Detroit's Big Three automakers, including Ford Motor and General Motors, should consider exiting the Chinese market to conserve capital during the costly transition to electric vehicles (EVs), a prominent auto analyst suggested on Tuesday. "I think you have to see the exit China as soon as they possibly can," said John Murphy, an analyst at Bank of America Securities, during his annual presentation of "Car Wars," a widely followed industry report.

Murphy suggested the following for the Big Three as he elaborated on the requirements for them to cut costs drastically to be able to compete against manufacturers of EVs such as Tesla and international automobile firms. With the companies experiencing lower sales of EVs than expected and the difficulty of escaping the middle segment, the automotive giants Ford, GM and Stellantis - owner of Jeep, have had to step up their cost cutting initiatives in all areas of the business. Murphy was quick to observe that in order for the Big Three to consistently achieve improvements in their designs, they would have to look for ways to cut costs, especially in their gas-engine divisions that now provide most of the cash.

Later at the event aimed at the Automotive Press Association in one of the Detroit suburbs, Murphy stressed that it would be necessary to ‘very aggressively manage’ the company’s core business and added that it was extremely challenging: ‘There is a lot of hard work here.’

China, the largest automotive market globally, has emerged as the most competitive for global auto makers within the last few years. Murphy and other experts noted the increased pressure from the domestic Chinese brands, as consumers continue to demonstrate their loyalty. This relationship may become further cemented in the wake of the more than 100% tariff on Chinese EVs by the US starting August 1, as pointed by Murphy.

While both Ford and GM have established their presence in China, they have seen the sales declining in the past decade. While GM once viewed China as its largest global market, it’s now only working to turn a profit there. While this Ford is restructuring to give more attention on turning into an export platform as a result of severe rivalry from local players such as BYD and Geely automakers.

Detroit's Big Three automakers, including Ford Motor and General Motors, should consider exiting the Chinese market to conserve capital during the costly transition to electric vehicles (EVs), a prominent auto analyst suggested on Tuesday.

Detroit's Big Three automakers, including Ford Motor and General Motors, should consider exiting the Chinese market to conserve capital during the costly transition to electric vehicles (EVs), a prominent auto analyst suggested on Tuesday. "I think you have to see the exit China as soon as they possibly can," said John Murphy, an analyst at Bank of America Securities, during his annual presentation of "Car Wars," a widely followed industry report. Murphy suggested the following for the Big Three as he elaborated on the requirements for them to cut costs drastically to be able to compete against manufacturers of EVs such as Tesla and international automobile firms. With the companies experiencing lower sales of EVs than expected and the difficulty of escaping the middle segment, the automotive giants Ford, GM and Stellantis - owner of Jeep, have had to step up their cost cutting initiatives in all areas of the business. Murphy was quick to observe that in order for the Big Three to consistently achieve improvements in their designs, they would have to look for ways to cut costs, especially in their gas-engine divisions that now provide most of the cash. Later at the event aimed at the Automotive Press Association in one of the Detroit suburbs, Murphy stressed that it would be necessary to ‘very aggressively manage’ the company’s core business and added that it was extremely challenging: ‘There is a lot of hard work here.’ China, the largest automotive market globally, has emerged as the most competitive for global auto makers within the last few years. Murphy and other experts noted the increased pressure from the domestic Chinese brands, as consumers continue to demonstrate their loyalty. This relationship may become further cemented in the wake of the more than 100% tariff on Chinese EVs by the US starting August 1, as pointed by Murphy. While both Ford and GM have established their presence in China, they have seen the sales declining in the past decade. While GM once viewed China as its largest global market, it’s now only working to turn a profit there. While this Ford is restructuring to give more attention on turning into an export platform as a result of severe rivalry from local players such as BYD and Geely automakers.

Analysts believe Detroit Three automakers should exit China

A joint venture led by Stellantis has commenced production of electric vehicles designed by the Chinese automaker Leapmotor at Stellantis' manufacturing facility in Tychy, Poland. This information was reported by analysts at Jefferies, who cited statements made by Leapmotor's management team.

In a report released late on Sunday, Jefferies disclosed that Leapmotor's management had revealed during an analyst call that the initial units of their T03 small electric vehicle had been manufactured at Stellantis' assembly plant in Poland in the previous week. The production is reportedly on schedule to transition to mass manufacturing in September.

