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Runtime: 8:00
0:00 VW To Close At Least 3 Plants in Germany
0:33 Mercedes’ Q3 Earnings a Disaster
1:02 Porsche’s Earnings Down Sharply
1:36 Renault Gives Employees Free Stock
3:20 Waymo Raises $5.6 Billion
3:55 Anthro Energy Receives U.S. Grant for Electrolyte Production
4:32 Hyundai Unveils “Rolling Lab” Test Vehicle
6:07 Hyundai Rotem Reveals Hydrogen Powered Tank
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
VW TO CLOSE AT LEAST 3 PLANTS IN GERMANY
We said this was coming, but it may be worse than we thought. Volkswagen is going to close at least three plants in Germany, shrink its manufacturing base in Europe and lay off tens of thousands of workers. Original reports said the company would close 2 plants, but VW is desperate to cut costs as its profit margin shrinks and sales slow.
MERCEDES’ Q3 EARNINGS A DISASTER
And Volkswagen isn’t the only German automaker in trouble. Mercedes-Benz reported its third quarter earnings and they were a disaster. Sales dropped 3.4% to just under 600,000 units. But revenue dropped 7%, its EBIT fell 48% and its net profit plummeted 54%. Mercedes’ CFO, Harald Wilhelm, promises the company will step up its efforts to cut costs.
| MERCEDES-BENZ Q3, 2024 EARNINGS | ||
|---|---|---|
| Sales | 594,636 | -3.4% |
| Revenue | €34.5 B | -7% |
| EBIT | €2.5 B | -48% |
| Net Profit | €1.7 B | -54% |
| Source: Mercedes-Benz | ||
PORSCHE’S EARNINGS DOWN SHARPLY
The numbers don’t look good at Porsche, either. It sold 226,000 cars for the first three quarters of the year, down 7%. Revenue fell 5%, operating profits dropped 26% and its net profit fell almost 30%. Porsche says it’s going to start closing dealerships in China because it lost so many sales there. It also says that it’s still solidly profitable and that it will hold to its profit guidance for the year…as long as market conditions don’t get worse.
| PORSCHE Q1-3, 2024 EARNINGS | ||
|---|---|---|
| Sales | 226,026 | -6.8% |
| Revenue | €28.5 B | -5.2% |
| Op, Profit | €4.0 B | -26.6% |
| Net Profit | €2.7 B | -29.8% |
| Source: Porsche | ||
RENAULT GIVES EMPLOYEES FREE STOCK
Renault is giving employees free shares and hopes that one day they’ll hold a 10% stake in the company. Over 93,000 eligible workers in 30 countries were given 7 free shares as well as the opportunity to buy more at a 30% discount. And nearly 46,000 bought more, which amounted to 31.1 million euros. It’s actually the third-time Renault has done this and employees now hold a nearly 6% share in the company. Stellantis also offers a similar program to some of its workforce.
WAYMO RAISES $5.6 BILLION
Waymo disclosed that it raised $5.6 billion in its latest funding round. Not surprisingly most of it comes from parent company Alphabet, which invested $5 billion of that figure, while the other $600 million came from outside firms. Waymo operates about 650 robotaxis in Phoenix and San Francisco and now averages 100,000 paid rides a week. It plans to expand into Austin, Texas and Los Angeles early next year followed by Atlanta, Georgia later in the year.
ANTHRO ENERGY RECEIVES U.S. GRANT FOR ELECTROLYTE PRODUCTION
The U.S. continues to strengthen its domestic supply chain for EV batteries. The Department of Energy awarded Anthro Energy, a battery materials company, with a nearly $25 million grant to produce electrolyte for lithium-ion batteries. Electrolyte is the material that helps transfer ions between the electrodes inside a battery. Anthro Energy will use the money to convert an existing plant in Louisville, Kentucky to produce 12,000 metric tons of electrolyte a year, making it the first large-scale facility in the U.S.
