Greg Tarr

U.S. sales also hit by an aging portfolio and a lack of hybrids. TOKYO – Nissan has a Rogue problem in the U.S. that is torpedoing global profits. A lackluster launch of the updated crossover, Nissan’s top-selling nameplate, forced the embattled Japanese automaker to hoist incentives on mounting inventories of the outgoing model. The result was soaring expenses that nearly erased parent company operating income. In announcing the dramatic profit plunge in Nissan’s fiscal first quarter, CEO Makoto Uchida blamed the downturn on U.S. operations and cut the company’s full-year financial outlook. “We were unable to boost volume as expected,” Uchida said at the company’s July 25 earnings announcement. “This has been a very challenging quarter for Nissan.” Nissan’s operating profit collapsed 99 percent to 995 million yen ($6.4 million) in the three months ended June 30. Net income tumbled 73 percent to 28.56 billion yen ($183.0 million). Worldwide sales essentially flatlined at 787,000 vehicles in the April-June quarter. Nissan’s North American volume declined 1.7 percent to 323,000 vehicles, on a 3.1 percent slide in U.S. deliveries to 237,000. Sales slid because of problems in model changeovers for the Rogue and Sentra small car as well as because of Nissan’s aging product portfolio and its lack of hybrids. “The results for the first quarter were due to the impact of the U.S. operations,” Uchida said. “We knew that optimization of inventories in the U.S. would pressure our profit.” Selling expenses To limit the decline and bolster demand, Nissan booked overall selling expenses and pricing adjustments of around 77.8 billion yen ($498.5 million), taking a huge bite out of operating income. Nissan cleared stocks of the 2023 Rogue as the company rolled out the freshened 2024 model of the popular nameplate. The model changeover, Uchida said, was further undermined by a sudden softening of overall U.S. market demand that required more spiffs. Nissan’s spending over the quarter came mostly in the form of consumer loan assistance, instead of cash on the hood, in an effort to buoy resale values, Uchida said. “The most important factor here is U.S. inventories,” he said. Nissan’s global inventory, including dealer and company stocks, has swelled since March 2022, when it stood at 250,000 vehicles. By the latest quarter, it had ballooned to 640,000 vehicles. Nissan plans to reel in inventories to manageable levels over the July-September quarter, partly by adjusting production, Uchida said. Upcoming updates of higher-margin, up-market nameplates, including the Murano crossover and Armada SUV, will help sell vehicles, he said. Nissan thinks it can bring down U.S. inventories 20 percent by the October-December quarter. In other regions, Nissan’s sales rose 7.6 percent to 79,000 in Europe in the quarter ended June 30. China saw a stabilization from last year’s sales slide, contributing a 3.3 percent volume increase to 167,000 vehicles.

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Automaker is reinvesting profit in next-gen EVs, software and AI. TOKYO – CEO Koji Sato wrapped his first year at the helm of Toyota by driving profit up 77 percent in the latest quarter to rack across-the-board record results as the world’s biggest automaker bankrolls piles of cash to plow into next-generation technologies. The automaker did not skip a beat in saying how it would reinvest the bonanza. The company said it would boost investment in growth technologies such as electrification, software and artificial intelligence by 42 percent to 1.7 trillion yen ($11.24 billion) in the current fiscal year. Toyota will also spend billions more on improving human capital, including efforts to support suppliers and dealers. Those outlays will tally about 380.0 billion yen ($2.51 billion). The outlays are so heavy they will eat into earnings this fiscal year. Ever-conservative Toyota forecast that operating profit and net income will actually fall in the current fiscal year ending March 31, 2025, retreating from the just-achieved records. The slowdown is part of an intentional pause Sato outlined earlier this year as part of an effort to regroup and stay profitable for the long run after sprinting to record sales and production. “We need this time of plateau for our long-term future growth,” Sato said at a Tokyo news conference. “We would like to make proactive efforts for future sustainable growth.” In the company’s just-ended fiscal fourth quarter ended March 31, Toyota’s operating profit soared 77 percent to 1.11 trillion yen ($7.34 billion), from 626.9 billion yen ($4.14 billion) a year earlier. Toyota delivered a stellar double-digit operating profit margin of 10.0 percent in the quarter, up from 6.5 percent the year before. Net income nearly doubled to 997.6 billion yen ($6.59 billion) in January-March, from 552.2 billion yen ($3.65 billion) a year earlier. Global revenue rose 14 percent to 11.07 trillion yen ($73.17 billion) in the quarter. Toyota stormed ahead as the global semiconductor shortage eased and customers snapped up the company’s trademark gasoline-electric hybrid vehicles. The company cranked up its global manufacturing machine to record output. Favorable foreign exchange rates also helped, bolstering yen-denominated earnings and adding 305.0 billion yen ($2.02 billion) to operating profit. Consolidated global sales declined 7.9 percent to 2.15 million units in the quarter, including shipments from the company’s Daihatsu minicar and Hino truck-making subsidiaries. North American sales rose 18 percent to 655,000 units; Europe increased 13 percent to 308,000. Deliveries in the home market of Japan tumbled almost by half to 363,000.

