Honda and Nissan previously struck a deal to join forces in efforts to develop electric vehicles as a way to be competitive on the market dominated by Tesla and Chinese EV producers. However, now the companies are considering taking their partnership to a next level.

Under the proposed strategic partnership deal, Honda and Nissan would use each other’s factories to produce vehicles. As part of the agreement, Honda would supply Nissan with hybrid vehicles while also potentially using Nissan’s car factory in Sunderland, England. Honda currently only produces motors and engines in its factories in Europe.

The move would likely bring the merger between Japan’s second and third-largest car producers one step closer to completion. The merger would create the world’s third-biggest automotive company, with roughly 7.5 million cars sold annually. This would only trail Toyota and Volkswagen’s numbers.

Mitsubishi could also join the new group, considering that Nissan is the company’s top stakeholder.

The post Honda and Nissan Hold Talks About Joint Car Production, Possible Merger appeared first on theprimarymarket.com.

GM notified the affected employees on Friday, with around half of them previously holding positions at the automaker’s global technical center in Warren, Michigan.

The company confirmed the report in a statement but didn’t disclose the exact number of workers who were laid off. It described the move as “a small number of team reductions.”

“In order to win in this competitive market, we need to optimize for speed and excellence. This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business,” a GM spokesperson stated.

This isn’t the first time that GM has made job cuts in 2024. Back in August, the automaker laid off around 1,000 employees in its software division as it looked to make its operation more efficient. In September, it terminated the contracts of another 1,700 workers at its Fairfax Assembly & Stamping factory in Kansas City.

GM is aiming to cut its costs by $2 billion to $4 billion in 2025 as it tries to speed up the transition to electric vehicles and compete with the likes of Tesla.

The post GM to Lay Off 1,000 Workers as Part of Cost Cutting and Reorganization Efforts appeared first on theprimarymarket.com.

According to Volkswagen’s statement, this would be crucial in restructuring its business and positioning the company better for the future. Another move that is being considered is ending the “job security” program that is in place since 1994.

These would be unprecedented moves in Volkswagen’s history, and their prospects have already drawn harsh criticism from the trade unions. They branded the move as “short-sighted” and “extremely dangerous” while stating they intend to fight with all available measures. 

On the other hand, Volkswagen Group CEO Oliver Blume said the current situation at the company is “extremely tense and cannot be resolved through simple cost-cutting measure.”

“The European automotive industry is in a very demanding and serious situation,” Blume said in a statement. “The economic environment became even tougher, and new competitors are entering the European market. In addition, Germany in particular as a manufacturing location is falling further behind in terms of competitiveness.”

Once a European automotive giant, Volkswagen has found itself in a tough situation in the past couple of years. It is facing heightening competition in its stronghold markets like Europe and China while also trying to navigate the weakening German economy. In the most recent quarter, Volkswagen saw a 7.4% drop in sales in China, although it recorded strong growth in Latin America.

The post Volkswagen Says it Will Consider Closing Plants in Germany appeared first on theprimarymarket.com.

The layoffs are reportedly not part of the company’s cost-cutting strategy. Instead, the decision was made after a review of the unit following the departure of Software and Services Executive Vice President Mike Abbott. The GM’s goal is reportedly to streamline the division’s operations and make it more efficient.

CNBC reports that around 600 laid-off workers are part of the operations at GM Technical Center in Warren, Michigan. The company has 76,000 salaried workers on a global level and 53,000 salaried workers in the United States.

GM notified the affected employees about their status on Monday. The company also publicly confirmed the layoffs but didn’t specify how many workers will lose their jobs. 

“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,” a GM spokesperson said in a statement sent to media outlets via email.

GM’s stock has seen a slight jump after the news came out, inching up by 1% on Monday. The company’s shares are up more than 27% year-to-date. 

The post General Motors to Lay Off More Than 1,000 Workers in Software and Services Division appeared first on theprimarymarket.com.

Sharing its Q2 earnings report last week, Stellantis revealed a 13.57% drop in revenue and a 48.51% drop in net income. The company also saw its deliveries in North America plunge by 18%, shipping 838,000 units.

In this week’s chat with Bloomberg, Tavares indicated that Stellantis will likely reduce production in North America to address the high inventory while also saying that price cuts are incoming. He further added that the brands that continue to underperform will come at risk of being axed.

“If they don’t make money, we’ll shut them down,” Tavares said.

Stellantis’ CFO Natalie Knight previously hinted at this kind of approach during an earnings call with analysts.

“We’ve made tough decisions in the first half and won’t hesitate to make them again in the second half,” Knight said.

Stellantis currently owns 14 brands. Some of them, like Chrysler, Fiat, Jeep, and Dodge, are considered to be too valuable to cut. However, others like Lancia, Alfa Romeo, and particularly Maserati are believed to be at risk.