HYUNDAI UNVEILS “ROLLING LAB” TEST VEHICLE
Back in April John got a chance to talk to Joonwoo Park, the VP of the N brand, all about the evolution of Hyundai’s performance EVs. We learned it all started with the ‘Rolling Lab,’ which is what the company calls its test vehicles. These are real driving cars that are meant to bridge the gap between motorsport technology and production N models and now it’s showing off the newest generation, the RN24. Basically, it takes the roughly 640 horsepower dual motor setup from the IONIQ 5 N and stuffs it into a smaller B-segment sized platform with rally-spec dampers and an exposed roll cage. It even has the same 84 kWh of batteries, but the pack has been redesigned to fit into the shorter wheelbase. While these ‘Rolling Labs’ have never made it to production, elements have, and you get a better idea of the paths that Hyundai is thinking of taking. One element that has seemed to prove pretty popular is 5 N’s Active Sound system, which simulates vehicle noises based on the driver’s input. John said it’s kind of pointless for everyday driving, but it provided good feedback when you’re really pushing the car. Now Hyundai wants people outside the car to have a similar experience. The RN24 has two additional side speakers on the outside and the rear fender design is meant to act as a soundbox projecting the noises out even further.
HYUNDAI ROTEM REVEALS HYDROGEN POWERED TANK
Speaking of Hyundai, Hyundai Rotem, which is part of the Group and makes military and industrial equipment, just introduced a hydrogen-powered tank. It’s a modified version of its K2 tank, but Hyundai says it’s quieter and has better acceleration. And thanks to its hydrogen fuel cells and battery pack it has a low-heat signature, protecting it from heat-seeking weapons. In addition to that, the tank features autonomous driving and a remote drone for reconnaissance. Hyundai is developing it with Korea’s defense department and is aiming to launch the tank in 2040.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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Wow short episode today.
Not sure I would want to be strapped into a tank that is likely taking fire with a few hydrogen tanks aboard. Thats just me.
I don’t know, but it seems that some OEMs and their shareholders are a little over reactive when it comes the vehicles sells and the amount the company made per quarter. First off I admit to not have a clue to that side of the auto industry and some may think I should speak on what I don’t know, and that would be fair. Yet, on the outside looking in, out side of the actions of the VW Group, why are Mercedes and Porsche reeling from slightly fewer sells this quarter over the same time last year? Revenue may be down, but it’s not like either of them broke even and made no money, with Porsche only making half as much as they did last year this time, which was still several BILLIONs of dollars! No one is walking them over to the poor house and are in no line asking for government assistance. I can understand ever company want to make money and more of it, but I just don’t see why some of the alarm when, they may have sold 6% fewer vehicles this quarter, especially when, by the end of the year, they may very well sold more for the year?!
“ANTHRO ENERGY RECEIVES U.S. GRANT FOR ELECTROLYTE PRODUCTION”. Gosh, U.S. Grant is still alive?
Wow! U.S. Grant is 202 years old.
The Hyundai N EV series has gotten a lot of attention from auto journalists and certainly holds a lot of potentials for enthusiasts. I get that some may feel that they fake engine sounds are pointless, but I go back to the current grills on most ICE vehicles today are fake too, since most ‘breath’ through the front opening in lower spoiler, below the bumper. Having the ‘grill’ provides the vehicle with an identity with the brand and, in many cases, a visual link to its past that the company has work hard to establish. But fake vehicle sound aside, watching Hyundai’s latest test lab doing donuts in the video of today’s report, just shows me that a lot of driver excitement will not be lost just because someone chooses to drive an EV! That it can be just as exhilarating to pilot a powerful EV as a powerful ICE vehicle. That straight line performance will not be the only thing an EV will do well and that handling will be just as impressive. And, most of all, it will be okay to like driving both fast and that it will by okay to like one more then the other, as -well-as have a favorite between these two vehicle types! With the Ioniq 5 N, cost and range are its two achilles heels. If it had a bigger battery like the Air, range would be better, but cost would be a good deal over $100K. Yet, as the cost of batteries come down and the eventual solid-state batteries come to market and are produced in volume, driving a root’n-toot’n dream machine that just happens to be electric, may not be out of the question!
Monthly and quarterly year over year sales and financials can be misleading. The same month/quarter last year may be an outlier… high or low. A 3 or 4 year trend/average is a more telling comparison, but requires more analytical work/history.
wmb- I agree that there seems to be a lot of emphasis on increasing profits and margins every year when it comes to stockholders. No one seems to just be okay with a company just raking in a few billion dollars every year. I’d say a flat line of continued profit still seems pretty good.