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Renault is set to develop much of its sub-€20,000 (US$21,700) #TwingoEV in China, partnering with an unnamed local company to bring affordable EVs to market faster. 👉 “The development of the car will be done with a Chinese partner to improve our development lead time and costs,” a Renault spokesperson stated. ➡ European automakers face mounting pressure to update their line-ups amidst slow economic growth and diminishing EV subsidies. ✅ Meanwhile, Chinese brands are making inroads in the region with more affordable models, such as BYD’s #Seagull #hatchback, slated for release next year at a price below €20,000. ➡ #Renault’s collaboration with a Chinese partner also aims to accelerate its EV development process. ✅ This initiative is separate from Volkswagen’s decision to develop a low-cost EV independently, rather than partnering with Renault’s software and EV unit, Ampere ➡ Stellantis also plans to introduce #EVs co-developed with China’s Leapmotor in nine European countries starting in September, along with a more affordable version of the Citroën #ëC3. ➡ Renault CEO Luca de Meo announced plans for the electric Twingo late last year, revealing that the vehicle will be assembled in Europe, potentially in #Slovenia. ✅ The #Twingo project is being led by #Ampere, and the development is progressing swiftly. 👉 Western European manufacturers are increasingly relying on engineers in lower-cost countries to reduce expenses. ▪ Although engineering in China is not necessarily cheaper, it is currently where most EV technological advancements are taking place. #ElectricMobility #AutoTech #AutomotiveIndustry #Automotriz #Automotive #Automoción #eMobility #Batteries #Baterías #ElectricVehicles #EV

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Uber, BYD partner to bring EVs to ride-hailing platform globally “Reuters - Uber (UBER.N) and Chinese automaker BYD (002594.SZ) announced a multi-year partnership on Wednesday aimed at bringing 100,000 new electric vehicles to the ride-hailing platform globally. The partnership, starting in Europe and Latin America, will offer drivers accessible pricing and financing for BYD's EVs on the Uber platform and will expand to markets in the Middle East, Canada, Australia and New Zealand, the companies said. Uber's shares rose about 2.5% in premarket trading. High sticker prices for electric vehicles and increased borrowing costs have acted as barriers to EV adoption over the past two years, causing demand for such vehicles to grow at a slower-than-expected pace. Escalating climate change concerns and the pressing need to cut greenhouse gas emissions have given a boost to the global push for electrification in the transportation sector. Uber and BYD will offer drivers discounts on vehicle maintenance, charging, financing and leasing, depending on the market, to support the transition to electric vehicles. "When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more," Uber CEO Dara Khosrowshahi said. The companies added they will work together to integrate BYD's vehicles with self-driving technologies onto the ride-hailing platform. BYD's U.S rival Tesla (TSLA.O) is set to unveil its robotaxi product in October as it to looks to pivot after EV sales fell in the first two quarters of the year. BYD surpassed Tesla last year as the world's largest electric vehicle maker, though the Elon Musk-led EV maker has since regained the top spot. Uber said in January it was working with Tesla to promote the use of EVs by its drivers in the U.S. as it aims to become emission-free in U.S. and Canadian cities by 2030.” Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid and Shounak Dasgupta https://lnkd.in/g6tZSKcg