The post Stellantis Won’t Hesitate to Axe Money-Losing Brands Says CEO Carlos Tavares appeared first on theprimarymarket.com.

According to Morgan Stanley’s analysts, Tesla has a huge upside thanks to its energy business, which is projected to become more valuable than the company’s EV business in the future. Additionally, Tesla is expected to continue raking in zero-emission vehicle (ZEV) credit revenue as legacy automakers like Ford scale down their EV expansion plans.

Tesla also received points for successfully conducting cost-cutting and restructuring operations.

“We estimate Tesla may account for as much as half the credit sales in the market, supporting a 100% margin business for Tesla that may not be anticipated by the investment community at this time,” Morgan Stanley analysts said in a note shared with clients.

Tesla’s stock plunged by 13% last week after the EV maker shared weaker-than-expected second-quarter earnings. The company reported $0.52 in adjusted earnings per share compared to $0.62 expected by analysts, although it’s $25.50 billion in revenue topped the estimates of $24.77 billion.

However, Tesla shares are on their way to bounce back this week. The stock jumped by 5.60% after Morgan Stanley’s note and closed at $232.10 per share.

The post Morgan Stanley Names Tesla Its “Top Pick” in the U.S. Automotive Industry appeared first on theprimarymarket.com.

Nikkei reports that the three automotive companies “intend to standardize the in-vehicle software that controls the vehicle.” Previously, Honda and Nissan agreed to work together on the production of electric vehicle (EV) components while also developing artificial intelligence-powered software platforms for cars.

The framework of the alliance is yet to be finalized, but Mitsubishi, Honda, and Nissan are expected to collaborate in various other departments, including complementing each other’s car lineups.

The partnership comes at a time when all three automakers are struggling to remain competitive in the EV market that has been dominated by Tesla and Chinese EV companies. This has particularly been the case in China, where Mitsubishi, Honda, and Nissan had a strong customer base but are now losing footing amid pressure from domestic brands that offer cheaper vehicles.

The group will now be positioned as the third biggest automaker in Japan, with more than 8.35 million vehicles sold globally on an annual basis. Toyota, which also recently struck strategic partnerships with rivals like Suzuki and Mazda, remains the biggest seller in the country.

The post Mitsubishi Motors is Joining the Alliance Between Honda and Nissan appeared first on theprimarymarket.com.

“For decades, China has been a force of disinflation for the world through its supply of manufactured products with good value for money,” Liao stated during an interview in Rio de Janeiro prior to a meeting between G20 finance ministers and the governors of their respective central banks. He explained that products have been manufactured by China to assist nations in reaching their carbon neutrality goals by 2030.

Liao explained that China would focus on growing its share in the global EV market particularly as other nations continue to focus on traditional auto markets. This also comes as a result of China not having the same advantages that other nations have in the traditional markets, hence the desire to develop an edge in the growing EV space.

Still, China will face several hurdles in its efforts to develop a foothold on the EV market given that the European Union is set to impose tariffs on Chinese EVs while the US may impose duties in excess of 50% if former President Donald Trump wins the election in November.

The post China Pushing for Electric Vehicle Production appeared first on theprimarymarket.com.

Net profit for the quarter came to $2.8 billion, falling significantly short of $3.73 billion estimates. This came to earnings per share of $0.47, lower than an expected $0.67 per share. Despite its disappointing profit, Ford has maintained its current full-year outlook, with an adjusted net profit in the range of $10 billion to $12 billion. The company did raise its adjusted free cash forecast, however, by $1 billion to $7.5 billion to $8.5 billion.

In a call with reporters, Ford CFO John Lawler exhibited confidence in the company’s ability to remain financially stable. “We don’t see the second half being much different than the first half, or falling off,” he stated, adding that the Ford Pro commercial and super duty truck business was hit by higher warranty costs. Still, the overall Ford+ plan appears to still be on track, the CFO assured.

Shares in the company fell by 12% during pre-market trading on Thursday.

The post Ford Shares Slump Following Earnings Miss appeared first on theprimarymarket.com.

“We hope that this collaboration will help us gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China,” Nissan President and Chief Executive Makoto Uchida declared. This is an extension of the partnership that Nissan has had with Tsinghua since 2016 when the focus was on intelligent mobility and autonomous driving technology.

The automaker is looking to export its existing lineup of internal combustion engine vehicles as well as upcoming pure electric and plug-in hybrid vehicles. China currently makes up a little over a fifth of Nissan’s total sales, with about 2.8 million vehicles sold during the first 10 months of 2023.

The post Nissan to Export China-Developed EVs Globally appeared first on theprimarymarket.com.

