Matt Hannah’s Post

Big investments coming to US Auto plants 💸 💸 💸 . . $1.7 Billion to be exact. The Biden administration announced on Thursday that the Department of Energy will issue grants to GM, Stellantis and other carmakers to help restart or expand electric vehicle manufacturing in 8 states. This will stimulate the stuttering auto industry after GM and others announced they would be reconsidering EV investment back in 2023. My take is, this is great for people who support US automotive manufacturing but it comes at a strange time. US plants are producing more EV's than consumers are purchasing currently. Growth of EV deliveries increased 40% yoy for GM last quarter but this is much slower than what was originally planned. There is a risk here that money is being invested too early in the cycle. Capacity isn't needed quite yet. This leads me to think that this is an effort to offer grants before the election occurs. Either way this is good for automation CAPEX. If anyone is looking for an automation partner, you can reach out to me directly. #automotive #automation #ElectricVehicles #GM #Stellantis https://lnkd.in/gGWu8RJS https://lnkd.in/g6Yy2hJZ

Volkswagen profit plunges 42% in third quarter amid sweeping overhaul plans 📈 Operating profit fell to 2.86 billion euros ($3.1 billion), while third quarter sales revenues slipped 0.5% year on year to around 78.5 billion euros. The third quarter results come after Volkswagen last month cut its 2024 annual outlook for the second time in just a few months. Volkswagen has been in hot water in recent months, warning of potential plant closures in Germany and scrapping a slew of labor agreements with local workers in September. * Disrupted by Technology, VW doesn't have a viable Hybrid Powertrain Technology and lacks marketing their All-Battery Electric car Strategy, due to Global EV sales not catching up. A mistake going all out with EV but cannot sell? Most importantly, VW doesn't have AI in Manufacturing, because Germans were the inventors of Industry 4.0 not yet understanding and seeing what's next as Industry 5.0 - There is a difference between Automation and Autonomous 💡

[NEWS] Mary Barra is charting a new course for GM: Speaking to the Automotive Press Association in Detroit this week — Barra laid out the automaker’s tough strategy pivots. The moves? GM sold its stake in a third battery plant due to slowing EV demand — It also ended funding for Cruise robotaxis and is restructuring its operations in China. But these decisions represent tens of billions of dollars in sunk costs. Still — Barra is bullish. And despite the challenges — GM expects net income to rise year-over-year. Read today’s top automotive stories, presented by Tax Max: https://lnkd.in/dfeJpxCW (Data source: General Motors via Forbes)

Major overhaul underway at Volkswagen Group. The company remains profitable, but Q3 operating margin came in at 3.4% (6% target, VW brand 2.1%), propped up by the Porsche AG brand (14.1%). Also note AUDI AG brand's recent performance. 2022 ➡ 12.3% 2023 ➡ 9.0% 2024 ➡ 6.1% (6 months) Major issues are being addressed, first and foremost industry-high labour costs that are the among the highest in a rapidly evolving industry. Painfully, the labour agreement (employment protection agreement) from 1994 is not relevant/feasible 30 years later. The Union has little negotiating power, knowing worst case is company insolvency. PLEASE NOTE: We are currently soliciting for OEM, DEALER GROUP, SUPPLIER, SaaS contracts/other projects. Feel free to reach out to me directly. 416.993.9356 [email protected] #automotive #automotiveindustry #innovation #brand #technology #leadership #ev #electricvehicle #retail #oem #hybrid

Financial Risk: Nein, VW Das Kaput?⚠️💰⛔️ 🚘 ⚠️ Globe & Mail - Victoria Waldersee & Christina Amann: Volkswagen considers historic German plant closures in cost-cutting drive. Volkswagen is considering closing factories in Germany for the first time, in a move that shows the mounting price pressure Europe’s top carmaker faces from Asian rivals. 
Monday’s move marks the first major clash between chief executive Oliver Blume, whom analysts have described as more of a consensus builder than his often-combative predecessor, Herbert Diess, and unions that command substantial influence at VW. 
VW considers one large-vehicle plant and one component factory in Germany to be obsolete, its works council said as it vowed “fierce resistance” to the executive board’s plans.

