Steve Greenfield’s Post

An important article from Automotive News on the perspective of Suppliers in the EV transition and what it takes to change strategies. The battle for talent in automotive/transportation is crucial so that we can have the best and brightest minds solving the mobility needs of the next generation. Changing strategies and adapting to customer needs may sound easy, but has many flow-down effects in the automotive industry and affect suppliers particularly as there are 5-6x the amount of employees at suppliers within automotive/transportation. https://lnkd.in/gnWY4mic

Automotive suppliers are slashing R&D and engineering budgets in response to intense cost pressures, but doing so could come at their own peril — and that of the industry. Some of the world’s largest, most tech-savvy parts producers have hit the brakes on spending in part because of electric vehicle launch delays and a dim outlook for returns on investment. The cuts are being made to protect balance sheets amid less-than-anticipated demand for EVs in North America, but they could jeopardize some of the progress made over the past three years. U.S. automakers are leaning on suppliers more than ever in their quest to make affordable EVs and secure a long-term future. https://lnkd.in/eYEA7ZA7

Volkswagen’s recent announcement of potential closures and job losses reveals the complex realities of the EV transition. This development is a significant reminder of the economic and operational challenges that can arise as the industry shifts gears (pun intended). Keep an eye on this one. #Manufacturing #AutomotiveIndustry #Innovation #Sustainability

Ford Argentina has announced plans to significantly increase production of the New Generation Ranger pickup truck in 2025 due to growing demand both locally and across South America. Production Increase Ford will boost annual production of the New Ranger to 70,000 units in 2025 at its Pacheco plant in Argentina. This represents: A 15% increase compared to 2024 production levels A 28% increase compared to the launch year of 2023 Ford will add over 160 direct employees at the Pacheco manufacturing facility to support the higher production volume. Several factors are contributing to the increased production plans: Strong demand for the New Ranger across South America since its 2023 launch The pickup has doubled its market share in South America in its first full year In October, the New Ranger had its best-ever sales month in Brazil, selling over 3,800 units In Argentina, the New Ranger has achieved its highest market share in a decade Over 60% of Ranger production from the Pacheco plant is exported to other South American markets, including Brazil, Chile, Peru, Colombia, Ecuador, Venezuela, and Uruguay. Launched in 2023 after a $660 million investment to upgrade the Pacheco plant. The facility was transformed with Industry 4.0 manufacturing concepts and new technologies. Ford also invested in local auto parts development and new engine production This production increase aligns with broader expectations for growth in Argentina's automotive market in 2025, driven by improved economic conditions and increased consumer purchasing power.

😎🚗🚚12/30/2024: OICA's 5 major #automotive news summarized: ### U.K. to review EV sales mandate criticized by industry   **Bloomberg News - December 27, 2024**   The #UK government is consulting automakers on its 2030 gasoline and diesel car ban. Automakers face penalties for missing EV sales quotas, with EV adoption lagging at 18.7%. Industry leaders cite challenges including job cuts and plant closures, prompting a review of flexibility measures.  Society of Motor Manufacturers and Traders (SMMT) [Read more](https://lnkd.in/eE65ZHfx)  ### Sales, production, market shares: The car year 2024 in figures   **Automobilwoche - December 27, 2024**   Global #automakers saw mixed results in #2024, with Chinese brands dominating growth while European, U.S., and Japanese firms struggled. BYD sales rose 30%, boosting China’s car exports past Europe’s for the first time. Volkswagen maintained market leadership in Germany and Europe despite declining global demand.   [Read more](https://lnkd.in/eAr7nKTC)  ### Chinese Carmakers’ Profit Margins Squeezed Further in 2024   **Bloomberg - December 27, 2024**   #Chinese automakers faced a profit squeeze in 2024, with margins dropping to 4.4% amid EV price wars. While dominant players like BYD consolidated their positions, weaker competitors exited the market. Total industry revenue rose 3%, but profits fell 7.3%, highlighting intensifying competition and rising costs.   [Read more](https://lnkd.in/eU_4ySkT)  ### "Christmas miracle": What the VW compromise means   **Automobilwoche – December 20, 2024**   Volkswagen Group’s 2024 labor deal includes cutting 35,000 jobs by 2035, reducing annual production by 700,000 units, and saving €1.5 billion annually in labor costs. Emden and Hanover plants will focus on EVs, while Wolfsburg downsizes. Wage reductions and workforce attrition will facilitate socially responsible restructuring.   [Read more](https://lnkd.in/e4C_-Xz4)  ### For Honda, a Nissan Rescue Comes With Only a Thin Silver Lining   **Bloomberg - December 26, 2024**   Honda’s merger with Nissan Motor Corporation aims to scale EV and hybrid production but faces challenges with Nissan’s financial struggles and overcapacity in China. Honda plans to double hybrid sales by 2030 while leveraging Nissan’s resources. Success depends on resolving operational overlaps within 3-5 years.   [Read more](https://lnkd.in/e-2DF4_4)  

