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 Legacy Automakers are houses of cards, Signs have started

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TSEnergyAnalyst
post Jul 28 2024, 10:03 AM, updated 11 months ago

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Profit down 99% for Nissan

https://www.nippon.com/en/news/yjj2024072500774/

Stellantis to be choppoing unprofitable car brands


https://www.motor1.com/news/727940/stellant...ble-car-brands/

More to come...

Which reminds me of...



This post has been edited by EnergyAnalyst: Jul 28 2024, 10:23 AM
TSEnergyAnalyst
post Jul 28 2024, 10:20 AM

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Honda to end vehicle production at one of its two Thai plants:

Honda Motor will halt vehicle production at its factory in Ayutthaya province in Thailand by 2025 as it plans to consolidate its output under the plant it runs in Prachinburi province was reported 09.07.2024

https://asia.nikkei.com/Business/Automobile...two-Thai-plants

Then...

https://finance.yahoo.com/news/automaker-ho...-203003077.html

Japan's Honda to close China plant, halt production at another factory



[The irony is Nissan and Honda said in March 2024 they were considering a strategic partnership to collaborate on producing EV components and artificial intelligence in automotive software platforms]

And, here we are now merely just 4 months later....
TSEnergyAnalyst
post Jul 28 2024, 10:39 AM

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This post has been edited by EnergyAnalyst: Jul 30 2024, 09:53 AM
TSEnergyAnalyst
post Jul 28 2024, 11:06 PM

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https://www.channelnewsasia.com/business/mi...reports-4509571

TOKYO : Japan's Mitsubishi Motors is set to join an alliance between Honda Motor and Nissan Motor, creating an auto group with combined sales of more than 8 million vehicles, the Nikkei business daily said on Sunday.

Nissan and Honda said in March they were considering a strategic partnership to collaborate on producing key components for electric vehicles and artificial intelligence in automotive software platforms.


https://www.investing.com/news/stock-market...reports-3540334

the funny thing is ....Mitsubishi Motors declined to comment on the report, while a Nissan spokesperson would only say the report was not based on something either of the companies had announced. Spokespeople for Honda did not respond to a request for comment.
TSEnergyAnalyst
post Jul 29 2024, 10:44 PM

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https://www.investing.com/news/economy-news...ces-say-3540438


Nissan cut planned production by a third at its top Japanese plant this month, a move that will also see it slash output of a flagship crossover model, two people said, as it struggles with weak U.S. demand for its ageing line-up...

...The car maker now plans to produce just under 25,000 vehicles at its Kyushu plant in southwest Japan this month, according to two people with knowledge of the situation. Both declined to be identified because the information isn't public.

Nissan was not immediately able to comment, a spokesperson said.

The company expects to make around 10,000 of the Rogue crossover for export at the plant, half of what it had previously planned to make this month of the popular car, the sources said.

In addition to Kyushu, Nissan also makes Rogue models in Smyrna, Tennessee.

Line workers in Kyushu were now working fewer than the usual eight hours a day due to the scaled-back production, and were clocking a little more than seven hours a day, one of the people said.
TSEnergyAnalyst
post Jul 30 2024, 01:19 AM

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https://www.bloomberg.com/news/newsletters/...ustry-is-not-ok

The Car Industry Is Not OK
Renault, Ford, Nissan and Stellantis report a brutal set of results.

QUOTE
Down, Down
When was the last time you heard a chief executive talk about the state of their sector like this?

“The auto industry is in turmoil,” Stellantis CEO Carlos Tavares said to begin his interview Thursday with Bloomberg Television. “Looking at the results, everybody is going in the same direction.”

That direction is, indeed, almost universally down. Consider these four major carmakers that have reported earnings in roughly the last 24 hours:

Renault posted a 35% decline in net income for the first half of the year, sending its stock plunging the most intraday in almost 2 ½ years.

Ford — which many investors believed would beat analyst estimates, raise guidance and return more cash to shareholders1 — went 0-for-3 on those expectations. The stock plummeted as much as 18%.