Honda and Nissan previously struck a deal to join forces in efforts to develop electric vehicles as a way to be competitive on the market dominated by Tesla and Chinese EV producers. However, now the companies are considering taking their partnership to a next level.

Under the proposed strategic partnership deal, Honda and Nissan would use each other’s factories to produce vehicles. As part of the agreement, Honda would supply Nissan with hybrid vehicles while also potentially using Nissan’s car factory in Sunderland, England. Honda currently only produces motors and engines in its factories in Europe.

The move would likely bring the merger between Japan’s second and third-largest car producers one step closer to completion. The merger would create the world’s third-biggest automotive company, with roughly 7.5 million cars sold annually. This would only trail Toyota and Volkswagen’s numbers.

Mitsubishi could also join the new group, considering that Nissan is the company’s top stakeholder.

The post Honda and Nissan Hold Talks About Joint Car Production, Possible Merger appeared first on theprimarymarket.com.

GM notified the affected employees on Friday, with around half of them previously holding positions at the automaker’s global technical center in Warren, Michigan.

The company confirmed the report in a statement but didn’t disclose the exact number of workers who were laid off. It described the move as “a small number of team reductions.”

“In order to win in this competitive market, we need to optimize for speed and excellence. This includes operating with efficiency, ensuring we have the right team structure, and focusing on our top priorities as a business,” a GM spokesperson stated.

This isn’t the first time that GM has made job cuts in 2024. Back in August, the automaker laid off around 1,000 employees in its software division as it looked to make its operation more efficient. In September, it terminated the contracts of another 1,700 workers at its Fairfax Assembly & Stamping factory in Kansas City.

GM is aiming to cut its costs by $2 billion to $4 billion in 2025 as it tries to speed up the transition to electric vehicles and compete with the likes of Tesla.

The post GM to Lay Off 1,000 Workers as Part of Cost Cutting and Reorganization Efforts appeared first on theprimarymarket.com.

According to Volkswagen’s statement, this would be crucial in restructuring its business and positioning the company better for the future. Another move that is being considered is ending the “job security” program that is in place since 1994.

These would be unprecedented moves in Volkswagen’s history, and their prospects have already drawn harsh criticism from the trade unions. They branded the move as “short-sighted” and “extremely dangerous” while stating they intend to fight with all available measures. 

On the other hand, Volkswagen Group CEO Oliver Blume said the current situation at the company is “extremely tense and cannot be resolved through simple cost-cutting measure.”

“The European automotive industry is in a very demanding and serious situation,” Blume said in a statement. “The economic environment became even tougher, and new competitors are entering the European market. In addition, Germany in particular as a manufacturing location is falling further behind in terms of competitiveness.”

Once a European automotive giant, Volkswagen has found itself in a tough situation in the past couple of years. It is facing heightening competition in its stronghold markets like Europe and China while also trying to navigate the weakening German economy. In the most recent quarter, Volkswagen saw a 7.4% drop in sales in China, although it recorded strong growth in Latin America.

The post Volkswagen Says it Will Consider Closing Plants in Germany appeared first on theprimarymarket.com.

The layoffs are reportedly not part of the company’s cost-cutting strategy. Instead, the decision was made after a review of the unit following the departure of Software and Services Executive Vice President Mike Abbott. The GM’s goal is reportedly to streamline the division’s operations and make it more efficient.

CNBC reports that around 600 laid-off workers are part of the operations at GM Technical Center in Warren, Michigan. The company has 76,000 salaried workers on a global level and 53,000 salaried workers in the United States.

GM notified the affected employees about their status on Monday. The company also publicly confirmed the layoffs but didn’t specify how many workers will lose their jobs. 

“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,” a GM spokesperson said in a statement sent to media outlets via email.

GM’s stock has seen a slight jump after the news came out, inching up by 1% on Monday. The company’s shares are up more than 27% year-to-date. 

The post General Motors to Lay Off More Than 1,000 Workers in Software and Services Division appeared first on theprimarymarket.com.

Sharing its Q2 earnings report last week, Stellantis revealed a 13.57% drop in revenue and a 48.51% drop in net income. The company also saw its deliveries in North America plunge by 18%, shipping 838,000 units.

In this week’s chat with Bloomberg, Tavares indicated that Stellantis will likely reduce production in North America to address the high inventory while also saying that price cuts are incoming. He further added that the brands that continue to underperform will come at risk of being axed.

“If they don’t make money, we’ll shut them down,” Tavares said.

Stellantis’ CFO Natalie Knight previously hinted at this kind of approach during an earnings call with analysts.

“We’ve made tough decisions in the first half and won’t hesitate to make them again in the second half,” Knight said.

