Porsche pushes forward with new retail models; trying to understand the markets; and in-wheel motors getting their time in the spotlight. Please enjoy our auto industry and mobility briefing for 24th August to 30th August 2020. A PDF version can be found here.
Before you read the detail, what were my favourite stories of the past week…?
- Take On Me — Whilst others are underwhelmed by the performance of their short term rental schemes Porsche are pushing forward with a third expansion (albeit still relatively small). The offering is being expanded with a new tier that gives a discount if you don’t change cars. It’s easy to rationalise a list of exceptional reasons why Porsche’s brand can provide customers with something special that rivals can’t match, but is that true or can the results be matched with hard work?
- You Win Again — Daimler won an order from Amazon (check: tech customer) for a load of all-electric vans (check: emerging technology) that are going to be delivered this year (check: not vapourware). Yet markets didn’t swoon as they have for similar order numbers for smaller players. It makes sense in a way because the numbers are trifling in the context of Daimler’s business and the global industry, but the same argument could be made for any number of start-ups with orders for vehicles that aren’t yet available. So, what matters? Selling the future or simply not being one of the established brands?
- You Spin me Round — Mahindra agreed to work with electric motor maker REE on a new design for commercial vehicles that will properly leverage REE’s in-wheel motor technology. In-wheel motors promise a great deal for package, efficiency and control. There are only a handful of firms offering the units (let me know if you are wondering who the others are) and hopefully the move will make rivals consider whether they are taking the technology seriously enough. Could its time have come?
News is arranged by company and topic. Stories that apply to more than one company or topic are duplicated.
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News about the major automakers
- Cutting staff and shifts at the Mini plant in the UK. (BBC)
- Ineos and Daimler are reportedly close to agreeing the sale of the Hambach, France, factory. (Manager Magazin)
- Daimler announced that it was selling 1,800 all-electric vans to Amazon, but the share price didn’t jump by a bajillion dollars — even though it plans to deliver them this year. (Daimler)
- Estimates of Daimler’s headcount reductions continued to grow, and fluctuate. Some said 20,000 jobs would go. (Automotive News), whilst others said that, net of unfilled positions, the number was 30,000. (Manager Magazin)
- Recalling around 186,000 pick-ups trucks because the floor mats could foul the pedals. (FCA)
- Reportedly set to announce 1,000 job losses in North America as part of profit recovery efforts. (Bloomberg)
- Undertaking a trial of vehicles that can park themselves. Ford’s press release implies that the sensor set is the same that cars with the L2 driver assistance package will receive, plus some upgraded software that can interact with local infrastructure to safely find a parking space. (Ford)
- Recalling a small amount of vehicles because side impact airbags might not have been installed correctly. (Ford)
- The UAW union are up in arms because GM is using salaried staff to cover for hourly absenteeism (related to coronavirus) at the Wentzville, USA, plant. (Detroit Free Press)
- Toyota and Honda are starting a joint research project called Moving e that will see a fuel cell bus used as a mobile generator, focused on disaster relief efforts. Toyota will provide the bus whilst Honda will contribute generator expertise. (Honda)
- Kicked off the (previously announced) formal processes for integrating Keihin, Showa and Nissin Kogyo into Hitachi, in which Honda will take a share. (Honda)
- Hyundai’s Ioniq brand hopes to capture legions of teenage fans after enlisting the services of K-Pop sensations BTS to create a new brand song. (Hyundai)
- Rumoured to be planning large land sales at Opel’s Rüsselsheim base to raise cash. (Wirtschaftswoche)
- Opel’s boss is open to a four day week if it helps to save jobs and is cheap. (Handelsblatt)
- Tata wants cashflow to increase enough to repay almost $6.5 billion of debt over the next three years. (Reuters)
- After Ford’s Bridgend engine factory closes, JLR will take over manufacturing of V8 engines (which it owns the development cycle and IP for) at the Wolverhampton plant, taking on equipment and staff from the Ford plant to do so. (Autocar)
- Hackers targeted Tesla’s Nevada Gigafactory but were thwarted by a double agent. (Reuters)
- Toyota and Honda are starting a joint research project called Moving e that will see a fuel cell bus used as a mobile generator, focused on disaster relief efforts. Toyota will provide the bus whilst Honda will contribute generator expertise. (Honda)
- Porsche has pushed back the launch timing for the all-electric Taycan Cross Turismo shooting brake model because demand for the saloon variant is so strong. (Autocar)
- Porsche unveiled a major refresh for the Panamera four door. (Porsche)
- Whilst others are ending their experiments with short term car leasing, Porsche is expanding further in North America, adding more cities and a new monthly offering that makes subscribers commit to a single car. (Porsche)
- Significance: Porsche’s brand strength, and portfolio diversity, appear to position the company well for an offering that is similar to joining a car club but with greater convenience. It is unclear whether other brands have the same cachet required to promote themselves in this way.
