Volkswagen is considering selling some German plants to its Chinese joint ventures, a move that could reshape its manufacturing strategy. GM reported strong revenue but faced significant one-time charges related to restructuring and autonomous tech, impacting profits. Long product cycles are becoming the norm as automakers manage EV investments and market uncertainties. Opel introduced a unique 4x4 commercial van with an electric rear axle, while Fiat is launching a new affordable hybrid and electric crossover. The US is advancing its EV battery supply chain with a major lithium refinery in Oklahoma. British off-road startup INEOS plans significant US sales growth with new models.
Topics:vw german plant salesgm earnings and restructuringlong product cyclesev profitabilityopel combo 4x4fiat grande pandaus lithium refineryineos us expansionautonomous vehicle strategyev battery supply chain
- VW Could Sell German Plants to Its Chinese JVs - GM and Stellantis Stretch Out Product Cycles - GM-UAW Workers Get $14,500 in Profit Sharing - GM Spends Nearly $1 Billion to Close Buick Dealers - Tesla Shareholders Have Tough Questions for Elon - Opel Launching 4X4 Van - Good Looking Fiat Grande Panda Going on Sale - Lithium Mining Starts in Oklahoma - Ineos Sales Up 50% in the U.S.
"... sale? And what will it cost? Is a new affordable Tesla model coming soon? And then the list goes on and on fro..."
Select text to request an explanation
Speaker 1: This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry. Well, here's something that would have
been unthinkable just a few years ago. VW is probably
going to sell some of its German assembly plants to Chinese automakers. Volkswagen CEO Oliver Bluma confirmed that the automaker
is in talks with its Chinese joint venture partners, but said it hasn't made any decisions yet. VW has joint
ventures with SAIC, FAW and JAC in China, and it also has a stake in Japan. VW labor unions will
welcome the move if it saves their jobs, but they say they'll only make vehicles for VW's Chinese jvs and if the vehicles have the VW logo on them. We've
got some future product intel that gives us some good insight into what automakers are planning. Auto Forecast Solutions reports
that the next generation Chevrolet Equinox and GMC Terrain will not go into production in Mexico and China until twenty thirty two. No doubt the current generation will get some refreshes,
but that means GM will keep the current platform for another seven years, no doubt, to keep costs down and make them more profitable. Meanwhile, Stalantis will keep the Grand
Cherokeel in production until twenty thirty. The RAM fifteen hundred
R EV hangs on until the end of twenty thirty one, and the same goes for the Jeep Recon EV that comes out this year. On the Fiat side, the five
hundred E will stay in production until twenty thirty two.
So what's the trend we're seeing here? These are pretty
long product cycles. Just a few years ago, automakers were
bragging how they would shorten those cycles. But after making
massive investments in evs that haven't paid off yet, and with so much uncertainty of what the future holds for the industry, it's an easy decision to stretch out product cycles and save billions in the process. General Motors posted
its earnings for last year, and some of the numbers are fascinating. First the basics, GM wholesaled four million vehicles
in twenty twenty four, which brought in one hundred and eighty seven billion dollars in revenue. Its earnings before interest
and taxes was just shy of fifteen billion dollars, but only six billion of that made its way to the bottom line, a forty percent drop, mainly because of some one time charges that we'll get into in a minute. Impressively,
GM's automotive operations generated fourteen billion dollars in adjusted free cash flow, which gives the company a lot of spending power.
In a letter to shareholders, CEO Mary Baris said GM achieved a variable profit on its evs and expects to improve that this year as sales ramp up and it achieves or scale, and she announced that UAW workers will earn up to fourteen five hundred dollars in profit sharing.
But GM's results would have been a whole lot better except that it had to take some very expensive one time write offs. It took a four billion dollar charge
for restructuring its Chinese operations. We haven't heard of any
specifics yet, but that would likely include closing down some assembly plants in China. GM took a one point one
billion dollar charge to close down Cruise and bring the autonomous technology unit back into the mothership. GM also paid
nearly a billion dollars to buy out the franchises of Buick dealers who have declined to go along with Bwick's evy strategy, and GM is spending sixty four million bucks to relocate its headquarters in downtown Detroit. Put all these
items together, and GM book nearly six and a half billion dollars in restructuring costs. If they're truly one time costs,
then that bodes very well for GM's twenty twenty five earnings because most of that money will drop to the bottom line.
