Strategy – Page 10542 – I wish I had more to offer

No-deal Brexit disastrous, says Ford boss

Media playback is unsupported on your device Ford’s European boss has said a no-deal Brexit “would be pretty disastrous” for British industry and could affect the company’s future in the UK. Steven Armstrong said he was “still confident” a tariff-free frictionless trade deal would be done. But he told the BBC that a no-deal outcome… Continue reading No-deal Brexit disastrous, says Ford boss

Uber Wants To Deliver Groceries, But There Is A Much Bigger Opportunity

Uber has announced its intentions to expand into delivering groceries. Uber may choose to expand its already successful Uber Eats to be the service for grocery delivery or the company may choose to manage grocery delivery through another service. Photo: Getty Like Amazon, Uber is a company that thinks big. Uber and Amazon also share… Continue reading Uber Wants To Deliver Groceries, But There Is A Much Bigger Opportunity

Aston Barclay acquires The Car Buying Group

Aston Barclay has expanded into the consumer car buying sector with the completion of its acquisition of The Car Buying Group (TCBG). TCBG buys over 10,000 used cars nationwide on behalf of car owners and features at number 20 in the 2018 Sunday Times Tech Track 100 list of the UK’s fastest-growing private technology companies.… Continue reading Aston Barclay acquires The Car Buying Group

Conflicted German Automakers Struggle With EV Transition

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Published on October 13th, 2018 |

by Guest Contributor

Conflicted German Automakers Struggle With EV Transition

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October 13th, 2018 by Guest Contributor

Originally published on EVANNEX.
By Charles Morris

It’s no secret that legacy automakers are making the transition to electric vehicles only reluctantly, in response to regulatory pressure from governments and to competitive pressure from Tesla. Contrary to what many seem to believe, Big Auto’s reluctance to embrace EVs is not merely the usual corporate fear of the future, nor is it the result of any oil industry-fueled conspiracy (as far as we know). It’s a simple matter of money — there are good reasons to believe that electrification will take a major bite out of industry profits, as BMW and Daimler execs recently acknowledged.

German automakers remain conflicted about how to transition factory production lines from gas-powered cars to EVs (Image: Werner Budding)

Now Volkswagen has warned that its stated plan to offer an electrified version of each of its models will cost more than it estimated. VW previously predicted that the coming shift to battery power would cost some €20 billion ($23 billion). CEO Herbert Diess, in an interview published in VW’s internal newsletter, indicated that this figure was too low, but didn’t offer a new estimate. “The burden for our company, such as the cost of bringing to market electric cars, will be higher than expected,” Diess says. “This is particularly so since some of our competitors have been making more progress.” (Hmm, who would that be?)

A recent article in the Financial Times discussed the challenges legacy carmakers are facing. Whereas industry disruptor Tesla started from a blank slate to design its vehicles and has “bet the company” on EVs, incumbent OEMs can’t go down that road — the risks are too high. Analysts have warned that a substantial number of Germany’s 800,000 auto industry jobs could disappear along with the internal combustion engine.

FT points out that VW, BMW, and Daimler have each earmarked billions of euros for electric technology, but are taking different approaches — some automakers hope to build EVs using the same architecture as legacy vehicles, whereas others intend to introduce new platforms. The choice of strategy “will re-sort the carmakers in profitability,” says Christian Senger, head of the VW’s e-mobility line. “Those who [take] the hardest road will be more successful than the others.”

Germany protects its car industry as EU goes for just 15% cut in CO2 car emissions by 2025 (Source:Transport & Environment / Image: Plugin Cars)

Volkswagen is leveraging its scale advantage — earlier this year, it awarded €20 billion worth of contracts for battery supplies as part of a plan to introduce 50 pure EVs by 2025. This represents an about-face from VW’s previous strategy — the e-Golf and e-Up, introduced in 2013, were basically existing models stuffed with batteries.

“To make it a fully fledged electric car, you need to start with a battery pack between the wheels and then you build up the car,” Herbert Diess, CEO of the VW Group, told the FT. “Then you have an effective battery system, the range, and you get a lot of freedom for the design of the car, to make more interior space with the same footprint.” (His words echo what Tesla designer Von Holzhausen said back in 2011.)

The first VW model designed this way, the ID Neo, is to come out late next year, the first of several models belonging to the ID electric sub-brand. Although recent reports suggest the program could be delayed.