🇬🇧 UK Automotive Manufacturing Round-Up This Week: The UK automotive sector has been dynamic this week, facing leadership changes, plant closures, and evolving policy discussions. 🔹 Leadership Changes at Stellantis • Stellantis CEO Carlos Tavares resigned after internal disagreements with the board. • His tenure included the controversial closure of the Luton van-making plant, impacting 1,000+ jobs. 🔹 Plant Closures Across Europe • Stellantis, Ford, Bosch, and others announced workforce reductions and closures, citing high costs, weak demand, and competition from Chinese manufacturers. 🔹 Policy Updates: Petrol & Diesel Ban • The UK government is reconsidering the 2030 ban on new petrol/diesel cars. Hybrids like the Toyota Prius might remain available until 2035. • This could offer manufacturers more flexibility in meeting zero-emission goals. 🔹 Production Trends • UK car production declined for the 8th consecutive month (-15.3% in October YoY). • Electrified vehicle output dropped 32.6%, reflecting industry challenges with the zero-emission vehicle mandate. These developments highlight the sector’s challenges and opportunities as it transitions to a greener future. #UKAutomotive #Sustainability #Innovation #EVs #UKManufacturing #PolicyUpdates #FutureOfMobility

📉 Toyota’s Global Production Declines for the 10th Month, Despite Sales Growth! Toyota faces a 10-month streak of declining global production, even as sales continue to rise. Supply chain challenges and production hurdles highlight the growing complexity in balancing demand and manufacturing in today’s automotive industry. Key Insights: 🚗 Sales Growth: Rising demand for Toyota vehicles worldwide. 🔄 Production Challenges: Supply chain disruptions impacting output. 🌍 Global Implications: A reflection of ongoing industry struggles. What does this mean for the future of automotive production? Share your views below! 👇 #Toyota #AutomotiveIndustry #GlobalProduction #SalesGrowth #SupplyChainChallenges #Manufacturing #AutoNews #BusinessTrends #Sustainability #Innovation

The Automotive Industry has faced numerous challenges in recent years, yet it will continue to exhibit growth in 2024. To explore the obstacles encountered by this industry and what lies ahead, read on. #AutomotiveIndustry #Challenges #Growth2024 #Motorlease #WhateverItTakes

Volkswagen, a cornerstone of German engineering, is facing a critical challenge as it struggles to transition to electric vehicles (EVs) and compete with fast-growing Chinese automakers. After a 64% drop in profits and plans to close plants and cut jobs, VW’s shift to EVs has been slowed by costly delays and internal setbacks. The company’s reputation was already tarnished by the Dieselgate scandal, and now, waning demand in key markets like China, where local EV brands are gaining momentum, is putting further pressure on its future. To survive, VW must overhaul its business model and adapt to a rapidly changing global automotive landscape. https://lnkd.in/gHtsMhJX

Daimler Truck AG and TRATON GROUP, two leading German truck manufacturers, reported declining sales for 2024, driven by tepid demand in Europe and a significant slowdown in their home country, #Germany. Daimler Truck, the world’s largest truckmaker, experienced a 12% drop in annual sales to 460,409 units, impacted by decreased demand in Asia. Traton, a subsidiary of Volkswagen Group, saw a smaller decline of 1%, with annual sales totaling 334,200 trucks. This was largely due to weaker sales of its MAN Truck & Bus SE brand and delays caused by stricter software regulations in Europe.  Despite the overall downturn, Daimler Truck recorded a 17% growth in battery electric vehicle (BEV) sales, achieving 4,035 units. However, this still represents less than 1% of its total sales. Conversely, Traton’s BEV sales fell by 18% to 1,740 units, signaling challenges in the transition to electric mobility.  Both companies have faced mounting pressure from prolonged weakness in the European market. Daimler Truck adjusted its annual outlook in 2024 and reduced working hours for some German employees to manage declining demand. Similarly, Traton reported lower margins in key units like Scania and MAN, attributing this to the sluggish market conditions in Europe.  The full financial reports for both manufacturers are scheduled for release in mid-March. Shares of Daimler Truck and Traton rose 1.7% and 3.2%, respectively, as the reported declines aligned with market expectations.  https://lnkd.in/euNniFqc #automotiveindustry #electricvehicles #china #europe Tesla MG Motor Europe BYD