Earnings shrink at 5 European automakers, spurring cost-saving tie-ups with China

cross-posted from: https://lemm.ee/post/58664309

https://archive.is/dDxHw

-Volkswagen intends to shorten the time between development and launch to 36 months from 54 months, Thomas Schafer, CEO of the company’s passenger car brand, told reporters last week. The German group hopes to achieve the faster turnaround by working closer with Chinese EV maker Xpeng Motors.

-Renault, whose profit sank 66%, revealed in January that it opened a research and development center for EVs in Shanghai.

-Stellantis is partnering with Leapmotor Technology to sell compact EVs from the Chinese startup in Europe.

-Mercedes-Benz will reduce annual production capacity of its German factories from 1 million vehicles to 900,000. Volkswagen will cease production at two German factories and cut 35,000 jobs by 2030.

  • humanspiralEnglish
    1·
    12 hours ago

    The unstoppable trend in auto sector is automation. Whether it is in China or imported/JV robots from China, the future is less auto sector jobs. Protectionist and luddite policies will kill the export component of autos and so also kill jobs even as consumers are forced to pay much more of less volume production.

    European policy on Chinese EVs is pretty decent. Still welcomes them. A lot of FDI on new plants in Europe. Raises tax revenue, while decarbonizing, lowering foreign extortion on FFs, and increased power to escape US belligerence.