Volkswagen has offered a 14% pay raise and improved benefits to its Tennessee plant workers, but the UAW may push for more, following Detroit Three’s 25% raise deal. BYD is shifting its European production strategy by building larger EVs first in Hungary before introducing smaller models. Stellantis extends production stoppages in Italy amid demand drops, while Hyundai struggles in China, investing $1.1 billion to boost EV development. The EU remains firm on strict CO2 targets despite automaker pushback. Additionally, Hyundai expands its partnership with Google, and Chinese EV exports face challenges due to tariffs and import tax hikes in Brazil.
Topics:uaw negotiationsvw pay raisebyd european productionstellantis production stoppagehyundai china struggleseu co2 targetsgoogle automotive partnershipchinese ev exportsautomotive tariffselectric vehicles
- VW Offers 14% Pay Increase to UAW - BYD Delays European Production - Stellantis Extends Italy Production Stoppage - Hyundai Invests $1 Billion Into China Ops - Mercedes’ Kallenius Named ACEA President - EU Won’t Back Off CO2 Targets - Hyundai Expands Partnership with Google - Kia Planning Electric Tasman Pickup - China 2024 Car Deliveries to Exceed 30 Million Vehicles - Chinese EVs Pile Up at Brazil Ports
"...ear, but instead of building a new version of the Seagull right away, BYD will start with larger, more expe..."
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Speaker 1: This is out aligned daily, the show dedicated to enthusiasts of the global automotive industry. If negotiations with the Detroit
Three last year were any indication, the UAW will throw VW's first contract offer in the trash. Volkswagen put out
a statement that had offered line workers at its plant in Tennessee a fourteen percent raise over the four year contract, profit sharing for the first time ever, and improvements to healthcare benefits. But the UIW got a twenty five percent
raise for members from the Detroit Three, so we expected to try and get as close as possible to that number and will be interested to see if UAW President Sean Fain goes after VW with the same amount of passion as he did last year. BYD is changing course
slightly in Europe. Not long after the EU started talking
about raising tariffs on imported Chinese evs, BYD announced it would build a new plan in Hungary. It's expected to
start producing cars by the end of next year, but instead of building a new version of the Seagull right away, BYD will start with larger, more expensive evs at the plant.
First will come the Dolphin in Ato three, followed by a model called the Atto two and then the Seagull, and Carnu's China claims that the plant could build as many as twelve models at the same time. Annual capacity
is expected to be around two hundred thousand units, but the ramp up to that will take two to three years.
As BYD tries to increase its sales in Europe. Last
year it sold a little more than fifteen five hundred vehicles in the region, and until it can start making vehicles in Hungary, BYD will start importing plug in hybrids to avoid.
Speaker 2: The eus EV tariffs.
Speaker 1: And speaking of manufacturing in Europe, Stilantis is extending a production stoppage at its mere Fiori plant in Italy for another two weeks, which it means that cars won't start rolling down the line again until January twentieth, the next year.
The automaker previously stopped production at the plant due to slowing demand for the models that are made there, the Fiat five hundred and several Maserati vehicles. The Italian government
has already voiced its displeasure with Stilantis' moves in the country, so no doubt this doesn't make that relationship any better.
Speaker 2: Hyundai is struggling in China.
Speaker 1: It has only sold one hundred and thirty seven thousand vehicles as of October of this year with its joint venture partner Baiic, a forty one percent declined from a year ago. That's forced it to close plants in the
country and led to a nearly three hundred and sixty million dollar loss in the first nine months of the year.
Hondai's sales are slumping because of the rapid transition to evs in China, plus.
Speaker 2: More car buyers are choosing local brands.
Speaker 1: So to help reverse its slide, Hyundai and b the AIC will pour one point one billion dollars into their JV, with both companies splitting the cost of the investment. The
money will go towards boosting exports and speeding up the development of evs that are designed for Chinese customers.
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Speaker 2: Well that was quick.
Speaker 1: As we reported earlier in the week, Stillantis applied to rejoin the ACEA, or the European Automobile Manufacturers Association, a lobbying group that represents the European auto industry, and yesterday the group officially approved the automaker's membership and it will rejoin on jan one of twenty twenty five. Stillantis left
the group two years ago because then CEO Carlos Tavares was unhappy with the ACEA support of the EU's ev transition plan. But now that he's gone, Stillantis is back
and the ACEA also named a new president who is picked from the CEOs of its fourteen member companies. Mercedes
CEO Ola Collenius will become the head of the organization on Jan.
Speaker 5: One.
Speaker 1: He replaces Renault CEO Luca Demeyo, who has held the position for the last two years. But this follows the
group's normal progression. The ACEA president is elected for one
year and can be renewed for a second year. Automakers
in Europe are pushing the EU to soften or delay stricter CO two rules that go into effect next year because they potentially face fines of fifteen billion euros for missing the targets. The largest lawmaker group in the EU,
the European People's Party, is also pushing back against the rules.
But when asked if the CEO two targets will be weakened, the EU's climate policy chief said quote no, the answer is no. The Hyundai Group is expanding its partnership with Google.
The automaker previously announced it will integrate Google's Android automotive operating system into its vehicles, and now Hundai will integrate the Google Maps platform. Kia vehicles in North America will
be the first to get the feature, and it will then roll out to other Hondai, Kia and Genesis models globally.
Speaking of Kia, the head of the automaker's marketing in South Africa said that an electric version of the Tasman pickup truck is coming. However, no other details were provided.
The IC version of the truck is expected to arrive later next year or in early twenty twenty six. China
is on pace to exceed thirty million vehicle deliveries for a second straight year. According to the China Association of
Automobile Manufacturers. Automakers have delivered nearly twenty seven million vehicles
through November, up about four percent from a year ago.
That number also includes commercial vehicles, but light duty vehicles are driving most of that growth, with more than twenty three million sales, a five percent increase. Commercial vehicle deliveries
are down four percent this year. Passenger vehicle sales are
strong thanks to China's cash for clunkers like policy that gives buyers up to two thousand, seven hundred and fifty bucks for scrapping their old vehicle. That policy is set
to expire at the end of the year, but as we reported yesterday, automakers are pressuring the government to extend it into next year because EV exports drop twenty nine percent last month, and that's mostly because of the EU's new tariff on Chinese made evs. But Chinese automakers are
also running into issues with one of their biggest export markets, Brazil.
Bloomberg reports that there are around seventy thousand unsold Chinese evs.
Speaker 2: At Brazilian ports.
Speaker 1: They're piling up because the country reinstated import taxes on evs that grow from ten percent to thirty five percent next year.
Speaker 2: So in order to avoid.
Speaker 1: Those tariffs, Chinese evy makers flooded Brazil with vehicles. Byd
Alone says it has thirty five thousand vehicles at ports, which is about four months of inventory. As we said yesterday,
the export market is something of a safety valve that's absorbing some of the excess manufacturing capacity in China. And
if exports continue to fall weaker, Chinese automakers are going to be financially crippled if they can't sell more vehicles in China. And don't forget to tune into Autoline after
Hours at three pm Eastern time today, We've got Jeff Gilbert and the Pauls, Paul Eisenstein and Paul Waddie coming on the show to discuss the hottest topics of this week.
Speaker 2: But that's all for this show. I hope to see
you later.
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