VW’s ID concept car appears to be another unconventional design approach typically relegated to Big Auto’s electric car efforts (Image: Charged)

BMW seems to be taking the opposite tack, touting the advantages of “flexible architecture” that can accommodate fossil, hybrid or electric powertrains. BMW plans to offer all of its models with a choice of powertrain starting in 2021. “We can’t afford having two factories standing still,” says CEO Harald Krueger. “With a flexible approach, you can always manage the capacity of your plants. But if you have a specific EV architecture, what do you with the old one? What do you do with the people?”

Daimler is combining both approaches, designing purpose-built architecture for its EQ sub-brand while also setting up its production plants to accommodate all types of powertrains, including fuel cells. “We have hybrids, plug-in hybrids, electric cars and maybe robo-taxis tomorrow,” says Daimler Production Chief Markus Schaefer. “It’s hard to predict volumes for the best way in an uncertain world, so this is the most efficient approach to supply the market.”

Some analysts think the flexible approach is too complex in both design and production. “I don’t see how they can consolidate traditional platforms, from small hatchbacks to large SUVs, and at the same time try to include EVs in the equation,” says Pelham Smithers Analyst Julie Boote. “That’s incredibly complicated.”

In another revealing move, Audi decided no e-tron inventory for its US dealerships would be made available (Source: Charged / Image: Automobile Propre)

Others see merit in the flexible approach, pointing out that it’s hard to predict how quickly the shift to electric cars will take place. “Most carmakers proceeding with EVs are following an ‘If you build it, they will come’ approach,” says Bernstein Analyst Max Warburton. “If you have a dedicated EV platform and the demand doesn’t come, you’ve lost a lot of money.”

Sources: Financial Times, Bloomberg

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Driverless taxis to be launched in Dubai on October 14

The region’s first driverless taxi will be piloted during the Gitex Technology Week that starts in Dubai tomorrow. The Roads and Transport Authority’s (RTA) autonomous taxis would help ferry Dubai Metro and tram passengers to their final destinations. The vehicle, which will be tentatively run on dedicated routes at the Dubai Silicon Oasis, has top… Continue reading Driverless taxis to be launched in Dubai on October 14

Sustainable aluminum for battery housing of Audi e-tron

Audi is the first automobile manufacturer worldwide to receive a certificate from the Aluminium Stewardship Initiative (ASI). With the Performance Standard certification, the ASI confirms that Audi meets the ASI requirements for industrial users of aluminum and sustainably designs and manufactures the aluminum components of the battery housing of the Audi e-tron. For the assessment,… Continue reading Sustainable aluminum for battery housing of Audi e-tron

Mahindra Signs Strategic Partnership Agreement with Castrol India

Set to endorse a range of tractor fluids from Castrol under the brand “Mileage ka Master”

Mumbai, October 11, 2018: Mahindra & Mahindra, part of the USD 20.7 billion Mahindra Group and Castrol India, the leading automotive and industrial lubricant manufacturing company in the country, today announced the signing of a new strategic partnership agreement between the two companies. Under the aegis of this agreement, Mahindra will endorse a range of Castrol products which include aftermarket engine oils and transmission fluids for Mahindra tractors under the brand, “Mileage Ka Master” (MKM).

The agreement was signed by Mr. Hemant Sikka, President & Chief Purchase Officer, Powerol & Spares Business, Mahindra & Mahindra Limited and Omer Dormen, Managing Director, Castrol India Limited at a ceremony held in Mumbai.

Commenting on the partnership at the signing event, Hemant Sikka President & Chief Purchase Officer, Powerol & Spares Business, Mahindra & Mahindra Limited said: “We are pleased to join hands with Castrol, the leading lubricants brand in India. Both the companies are considered market leaders in their respective sectors – having constantly delivered innovative and pioneering technology to provide unique and differentiated offerings to customers and consumers. We look forward to partnering with Castrol and benefitting from their strong reputation, high quality products and wide-spread distribution network pan India through its over 1 lakh strong retail outlets.” Objective is to capture unmet need of customers to use recommended fluids by OEMs”

Omer Dormen, Managing Director, Castrol India Limited added, “We are very honoured to be recommended by Mahindra, the largest tractor manufacturer globally. We are pleased with the opportunity to offer Mahindra customers with our latest technology products and with the best-in-class service. Both the organisations share similar values thriving on world-class technology, innovation and sustainability for the future. We look forward to an enduring partnership while jointly leveraging exciting growth opportunities.”

Based on formulation exclusively developed by Mahindra, for use in their tractors specifically for engine and wet-brake applications, Castrol will supply these products through its wide distribution network across India. The agreement will commence with immediate effect.

