AD #4232 - Model Y Sales Crash in China While ICE VWs Do Well; Mercedes in Dangerous Downward Slide; Nissan Braces for $4 Billion Loss
About this episode
Mercedes and Nissan are facing significant financial challenges, with Mercedes reporting a 9% drop in sales and a staggering 57% decline in EBIT. Nissan anticipates over $4 billion in losses, prompting a shutdown of their joint venture with Mercedes. Meanwhile, the Chinese automotive market is struggling, with a 14% drop in retail sales, particularly affecting new energy vehicles. Tesla's Model Y sales plummeted from first to twentieth place in January, highlighting the competitive landscape between ICE and EVs. The episode also touches on Honda's support for Olympic athletes and a new solution for headlight glare complaints.
Nissan
"Now let's move over to Nissan. It posted extremely weak numbers for the last three quarters, including a loss of $1.6 billion."
Nissan is a car company from Japan that makes many types of vehicles, including electric ones.
Nissan is a Japanese automotive manufacturer known for producing a wide range of vehicles, including sedans, SUVs, and electric cars like the Nissan Leaf.
Mercedes-Benz Aclass
"Seven years ago, they formed a joint venture to make cars in Mexico. They shared a plant that made the Mercedes A-Class and GLB and the Infiniti QX-50 and QX-55. But with both companies struggling, they shut down their joint venture"
The Mercedes-Benz A-Class is a small luxury car that looks and feels very upscale. It's designed to be stylish and packed with cool technology, making it a great option for those who want a nice car without needing a lot of space.
The Mercedes-Benz A-Class is a compact luxury hatchback or sedan that serves as the entry point into the Mercedes lineup. Known for its upscale interior and advanced technology, the A-Class appeals to younger buyers looking for a premium experience. Its significance lies in its role in attracting new customers to the Mercedes brand.
Mercedes-Benz GLB
"...shared a plant that made the Mercedes A-Class and GLB and the Infiniti QX-50 and QX-55. But with both ..."
The Mercedes-Benz GLB is a small SUV that has a lot of room inside, making it great for families or anyone who needs extra space. It offers a comfortable ride and many high-end features, so it's a good choice if you want a nice car that can carry more people or stuff.
The Mercedes-Benz GLB is a compact luxury SUV that offers a spacious interior and versatile seating options, making it ideal for families. It combines the practicality of an SUV with the luxury and technology Mercedes is known for, providing a comfortable ride for both city and highway driving. Its significance lies in its ability to cater to those who need more space without sacrificing luxury.
Infiniti QX55
"Seven years ago, they formed a joint venture to make cars in Mexico. They shared a plant that made the Mercedes A-Class and GLB and the Infiniti QX-50 and QX-55. But with both companies struggling, they shut down their joint venture"
The Infiniti QX55 is a stylish small SUV that has a sporty look and is designed to be fun to drive. It comes with a lot of modern features and is a good choice for people who want a nice car that stands out.
The Infiniti QX55 is a luxury crossover SUV that combines sporty design with practicality. It features a coupe-like silhouette and is equipped with advanced technology and a powerful engine, making it a stylish choice for those seeking both performance and comfort. The QX55 is significant as it expands Infiniti's offerings in the competitive luxury SUV market.
Infiniti QX50
"Seven years ago, they formed a joint venture to make cars in Mexico. They shared a plant that made the Mercedes A-Class and GLB and the Infiniti QX-50 and QX-55. But with both companies struggling, they shut down their joint venture"
The Infiniti QX50 is a fancy small SUV that offers a smooth ride and lots of high-tech features. It's designed to be comfortable and stylish, making it a popular choice for people who want a nice vehicle without going too big.
The Infiniti QX50 is a luxury compact SUV that emphasizes comfort, technology, and performance. It features a variable compression turbocharged engine, which is a unique aspect of its design, allowing for a balance between power and fuel efficiency. This model is significant as it represents Infiniti's commitment to innovation and luxury in the competitive SUV market.
VinFast
"...Chinese automakers Geely and BYD are two of the finalists while Vinfast is the third."
VinFast is a car company from Vietnam that makes electric vehicles. They are trying to grow their business in North America and have some interesting car designs.
VinFast is a Vietnamese automotive manufacturer that focuses on electric vehicles. It aims to expand its market presence in North America and has been gaining attention for its innovative designs and technology.
Geely
"...Chinese automakers Geely and BYD are two of the finalists while Vinfast is the third."
Geely is a car company from China that makes different types of vehicles, including electric cars. They have been growing by buying other car companies and working with them.
Geely is a Chinese automotive manufacturer known for producing a wide range of vehicles, including sedans, SUVs, and electric vehicles. The company has expanded its presence globally through acquisitions and partnerships.
BYD
"...Chinese automakers Geely and BYD are two of the finalists while Vinfast is the third."
BYD is another Chinese car company that focuses on making electric vehicles and batteries. They are one of the biggest companies in the electric car market.
BYD, or Build Your Dreams, is a major Chinese company specializing in electric vehicles and batteries. It is one of the largest EV manufacturers in the world and is known for its innovative technology.
EV battery makers
"...We've seen several EV battery makers pivot to making energy storage systems,..."
EV battery makers are companies that create batteries for electric cars. These batteries help the cars run and determine how far they can go on a single charge.
EV battery makers are companies that specialize in producing batteries specifically designed for electric vehicles. These batteries are crucial for the performance and range of EVs.