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Electrified vehicle sales including hybrids and pure electric models climbed 24 percent to just over 1 million vehicles in the latest quarter. TOKYO — Toyota Motor Corp. reported higher profits in its latest quarter on booming hybrid vehicle sales and a brisk foreign exchange rate tailwind, overcoming an embarrassing home-market vehicle certification scandal that impacted production and deteriorating sales in the key China market. The financial results, reported Aug. 1 in Tokyo, were fiscal quarterly records for the automaker in terms of revenue, operating profit and net income. The upward swing continues the momentum set by CEO Koji Sato in the previous fiscal year, which finished March 30 with across-the-board all-time-highs in profits, sales and production.   From scandals to slowdown, Toyota's top 5 challenges in key earnings report In the April-June fiscal first quarter, electrified vehicle sales — including standard and plug-in hybrids as well as pure electric vehicles — climbed 24 percent to 1.075 million vehicles. Standard hybrids, exemplified by the Prius, shot up 24 percent to 998,000 vehicles. Electrified vehicles accounted for 43 percent of the company's global retail sales in the quarter, up from 34 percent a year earlier. Total global retail sales at Toyota Motor dropped 4.2 percent to 2.636 million vehicles in the quarter. Gasoline-electric hybrid cars help to bolster Toyota's bottom line because hybrids typically have fatter margins and command higher sticker prices. They are also in high demand as consumers gravitate toward them as a more affordable, more practical alternative to full electric vehicles. The ultra-weak Japanese yen was another boon to Toyota. The Japanese currency tumbled to its lowest levels against the U.S. dollar since 1990. That helps Japanese exporters by making their products more affordable overseas. It also inflates the value of dollar-denominated sales that are repatriated to headquarters in Japan and converted into yen. Toyota reaped a ¥370 billion ($2.3 billion) foreign exchange windfall in the latest quarter, accounting for the majority of the company's increase in operating profit over the period.

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South Korean automaker wants its new Inster all-electric subcompact crossover to sticker below $26,798. BUSAN, South Korea — Hyundai is entering the fray for affordable electric vehicles with a new all-electric crossover it hopes will compete against bargain-budget offerings from rivals in Europe and help fend off the onslaught of cheap EVs from China. The industry is increasingly speaking of a $25,000 price point — whether in dollars or euros. Hyundai's new Inster subcompact utility vehicle, unveiled at the Busan International Mobility Show here June 27, promises a sticker below 25,000 euros ($26,798) in Europe, and puts it in the sweet spot of EV affordability that global rivals see as opening the doors to big demand. Hyundai predicts the affordable small model will win over young urban professionals with its range of up to 355 kilometers (220 miles). "Our target has always been to produce a car for our audience in Europe below 25,000 euros," said Andreas-Christoph Hofmann, Hyundai Europe's vice president for marketing, product and PR.  "We are in the midst of the pricing process."  Hyundai said it has no plans to sell the Inster in the U.S. anytime soon. But the nameplate spotlights one strategy the company might pursue in bringing affordable EVs to market.  EV prices are falling fast, driven by technological breakthroughs and cutthroat competition. But even though the average transaction price for a new EV in the U.S. dropped 9 percent in the first quarter, the going average was still a steep $55,167, according to Cox Automotive. Table stakes The $25,000 mark is a kind of holy grail being pursued by EV makers, old and new. Jeep plans to launch an electric subcompact SUV priced below $25,000 around 2027, when it aims to sell 50 percent more vehicles globally than it did last year.  The Renault Group's Dacia Spring full-electric minicar has a base price of about $21,438 in France, but that drops to less than $17,150 with incentives.  Citroen's all-electric C3 small car also plays in that price band. And BYD of China has said it wants to start selling its under-$10,000 Seagull hatchback in Europe as well. Cost strategy Hyundai is relying on a couple of tricks to help keep a lid on the Inster's cost. For starters, the Inster won't ride on a dedicated EV platform. Rather, it is a repurposed EV overhaul of the gasoline-powered Hyundai Casper that dumps the engine for an electric motor. By contrast, Hyundai's flagship line of Ioniq EVs, exemplified by the Ioniq 5 compact crossover and the Ioniq 6 sedan, ride on the Hyundai Motor Group's Electric Global Mobile Platform. They also carry command higher price points befitting their more up-market technological specs.