Other
- Borgward has gone silent on plans for a full-scale European launch after underwhelming sales in the Chinese market and problems with at its parent. (Autocar)
- Ineos and Daimler are reportedly close to agreeing the sale of the Hambach, France, factory. (Manager Magazin)
- Electric hub motor maker REE and Mahindra will develop commercial vehicles together. (REE)
- The founder of electric truck maker Nikola is giving away part of his shareholding to loyal employees. (Nikola)
- Bollinger plans to make an all-electric commercial vehicle on the same platform as the SUV and pickup truck that have already been unveiled and a manufacturing partner will be announced soon. (Bollinger) The brand’s founder says the firm is in the process of raising investment, with the annual sales target remaining in the low four-digits, and that several special purpose entities had approached the company with a view to a listing as used by Fisker, Canoo, Luminar et al. (Reuters)
- Spyker is back, thanks to a partnership with racing outfit BR Engineering, and plans to put three models into production from 2021 onwards. Since two of them were unveiled in 2013 and 2016, it is unclear how positive the customer response will be. (Spyker)
- Workhorse is using Hitachi to provide financing and consultancy services. (Workhorse)
- Nio announced another share issue. (Nio)
- McLaren showed off the new carbon fibre chassis that will underpin its next generation models. (McLaren)
- Xpeng’s initial product offering went great guns and the firm is now worth over $10 billion. (Reuters)
- Chinese car maker Lifan agreed a restructuring plan with creditors. (China Daily)
News about other companies and trends
Suppliers
- Shiloh Industries agreed a deal to sell most of itself to an investment firm. (Shiloh)
- Hella is reportedly considering selling off its driver assistance unit. (Bloomberg)
- Honda kicked off the (previously announced) formal processes for integrating Keihin, Showa and Nissin Kogyo into Hitachi, in which Honda will take a share. (Honda)
Dealers
- Mexican used car website Kavak is merging with Argentina peer Checkars. (Reuters)
- OKXE.vn a Vietnamese website for selling motorbikes raised $5.5 million. (Deal Street Asia)
- CoPilot, an app that gives car buyers information on the best prices, raised $10 million. (Business Journals)
Ride-Hailing, Car Sharing & Rental (history)
- Lyft and Uber are reportedly preparing plans to licence their brands in California to fleet operators as a contingency measure, as the legality of their current practice of treating drivers as contractors rather than employees hangs in the balance. (New York Times)
- Ride hailing advertising firm Firefly is acquiring Strong Outdoor. (TechCrunch)
Driverless / Autonomy (history)
- Qualcomm and Veoneer will collaborate on an integrated self-driving hardware and software suite. (Veoneer)
- Uber’s self-driving car unit released an updated safety report. (Uber)
- Self-driving truck company Ike also released a new safety report. (Ike)
- Motiv Power raised $15 million. (Reuters)
- Mitsubishi has licenced Paice Hybrid’s technology. (Paice)
- Electric hub motor maker REE and Mahindra will develop commercial vehicles together. (REE)
- Toyota and Honda are starting a joint research project called Moving e that will see a fuel cell bus used as a mobile generator, focused on disaster relief efforts. Toyota will provide the bus whilst Honda will contribute generator expertise. (Honda)
- Significance: Although the idea has clear application potential, it is less obvious how to transport all the hydrogen required to the disaster area.
Other
- Additive manufacturing company Desktop Metal is listing via a merger with a special purpose vehicle in a $2.5 billion deal. (Reuters)
- Bicycle rental firm Bolt (not the same as the ride hailing company) raised $11 million and changed its name to Zoomo. (FINSMES)
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