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🚗🌍 Exciting news in the car world! According to Supply Chain Dive » Procurement, Volvo is now leading the way in making steel and aluminum production better for our planet. 🌿🚀 Big names like Mercedes, Tesla, and Ford are following their lead. This push for cleaner materials is a big step for the auto industry and great news for our Earth. Let's cheer on these innovators as they drive us towards a greener future! 🌟 Read more about this in the article: "Volvo is leading the industry for steel and aluminum decarbonization. Mercedes, Tesla and Ford follow." #Sustainability #Innovation #GreenFuture #AutomotiveIndustry Source: Supply Chain Dive » Procurement

🚗 EVs at a Crossroads: What’s Next for Electric Vehicle M&A? 🔋 In 2024, the global EV sector is navigating a challenging environment, with dealmaking slowing down due to supply chain struggles, high interest rates, and consumer hesitancy. In the first three quarters of this year, automotive deals reached only $42 billion—a 40% drop from the same period in 2023 and the lowest since 2019. However, the deal volume remained more stable, with only a 3% decline, signaling continued activity in smaller deals as the industry reshapes. China & the US Lead the Charge While challenges persist, key players like China and the US remain active. China maintained high cross-border deal activity, and the largest deal so far was German automaker Volkswagen’s $5 billion investment in US-based Rivian. This collaboration will focus on advancing EV technology, enhancing production, and expanding Rivian's footprint in Europe and Asia. Market Hurdles & Consumer Concerns: EV adoption has been slower than anticipated, with affordability and charging infrastructure remaining key hurdles. Major players like Tesla and BYD reported lower sales in the first half of 2024, leading them to cut prices to drive demand. U.S. consumers, in particular, are hesitant, with nearly half saying they are unlikely to consider an EV, citing price and charging limitations. Reasons for Optimism: Despite the slow consumer uptake, investment in key technologies remains strong, especially in next-generation battery technologies. China’s expansion into European markets—spurred by looming EU tariffs—will likely lead to an increase in strategic M&A as companies localize their operations. Türkiye is emerging as an attractive entry point for Chinese EV manufacturers into Europe, with BYD recently announcing a $1 billion investment plan for an EV and hybrid factory in the country. Outlook: The push for global electrification, fueled by ambitious government policies, suggests that the EV market’s recent setbacks may be temporary. Developments in charging infrastructure and battery tech, coupled with policies to phase out combustion engines, are expected to drive long-term growth and deal activity in the EV sector. With a close eye on evolving political landscapes, especially in the U.S., it’s clear that 2024 is shaping up to be a pivotal year for the EV industry.

China’s Secret to Low-Cost EVs: Innovation Beats Cheap Labour Japanese manufacturers have recently completed teardowns on several low-cost Chinese EVs, as reported in Nikkei and InsideEVs — and their findings reveal some critical insights that go beyond cheap labour and straight into strategic innovation. 1. In-house Production Mastery Chinese EV makers, led by companies like BYD, NIO and GEELY, are controlling costs by producing nearly every component in-house. It’s not just the #battery; they’re integrating the motor, inverter, transmission, and controller all under one roof. In fact, except for items like windows and tyres, BYD’s Dolphin model is entirely manufactured internally. This level of vertical integration is about agility and cost efficiency, helping them stay competitive while reducing reliance on external suppliers. 2. Simplified Design, Fewer Parts BYD and Tesla have surprised engineers worldwide with how few parts they use. Take #BYD’s 8-in-1 E-Axle, which integrates multiple functions into a single module. #Tesla’s approach is similar: the Model Y’s entire structure consists of just two major components, compared to 70 in the Model 3. This streamlined design philosophy lowers manufacturing costs, reduces complexity, and ultimately delivers a leaner, more affordable EV. 3. Platform Standardization Across Models Chinese automakers are taking advantage of 100% EV platforms by standardizing parts across models. With a single platform, the same components can be used across various models, achieving efficiencies of scale without compromising on performance or quality. It’s a strategic edge that traditional automakers are only beginning to catch up with. The lesson? Cost-effective production isn’t about labour; it’s about rethinking how cars are made. Chinese automakers are rewriting the rulebook on #EV manufacturing, blending creativity with #efficiency. It’s time for global automakers to take note and adapt—or risk being left behind, with the likes of Volkswagen Group and Ford Motor Company already struggling in markets they once dominated. Could this spark a new era of competitive EV design? Share your thoughts! 👉 Jesse Morris, MBA-DM 🔔 Follow Jesse Morris, MBA-DM for interesting posts on: #BatteryTech, #Sustainability and #GreenTechnology

Traditional automakers are deeply embedded in value networks optimized for internal combustion engines (ICE). These networks—comprising suppliers, dealerships, and customer expectations—push manufacturers to focus on improving engine power, fuel efficiency, and maintenance models, making it challenging to pivot to electric vehicles (EVs). Their suppliers focus on ICE components, and dealerships rely on servicing gas-powered engines. Meanwhile, new players like Tesla build value networks around batteries, electric drivetrains, and direct sales, giving them a competitive edge. The challenge? Legacy value networks create path dependency, slowing innovation and response to disruptive technology. To thrive in the EV era, automakers need to rethink their value networks, possibly by spinning off new tech business units, investing in EV startups (as VW did with Rivian), or partnering with tech companies to accelerate innovation and transformation. Established companies often fail by concentrating on sustaining innovations for existing customers, allowing disruptive players to capture emerging markets. The Innovator’s Dilemma by Clayton Christensen offers a groundbreaking exploration of why successful companies often fail when faced with disruptive technologies, revealing the paradox that following best practices can lead to their downfall. Christensen's insights on innovation and market dynamics make this an essential read for business leaders navigating technological change and emerging competitors. #disruption #strategy

BYD has become the world’s second-biggest #battery producer - BYD’s batteries boast a massive 👉 ***COST ADVANTAGE*** over those produced by Japanese, South Korean and European rivals. — The cost of building new factories for the two Chinese companies is around $50mn to $60mn per gigawatt hour compared to $100mn/GWh for its competitors, according to Bernstein research.

