loftier margins. While this strategy has become relatively uncommon throughout the industry, even among some mainstream brands, Mercedes has historically been synonymous with high-end luxury cars. One wonders why it bothered chasing volume to begin with, especially since it doesn’t seem to have panned out for the company.

While executives had previously hinted at its revised strategy in interviews, Mercedes officially unveiled its plan to investors on Thursday. The German brand will focus investments on top-of-the-heap models like the S-Class at the expense of entry-level products that have failed to garner juicy profits.  (Read More…)

By on May 16, 2022

Rivian

Ford Motor Co. has decided to continue offloading Rivian stock, with the burgeoning electric vehicle manufacturer at roughly $24 per share. After divesting itself of 8 million shares earlier this month, Blue Oval sold another 7 million ahead of the weekend — leaving itself holding about 9.7 percent of the company.

With 86.9 million shares leftover from the sale, Ford remains a relevant stakeholder. However, investors are growing worried that the legacy manufacturer will continue dumping Rivian as a way of salvaging future losses. Ford, which previously owned some 102 million shares in Rivian, endured a massive $3.1-billion loss in its first quarter as the value of its investment in the company slumped. Worse still, investors are souring on tech and EV stocks in general. (Read More…)

By on May 12, 2022

Image: GM

Best known for manufacturing small electronic devices for companies around the world, Foxconn will soon be branching out to assemble automobiles in Ohio. On Wednesday, the Taiwanese Hon Hai Precision Industry Co. (traded as Foxconn) closed on a deal with Lordstown Motors to purchase a 6.2 million-square-foot plant that used to belong to General Motors.

The $230 million deal leaves Foxconn with the facility and 400 Lordstown manufacturing employees it’s supposed to use to assemble the delayed Endurance pickup. Though the long-term plan is to use the plant to become a contract manufacturer akin to Magna Steyr, with an emphasis on all-electric vehicles.   (Read More…)

By on May 11, 2022

Volkswagen Group is reportedly considering reviving the Scout name for North America. Following the merger of trucking subsidiary Traton and Navistar in 2020, VW found itself in possession of the farm-focused International Harvester. While the brand technically hasn’t existed since 1985, the German company effectively owns its intellectual property — including the Scout name — and is keen to leverage some of its nostalgia for an alleged sub-brand specializing in sport utility vehicles.  (Read More…)

By on May 10, 2022

The automotive sector is currently suffering from ongoing component shortages and supply chain bottlenecks stemming from regional restrictions relating to the pandemic. However, it’s assumed that those problems will gradually abate, only to be supplanted by a global deficit of the raw materials necessary for battery production. Analysts have been warning about the shift toward electric vehicles, spurred on by government regulations, for years. But they’re starting to get some company from within the auto industry.

On Tuesday, Stellantis CEO Carlos Tavares suggested that there was a very real possibility that manufacturers could begin confronting serious issues in terms of battery production by 2025 if the shift toward EVs continues at pace. Though his concerns aren’t limited to there being a new chapter in the already too long saga about parts shortages. Tavares is also worried that Western automakers will become overwhelmingly dependent upon Asian battery suppliers which already dominate the global market.  (Read More…)

By on May 9, 2022

hyundai-sonata-eco-grille logo

Hyundai Motor Group has been considering where to establish its planned EV manufacturing hub for the United States for roughly a year now and is reportedly zeroing in on the State of Georgia as a final destination. It’s even said to have conducted some preliminary meetings with local leaders about the possibility of breaking ground in an area that could be strategically aligned with its existing facilities – namely Montgomery’s Hyundai Motor Manufacturing Alabama (HMMA) and West Point’s Kia Motors Manufacturing Georgia (KMMG). (Read More…)

By on May 5, 2022

Nissan has coyly been suggesting that it might someday furnish electrified performance models ever since it released Nismo-badged examples of the humble Leaf for the Japanese market. This was followed by the 2020 Leaf Nismo RC, which served as an experiment to see what would happen if you added a bunch of electric motors in a bid to make the model genuinely fast on a race track.

With the automaker set to deliver 15 new EVs by 2030, there’s been some speculation about how many will boast sporting aspirations. But it looks as though a few might know that Nissan has confirmed its developing Nismo-branded performance electrics for the global market.  (Read More…)

By on May 3, 2022

Rivian Automotive Inc, purveyor of the all-electric R1T and R1S, will receive $1.5 billion in incentives from state and local governments to build a new manufacturing facility in Georgia. Eager to become home to the company’s planned $5 billion assembly plant, the state is offering a comprehensive incentive package that includes tax breaks. The government has a few stipulations, however.