Nissan reported a surprise drop in quarterly profit, missing the lowest analyst estimate, and slashed its forecast for operating profit this year. Its shares fell to a 15-month low.

Stellantis trailed expectations for net income (down 48% from a year ago), industrial free cash flow (negative €392 million; the average estimate was for positive €1.78 billion) and net revenue (down 14%). Its stock dropped the most intraday in Paris since the company’s early 2021 formation.


This post has been edited by EnergyAnalyst: Jul 30 2024, 08:03 AM
TSEnergyAnalyst
post Jul 30 2024, 09:48 AM

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https://www.cnbc.com/2024/07/29/ford-gm-ste...econd-half.html
QUOTE
DETROIT – The last time shares of Ford Motor dropped by more than 18% in a day, as they did last week, the U.S. automotive industry was on the brink of bankruptcy during the Great Recession.

Ford, which avoided bankruptcy in 2008-2009, is far from any sort of such disaster, but the freefall in shares after the company missed Wall Street's earnings expectations is the leading example of the uphill battle automakers face for the remainder of the year.

TSEnergyAnalyst
post Jul 30 2024, 10:16 AM

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QUOTE(g5sim @ Jul 30 2024, 01:23 AM)
Fret not. In 15y time your beloved teslas n other EVs will be legacy when hydrogen production reaches economy of scale. Maybe earlier than that. Think of EV as Blu-ray Disks when people are already on steaming 🤷
*
Hydrogen?
May I know where do you find the optimism?

Right now, I have more optimism on Robotaxi

https://asia.nikkei.com/Business/Automobile...es-for-U.S.-IPO

QUOTE
GUANGZHOU -- Chinese self-driving startup WeRide has filed for an initial public offering in the U.S., as the company looks to expand at home and abroad.

The company is testing and commercializing robotaxis and other self-driving technologies in 30 cities across seven countries including China.

Chinese media and others have reported that WeRide could raise up to $500 million through a Nasdaq IPO, with some seeing it as becoming the largest listing for a Chinese company in the U.S. since ride-hailing app Didi in 2021.


WeRide was founded in 2017 and is based in Guangzhou. Its founder, CEO Tony Han, previously was involved in developing autonomous driving technology in the U.S. for Chinese internet search giant Baidu.

The company provides driverless buses and cleaning vehicles along with their software to companies in China and Singapore. WeRide's self-driving technology is capable of Level 4 operations, meaning vehicles can function in most situations with minimal driver input.

The company received investments in 2018 from automakers Renault, Nissan Motor and Mitsubishi Motors, with the trio reportedly having agreed to purchase additional shares in the IPO.

More recently, U.S. semiconductor heavy Nvidia has taken a stake in WeRide.

The startup also is working with Germany's Bosch, a global leader in automotive parts, to provide automakers with Level 2 and Level 3 systems that assist drivers and offer conditional automation.

WeRide posted sales of 400 million yuan ($55.1 million) in 2023 and a net loss of 1.9 billion yuan, documents submitted to the U.S. Securities and Exchange Commission show.

Toyota Motor-backed Pony.ai, another Chinese self-driving startup, also has filed for an American IPO, according to Chinese media. It had aimed to list in 2021, but suspended plans in response to Chinese authorities tightening regulations on overseas listings.

TSEnergyAnalyst
post Jul 31 2024, 09:03 AM

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https://www.cbtnews.com/toyotas-global-prod...e-war-in-china/

Toyota’s global production plummets amid certification scandal and price war in China
This marks the fifth consecutive month that Toyota's output decreased by 20% or more.

By
CBT News
July 30, 2024

Toyota’s global production tumbled in June, marking the fifth consecutive month of decline. The automaker has been severely impacted by a certification scandal in Japan and an intense price war in China. Worldwide output for Japan’s largest automaker dropped 12.9% to 795,862 vehicles, the steepest decline since December 2022.

In its home market, Toyota’s production plummeted 18.8% following the transport ministry’s findings of irregularities in certification applications by Toyota and other automakers, widening an auto safety scandal.

