Auto File-China’s targeted tit-for-tat; Ford investors' long wait
Nov 5 -By Nick Carey, European Autos Correspondent
Greetings from London!
It’s U.S. presidential election time again and after the dust and plethora of lawsuits settle, no matter which candidate takes office in late January, continued contentious relations with China over cars are guaranteed.
The Biden administration has built on the Trump administration’s tariffs with hefty duties of its own and has proposed barring Chinese software and hardware from U.S. roads, which would effectively ban Chinese EVs.
Neither Kamala Harris nor Donald Trump are likely to backpedal on protectionist measures against the Chinese.
But Trump has also threatened huge tariffs against Mexico and, more recently, smaller ones against Europe. Trade wars aplenty, at least in theory.
Automakers have been careful to stress publicly they can work with whomever wins. But after all the drama surrounding the renegotiation of NAFTA last time around, executives will be eyeing the possibility of a second Trump presidency with more than a little trepidation.
Which brings us to today’s Auto File:
China targets tariff backers
Ford investors impatient for change
BYD’s massive expansion
China takes aim at EU tariff backers
It did not take long after the EU confirmed its decision, once again, to slap tariffs on Chinese-made EVs before we found out what China’s government has in mind next for retaliation.
Instead of country-specific products like brandy, pork or dairy, China’s government has apparently told key automakers BYD, SAIC and Geely specifically to stop investing in EU member states that voted in favor of tariffs. You can read all about it here.
Individual European countries have been vying for Chinese car plant investments, so those like France, Poland and Italy that voted for tariffs could lose out, a blow in particular for the Poles and Italians who have been eager to land investments.
Those that voted against, such as China-friendly Hungary, could end up winners with fresh investments.
Perhaps more ominously, Reuters reported that at the Oct 10 meeting where China’s government let its wishes be known, western automakers in attendance were also prodded to invest in EU countries that opposed tariffs.
On the bright side, despite all the rhetoric China and Europe are at least still talking. China tried prodding France, which supports the EV tariffs, to back down, but the French said “non, merci.”
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A better Ford, always around the corner
Ford’s long-running efforts to improve its cost and efficiency are apparently still stuck in low gear. As my Reuters colleague Nora Eckert reports, investors are not happy about it. You can read her story here.
CEO Jim Farley has been flagging cost problems for years, but he told analysts after the automaker posted results and lowered its full-year outlook that quality and warranty problems, supplier issues and waste have hobbled its progress.
Ford might have less annoyed investors were it not for the solid performance of crosstown rival General Motors, posting profits above Wall Street expectations and raising its own outlook.
In other bad news for Ford, the company has halted production of its F-150 Lightning electric pickups for six weeks amid weak demand.
As part of a fresh attempt to get a handle on Ford’s perennial cost problems, according to sources Farley has told employees that manager bonuses, which are tied to efforts to improve quality and lower costs, will be slashed to 65% of their total.
BYD grows some more
Fresh off the back of posting an 11.5% rise in third-quarter net profit, China’s BYD said that it boosted production by 200,000 cars from August to October while also adding 200,000 new employees in car manufacturing and components.
Back in September, BYD said it had increased its workforce to more than 900,000 people as the Chinese government intensified a push for job creation to offset a faltering economy.
To put that in perspective, Toyota and Volkswagen, the world’s top two automakers, employ a little over 1 million people between them globally.
BYD has been on a tear lately, expanding into Europe and across Asia.
But lest we forget, while nipping at Tesla’s heels for the title of world’s biggest EV seller, the company also faces growing competition from other automakers at home in China.
For instance, China's Geely just unveiled its latest hybrid technology, which boasts better fuel economy and driving-range figures than that sold by market leader BYD.
Suzuki’s India unit to make Toyota EV
In a fresh sign of the cooperation needed to make the very expensive shift to making EVs, Suzuki’s Indian unit will supply an electric SUV to Toyota starting in 2025.
The EV was jointly developed by Suzuki, Toyota and Daihatsu and will be made at Maruti Suzuki’s plant in the western Indian state of Gujarat. The EV is a first for Toyota and Suzuki, which have previously worked on gasoline and hybrid models together.
The new model will be one of 10 fully-electric vehicles the world's biggest automaker has said it will launch by 2026.