Under the new agreement, Rivian’s factory would be required to produce 7,500 jobs and its existing investment target by 2028 to receive the full $1.5 billion. That includes a sizable battery production site and may explain why the state is offering up the largest corporate incentivization package in its history.  (Read More…)

By on April 29, 2022

Elon Musk has sold an estimated $4 billion worth of Tesla stock days this week after reaching a $44 billion deal to purchase Twitter. Regulatory filing show the CEO offloading nearly 4.5 million shares of the automaker between April 26th and the 27th.

The timing of the transaction makes the why of the situation fairly obvious. Despite the resulting political hubbub, Musk reached an agreement on April 25th to acquire Twitter. The deal was tied up with tens of billions of dollars worth of his Tesla shares to support margin loans after the executive said he could come up with $21 billion in equity. While some questioned where the funding would come from, others claimed it was obvious.  (Read More…)

By on April 26, 2022

On Monday, General Motors publicly asked its suppliers to pledge themselves toward adherence to carbon neutrality. But the vow actually goes quite a bit further, incorporating numerous Environmental, Social, and Governance (ESG) scoring aspects we’ve seen being advanced by some of the world’s most powerful corporations, financial institutions, and world leaders.

In fact, the official name for the oath is the “Environmental, Social and Governance Partnership Pledge” and it’s already been associated with metrics defined by EcoVadis — a third-party assessor that focused on evaluating how individual companies integrate its preferred principles of sustainability, corporate responsibility, social cohesion into their business and management systems.  (Read More…)

By on April 12, 2022

Automotive manufacturers are currently on a quest to secure supply chains to avoid any future embarrassments relating to absent materials or missing components. If the last few years have taught the industry anything, it’s that it is always better not to get caught with your pants down. So we’re now seeing most of the major players trying to lock down raw materials necessary for battery production as they pitch upward in value in anticipation of numerous firms transitioning to all-electric vehicles.

Cobalt has been of particular interest to automakers and General Motors recently entered into a formal agreement to purchase the chemical element from the Anglo-Swiss commodities trader Glencore Plc.  (Read More…)

By on April 7, 2022

Despite Porsche transitioning to all-electric vehicles with the rest of Volkswagen Group, the brand believes that its customers will still want to drive around vintage gasoline models even after the European Union has banned them into oblivion. This is especially important for the iconic 911, which the company has repeatedly hinted would be one of the last models in its lineup to ditch internal combustion.

With countless racing series already devoted to classic examples of the car, Porsche wants to ensure there’s a solution for motorists who want to do more than pet theirs in a silent garage should the government introduce even stricter standards for automobiles than what’s already coming down the pike. So it’s revisiting alternative fuels — specifically a carbon-neutral alternative to gasoline that would work in traditional engines — from Chilean e-fuel producer Highly Innovative Fuels, with whom it’s already investing.  (Read More…)

By on March 29, 2022

Despite news that Volkswagen Group’s largest shareholder is eager to list the Porsche brand, rumors are swirling that the plan might be delayed over the conflict in Eastern Europe. VW and Porsche SE have openly shared their desire to launch the initial public offering (IPO) in the fourth quarter of 2022. However Porsche Automobil Holding SE’s finance head has suggested it might not be prudent if Russia is still occupying parts of Ukraine.

“We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing,” CFO Johannes Lattwein recently explained during a press conference held in Berlin, adding that no formal decisions have yet been made.  (Read More…)

By on March 1, 2022

Lordstown Motors has gone from the savior of Ohio to just another blowhard electric vehicle startup. Last year, it became the focus of investment research firm Hindenburg Research and an incredibly damning report that accused the company of fraudulent behavior. The paper cited thousands of non-binding, no-deposit orders and was proven right a few months later when the startup announced it didn’t actually have enough money to commence commercial production. By June, Lordstown was under investigation and losing top-ranking executive with nothing to show for itself other than a factory it purchased from General Motors at a discount where it installed a pointless solar panel array. The company said it would be selling the plant to Foxconn Technology Group (Hon Hai Technology Group) in October, along with $50 million in stock, with the plan being to make the Taiwanese firm a contract assembler for the Lordstown Endurance pickup.

It’s going to need that money too because GM is severing ties with the startup and has confirmed it offloaded its remaining stock over the holidays. While the Detroit-based automaker only held about $7.5 million worth of shares, it still represented about 5 percent of Lordstown and continued support of a business that looked to be foundering.  (Read More…)

By on February 22, 2022

Volkswagen Group is apparently in talks with Porsche Automobil Holding SE about a potential initial public offering (IPO) for the Porsche luxury/sports brand. According to a statement from VW, the duo has already negotiated the agreed-upon frameworks and is in final discussions as to when they want to move forward.

Weeks of rumor preceded corporate confirmation, making it seem like the proposed deal was already a shoo-in. But any final decisions will still need to be approved by the management and supervisory boards — something Volkswagen Group said has yet to happen(Read More…)

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