Exciting to see automakers making strides in fossil-free steel! 🌱 Volvo and Tesla are leading the charge, transforming the industry. Read more in this insightful article from Supplychaindive. #Sustainability #Automakers #GreenSteel

INTERNATIONAL - Nissan Motor Corporation is in advanced talks to invest in electric vehicle maker Fisker in a deal that could provide the Japanese automaker with access to an electric pickup truck while giving the struggling startup a financial lifeline, according to two people familiar with the negotiations. The deal could close this month, said the sources, who asked not to be identified because the talks are ongoing and have not been finalized. Terms being discussed include Nissan investing more than $400 million in Fisker's truck platform and building Fisker's planned Alaska pickup starting in 2026 at one of its U.S. assembly plants, one of the sources said. Nissan would build its own electric pickup on the same platform, the source said. Nissan has U.S. assembly plants in Mississippi and Tennessee. Fisker said on Thursday, when it announced it might not be able to continue as a going concern and would cut 15% of its workforce, that it was in talks with a large automaker for a potential investment and joint development partnership. It did not name the automaker. A Fisker spokesman said the company does not comment on speculation, while Nissan officials were not immediately available to comment. Fisker shares had been down about 45% before the Reuters report but pared those losses and were trading down about 25% with a market capitalization of more than $295 million. The term sheet is ready and the deal is going through due diligence, one of the sources said. Nissan was an EV pioneer with its fully battery powered Leaf hatchback in 2010 but has since struggled in the face of nimbler new entrants. A deal with Fisker would help it move into the growing U.S. electric pickup market. Nissan's talks with Fisker comes in the wake of the former's “rebalanced” relationship with its long-time alliance partner Renault. Last year, Nissan and Renault finalised terms of a restructured alliance after months of negotiations. They aim to have cross-shareholdings of 15% as part of the deal. The more limited alliance removes certain restrictions and has opened the door for Nissan to develop growth plans in areas such as EVs and software independent of Renault, said one of the sources, who is familiar with Nissan's thinking. The Yokohama-headquartered automaker is scouring “many, many opportunities,” the person said. For Fisker, the deal might be the lifeline it needs to survive at a time when aggressive price cuts globally by EV leaders Tesla and BYD are pressuring the industry, especially for startups like Fisker. For more, click on the link below. #escrowcredirt https://lnkd.in/eMnstaDc

Revving Back to Success: How German Automakers Can Overcome Industry Challenges German automakers, which contribute significantly to the country's GDP, are facing multiple challenges that have disrupted their historical dominance in the global market. Factors such as the transition to electric vehicles (EVs), intensifying competition from global EV manufacturers like Tesla and BYD, and supply chain disruptions caused by geopolitical tensions and the pandemic have exposed vulnerabilities. Additionally, delays in embracing digitalization and software innovations have made German automakers appear less agile compared to rivals in rapidly evolving markets. Stricter environmental regulations in the EU and growing pressure to reduce emissions further complicate their traditional reliance on internal combustion engines. To turn around their situation, German automakers must accelerate their transition to EV production by investing heavily in battery technology, charging infrastructure, and sustainable practices. Strengthening partnerships with tech companies can help improve digital features and software integration in vehicles, meeting consumer demand for connected, autonomous driving experiences. Diversifying supply chains and reducing reliance on single regions for critical components, like semiconductors, can enhance resilience against disruptions. Moreover, fostering innovation through research and development (R&D) and focusing on emerging markets, such as India or Southeast Asia, can unlock new growth opportunities. By embracing these strategies, German automakers can secure their relevance and maintain their critical role in the global automotive industry and Germany’s economy.

EV plans go awry The slowdown in demand for electric cars has left automakers hitting the brakes or changing course in recent months and this past week has been no exception, with #Toyota slashing #EV production plans by a third for 2026, according to a report from the Nikkei business daily. The Japanese automaker now aims to make 1 million EVs in that year, instead of 1.5 million, meaning a drop in output equivalent to a car assembly plant or two. Volkswagen’s battery unit PowerCo is going to build just one of two planned production lines at its Salzgitter plant in Germany because of weak demand, while Northvolt will halt cathode active material production in Sweden as the battery startup tries to cut costs. Meanwhile, Renault’s CEO Luca de Meo warns that slowing EV demand means Europe’s auto industry could face fines of 15 billion euros for failing to comply with EU CO2 emissions targets. The news is not all good for Chinese EV makers as they expand into new markets. As Reuters correspondent Daniel Leussink reports, BYD has found it hard to get a foothold in Japan, where EV demand is sluggish and foreign automakers have had a rough ride. You can read about it here. And an increasingly crowded market may soon have yet more company. As Reuters correspondent Aditi Shah reports here, India’s Reliance Infrastructure is also considering making EVs and batteries.

From Volvo’s fossil-free steel to Tesla’s transparency, automakers are making significant progress. 🌿 Read the latest updates in this article from Supplychaindive. #AutomotiveProgress #EcoFriendlySteel