Fast Laps
Volkswagen asked workers to take a 10% pay cut, saying this is the only way to save jobs as Europe's biggest carmaker said its profits had plunged to a three-year low.
Stellantissaid its revenue fell 27% in the third quarter, as the automaker seeks to fix bloated inventories and a poor sales performance that led to a major profit warning in September.
Chinese EV maker Nio plans its first hybrid model in 2026 and will only sell it in overseas markets, including the Middle East, North Africa and Europe.
Tesla raised the wages of all employees at its German gigafactory outside Berlin by 4% at the start of November.
Editing by Bernadette Baum
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Τελευταία νέα
Δήλωση αποποίησης ευθύνης: Οι οντότητες του ομίλου XM Group παρέχουν υπηρεσίες σε βάση εκτέλεσης μόνο και η πρόσβαση στην ηλεκτρονική πλατφόρμα συναλλαγών μας που επιτρέπει στον ενδιαφερόμενο να δει ή/και να χρησιμοποιήσει το περιεχόμενο που είναι διαθέσιμο στην ιστοσελίδα μας ή μέσω αυτής, δε διαφοροποιεί ούτε επεκτείνει αυτές τις υπηρεσίες πέραν αυτού ούτε προορίζεται για κάτι τέτοιο. Η εν λόγω πρόσβαση και χρήση υπόκεινται σε: (i) Όρους και προϋποθέσεις, (ii) Προειδοποιήσεις κινδύνου και (iii) Πλήρη δήλωση αποποίησης ευθύνης. Ως εκ τούτου, το περιεχόμενο αυτό παρέχεται μόνο ως γενική πληροφόρηση. Λάβετε ιδιαιτέρως υπόψη σας ότι τα περιεχόμενα της ηλεκτρονικής πλατφόρμας συναλλαγών μας δεν αποτελούν παρότρυνση, ούτε προσφορά για να προβείτε σε οποιεσδήποτε συναλλαγές στις χρηματοπιστωτικές αγορές. Η πραγματοποίηση συναλλαγών στις χρηματοπιστωτικές αγορές ενέχει σημαντικό κίνδυνο για το κεφάλαιό σας.
Όλο το υλικό που δημοσιεύεται στην ηλεκτρονική πλατφόρμα συναλλαγών μας προορίζεται για εκπαιδευτικούς/ενημερωτικούς σκοπούς μόνο και δεν περιέχει, ούτε θα πρέπει να θεωρηθεί ότι περιέχει συμβουλές και συστάσεις χρηματοοικονομικές ή σε σχέση με φόρο επενδύσεων και την πραγματοποίηση συναλλαγών, ούτε αρχείο των τιμών διαπραγμάτευσής μας ούτε και προσφορά ή παρότρυνση για συναλλαγή οποιωνδήποτε χρηματοπιστωτικών μέσων ή ανεπιθύμητες προς εσάς προωθητικές ενέργειες.
Οποιοδήποτε περιεχόμενο τρίτων, καθώς και περιεχόμενο που εκπονείται από την ΧΜ, όπως απόψεις, ειδήσεις, έρευνα, αναλύσεις, τιμές, άλλες πληροφορίες ή σύνδεσμοι προς ιστότοπους τρίτων το οποίο περιέχεται σε αυτήν την ιστοσελίδα παρέχεται «ως έχει», ως γενικός σχολιασμός της αγοράς και δεν αποτελεί επενδυτική συμβουλή. Στον βαθμό που οποιοδήποτε περιεχόμενο ερμηνεύεται ως επενδυτική έρευνα, πρέπει να λάβετε υπόψη και να αποδεχτείτε ότι το περιεχόμενο δεν προοριζόταν και δεν έχει προετοιμαστεί σύμφωνα με τις νομικές απαιτήσεις που αποσκοπούν στην προώθηση της ανεξαρτησίας της επενδυτικής έρευνας και ως εκ τούτου, θα πρέπει να θεωρηθεί ως επικοινωνία μάρκετινγκ σύμφωνα με τους σχετικούς νόμους και κανονισμούς. Παρακαλούμε εξασφαλίστε ότι έχετε διαβάσει και κατανοήσει τη Γνωστοποίησή μας περί Μη ανεξάρτητης επενδυτικής έρευνας και την Προειδοποίηση κινδύνου όσον αφορά τις παραπάνω πληροφορίες, τις οποίες μπορείτε να βρείτε εδώ.
