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
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