Stellantis currently owns 14 brands. Some of them, like Chrysler, Fiat, Jeep, and Dodge, are considered to be too valuable to cut. However, others like Lancia, Alfa Romeo, and particularly Maserati are believed to be at risk.

The post Stellantis Won’t Hesitate to Axe Money-Losing Brands Says CEO Carlos Tavares appeared first on theprimarymarket.com.

According to Morgan Stanley’s analysts, Tesla has a huge upside thanks to its energy business, which is projected to become more valuable than the company’s EV business in the future. Additionally, Tesla is expected to continue raking in zero-emission vehicle (ZEV) credit revenue as legacy automakers like Ford scale down their EV expansion plans.

Tesla also received points for successfully conducting cost-cutting and restructuring operations.

“We estimate Tesla may account for as much as half the credit sales in the market, supporting a 100% margin business for Tesla that may not be anticipated by the investment community at this time,” Morgan Stanley analysts said in a note shared with clients.

Tesla’s stock plunged by 13% last week after the EV maker shared weaker-than-expected second-quarter earnings. The company reported $0.52 in adjusted earnings per share compared to $0.62 expected by analysts, although it’s $25.50 billion in revenue topped the estimates of $24.77 billion.

However, Tesla shares are on their way to bounce back this week. The stock jumped by 5.60% after Morgan Stanley’s note and closed at $232.10 per share.

The post Morgan Stanley Names Tesla Its “Top Pick” in the U.S. Automotive Industry appeared first on theprimarymarket.com.

Nikkei reports that the three automotive companies “intend to standardize the in-vehicle software that controls the vehicle.” Previously, Honda and Nissan agreed to work together on the production of electric vehicle (EV) components while also developing artificial intelligence-powered software platforms for cars.

The framework of the alliance is yet to be finalized, but Mitsubishi, Honda, and Nissan are expected to collaborate in various other departments, including complementing each other’s car lineups.

The partnership comes at a time when all three automakers are struggling to remain competitive in the EV market that has been dominated by Tesla and Chinese EV companies. This has particularly been the case in China, where Mitsubishi, Honda, and Nissan had a strong customer base but are now losing footing amid pressure from domestic brands that offer cheaper vehicles.

The group will now be positioned as the third biggest automaker in Japan, with more than 8.35 million vehicles sold globally on an annual basis. Toyota, which also recently struck strategic partnerships with rivals like Suzuki and Mazda, remains the biggest seller in the country.

The post Mitsubishi Motors is Joining the Alliance Between Honda and Nissan appeared first on theprimarymarket.com.

“For decades, China has been a force of disinflation for the world through its supply of manufactured products with good value for money,” Liao stated during an interview in Rio de Janeiro prior to a meeting between G20 finance ministers and the governors of their respective central banks. He explained that products have been manufactured by China to assist nations in reaching their carbon neutrality goals by 2030.

Liao explained that China would focus on growing its share in the global EV market particularly as other nations continue to focus on traditional auto markets. This also comes as a result of China not having the same advantages that other nations have in the traditional markets, hence the desire to develop an edge in the growing EV space.

Still, China will face several hurdles in its efforts to develop a foothold on the EV market given that the European Union is set to impose tariffs on Chinese EVs while the US may impose duties in excess of 50% if former President Donald Trump wins the election in November.

The post China Pushing for Electric Vehicle Production appeared first on theprimarymarket.com.

Net profit for the quarter came to $2.8 billion, falling significantly short of $3.73 billion estimates. This came to earnings per share of $0.47, lower than an expected $0.67 per share. Despite its disappointing profit, Ford has maintained its current full-year outlook, with an adjusted net profit in the range of $10 billion to $12 billion. The company did raise its adjusted free cash forecast, however, by $1 billion to $7.5 billion to $8.5 billion.

In a call with reporters, Ford CFO John Lawler exhibited confidence in the company’s ability to remain financially stable. “We don’t see the second half being much different than the first half, or falling off,” he stated, adding that the Ford Pro commercial and super duty truck business was hit by higher warranty costs. Still, the overall Ford+ plan appears to still be on track, the CFO assured.

Shares in the company fell by 12% during pre-market trading on Thursday.

The post Ford Shares Slump Following Earnings Miss appeared first on theprimarymarket.com.

“We hope that this collaboration will help us gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China,” Nissan President and Chief Executive Makoto Uchida declared. This is an extension of the partnership that Nissan has had with Tsinghua since 2016 when the focus was on intelligent mobility and autonomous driving technology.

The automaker is looking to export its existing lineup of internal combustion engine vehicles as well as upcoming pure electric and plug-in hybrid vehicles. China currently makes up a little over a fifth of Nissan’s total sales, with about 2.8 million vehicles sold during the first 10 months of 2023.

The post Nissan to Export China-Developed EVs Globally appeared first on theprimarymarket.com.