Speaker 2: 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 neoficloud, you're secure off
the shelf solution, empowering real time collaboration for quick resolution.
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 first sight throughout the process, Wireless neo VI cloud, your vehicle update solution and production, and on the road interpid control systems driven by your data.
Speaker 1: Tesla will also announce its Q four and full year results for twenty twenty four tomorrow, and shareholders have some pretty hard questions for elon must answer. Tesla allows shareholders
to post questions on a platform called Say Technologies, and then other shareholders can vote in favor of questions they want asked during the company's earnings call. Questions with the
most votes will move to the top of the list, and some of those include is Tesla still planning to release unsupervised full self driving this year in California and Texas?
When will the Optimist robot go on sale? And what
will it cost? Is a new affordable Tesla model coming soon?
And then the list goes on and on from there.
Opel is teaming up with a French company whose name looks like Dangle but I believe is pronounced more like don Zell to come out with a new four x four version of one of its commercial vans. But unlike
a lot of other models that send power to all four wheels, there's no mechanical link between the engine and rear wheels. The Opel Combo four x four uses a
self contained EAXL unit that kicks into action anytime the vehicle the text wheel slip. Owners can choose between auto
low and lock. I wasn't able to find out how
much power the rear motor generates, but it's combined with the combos one hundred and thirty horse power diesel engine and fed by a forty eight volt battery pack that's nearly five kilowat hours. There's no plug to charge that
pack either, it gets its energy while the vehicle is coasting or der regen breaking. The combo four x four
also includes additional protection for the engine, gearbox and fuel tank, as well as ninety millimeters or about three and a half inches more ground clearance. It looks like an upgrade
like this would cost about nine thousand, two hundred and fifty euros on top of the vehicle price. And speaking
of new models and sticking in the Stalantis family, Fiat is launching its new small crossover, the Grande Panda in March.
It's built on the same platform as the Citroan C three or the Opal and Vauxhall Fronterra, and it features similar hybrid in all electric power trains. The EV comes
with a one hundred and thirteen horse power electric motor, a forty four kilowa hour battery pack, and a WLTP range of three hundred and twenty kilometers or nearly two hundred miles. The hybrid has a one point two liter
three cylinder engine paired with a six beat automatic transmission incorporated with a twenty one kilowat electric motor. Like the
C three in Fronterra, the Grande Panda also offers more affordable pricing. The hybrid will start at less than nineteen
thousand euros and the EV will start under twenty five thousand euros. Slowly, but surely, the United States is starting
to build its own supply chain for EV batteries. A
company called startus Power recently broke ground on one of the largest lithium refineries in the country, located in Oklahoma.
The one point two billion dollar facility will produce up to twenty five thousand metric tons of lithium per year in its initial phase. In its second phase, production will
increase to fifty thousand tons. The average EV uses about
eight kilograms or seventeen pounds of lithium, so that would only feed about thirty two hundred evs, But you've got to start somewhere. British off road vehicle startup INEOS expects
big growth in the US this year. The head of
the company's American operations told Automotive News that they expect sales to grow around fifty twenty twenty five, but the numbers are still rather small. Last year, Ineos delivered eight
thousand of its Grenadier SUVs in the US, which start at seventy three thousand bucks including shipping. The company is
launching a pickup soon called the Quartermaster, which it expects to account for fifteen percent of its US sales. Ineos
currently has twenty six dealerships in its US network, and it plans to add nine more this year. That brings
us to the end of today's show. Thanks for tuning in.
Speaker 3: Autoline Daily is brought to you by Intrepid Control Systems, over the Air Engineering Boost Your Game, and by Tajan Automotive Technologies the formula for better Mobility. There's nothing wrong
with heavy metal hay light enough, but with world class composite material, Tajent Automotive Technologies makes vehicles lighter, safer, and more eco friendly.
Request an explanation for:
2 cars
2 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.
