AD #4228 - Stellantis Abandons Tavares’ EV Goals with Massive $26B Write-Off; The Race to Purge Chinese Code Ahead of March Ban; Did Jim Far
About this episode
Stellantis faces a significant setback with a $26 billion write-off of its EV investments, abandoning the ambitious goals set by former CEO Carlos Tavares. This decision, which includes halting dividends and issuing new bonds, reflects a broader trend in the auto industry, with over $55 billion in EV write-offs announced globally. The episode also discusses the challenges of reducing reliance on Chinese technology and the U.S. auto industry's push to train new technicians amid a skilled labor shortage. Notable changes at Toyota and insights into Ford's new EV platform are also covered.
Stellantis
"This morning, Stellantis announced it's taking a massive twenty six billion dollar write off of its EV investments. That includes an eight billion dollar payment to suppliers for canceled EV programs..."
Stellantis is a big car company that makes many different brands of cars. It was created when two companies, Fiat Chrysler and PSA Group, combined.
Stellantis is a multinational automotive manufacturing corporation formed from the merger of Fiat Chrysler Automobiles and PSA Group. It encompasses a variety of well-known automotive brands, including Chrysler, Jeep, Dodge, Peugeot, and Citroën.
EV investments
"This morning, Stellantis announced it's taking a massive twenty six billion dollar write off of its EV investments. That includes an eight billion dollar payment to suppliers for canceled EV programs..."
EV investments are the money that car companies spend to create electric cars. This includes everything from designing the cars to building them in factories.
EV investments refer to the financial resources allocated towards the development, production, and marketing of electric vehicles. This includes costs associated with research and development, manufacturing facilities, and supplier contracts.
dividend
"To preserve cash, Stellantis is canceling its dividend for twenty twenty six and will issue six billion dollars in new bonds."
A dividend is money that companies pay to people who own shares in them. It's like a thank you for investing in the company.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Companies often pay dividends to reward investors for their investment in the company.
bonds
"...and will issue six billion dollars in new bonds. Investors reacted immediately to the news..."
Bonds are like loans that people give to companies or governments. In return, they get paid interest and their money back later.
Bonds are debt securities issued by corporations or governments to raise capital. When investors buy bonds, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity.
decarbonization
"...the plan put forward by Carlos Tavares, the previous CEO of the company. He called it Dare Forward twenty thirty and the goal was to position Stellantis as the motive leader in decarbonization."
Decarbonization means reducing the amount of carbon dioxide we put into the air. For cars, this usually means making more electric vehicles instead of ones that run on gas.
Decarbonization refers to the process of reducing carbon dioxide emissions associated with energy production and consumption. In the automotive context, it often involves transitioning from fossil fuel-powered vehicles to electric or alternative fuel vehicles.
EV write-offs
"...global automakers have now announced fifty five billion dollars in EV write-offs. Here's a few ways to put that in perspective."
EV write-offs are when car companies lose money on their electric vehicle projects because they didn't sell as many cars as they hoped. This can hurt their overall finances.
EV write-offs refer to the financial losses that automakers incur when their investments in electric vehicle technology do not yield expected returns. These write-offs can significantly impact a company's financial health.
BYD
"In fact, BYD's stock has been dropping steadily for the last eight months as the company's EV sales started falling short of expectations."
BYD is a Chinese car company that makes electric cars. It used to be very popular, but now its sales are not doing as well as expected.
BYD, or Build Your Dreams, is a Chinese automaker known for its electric vehicles (EVs) and batteries. It has been a significant player in the global EV market, but has faced challenges in sales recently.
rare earth minerals
"China dominates the production of processing of rare earth minerals, and that's given it massive bargaining power..."
Rare earth minerals are special materials used to make things like electric car batteries and smartphones. They are important for many modern technologies.
Rare earth minerals are a group of 17 chemical elements that are essential in the manufacturing of many high-tech products, including electric vehicle batteries and electronics. They are crucial for the production of EVs and other technologies.
Toyota
"Toyota just made a big executive change. CEO coach Sisato is being moved to vice chairman of the board of directors and is also being named Chief Industry Officer, which is a newly created role."
Toyota is a well-known car company from Japan that makes many different types of vehicles, like cars and trucks. They are famous for their reliable and fuel-efficient cars.
Toyota is a major Japanese automotive manufacturer known for producing a wide range of vehicles, including sedans, SUVs, and hybrids. The company has a significant global presence and is recognized for its innovation in automotive technology.
National Automobile Dealers Association (NADA)
"According to the NADA, or National Automobile Dealers Association, the US needs to add about seventy six thousand technicians a year..."
