A conversation on the future of Lamborghini in the face of electrification and troubles at parent company Volkswagen Group with the sports car brand’s CEO Stephan Winkelmann.
Earnings and Financials
VW, Union Agree to Unprecedented 35,000 Job Cuts
In an unprecedented compromise, Volkswagen reached an agreement with its German labor union to cut as many as 35,000 jobs in Germany – though the automaker agreed not to order immediate layoffs or plant closures and dropped a demand for 10% wage cuts. The move avoided a mass walkout by members of the IG Metall union but is billed as a way to curb VW’s bloated labor costs, among the industry’s highest.
Honda to Take Lead in Planned Merger with Nissan
Honda and Nissan will merge under a new holding company, the automaker’s announced, confirming months of rumors, with the smaller of the Japanese automakers effectively taking control of the new alliance. Mitsubishi, which was rescued by Nissan in 2016, has yet to decide whether to become part of the alliance. And Renault, which bailed out Nissan in 1999, plans to determine what role it may have going forward.
Mercedes Teases All-Electric Van Ahead of U.S. Return
Mercedes released teaser images of what will be a new line of family-sized all-electric vans. Based on its EV-only VAN.EA platform, the German automaker is confident enough to bring it back to the U.S. market where it’s been out of the people-mover segment for some time.
GM Halts Cruise Robocab Program
General Motors is shutting down its Cruise robocab program, shifting resources to the development of self-driving privately owned vehicles. The move comes a year after the subsidiary was blamed for a near-fatal accident near its San Francisco headquarters. It effectively hands what proponents see as a potentially huge market to competitors like Waymo and Tesla.
VinFast Adding Second Plant in Vietnam
VinFast will add a second factory in Vietnam to handle anticipated demand for its small and midsized products. The new facility is expected to begin production by July 2025. The move comes even as it delays construction of a U.S. assembly plant.
The Shake-Up Accelerates at Stellantis as Kuniskis Returns, More Moves in the Works
Dodge brand boss Tim Kuniskis has returned to Stellantis after retiring in June. He’ll take charge of Ram, the automaker announced Monday. It’s just one of the first steps in what could be a much broader management shake-up to follow the unexpected resignation of Stellantis CEO Carlos Tavares earlier this month.
Lucid Hopes to Get Off the Ground as Production of Gravity SUV Begins
Lucid Motors has started rolling out its second product line and the all-new Gravity line is likely to determine whether the struggling start-off takes to the air or comes crashing back to earth. The first version of the electric SUV will start at $96,550, with lower-priced trims to follow late next year.
Western Automakers Losing Ground in China; GM Takes $5 Billion Charge, May Close Plants
Not all that long ago, foreign manufacturers like General Motors, Ford and Volkswagen dominated the Chinese automotive market where, in some cases, they were making their biggest profits. Now, as domestic competitors like Geely and BYD gain traction, times have changed. On Wednesday, General Motors revealed plans to take more than $5 billion in charges to restructure its Chinese operations and is likely to close some of its plants there. But it’s far from the only international manufacturer struggling in the world’s largest automotive market.
Volkswagen Workers Strike as Automaker Prepares to Close as Many as 3 German Factories
Workers at Volkswagen’s German operations walked off the job Monday. The 120,000 members of trade union IG Metall took to the streets to protest the automaker’s plans to pair back its home market operations, a move that could see it shutter as many as three assembly lines.
Judge Again Rejects Musk’s $56 Billion Pay Package
A Delaware judge has again rejected the $56 billion payout for Tesla CEO Elon Musk, even after shareholders voted to reinstate the package earlier this year. But even if the ruling is upheld, the South African-born entrepreneur and confident to President-elect Donald Trump is expected to remain the world’s richest man.
Trump’s Threatened Tariffs Could Cost Automakers 17% of Earnings
President-elect Donald Trump’s proposed 25% tariff on all goods form Canada and Mexico, plus on all Chinese imports could wind up costing automakers as much 17% from their annual earnings. The estimate comes from a new study from S&P analysts. Check out the story at Headlight.News.