This development aligns with a Reuters report from March, which, based on information from two sources close to the matter, had indicated that Stellantis had selected its Polish facility as the primary production site in Europe for Leapmotor's vehicles. The decision was reportedly made primarily for cost-saving purposes.

The collaboration between Stellantis and Leapmotor has resulted in the formation of a joint venture, with the Franco-Italian automaker holding a majority stake of 51 per cent. This arrangement grants Stellantis exclusive rights to manufacture, export, and sell Leapmotor products outside of China, marking a first for a traditional Western automotive company.

This joint venture, operating under the name Leapmotor International, is a component of a broader partnership between the two companies. As part of this larger agreement, Stellantis is acquiring a 21 per cent stake in Leapmotor through a USD 1.6 billion investment.

According to Jefferies, the joint venture has plans to introduce a second Leapmotor model at Stellantis' Polish plant. The A12 SUV is scheduled to begin production in the first quarter of 2025.&nbsp;Leapmotor has initiated preparations for the localized production of components.

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Leapmotor's management team, as reported by Jefferies, stated that the manufacturing costs at the Polish plant are approximately 400-500 euros ( USD 428.08- USD 535.10) per vehicle. This figure is comparable to the production costs at Leapmotor's facilities in China, and significantly lower than the estimated 1,000 euros per vehicle cost at plants in Italy.

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For its C10 SUV model, Leapmotor intends to maintain production in China and export the vehicles to Europe in the initial stages. This strategy is based on the potential for higher pricing of this model in the European market, according to Jefferies' report.

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It's worth noting that the European Commission recently announced the implementation of additional duties on imported Chinese electric vehicles, set to take effect in July. For Leapmotor specifically, these new tariffs will result in an additional 21 per cent duty on their imported vehicles.

&nbsp;

This series of developments highlights the evolving landscape of the global electric vehicle market, showcasing the increasing collaboration between established Western automakers and emerging Chinese manufacturers, as well as the complex interplay of production strategies, cost considerations, and international trade policies.

A joint venture led by Stellantis has commenced production of electric vehicles designed by the Chinese automaker Leapmotor at Stellantis' manufacturing facility in Tychy, Poland.

A joint venture led by Stellantis has commenced production of electric vehicles designed by the Chinese automaker Leapmotor at Stellantis' manufacturing facility in Tychy, Poland. This information was reported by analysts at Jefferies, who cited statements made by Leapmotor's management team. In a report released late on Sunday, Jefferies disclosed that Leapmotor's management had revealed during an analyst call that the initial units of their T03 small electric vehicle had been manufactured at Stellantis' assembly plant in Poland in the previous week. The production is reportedly on schedule to transition to mass manufacturing in September. This development aligns with a Reuters report from March, which, based on information from two sources close to the matter, had indicated that Stellantis had selected its Polish facility as the primary production site in Europe for Leapmotor's vehicles. The decision was reportedly made primarily for cost-saving purposes. The collaboration between Stellantis and Leapmotor has resulted in the formation of a joint venture, with the Franco-Italian automaker holding a majority stake of 51 per cent. This arrangement grants Stellantis exclusive rights to manufacture, export, and sell Leapmotor products outside of China, marking a first for a traditional Western automotive company. This joint venture, operating under the name Leapmotor International, is a component of a broader partnership between the two companies. As part of this larger agreement, Stellantis is acquiring a 21 per cent stake in Leapmotor through a USD 1.6 billion investment. According to Jefferies, the joint venture has plans to introduce a second Leapmotor model at Stellantis' Polish plant. The A12 SUV is scheduled to begin production in the first quarter of 2025. Leapmotor has initiated preparations for the localized production of components. Leapmotor's management team, as reported by Jefferies, stated that the manufacturing costs at the Polish plant are approximately 400-500 euros ( USD 428.08- USD 535.10) per vehicle. This figure is comparable to the production costs at Leapmotor's facilities in China, and significantly lower than the estimated 1,000 euros per vehicle cost at plants in Italy. For its C10 SUV model, Leapmotor intends to maintain production in China and export the vehicles to Europe in the initial stages. This strategy is based on the potential for higher pricing of this model in the European market, according to Jefferies' report. It's worth noting that the European Commission recently announced the implementation of additional duties on imported Chinese electric vehicles, set to take effect in July. For Leapmotor specifically, these new tariffs will result in an additional 21 per cent duty on their imported vehicles. This series of developments highlights the evolving landscape of the global electric vehicle market, showcasing the increasing collaboration between established Western automakers and emerging Chinese manufacturers, as well as the complex interplay of production strategies, cost considerations, and international trade policies.