NADA stands for the National Automobile Dealers Association, which is a group that helps car dealers in the U.S. They work on issues that affect car sales and the automotive industry.
The National Automobile Dealers Association (NADA) is a trade organization that represents the interests of automobile dealers in the United States. It provides resources, advocacy, and support for dealers and addresses industry issues such as workforce development.
technicians
"...the US needs to add about seventy six thousand technicians a year, so there's not a shortage of the people who fix our cars and trucks..."
Technicians are people who fix cars and trucks. They are important because they make sure vehicles are safe to drive and work well. There is a growing need for more technicians in the industry.
Technicians are skilled workers who repair and maintain vehicles. They are essential in the automotive industry, as they ensure that cars and trucks are safe and functioning properly. The demand for technicians is growing due to the increasing complexity of vehicles and the retirement of current workers.
NADA program
"...the automaker just announced that it will be one of the first companies to launch an NADA program that helps dealerships build in house apprenticeships for technicians and expand training..."
The NADA program helps car dealerships train new workers to fix and maintain cars. It's an effort to make sure there are enough skilled workers in the car industry.
The NADA program refers to initiatives by the National Automobile Dealers Association aimed at improving training and apprenticeship opportunities within the automotive industry, particularly for technicians.
Ford
"...the automaker just announced that it will be one of the first companies to launch an NADA program that helps dealerships build in house apprenticeships for technicians and expand training. Ford will roll out the program..."
Ford is a well-known car company that makes many different types of vehicles, including trucks and electric cars. They are working on training programs to help people learn how to fix these cars.
Ford is an American automaker known for producing a wide range of vehicles, including cars, trucks, and SUVs. The company has been actively involved in developing electric vehicles and enhancing technician training programs.
electrification
"...with a focus on electrification. At the end of it, they'll graduate with a nationally recognized credential..."
Electrification means changing cars so they run on electricity instead of gasoline. This is important for making cars better for the environment.
Electrification refers to the process of converting vehicles to use electric power instead of traditional internal combustion engines, which is a key focus for many automakers as they transition to more sustainable technologies.
HVAC control unit
"...looking at what appears to be the HVAC control unit, but it's the vehicle in the background that we're interested in..."
The HVAC control unit is the part of the car that controls the heating and air conditioning. It helps keep the inside of the car comfortable for passengers.
The HVAC control unit in a vehicle manages the heating, ventilation, and air conditioning systems, ensuring passenger comfort by regulating temperature and air quality inside the car.
giga castings
"...Farley says there's two big castings on the truck which will replace one hundred and forty six parts..."
Giga castings are big pieces of metal that are made all at once instead of using many smaller parts. This helps make cars stronger and easier to build.
Giga castings refer to large, single-piece castings used in vehicle manufacturing to reduce the number of components and improve structural integrity. This technology is becoming more common in electric vehicle production.
Tesla Cyber Truck
"...the first place my mind went to was the Tesla Cybertruck. It's my opinion that this looks similar to the Cybertruck with its body panels pulled off..."
The Tesla Cybertruck is a unique electric truck made by Tesla. It has a very different shape compared to regular trucks and is designed to be tough and high-tech.
The Tesla Cybertruck is an all-electric pickup truck designed by Tesla, known for its distinctive angular design and durable exoskeleton. It aims to combine utility with advanced technology, including features like autopilot and high towing capacity.
Vehicle Benchmarking Specialist
"...the Cybertruck with its body panels pulled off that we got to see at Vehicle Benchmarking Specialist..."
Vehicle Benchmarking Specialist is a company that looks at different cars to see how they perform and what features they have. They help car makers understand how to make their vehicles better.
Vehicle Benchmarking Specialist is a company that analyzes and evaluates vehicles to provide insights on performance, design, and technology. They often work with manufacturers to improve their products based on comparative data.
Intrepid Control Systems
"...Intrepid Control Systems over the Air Engineering boost your game..."
Intrepid Control Systems is a company that makes tools to help car makers understand how their cars communicate and work, which helps in fixing problems and improving performance.
Intrepid Control Systems is a company that specializes in automotive communication and diagnostic tools. They provide solutions for vehicle data analysis and network communication, enhancing vehicle performance and troubleshooting.
Bridget Solutions
"...Autoline Daily is brought to you by Bridget Solutions for your Journey CSP, the Composites solution partner..."
Bridget Solutions is a company that helps car makers and transportation companies use technology to work better and manage their data more effectively.
Bridget Solutions is a company that provides technology solutions for automotive and transportation industries, focusing on improving efficiency and data management for vehicle operations.
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