Chief financial officer Arno Antlitz will speak to staff alongside Volkswagen brand chief Thomas Schäfer at a works-council meeting on Wednesday morning. 
Volkswagen works-council head Daniela Cavallo, a member of the powerful IG Metall union, said she expects Mr. Blume to get involved in negotiations too, adding that Wednesday’s meeting would be “very uncomfortable” for the group’s management. 
IG Metall has thwarted previous attempts at more deep-rooted changes, most recently in 2022 when Mr. Diess departed as CEO. 
Analysts have in the past named VW sites in Osnabrueck, in Lower Saxony, and Dresden, in Saxony, as potential targets for closing. The state of Lower Saxony is Volkswagen’s second-largest shareholder and on Monday supported its review.
 Volkswagen, which employs around 680,000 staff, said that it also felt forced to end its job-security program, which has been in place since 1994 and prevents job cuts until 2029, adding all measures would be discussed with its works council. 
IG Metall says the job security covers Volkswagen plants in Wolfsburg, Hanover, Braunschweig, Salzgitter, Kassel and Emden.
“The situation is extremely tense and cannot be overcome by simple cost-cutting measures,” Mr. Schäfer said in a statement. 
VW, which drives most of Volkswagen’s unit sales, is the first of its brands to undergo a cost-cutting drive targeting €10-billion ($15-billion) in savings by 2026 as it attempts to streamline spending to survive the transition to electric cars. https://lnkd.in/gKj56VFF

The Biden administration is injecting $1.7 billion to promote and expand domestic US EV production facilities ⚡️ General Motors, FCA Fiat Chrysler Automobiles, and Volvo Car USA will massively benefit from the boost. The money is being divided between plants and production facilities across eight states to foster the domestic supply chain that the US desperately needs 🔋 Find out more down below 👇 #ElectricDrives | #ElectricVehicles | #EV | #Emobility | #Sustainability | #Biden | #President | #PresidentBiden | #USElection | #Election | #EVManufacturing

The National Legal and Policy Center (NLPC) will present a shareholder proposal at General Motors' (GM) annual meeting on June 4, urging the automaker's board to reevaluate the electric vehicle (EV) expansion targets tied to executive compensation packages. 'Our proposal encourages a reassessment of GM's current executive compensation incentives, which overly prioritize electric vehicle production without adequate consideration of the associated economic, environmental, and ethical risks,' said Luke Perlot, Associate Director of NLPC's Corporate Integrity Project. The proposal argues that GM's focus on EVs is misaligned with market demand and the company's economic realities. It cites concerns over the lack of consumer interest in EVs, the heavy reliance on government subsidies for profitability, and environmental and ethical challenges surrounding the extraction and processing of rare-earth elements used in EV batteries. 'Consumers still want internal combustion engine vehicles,' Perlot added, 'and GM's competitors are making substantial investments to meet their demand. The company cannot afford to be left behind because of misguided incentives.' #automakers #corporategovernance #sustainability @generalmotors @nlpctruth

Another OEM EV production target delayed, affecting 1,000 employees. Even as EV market share increases across Canada, OEMs are scaling back production plans, or pausing them altogether. Manufacturers are citing the same reasons for lackluster consumer demand we've been hearing for years: the higher purchase price and lack of infrastructure. If Canada is serious about hitting 2035 ZEV goals and seeing a return on the billions and billions of dollars already invested we need to see more. More price incentives and more charging stations.

Mullen Automotive (@mullenusa), an electric vehicle manufacturer, is making strides in producing next-generation battery packs and modules domestically at its Fullerton, California facility. This move aligns with the company's commitment to zero emissions and reducing reliance on imported battery components. CEO and Chairman David Michery emphasized Mullen's mission to transition to American-made battery technology as part of its broader sustainability goals. The company aims to bolster its domestic production capabilities while supporting the transition to electric vehicles. Mullen Automotive is actively expanding its commercial dealer network and has recently received approvals for federal EV tax credits and cash vouchers for its commercial vehicles. With manufacturing centers in Mississippi and Indiana, the company is well-positioned to cater to the growing demand for electric vehicles in key markets across the United States. #evmanufacturing #sustainablemobility #americanmade