Strategy & Innovation Newsletter | Edition 2 | 2024
Nissan shares see biggest plunge in two decades as China worries deepen
Shares in Nissan Motor (7201.T), opens new tab tumbled 12% on Friday, their biggest decline in more than two decades, after quarterly earnings undershot expectations by a large margin and it cut estimates for car sales due to stiff competition in China. The emergence of fast-growing, Chinese brands such as BYD (002594.SZ), opens new tab that have rolled out affordable electric cars tailor-made for younger Chinese drivers has led to a steady loss of market share for foreign rivals in the world's biggest auto market.
Japanese automaker’s stance on limited appetite for fully electric vehicles is being reassessed
After spending the past decade as the car industry’s loudest champions of hybrid vehicles, Toyota executives could be forgiven for feeling some measure of vindication. The Japanese carmaker’s dogged determination to pour billions into hybrid vehicles that combine batteries with the traditional internal combustion engine drew criticism from investors and environmentalists alike.
Tesla rival launches electric supercar that can reach 60mph in under three seconds
BYD has launched an all-electric supercar that can hit 60 miles per hour (mph) in under three seconds, as the Chinese start-up seeks to challenge luxury brands such as Ferrari and Lamborghini. The Tesla rival’s Yangwang U9, which will initially go on sale in China with a price tag of 1.68 million yuan (£184,000), has claimed a top speed of 192mph.
Volkswagen recalls 261,000 vehicles over fuel tank issue
Volkswagen is recalling approximately 261,000 vehicles over potentially faulty fuel tank suction pumps. A host of models are affected, including some Audi A3, VW Jetta and VW Golf vehicles ranging from 2015 to 2020 model years.
Volvo’s Divorce With Polestar Is Official, Geely Picks Up The Pieces
Volvo announced it will distribute 62.7 percent of its shares in Polestar to other shareholders, reducing its stake in the EV maker to 18 percent. Volvo Cars won’t provide any further funding to Polestar, but the two companies will retain a “strong operational collaboration across R&D, manufacturing, after-sales, and commercial” channels.
Renault 5 reborn as retro electric supermini for £25,000
As promised, the road car is a faithful translation of the acclaimed concept from 2021, taking heavy inspiration from the original 1970s Renault 5, and it will eventually be joined in dealerships by evolved versions of the similarly nostalgic Renault 4Ever and Twingo concepts. Renault is aiming to defend its position in the increasingly competitive small car market, and the 5 E-Tech is testament to the company’s commitment to providing affordable cars in the EV era.
Insurance news
Advanced Safety Features Are Making Car Crashes More Expensive
Modern vehicles come equipped with advanced driver assistance systems (ADAS) that enhance safety and convenience on the road. These systems, including automatic emergency braking, blind spot monitoring, and lane departure warning, have become increasingly common in today's automobiles. However, a recent study conducted by AAA sheds light on an important aspect often overlooked by consumers – the repair costs associated with these sophisticated technologies.
Minimise risk to keep EV insurance premiums low, fleets told
Fleets are being urged by insurers to minimise risk if they want to keep insurance premiums for electric vehicles (EVs) under control. Last year, the Association of Fleet Professionals (AFP) called on the insurance industry to better understand the fleet risk around EVs, accusing some firms of hiking up premiums based on “incorrect and irrelevant” information.
Digital marketing and retail news
Mitsubishi Launches Digital Retail Program as Auto Manufacturers Tap Omnichannel Tech
As the process of making large-ticket purchases becomes increasingly digital across industries, Mitsubishi Motors has announced a new digital retail program. Mitsubishi Motors North America, Inc. (MMNA) on Monday (Feb. 5) announced the launch of its new online solution, ClickShop 2.0, to link the process of shopping on its own digital platforms and on dealer’s websites to its showrooms, with the auto company claiming that this platform reduces the time it takes to buy a vehicle by 70%.
Automotive News Video: Navigating disruption in the retail model
Addressing the challenge of navigating disruption in the retail model, Michael Cottone, president of Volvo’s U.S. and Canada regions, spoke about the transition to EVs, the expansion of charging infrastructure and how it is all pushing the automotive retail industry to evolve. Cottone’s remarks were part of a panel at the Automotive News Retail Forum: NADA.
EV shopping beats buying an ICE vehicle, according to buyers
Electric vehicle buyers reported the highest satisfaction with the process last year. With 80% of new EV buyers saying they were “highly satisfied” with the process, buying an EV was reportedly much easier than an ICE vehicle.