In China, where domestic electric vehicle makers like BYD have rapidly gained market share and aggressively cut prices, Toyota’s production fell 21.7%. This marks the fifth consecutive month that Toyota’s output in China has decreased by 20% or more.

North America and Europe also saw declines, with production falling 6.2% and 6.6%, respectively, due to fewer production days compared to last year. Overall, Toyota’s worldwide sales fell 5.1% during the month, driven by declines in Japan and China.

Despite these production challenges, Toyota is expected to report a 21% rise in operating profit for the first quarter, reaching $8.7 billion. According to LSEG consensus estimates from six analysts, this anticipated increase is attributed to a weaker yen and robust demand for hybrid vehicles in the United States.

For the first six months of this year, Toyota’s global production decreased by 5%, while worldwide sales dipped by 0.9%. The automaker is due to report its first-quarter financial results on Thursday.
TSEnergyAnalyst
post Aug 2 2024, 10:23 AM

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More casualties involving German's parts, etc. makers


https://finance.yahoo.com/news/german-auto-...-122508710.html

Bankrupts left right center

Recaro
https://www.autocar.co.uk/car-news/business...iles-bankruptcy



BBS too

https://uk.motor1.com/news/728530/recaro-bb...ile-insolvency/

Fanatec


https://www.motor1.com/news/728573/fanatec-...wner-insolvent/

The wheels of time has turned and it's times up for them



TSEnergyAnalyst
post Aug 5 2024, 09:56 AM

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https://www.theautopian.com/honda-and-nissa...be-one-company/

Perhaps they should become one co

QUOTE

Honda And Nissan Should Just Be One Company

Peugeot and Citroën are one company. Fiat and Chrysler are one company. Actually, all of those companies are one company now. Why not Nissan and Honda? It would make almost too much sense.

I start this morning’s The Morning Dump (ok, by the time it’s done it’ll only be morning in California, but it’s been one of those days) with news that Honda and Nissan are teaming up on electric cars. Given that many markets they’re in will mandate a huge number of electric cars going forward it makes me wonder why they don’t just become one company.

Perhaps it’ll make them more competitive in China? That’ll be important as both BMW and Volkswagen are reporting first-half financials and both are struggling in the Chinese market.

Toyota isn’t struggling as much with profits still going up, thanks in large part to hybrids.

The Case For Honda-Nissan

The Japanese car market was never big enough to support a homegrown industry focused entirely on itself, which is why Japan became the great automotive exporter of the 20th century. You can go anywhere in the world and find a Toyota, Nissan, or Honda product.

China would like this new century to be defined by exports of Chinese cars, and there’s some evidence they may succeed, but I wouldn’t count out Japan just yet. Carmakers there are still profitable, the engineers remain some of the world’s best, and there’s been a renewed effort to prepare for whatever is to come.

For the last two decades, Japanese automakers have slowly started to coalesce. Daihatsu was swallowed whole by Toyota. Then Subaru teamed up with Toyota. Mazda, once it was separated from Ford, also entered a long-term relationship with… Toyota.

Nissan tried to save itself by teaming up with Renault, which worked until it very much didn’t. Mitsubishi almost failed and was appended onto Nissan at the last minute.

Honda is the one Japanese automaker that’s mostly avoided consolidation, but even Honda has had to partner with other companies to survive. The current generation of Honda and Acura electric cars are based on GM-built Ultium platforms. Honda is also planning to build cars with Sony under a new joint venture.

In general, Japanese automakers have lagged in EV development as they’ve pursued hybridization (which has worked) and hydrogenization (which hasn’t yet).

A hesitancy towards electrification has worked to the advantage of Japanese automakers for now, but Japanese car execs don’t seem to believe this is going to last and want to be prepared for a new, electrified future with software-defined vehicles that are judged as much on their interfaces as their driving performance.

