Stellantis is publicly searching for a new CEO well before Carlos Tavares' contract ends, signaling pressure from stakeholders amid falling sales and profits. The company is also facing labor disputes with the UAW, leading to production shifts and potential strikes. Volkswagen is negotiating tough terms with German unions over plant closures. Buick marks a milestone with two million premium vans made in China, but US import restrictions on Chinese-made EVs loom. Chinese auto exports are surging globally, while Kia plans to enter Japan's commercial van market. Volkswagen introduces AI-powered virtual assistants in its vehicles, highlighting tech advancements.
Topics:stellantis ceo searchlabor disputesunion negotiationsbuick premium vansus import restrictionschinese auto exportskia commercial vans japanvolkswagen ai assistantstock buybacksautomotive software technology
- Stellantis Looking for Replacement CEO - Stellantis Fires Back at UAW - VW Expects "Significant" Union Concessions - Buick Reveals Future Van Concept - Automakers Could Have to Stop Some Chinese Imports - Chinese Exports Likely to Rise Even More - Toyota Buys Back Huge Amount of Stock - Great Wall Develops Its Own Chips - Kia Launching Commercial Vans in Japan - VW Partners with Google on Gen-AI
"...rting vehicles like the Buick and Vision, Lincoln Nautilus, and S ninety Sedan. The official says that the a..."
Select text to request an explanation
Speaker 1: This is Underline Daily, the show dedicated to enthusiasts of the global automotive industry. In a surprising revelation, the chairman
of Stalantis, John Elcan, admitted that the company is looking for a replacement for its CEO, Carlos Tavares. Tavares has
come under public fire from the Italian government, the UAW, and the company's US dealer base. Sales and profits have
dropped sharply this year, and the stock price is down thirty three percent since January. Stillanta said it's normal for
a company to start looking for a CEO replacement well before that CEO's contract expires, and that's true. All major
corporations always have contingency plans to replace senior executives just in case something happens, or as part of the normal rotation through executive suites. But it's highly unusual for a
company to go out and publicly announce its searching for a new CEO nearly sixteen months before his contract expires.
Speaker 2: So here's our autoline insight.
Speaker 1: This announcement is going to put enormous pressure on Tavares to get things turned around or his contract won't be renewed.
And it's a signal to the US dealers, the UAW, the Italian government and shareholders that the board of directors is aware of their displeasure and is ready to make changes.
Speaker 2: Speaking of Stillantis.
Speaker 1: It's pushing back against the UAW, which is threatening to strike the company for allegedly failing to live up to its labor agreement. Stillantis is delaying plans to open its
Belvidere assembly plant, it's eliminating a shift at its Warren truck plant, and it's planning to move production of the Dodge Durango out of Detroit and probably to Windsor, Canada.
Speaker 2: But Stillantis says.
Speaker 1: It's free to make these moves because it signed a side letter to the labor contract that allows it to take market conditions into account when deciding where to locate production and how to run its plants. We think that
if the union does go on strike for contract violations, the first thing the company will do is run to the courts to get an injunction to stop the strike.
And that side letter may give Stilantis all the power that it needs. But it isn't the only auto maker
with union problems. Oliver Bluma, the CEO of Volkswagen, says
he expects significant concessions from German labor unions. VW is
entering negotiations to close at least two assembly plants in Germany and is looking for significant headcount reduction. But the
unions say that closing plants is out of the question and they're going to resist any layoffs and so this.
Speaker 2: Could get ugly.
Speaker 1: VW desperately needs to cut costs, while the unions are in no mood to compromise.
Speaker 3: There's nothing wrong with heavy metal. Hey light enough, but
with world class composit material taging, Automotive Technologies makes vehicles lighter, safer, and more eco friendly.
Speaker 1: It took twenty five years to do it, but Buick says it's the first automaker in China to make two million premium vans. The GL eight was introduced in nineteen
ninety nine and the Milestone example, the all new plug and hybrid version that debuted in April, just rolled off the assembly line. To also help celebrate the occasion, Buick
revealed a new future van concept called the Organic Mobile Private Villa or OMPV for short. There's only this one picture,
but it says it will have adjustable lighting and amenities as well as a transformable interior that sounds like it will take advantage of reconfigurable seating, and I really like all the wild designs in cool time you can get in these Chinese vans like the gl eight, But it's a Buick that will probably never make it to its home market because of the US's new rules on Chinese evs and technology, which will essentially ban all vehicles made in China, and that's not just limited to premium vans.