About Castrol

Castrol, one of the world’s leading lubricant brands, has a proud heritage of innovation and fueling the dreams of pioneers. Our passion for performance, combined with a philosophy of working in partnership with manufacturers, has enabled Castrol to develop lubricants and greases that have been at the heart of numerous technological feats on land, air, sea and space for over 100 years. Castrol is part of the BP group and serves customers and consumers in over 140 countries in the automotive, marine, industrial and energy production sectors. Our branded products are recognized globally for innovation and high performance through our commitment to premium quality and cutting-edge technology.
Website: www.castrol.co.in
Tw handle: @Castrol_India

About Mahindra

The Mahindra Group is a USD 20.7 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It enjoys a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest tractor company, by volume. It also enjoys a strong presence in agribusiness, aerospace, commercial vehicles, components, defense, logistics, real estate, renewable energy, speedboats and steel, amongst other businesses. Headquartered in India, Mahindra employs over 2,40,000 people across 100 countries.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise

Media contact information

Mohan Nair
Vice President (Communications)
Mahindra & Mahindra Ltd.
Landline – + 91 22 28468510
Email – nair.mohan@mahindra.com

Ford Land Announces Progress Updates and Exciting Additions to Downtown West Dearborn’s Wagner Place

In addition to office space for more than 600 employees and a new public green space, Ford Motor Company is pleased to announce the addition of seven new retail tenants at downtown West Dearborn’s Wagner Place The 150,000-square-foot mixed-use development is just the beginning of Ford’s transformation into a state-of-the-art campus that will drive innovation… Continue reading Ford Land Announces Progress Updates and Exciting Additions to Downtown West Dearborn’s Wagner Place

Ferrari stock target raised by nearly 40 percent as SocGen says firm now has a better plan

CNBC

Ferrari's renewed focus on high-end clients is a “game changer” for its valuation said Societe Generale on Wednesday, as the French bank raised its price target for the stock by almost 40 percent.

Italy's most famous supercar maker first listed on the New York Stock exchange in October 2015 with an Initial Public Offering (IPO) price of $52. At Tuesday's close the stock was worth $128.95.

After long questioning the stock's value, the bank said they have now changed their mind, upping their price target for the luxury car manufacturer of $130 from $94 and shifting their recommendation from “Sell” to “Hold”.

“The facts have changed and so we have changed our mind on Ferrari,” read the note penned by equity analyst Stephen Reitman.

What's ahead for Ferrari under Louis Camilleri
11:36 AM ET Mon, 23 July 2018 | 01:52

Reitman argued that Ferrari's initial plan to reach its 2022 sales target by turning to the SUV market would be difficult because of widespread competition. He added that any “dash for growth” could risk damaging the brand's exclusivity.

That strategy was put in place by former CEO Sergio Marchionne who died in July this year following surgery. His successor, Louis Camilleri, updated markets in September with a new earnings target range for 2022 of between 1.8 and 2 billion euros ($2.1 -2.3bn).

That represented a slight pull back from Marchionne's 2-billion-euro figure, but Reitman said that while the target numbers were largely unaltered, the company strategy has now changed.

“The new mid-term plan broadly repeats the key financial objectives laid out in February, but the way Ferrari plans to achieve them appears to have fundamentally altered,” he said.

Ferrari unveiled two new car models on September 18 2018. They are titled the Monza SP1 and Monza SP2.

The analyst said Ferrari has doubled-down on high end customers after it debuted two brand new road cars, the Ferrari Monza SP1 and SP2 last month.

Ferrari have said that the latest models are part of a limited series called “Icona.” The name has been chosen to reference the firms famous racing cars of the 1950's. The cars will retail at a starting price of 1.6 million euros.

Ferrari said the limited edition would run to a maximum of 499 cars but that there will be further model releases as part of the Icona range.

On plans for an SUV release, Ferrari have now pushed back the release date by two years to 2022. Reitman described the change of strategy as a “game-changer” for the firm.

Societe Generale added that Ferrrai's fundamentals ought now to be valued somewhere between the weighted average of the European luxury goods sector and the French high fashion luxury goods manufacturer, Hermes.

Scott Keogh named head of Volkswagen Group of America

Scott Keogh, head of Audi of America, was named president and CEO of Volkswagen Group of America as well as head of the Volkswagen brand for the North American region. Keogh, who joined Audi in 2006, will succeed Hinrich J. Woebcken, who led the successful transformation of Volkswagen in North America. Woebcken will remain with… Continue reading Scott Keogh named head of Volkswagen Group of America