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Volkswagen Group Invests Billions in Rivian in Joint Venture https://lnkd.in/gdhbShBm auto connected car newsRivian Automotive (NASDAQ: RIVN) and Volkswagen Group (XETRA: VOW / VOW3) have today announced their intention to form an equally controlled and owned joint venture (JV) to create next-generation electrical architecture and best-in-class software technology. It was announced VW is investing $5 Billion in capital. The partnership is anticipated to accelerate the development of software for Rivian and Volkswagen Group. It is expected to allow both companies to combine their complementary strengths and lower cost per vehicle by increasing scale and speeding up innovation globally. Rivian’s proven in-market zonal hardware design and integrated technology platform are expected to serve as

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DOE Sec, Granholm, in Battleground Detroit, goes all in on Biden’s auto sector policies: “We’re not effing around!” Her view: automakers need government as a partner to fund the EV transition. Unsaid, as BB King used to sing: “As long as I’m paying the bills, I’m paying the cost to be the boss.” US working 'as fast as we can' to finalize EV conversion grants, official says - https://lnkd.in/gxjFqBZK

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General Motors and Hyundai Motor Co. could cooperate in areas from passenger and commercial vehicles to electric cars and raw materials. General Motors and Hyundai Motor Co. have agreed to explore partnerships across a range of areas, including vehicle development and production as well as electric and hydrogen powertrain technologies, in a move that underscores mounting pressure on the auto industry to cut costs and achieve massive scale. GM CEO Mary Barra and Hyundai Motor Group Executive Chair Euisun Chungsigned a memorandum of understanding to "immediately" assess areas for cooperation and possible binding agreements, the companies said in a brief joint news release issued Sept. 12. "Potential collaboration projects center on co-development and production of passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies," the companies said. "The two leading global OEMs also will review opportunities for combined sourcing in areas such as battery raw materials, steel and other areas." The goal is to improve efficiencies, boost competitiveness, share cost burdens and bring a wider range of products to market at a faster pace, the companies said. Other details were scant, including what kind of time frame the companies were working under. The joint announcement made no mention of investments or the possibility of a capital alliance. Nor did the companies specify markets of focus. Barra said collaboration has the potential to enable "disciplined capital allocation." Cost reduction and increased scale are key priorities, the companies said. "This partnership will enable Hyundai Motor and GM to evaluate opportunities to enhance competitiveness in key markets and vehicle segments, as well as drive cost efficiencies and provide stronger customer value through our combined expertise and innovative technologies," Chung said. The agreement is expected to concern Hyundai but not sibling brand Kia. Teaming the top U.S. and South Korean automakers has the potential to generate mammoth scale and to leverage a huge tool chest of advanced technologies. Their combined sales exceed 10 million vehicles annually, with GM's tally of 6.2 million in 2023 and Hyundai Motor's 4.2 million. 10-million club Scale in the double-digit millions lifts the duo into the realm of Japanese giant Toyota Motor Corp. and German juggernaut Volkswagen Group. Toyota sold 11.2 million vehicles in 2023, including its Hino and Daihatsu subsidiaries. VW Group sold 9.2 million. The gambit is a rare move for South Korea's flagship manufacturer, which long ago brought Kia under its umbrella but has little history of deep cooperation with overseas rivals. GM, by contrast, has dabbled in loose partnerships in the past, including with Italy's Fiat and Japan's Suzuki and Subaru. GM still has a technological tie-up with Honda Motor Co. in areas such as hydrogen fuel cell systems and autonomous driving.