A US Commerce Department officials said they anticipate that any vehicle that's manufactured in China and sold in the US would be prohibited from entering the market. That means that
gm Ford, Polestar in Volvo could have to stop importing vehicles like the Buick and Vision, Lincoln Nautilus, and S ninety Sedan. The official says that the automakers are aware
of this, but they are allowed to apply for special authorization to.
Speaker 2: Sell the models.
Speaker 1: We expect gm Ford, Polestar in Volvo to do that, but it's unclear how strict the Commerce Department will be.
Despite being blocked from the US, Chinese automakers continue to increase their number of X sports through the first eight months of the year, nearly four point one million vehicles have been exported from China, which is an increase of twenty seven percent. Russia was number one with over seven
hundred and five thousand Chinese vehicles entering its borders, followed by Mexico with more than three hundred and twenty three thousand imports, and then the UAE at roughly two hundred and three thousand vehicles. And we can only expect these
numbers to grow with automakers like byd adding even more car hauling ships to its fleet. It's about to launch
the second which can carry seven thousand cars, of seven ships that it plans to deploy in the next two years.
Toyota is buying back a huge amount of its stock.
It already repurchased eight point three billion dollars worth of its stock, or nearly four percent of its shares. Even
so its stock is up only one percent, even though it's raking in records. The stock buyback is part of
the company's effort to loosen up its cross shareholdings with banks and insurance companies. The Japanese government is pushing large
corporations like Toyota to unwind partnerships which will allow them to concentrate on the core business and make decisions faster.
Speaker 2: Western automakers are.
Speaker 1: Lagging behind China when it comes to smart car technology, but great Wall Motors may have come up with a solution to help merge US and European systems with Chinese tech.
It says it independently developed a new automotive grade software chip that uses open source architecture to define the interaction between hardware and software. So, despite being behind China, the
chairman of great Wall says quote, relying on open source architecture can lessen the restriction by European and American technologies and ensure the possibility of architecture expansion with the access option of luxury brands. Foreign automakers have not had much
success in Japan, so the Hondai Group is taking a different approach. Instead of selling passenger vehicles, it's jumping into
the commercial segment. Kia announced that it will start offering
its platform Beyond Vehicles or PBV vans in Japan starting in twenty twenty six.
Speaker 2: The mid size PV five.
Speaker 1: Will be the first to launch, followed by the PV seven and then other models in variants. The electric vans
are based on a software defined vehicle platform and they're customizable based on the customer's needs. Will be very interested
to see if Kia is able to have any success selling commercial vehicles in Japan. Volkswagen is partnering with Google
to integrate generative AI into the automaker's mobile app. The
feature is now available to all twenty twenty four model year at Lists and Atlas Cross Sport owners in the US through the MYVW app. Drivers can use the AI
Virtual Assistant to answer questions about the vehicle or even provide info about warning lights by pointing a smartphone camera at them. VW says the new AI powered Virtual Assistant
will roll out in most model year twenty twenty in newer vehicles starting next year. That brings us to the
end of today's show. Thanks for making autoline a part.
Speaker 2: Of your day.
Speaker 3: Autoline Daily is brought to you by Bridgestone Solutions for your Journey, Intrepid Control Systems, Over the Air, Engineering, Boost Your Game MEDC where Michigan businesses are powering the future of mobility, and by Tagent Automotive Technologies the formula for better mobility.
Speaker 4: Developing today's vehicles issues can happen in an instant. When's
the best time to solve a problem The minute you know you have one. Meet Wireless neofi Cloud. You're secure
off the shelf solution empowering real time collaboration for quick resolution.
Speaker 5: With Wireless neov Cloud, your team can prevent issues before they can escalate. Driver communication data and remote diagnostics to
analyze and resolve your problems using OTA, allowing your executives oversight throughout the process. Wireless neov Cloud your vehicle update
solution and production, and on the road intrepid control systems driven by your data.
Speaker 6: Knowing that a little rain won't slow down your day, That's what really matters. Rich Done Torunso quiet tract hires
confident control in wet conditions.
Speaker 1: So when we did our research for the talent that we need for this program, Michigan was really the top of the list. In order to be successful in this space,
you really have to have the right people, the right mindset, the right environment.
Request an explanation for:
1 cars
1 cars featured
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark.
Click the flag icon on any annotation to suggest a correction.
