Strategy & innovation newsletter | Edition 6 | 2024
Vauxhall owner says plants could shut unless UK helps EV makers
The owner of the Vauxhall, Peugeot and Citroën brands has warned its car plants in Ellesmere Port and Luton could close unless market demand for electric vehicles picks up and the UK loosens regulations.
The UK managing director of Stellantis said the company did not want to shut operations in the UK but it would make a decision in “less than a year” in the face of unreasonable government sales quotas and the lack of consumer incentives in relation to VAT on vehicles and electricity.
Rivian Stock Spikes After Volkswagen Deal But Investors Should Pause
Volkswagen plans to invest as much as $5 billion in electronic vehicle maker Rivian, reported CNBC.Rivian’s stock price is down 52% since I last wrote about the company in a July 2023 Forbes post. Shares are trading at 91% below their all-time high of $172.
Following the announcement, Rivian’s shares rose more than 50% and have since backed off somewhat — opening up 36% at $16.26 in early trading on June 26.
No more EV! New BMW X3 gets petrol, diesel and PHEV power only
This is the all-new BMW X3. The brand’s mid-size premium SUV has proven immensely popular over its former three generations, and as such is a main profit driver for the German brand globally. Now in its fourth generation, this new model has been redesigned from the ground up to suit combustion and plug-in hybrid powertrains exclusively.
That’s right – the also big-selling all-electric iX3 won’t be offered this time around. The EV’s demise leaves space for the impending Neue Klasse SUV, however, which is due to be shown next year before going on sale shortly after.
Tesla rises ahead of Q2 deliveries report
July 1 (Reuters) - Shares of Tesla (TSLA.O), opens new tab gained nearly 6% on Monday, after a key Wall Street brokerage added the stock to its watch list ahead of the automaker's quarterly production and delivery report on Tuesday.
At $209.38, Tesla could add $36.68 billion to its market value if the price holds, which would mark the fifth straight session of stock gains.
BYD: China’s electric vehicle powerhouse charges into Europe
Germany’s men kicked off Euro 2024 on Friday in Munich. The city is storied in football terms, but it also occupies an important place in Germany’s self-image for a different reason: Munich is home to BMW, one of the country’s car exporting powerhouses.
Yet it will not be the logos of BMW or German rivals including Volkswagen or Mercedes-Benz plastered on stadiums or television coverage. Instead, China’s BYD is the only carmaker to sponsor Europe’s premier international tournament.
Jaguar Land Rover achieves record-breaking sales as luxury car demand booms
Jaguar Land Rover (JLR) has achieved its highest ever yearly sales and its biggest profit in nearly a decade, as the luxury carmaker shrugs off any signs that budget-squeezed consumers have been reining in spending.
The company said it made £29 billion in revenues over the year to the end of March, more than a quarter higher than the previous year.
Ford recalls more than half a million trucks because transmission can suddenly shift to 1st gear
Ford is recalling more than 550,000 pickup trucks across the US after hundreds of complaints that transmissions can unexpectedly downshift to first gear, no matter how fast the vehicles are going.
The sudden down-shifting can cause drivers to lose control and increase the risk of crashes, according to the auto manufacturing giant. Ford has reportedly received complaints from almost 500 vehicles, and was aware of at least two injuries as a result of the issue.
Insurance news
Mandated Anti-Speeding Tech For New Vehicles Begins In Europe
Motorists who enjoy speeding along Germany’s Autobahn or other European high-speed roads should be prepared to be encouraged to slow down by a group of electronic backseat drivers known as intelligent speed assistance or ISA.
Starting Monday, every new vehicle sold in Europe must be equipped with an ISA system., according to a directive by European Commission’s European Road Safety Charter. The move comes two years after the body made ISA mandatory for new models/types of vehicles introduced on the continent.
New Drivers and Electric-Vehicle Tech Bring New Risks to Auto Insurance Market
High claim severities, persistent risky driving behavior, electric vehicles and shop-and-swap consumers are challenging auto insurers to stay profitable. The challenges will continue through the end of the year and beyond, according to the 2024 U.S Auto Insurance Trends Report from LexisNexis Risk Solutions.
“Auto insurers are navigating a dynamic and challenging market environment in 2024. For their part, consumers are displaying more unpredictable driving and policy shopping behavior and increasingly switching carriers to find better rates,” said Adam Pichon, senior vice president of global analytics, insurance, LexisNexis Risk Solutions.
Digital marketing and retail news
Online Auto Industry Stalls as Consumers Drive New Digital-First Experiences
With consumers unwilling to trust eCommerce channels to complete their car-buying journeys, the online auto sales industry is seeing shifts.
For instance, Bloomberg reported this week that private equity firm Thoma Bravo is looking into selling Canadian digital automotive marketplace Trader, which it acquired in 2016. The company’s valuation could be $2.9 billion or more including debt.
A study from Cox Automotive found that while 50% of car buyers completed at least some of the steps digitally in 2023, only 7% did so exclusively online. Those shares skyrocketed to 85% and 16%, respectively, for new electric vehicle buyers.
Icons must become challengers: reinventing automotive retail
To gauge the pace of change in the automotive industry, consider this: at its peak in the autumn of 2021, Tesla’s market cap was equivalent to all of the next ten most valuable carmakers combined—not bad for a company that was less than 21 years old. Times are changing, and it’s not just about the shift from the internal combustion engine to electric. Even the most cherished car brands are racing to find new and better ways to connect with modern audiences.