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😎🚗🚚11/25/2024: OICA's 5 major #automotive news summarized: ### BYD’s Hybrid Pickup Targets Australia’s Love of Gas-Guzzlers   **Bloomberg - November 25, 2024, 03:00 UTC+1**   BYD launched its Shark 6 hybrid pickup in #Australia, priced at $39,240, targeting a market traditionally dominated by gas-powered vehicles like the Ford Ranger. With hybrids outselling EVs for five straight quarters, the Shark 6’s affordability and advanced tech are expected to drive Australia’s shift toward greener vehicles.   [Read more](https://lnkd.in/evXpgFUS)  ### EU, China Close to Agreement Over EV Import Tariffs   **Reuters - November 22, 2024, 9:01 PM GMT+1**   The #EU and #China are nearing an agreement on EV import #tariffs, potentially introducing a minimum price for Chinese EVs in the EU. This resolution aims to address concerns over subsidies that prompted up to 45.3% tariffs on Chinese-built EVs, while easing tensions for EU automakers.   [Read more](https://lnkd.in/e8B6z9if)  ### Nissan Persuades US Court to Decertify Brake Defect Class Actions   **Reuters - November 23, 2024, 12:03 AM GMT+1**   A U.S. federal appeals court decertified 10 class-action lawsuits against Nissan Motor Corporation over alleged brake defects causing "phantom" stops. The court ruled individualized assessments were needed, citing mixed evidence of defects and resolutions. [Read more](https://lnkd.in/eDMrS9Pv)  ### How Software-Defined Vehicles Are Revolutionizing Commercial Vehicles   **ETAuto - November 23, 2024, 08:51 AM IST**   Software-defined vehicles (#SDV) promise enhanced fleet management, over-the-air updates, and dynamic customization for commercial vehicles (#CV). By leveraging data and digital twins, SDVs optimize performance and reduce costs. Challenges include ensuring durability, managing high initial investments, and securing sensitive data, essential for widespread adoption in the sector.   [Read more](https://lnkd.in/e9feBDmQ)  ### Bosch to Cut 5,550 Jobs, Reduce Hours for 10,000 Workers   **Reuters - November 22, 2024, 03:35 PM**   Bosch will eliminate 5,550 jobs, primarily in automated driving and steering solutions, and reduce hours for 10,000 employees. The decision reflects overcapacity in Europe’s automotive sector, which faces declining production and slow recovery. Unions strongly oppose the cuts, with further layoffs planned by 2030.   [Read more](https://lnkd.in/eeiPbMcm)  

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Nissan Motor Corporation plans to ditch two of its three remaining sedan models, leaving just the compact Sentra in the lineup before the automaker debuts a battery-powered sedan by early next decade. Nissan will drop the subcompact Versa after the 2025 model year, sources told Automotive News. The Versa is America’s least expensive new vehicle. The midsize Altima will sunset following the 2026 model year after production was extended a year at Nissan’s underutilized Canton, Miss., factory. Nissan is said to be undecided about investing in a next-gen model. If the Altima is revived, it will likely be as a hybrid or plug-in hybrid. The product reshuffle clears the deck for several zero-emission models that will begin arriving late this decade. Nissan will build two sedans and three crossovers at its Canton factory for the Nissan and INFINITI Motor Company brands and for alliance partner Mitsubishi Motors Corporation. Nissan is also exploring plans for a lightweight Frontier-size electric pickup. The electric crossovers will share a platform but look distinct and span vehicle segments. Future platforms will support a handful of models and multiple powertrains, allowing Nissan to slash development and production costs. Edmunds Ivan Drury AutoForecast Solutions LLC Sam Fiorani Carnamic Chadi Moussa

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During its Q1 earnings call, Ford Motor Company CEO Jim Farley said the company needs to make “tremendous progress” on Model e as it expects the division to lose between $5 billion and $5.5 billion this year. Read more about how Ford is adjusting in my latest for Automotive Dive:

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We've been talking about August 14 for a few weeks now at The Automotive Advisor Team regarding dealers' pivot points for inventory aquisition, retail, and disposal. However, global conditions have worsened. In an unprecedented move, the U.S. Federal Reserve (Fed) has reportedly called for an emergency meeting today. This meeting aims to reassess interest rates as global markets experience severe downturns. Moreover, analysts expect a Fed rate cut of 50 to 75. basis points (bps) after the meeting. At the minimum, they should project their rate appetite but more likely, this will be their first-rate drop. If that happens used vehicle valuations will certainly begin increasing faster than they are today and you don't want to be behind or too lean on the lot. How much should you buy now to stock up and how should you pace through this season? That's a difficult question to answer but our tools and consultants can help you answer them with surgical accuracy. That's what our team does all day every day. Reach out for an analysis. Frank Knox Joe Jackson 🔥 Peter Smith Brian Kramer Jasen Rice Agile Auto, Inc BEVERYTHING, EV Consulting Durran Cage Andrew Zabielinski #usedcars

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Joint Office of Energy & Transportation Supports All with SAE J3400 EV Coupler Recommended Practice https://lnkd.in/gPu5qmyS auto connected car newsTo make electric vehicle (EV) charging easy and reliable, it’s important to have a charging network that is safe and simple to use. This starts with having clear rules for the technology used. That’s why the Joint Office of Energy and Transportation worked with the SAE (Society of Automotive Engineers) to create a guide called the J3400 EV Coupler Recommended Practice. The J3400 standard helps ensure any vehicle can work with any charger, and federal minimum standards for network interoperability open the way for any charging hardware to work on a different software network. From August 2023 to July 2024,

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