To that end, Honda and Nissan announced a major partnership today. From the press release:

Nissan and Honda are engaged in specific discussions and deliberations with a view to collaborating in various fields to further accelerate efforts to realize a carbon-neutral and traffic-accident-free society. Both companies are promoting R&D and investment in various technologies to promote the spread and evolution of EVs, especially SDVs, which are the scope of study in the fields of intelligence and electrification.

The two companies also believe that the software field, including autonomous driving, connectivity, and AI, which will determine the value of vehicles in the future and become a source of competitiveness, is an area where technological innovation is extremely rapid and where synergies can easily be obtained through the fusion of resources from both companies, such as technological knowledge and human resources.

Here’s what really caught my eye:

With the models to be sold globally by Nissan and Honda, the two companies will consider supplementing models from a short-term to medium- to long-term perspective. For the short-term, Nissan and Honda reached a basic agreement on models and regions to be complemented by each company, and also agreed on the outline of a product review system to be jointly operated by both companies.
ICE and EVs are being considered as vehicles for mutual complementation.

That sounds like building cars together to me. And why not? Toyota has a market cap of almost $300 billion. Honda and Nissan, combined, have a market cap of less than $70 billion. Nissan couldn’t make the Renault relationship work because the underlying concept of a Japanese company being owned by the French state was a bridge too far.

A consolidated Nissan and Honda bring engineering and manufacturing scale without the huge culture clash. I also don’t think their products are so similar that they can’t work in concert. Nissan/Mitsubishi have a truck competency that Honda lacks whereas Honda is way better at building hybrids.

This could just be another tie-up. Or it could be the start of a beautiful friendship.


This post has been edited by EnergyAnalyst: Aug 5 2024, 10:00 AM
TSEnergyAnalyst
post Aug 7 2024, 11:56 PM

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Carlos Ghosn: Honda Plans 'Disguised Takeover' of Nissan and Mitsubishi
The ex-Nissan supremo believes the Honda-Nissan-Mitsubishi alliance isn’t really much of an alliance.

https://www.motor1.com/news/729285/carlos-g...san-mitsubishi/

» Click to show Spoiler - click again to hide... «

TSEnergyAnalyst
post Aug 10 2024, 10:48 PM

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https://theedgemalaysia.com/node/721852

Toyota should join Honda-Nissan software alliance, academic says

(Aug 6): Honda Motor Co and Nissan Motor Co agreed to collaborate on the development of in-vehicle software last week but at least one academic says the duo should be joined by heavyweight Toyota Motor Corp, in order to better compete with foreign rivals.

“Only two or three operating system makers for cars will survive — globally,” said Hiroaki Takada, an information science professor at Nagoya University, who also chaired the Japanese government’s committee on software-defined vehicles.

Japan set a goal in May of having Japanese companies account for 30% of the software-defined vehicle market worldwide by 2030. Automakers or technology firms responsible for the operating systems behind the software to make cars smarter and more autonomous will become just as crucial to advances in passenger transport, as those making engines or batteries.




Currently, the leaders in that field are Chinese automakers and Tesla Inc. However, in the same way the smartphone sector is ruled by Google and Apple Inc with their Android and iOS for iPhone operating systems, so too will the car industry be ultimately delineated, Takada said.

Were Toyota to join Honda and Nissan (and likely also Mitsubishi Motors Corp) in the development of an operating system for cars, that would be one “possible way” for Japan to become a world leader, Takada said.

Google and Huawei Technologies Co are likely to emerge as strong operating system manufacturers in the automotive industry, Takada said, adding that even Tesla would find it difficult to do independently.

Honda, Nissan and Mitsubishi combined sold about 8.5 million units globally in the fiscal year that ended in March, lower than the some 11 million units sold by Toyota group companies. When sales from carmakers that Toyota has a shareholding in are added, including Mazda Motor Corp, Subaru Corp and Suzuki Motor Corp, that number balloons to around 16.5 million units.

Japan’s Ministry of Economy, Trade and Industry estimates that software-defined vehicle sales worldwide will reach between 35 million to 41 million units in 2030, while global revenue from robotaxi services will touch ¥80 trillion (US$550 billion) by 2035.

