Stagnating demand in Western markets, the end of the ‘global car,’ and the cost of electrification present automakers and suppliers with a triple conundrum, says AlixPartners’ annual report on the state of the auto industry.
Deals and acquisitions
Depleted U.S. Weapons Stash Could Turn Detroit Into the “Arsenal of Democracy” Once Again
The Iran War has left the U.S. military with a depleted stockpile of weapons – even while revealing there’s an entirely new form of warfare. Yet that has the Pentagon reaching into its past and could see Detroit’s automakers emerge as a modern version of the “Arsenal of Democracy” that played a critical role in winning World War II. Headlight.News has more.
Stellantis Lays Our Global, $70 Bil Turnaround Plan – But It’s the U.S. it’s Betting Big On
Aiming to reverse a series of setbacks to sales and earnings, Stellantis Thursday unveiled a $70 billion turnaround plan that will see it launch more than 60 new vehicles by decade’s end. But while markets from Europe to Africa to Asia should benefit, the Fastlane 2030 program depends disproportionately on two U.S. brands: Jeep and Ram. Headlight.News has more.
Stellantis and JLR Exploring Collaboration
Stellantis and Jaguar Land Rover signed a Memorandum of Understanding to explore “opportunities to collaborate on product development” – though the MOU is specifically focused on the U.S. market. The announcement comes a day before Stellantis is set to announce a broad new strategy that will focus its efforts on just four key brands, leaving some observers wondering how an alliance with JLR would fit in. Headlight.News has more.
Honda to Join Toyota, Exporting U.S.-Made Vehicles to Japan
Honda will begin exporting two models from U.S. plants to Japan, Headlight.News learned, marking the first time it has done that in four decades. The move echoes plans by Toyota which late last year said it would export three American-made products to its home market.
Plant Closures Possible as VW Looks to Slash Costs
Volkswagen’s CEO and CFO presented senior management a “massive” plan to cut costs by 20% by the end of 2028, a move that could save as much as $71 billion at current exchange rates. The move could bring plant closures and cuts to employment, reports Headlight.News.
China’s BYD Beat Tesla and Has Now Topped Ford’s Global Sales, as Well
China’s BYD saw a massive surge in global sales last year. It not only topped Tesla as world’s largest seller of battery-electric vehicles but also beat Ford Motor Co. in overall global sales. More from Headlight.News.
Pres. Trump Threatens to Block Opening of $5.9B Gordie Howe Bridge – Critics Cry Foul, Call it a Political Favor
President Trump is threatening to block the opening of a new bridge linking Detroit and Windsor, Ontario eagerly sought by the auto industry. The president points to his escalating debut with Canada but critics see a political favor for a major GOP donor who owns a rival span across the Detroit River. Headlight.News has more.
UAW Workers Get 20% Pay Hike at VW Chattanooga Plant
It’s taken two years, but workers at the Volkswagen plant in Chattanooga, Tennessee are set to get a big payoff after voting to approve union representation. The question is whether they will approve their tentative new contract, reports Headlight.News.
Honda, DriveOhio Team Up to Proactively Spot, Repair Road Problems
A pilot program partnering Honda and DriveOhio aims to catch small problems on the state’s roads and repair them before they get big using crowdsourced information. Headlight.News has more on the prototype Honda Proactive Roadway Maintenance System.
Mercedes Rejected Push by Treasury Sec. Lutnick to Move HQ to U.S.
Mercedes-Benz CEO Ola Kallenius rejected pressure from Howard Lutnick, the U.S. Treasury Secretary, to move his company’s headquarters to the United States. But it will increase U.S. production. Headlight.News has more.
Tesla Loses Global EV Sales Crown to China’s BYD
Tesla reported its second annual sales decline on Friday – a dip made worse by the fact that the Texas-based automaker also slipped to second in the global EV sales race, ceding its crown to China’s aggressive upstart BYD. Headlight.News has more.