BorgWarner
"...the supplier Borg Warner just landed a contract to supply TurboCell..."
BorgWarner is a company that makes parts for cars, especially those that help engines run better. They are involved in both traditional and electric vehicles.
BorgWarner is an American automotive supplier known for its advanced technology in powertrain solutions, including turbochargers and electric vehicle components. They play a significant role in the automotive industry by providing parts that improve vehicle performance.
TurboCell
"...the supplier Borg Warner just landed a contract to supply TurboCell with a turbine generator..."
TurboCell is a company that works on energy solutions, like generators that help store and manage energy. They are involved in making technology for power systems.
TurboCell is a company that specializes in energy solutions, including turbine generators for various applications. They focus on providing innovative technologies for energy storage and management.
new energy vehicle (NEV)
"New energy vehicle sales also played a part in that drop. Sales of BEVs, PHEVs and EREVs fell 20% to 596,000 units, while gas-powered cars were down 10% to 948,000 vehicles."
NEVs are cars that use different types of energy instead of just gas. This includes electric cars and hybrids that help reduce pollution.
New Energy Vehicles (NEVs) refer to vehicles that are powered by alternative energy sources, including electric, hybrid, and hydrogen fuel cell technologies. NEVs are part of efforts to reduce emissions and promote sustainable transportation.
PHEV
"Sales of BEVs, PHEVs and EREVs fell 20% to 596,000 units, while gas-powered cars were down 10% to 948,000 vehicles."
A PHEV is a car that can use both electricity and gas. You can charge it like an electric car, but it also has a regular engine to help it go further if needed.
PHEV stands for Plug-in Hybrid Electric Vehicle, which combines a traditional internal combustion engine with an electric motor and a rechargeable battery. PHEVs can run on electric power alone for a certain distance before switching to gasoline.
EREV
"Sales of BEVs, PHEVs and EREVs fell 20% to 596,000 units, while gas-powered cars were down 10% to 948,000 vehicles."
An EREV is a type of electric car that can go a long distance on electricity, but it also has a small gas engine to help it keep going when the battery runs out.
EREV stands for Extended Range Electric Vehicle, which is similar to a PHEV but primarily runs on electricity. It has a small gasoline engine that acts as a generator to extend the driving range when the battery is depleted.
BEV
"Sales of BEVs, PHEVs and EREVs fell 20% to 596,000 units, while gas-powered cars were down 10% to 948,000 vehicles."
A BEV is a car that runs only on electricity and doesn't use gas at all. It has batteries instead of a regular engine, making it better for the environment.
BEV stands for Battery Electric Vehicle, which is a type of vehicle that runs entirely on electricity stored in batteries. They do not have an internal combustion engine and produce zero tailpipe emissions.
Volkswagen
"But our first surprise is Volkswagen, which has five models in the top 12."
Volkswagen is a well-known car brand from Germany that makes many types of vehicles, including cars and SUVs.
Volkswagen is a major German automotive manufacturer known for producing a wide range of vehicles, including sedans, SUVs, and electric cars. It has a significant presence in global markets, including China.
ICE-based vehicles
"...all of those are ICE-based vehicles. With those EV sales subsidies getting reduced..."
ICE-based vehicles are cars that use traditional engines that run on gasoline or diesel fuel, unlike electric cars that use batteries.
ICE stands for Internal Combustion Engine, which refers to vehicles powered by gasoline or diesel engines. These vehicles are contrasted with electric vehicles (EVs) that run on electricity.
EV sales subsidies
"...with those EV sales subsidies getting reduced, it will be interesting to watch the sales battle..."
EV sales subsidies are discounts or financial help from the government to make electric cars cheaper for people to buy.
EV sales subsidies are financial incentives provided by governments to encourage the purchase of electric vehicles. These subsidies can lower the cost of EVs, making them more attractive to consumers.
Tesla Model Y
"...and delivered nearly 66,000 Model Ys in China in December, making it the number one vehicle for the month."
The Tesla Model Y is an electric SUV that is popular for being eco-friendly and having high-tech features. It's made by Tesla, a company known for its electric cars.
The Tesla Model Y is an all-electric compact SUV that has gained popularity for its performance, range, and advanced technology features. It is part of Tesla's lineup of electric vehicles, which are known for their innovative design and sustainability.
BMW
"BMW isn't the only automaker trying to help Olympic athletes win gold. Honda partnered up with U.S. Bobsled and Skeleton..."
BMW is a car company from Germany that makes fancy and fast cars. They also support sports teams and events.
BMW is a German automaker known for its luxury vehicles and performance cars. The brand often engages in sponsorships and partnerships to promote sports and athletic events.
Honda
"Honda partnered up with U.S. Bobsled and Skeleton, and allowed the team to test at its wind tunnel in Ohio."
Honda is a car company from Japan that makes reliable vehicles. They also work with sports teams to help them perform better.
Honda is a Japanese automaker known for its reliable cars and motorcycles. The company often collaborates with sports teams to enhance performance and innovation.
wind tunnel testing
"...and allowed the team to test at its wind tunnel in Ohio. While it's typically used for cars, trucks, SUVs, and the occasional race car..."
Wind tunnel testing is when things like cars or sports gear are tested in a big room where air blows on them. This helps make them faster and better.
Wind tunnel testing is a method used to study the effects of air moving past solid objects, like cars or sports equipment. This testing helps improve aerodynamics and performance.
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