On the Move - March 11 -17, 2024

Mercedes-benz Chief advocates for lower tariffs on Chinese EVs, championing open competition

Mercedes-Benz's CEO, Ola Kaellenius, is making headlines with his bold call to Brussels for a reduction in tariffs on Chinese electric vehicles, a move that contrasts sharply with the European Commission's considerations of increasing duties amidst investigations into China's alleged car industry subsidies. K?llenius argues that welcoming competition from China will spur European carmakers to innovate and improve, suggesting that protectionist measures would be a step in the wrong direction. His stance comes at a time when fears of Chinese EVs flooding the European market are growing, particularly among French carmakers with minimal presence in China. However, German manufacturers like Mercedes-Benz, with significant sales and profits deeply intertwined with the Chinese market, fear retaliatory actions from Beijing could harm their standing in the world's largest EV market. K?llenius's advocacy for lower tariffs and an open market economy reflects a broader debate on the future of global car manufacturing and trade relations.

Hertz gears down on EVs with CEO switch-up

In a strategic realignment away from electric vehicles, Hertz announces the departure of CEO Stephen Scherr , after a costly foray into the EV market. Scherr, who took the helm post-bankruptcy and headed an investment in EVs through a $3bn deal with Polestar , will pass the baton to Gil West , a former COO at GM's autonomous vehicle unit, Cruise . Hertz's shift in direction comes amid selling about 20,000 EVs and a broader industry recalibration, evidenced by price slashes, aborted IPOs, and Apple putting its electric car project on pause. This move reflects the persisting demand for ICE vehicles and marks a significant change in Hertz's strategy amidst the volatile landscape of the EV industry.

Stellantis outpaces Volkswagen with a survivalist twist

In a major shift within the automotive industry, Stellantis has overtaken Volkswagen in market value, a feat underscored by nearly 30% share price growth since January. This increase reflects Stellantis's adaptable strategy amidst the automotive sector's challenges, including the transition to electric vehicles, the pressure from Chinese competition, and geopolitical uncertainties. By adopting a "multi-energy" approach allowing flexible production lines for hybrid, petrol, and EVs, Stellantis contrasts sharply with VW's more rigid, EV-focused factories. Additionally, Stellantis' manoeuvres in China and a lean, remote-working corporate culture highlight its resilience and investor confidence, encapsulating a survivalist ethos rooted in the company's composite history of overcoming adversity.

Honda and Nissan unite in electric venture to combat Chinese competition

In a strategic move to stay afloat in the rapidly evolving EV market, Japan's automotive giants Honda and 日产 are setting aside their longstanding rivalry to collaborate. This partnership aims to bolster their positions against the surge of high-tech, affordable EVs from Chinese manufacturers, who have been gaining ground with their advanced battery technology and car making expertise. The alliance between Honda and Nissan will focus on developing core EV components, software, and auto intelligence technology, marking a shift in strategy as they prepare to face the challenges posed by cheaper and more technologically advanced competitors from China. This collaboration demonstrates the pressing need for traditional OEMs to adapt and innovate in a market increasingly dominated by next-generation EVs.

Europe warms up to innovative hot rock batteries for greener future

Europe is set to embrace a shift towards decarbonisation with the introduction of electro-thermal batteries, an innovative technology designed to utilise rocks and bricks heated by electricity to store energy. This new solution targets one of the most significant challenges in the energy transition: delivering high temperatures required in the production of food, beverages, paper, chemicals, and more, which currently accounts for a substantial portion of global fossil fuel consumption and carbon emissions. Electro-thermal batteries offer a cost-effective alternative by capitalising on the cheapest electricity available during the day, potentially slashing electricity costs by 30 to 40% with the promise of further reductions as renewable energy sources become more prevalent. As the technology advances, with competitive pricing and the ability to meet high-temperature demands, hot rock batteries herald a new era of energy efficiency and sustainability in Europe's industrial sectors.

Volkswagen eyes partnerships to forge affordable electric vehicle path against Chinese rivals

Volkswagen is actively exploring partnerships with other automotive giants to introduce a cost-effective EV for the mass market, aimed at competing with the anticipated influx of cheaper Chinese models. Amid the pressing challenge of manufacturing EVs that cost less than their combustion counterparts – a crucial factor to entice consumer transition and fend off lower-priced Chinese alternatives – Volkswagen aims to unveil a sub-€25,000 EV. This strategy includes potential collaborations to share the financial burden of development and production, as highlighted by company executives during a press conference in Berlin. The move reflects a broader industry trend of forging alliances to mitigate the high costs associated with electric vehicle production, particularly in the compact car segment where profitability remains elusive.

Xiaomi shifts gears into electric vehicles as apple pumps the brakes

In the dynamic landscape of electric vehicles, 小米科技 seizes a unique opportunity to forge ahead as Apple's automotive ambitions dwindle. With its extensive technological arsenal, cultivated through years of innovation in the smartphone sector, Xiaomi is well-positioned to disrupt the EV market. The launch of its first electric vehicle, the SU7, heralds this shift, boasting impressive capabilities like a 0-100km/h sprint in 2.8 seconds and a range of up to 800km. Amidst a fiercely competitive market dominated by giants like Tesla and BYD, Xiaomi's venture into electric vehicles not only exemplifies its adaptive strategy but also leverages its technological prowess and established consumer base, offering a glimpse into a future where smart technology and mobility converge seamlessly.