However, I don’t agree that an EV can be as exciting as an ICE. There is certainly something to be said for the rumble roar and vibration of a high HP engine. Not saying an EV can’t be exciting as I’m sure anything with 800hp is going to be fun, just not equal. An exhaust note does provide that cherry on top when it comes to the experience.
I remember when I was 16 my first car which had a 350 Pontiac engine and had decent acceleration. However, one day on my way home the muffler blew apart leaving it with essentially strait pipes. Now it might have given me 5 more hp but it felt like 100. The whole car vibrated with the roar of the engine really came alive and it sounded like I was going twice as fast as I was. It was obnoxious and got fixed the next day but for that short while it was actually kind of cool. Or visit the drag strip and watch a few Top fuel dragsters make a run and then compare it to an equally fast EV. Just not the same experience. IMO
Cool tank,great show
To me, fake anything is obnoxious, whether fake engine noise with EVs, or fake shifts with CVTs. Maybe that’s just me.
Actually, real exhaust noise on street vehicles is obnoxious to me, if loud, whether from Harleys, pickup trucks, or “sporty” cars.
Lamb2015
I understand the appealof engines that make good sounds and vibrations and how that can, as you said, be the cherry on top of a great ride. All I’m saying is that BEVs can bring more excitement then just straight line performance and already proving to be great drivers vehicles as a result of their low center of gravity. Not needing to down shift before fast turns, holding more speed into and out of a turn with an EV then with an ICE vehicle, may not make it better, but can be just as entertaining. While it may not provide the same visceral experience, it’s far from boring and demands just as much attention and focus! The thought that Hyundai has figured out a way to bring some of that visceral experience, while fake, demonstrates that they hear the complaints and want to help recapture some of what was lost. It’s okay that people don’t like it, but it could be that some drivers could like both?!
Kit,
While I do like the sound of a thumping exhaust, I understand that not everyone else might not be feeling my vibe. OEMs should come out with a way to keep the exhaust out of the vehicle, but keep all that engine and sound of the exhaust into for the driver to enjoy! LOL!
wmb, I’ve been wondering about VAG’s panic mode too. But sitting here in Europe, and listening to German public radio’s coverage, the shock is profound – even though some people have been raising the alarm about the rapid loss of volume and competitiveness in the Chinese market. A lot of money used to flow back to headquarters. European sales never recovered to pre-pandemic levels either, and overcapacity has been a thing here for at least a generation.
From an article in today’s FT, quote: Foreign brands’ market share of Chinese auto sales is trending at a record low of 37 per cent in the first eight months of 2024, down from 64 per cent in 2020, according to data from Shanghai consultancy Automobility.
…
“The Chinese carmakers will have 10 per cent of the European market in a few years,” Tavares says. “So if the Chinese sell 1.5mn cars, it means the equivalent of seven plants.”
China’s leadership in electric propulsion is not just a matter of cost. Another major gap that is emerging is in technology.
Christoph Weber, who leads the China business for Swiss engineering software group AutoForm and is based in Shanghai, says traditional European and US carmakers need to radically change the way they work if they are to match the speed at which their Chinese rivals are embracing new technologies and designs.
Sean Wagner,
It’s not just the OEMs that needs to changes, but their customer base too, if that is the case! It makes no difference if the OEMs adjust, if their customers don’t buy! If legacy OEMs were 10 years ahead of Chinese auto companies, if their customers want ICE vehicles, these auto companies with build them.
…I mean, Chinese auto companies have an advantage in that, not only are the cost of the EV vehicles lower (due to years of incentives), they’re quality is up and they are pushing the envelope with new tech. But on that last point, their customers, fir the most part, are ready and willing to take that ride with then with that new tech! While many in other markets are open to EVs, there is a big number of folks who are not, for reasons that are real and those that are not. There is a big vocal group that some are those in leadership in the US, that will not except and will not support EVs, especially against ICE vehicles. While it may be argued whether or not Chinese companies are ahead of US and other international automakers, even if they were more even then not, what difference would it make if the customers of these legacy OEMs will not buy EVs and are more interested in ICE vehicles?!