The opportunity this presents really became apparent to Japan and its automakers at last year’s Shanghai auto show, said Takeru Ito, a director in the ministry’s mobility digital transformation office.

“We realise Japan lags behind in this field,” hence cooperating becomes crucial to survive, he said in an interview.

Last week, Honda chief executive officer Toshihiro Mibe said the automaker will “naturally” collaborate with Nissan on operating systems. It’s working on one that it plans to install in electric vehicles (EVs) in North America next year. Toyota, meanwhile, is set to launch its own operating system called Arene next year. If that happens, Japan will be divided into two software building camps.

Legacy automakers are already feeling the cost burden of developing EVs and now with software-defined vehicles, their businesses will be “difficult to sustain if they continue their old practices,” Nobuhito Abe, a partner and the Asia Pacific lead of automotive at Kearney, said.
TSEnergyAnalyst
post Aug 11 2024, 09:01 PM

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Toyota cuts 2024 global output goal by 500,000 units, citing scandals and recalls


Read more at

https://www.malaymail.com/news/money/2024/0...-recalls/146616
TSEnergyAnalyst
post Aug 17 2024, 11:03 AM

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First you sue

Stellantis Sues A Fourth Supplier Over Price Hikes
The automaker's efforts at cutting costs are now directly affecting its own supply chain

https://www.carscoops.com/2024/07/stellanti...rice-increases/

Then guess what,? you get sued by others too !

https://qz.com/stellantis-earnings-sharehol...suit-1851624360

Stellantis is being sued by shareholders after lackluster earnings
They allege the automaker defrauded them by concealing rising inventories and other issues
TSEnergyAnalyst
post Aug 24 2024, 08:35 AM

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https://insideevs.com/news/731206/byd-honda...n-sales-volume/

BYD Overtook Honda And Nissan In Sales Last Quarter
It turns out that people really do want cheap electric cars. If the trend continues, it won't be long until BYD passes Ford.

https://www.teslarati.com/byd-7th-largest-automaker-sales/

BYD overtakes Honda & Nissan as the 7th largest automaker

This post has been edited by EnergyAnalyst: Aug 24 2024, 08:37 AM
TSEnergyAnalyst
post Aug 24 2024, 08:49 AM

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https://www.automotiveworld.com/articles/it...afactory-plans/

Italy issues Stellantis an ultimatum on gigafactory plans
Italian Minister Adolfo Urso threatens withdrawal of funding should the automaker continue to waver on the planned Termoli gigafactory.

TSEnergyAnalyst
post Aug 24 2024, 08:55 AM

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https://www.autoevolution.com/news/no-buzz-...ver-238839.html



» Click to show Spoiler - click again to hide... «


This post has been edited by EnergyAnalyst: Aug 24 2024, 08:56 AM
TSEnergyAnalyst
post Aug 24 2024, 09:06 AM

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https://bernama.com/en/world/news.php?id=2331154



https://www.thestar.com.my/business/busines...vices-employees


General Motors said Monday it is laying off more than 1,000 salaried employees at its software and service units worldwide.

GM, confirming the layoffs initially reported by CNBC, said in a statement that "as we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact."

CNBC said the job cuts include roughly 600 jobs at GM’s tech campus near Detroit. - Reuters

TSEnergyAnalyst
post Aug 24 2024, 09:09 AM

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https://www.cnbc.com/2024/08/23/ford-ev-str...aller-cars.html

DETROIT – Ford Motor's profit engine for decades has been large trucks and SUVs in the U.S. So it might surprise investors that the automaker believes its new path to profitability for electric vehicles will first be led by smaller, more affordable vehicles.

The new plan is an "insurance policy" for the automaker to be able to expand its growingly popular hybrid models and create more affordable EVs that it believes will deliver a more capital-efficient, profitable electric vehicle business for the company and investors, according to Marin Gjaja, Ford's chief operating officer for its Model e EV unit.

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