Leapmotor ready to start EV production at Stellantis Poland plant

Stellantis, the multinational automotive manufacturing corporation encompassing 14 brands, has reported significant growth in its connected vehicle services. Since 2021, the company has seen a 2.5-fold increase in high-margin revenue from software and connected services, with its global subscriber base expanding to 5 million users.

The company's monetisable car parc has grown by 15 per cent to 13.8 million vehicles. In 2023 alone, Stellantis delivered over 94 million over-the-air (OTA) updates, enhancing features in existing vehicles and laying the groundwork for future software expansion.

Stellantis is leveraging cloud-based design and testing tools, including its innovative Virtual Engineering Workbench, to revolutionize automotive software development in terms of speed, quality, and deployment. This in-house developed software, along with contributions from strategic partners, enables next-generation features for both upcoming and current Stellantis vehicles.

Yves Bonnefont, Stellantis Chief Software Officer, highlighted the company's shift from a traditional automotive mindset to a more agile, startup-like approach. This transformation has allowed Stellantis to build its own software creation capabilities, providing crucial flexibility and a competitive edge in the industry.

The company is now focusing on scaling up its operations, preparing for the integration of three AI-powered technology platforms: STLA Brain, STLA SmartCockpit, and STLA AutoDrive. These platforms represent Stellantis' commitment to in-house software development, utilising a global network of technology hubs to work around the clock on customized software products for each vehicle platform.

STLA Brain, the foundational architecture, offers centralised computing with full over-the-air access to sensors and actuators. It aims to reduce vehicle complexity by halving the number of electronic control units (ECUs) to approximately 60 per vehicle. This platform enables faster feature development, with new capabilities potentially ready in less than six months - a quarter of the current timeframe. Technology readiness for integration is expected by the end of the year, with vehicle integration planned for 2025.

STLA SmartCockpit focuses on personalisation and connected capabilities, powered by machine learning and AI technologies. It aims to provide seamless integration with users' digital lives, featuring simplified menus and AI-enabled experiences for various in-vehicle functions. This platform is set to debut in a Stellantis brand vehicle in 2025.

STLA AutoDrive builds upon the capabilities of STLA Brain and STLA SmartCockpit to deliver advanced, continuously updated Advanced Driver Assistance System (ADAS) technology. The system aims to significantly increase uninterrupted time and distance for ADAS-supported driving, targeting both hands-off/eyes-off-the-road mobility, and a fallback to limited hands-off/eyes-on-the-road cruising within the same system. Eyes-off technology readiness for integration is anticipated by the end of the year, with a commercial launch planned for 2025.

These developments underscore Stellantis' commitment to innovation in connected vehicle technology and software-defined automobiles, positioning the company at the forefront of the automotive industry's digital transformation.

Stellantis, the multinational automotive manufacturing corporation encompassing 14 brands, has reported significant growth in its connected vehicle services. Since 2021, the company has seen a 2.

Stellantis, the multinational automotive manufacturing corporation encompassing 14 brands, has reported significant growth in its connected vehicle services. Since 2021, the company has seen a 2.5-fold increase in high-margin revenue from software and connected services, with its global subscriber base expanding to 5 million users. The company's monetisable car parc has grown by 15 per cent to 13.8 million vehicles. In 2023 alone, Stellantis delivered over 94 million over-the-air (OTA) updates, enhancing features in existing vehicles and laying the groundwork for future software expansion. Stellantis is leveraging cloud-based design and testing tools, including its innovative Virtual Engineering Workbench, to revolutionize automotive software development in terms of speed, quality, and deployment. This in-house developed software, along with contributions from strategic partners, enables next-generation features for both upcoming and current Stellantis vehicles. Yves Bonnefont, Stellantis Chief Software Officer, highlighted the company's shift from a traditional automotive mindset to a more agile, startup-like approach. This transformation has allowed Stellantis to build its own software creation capabilities, providing crucial flexibility and a competitive edge in the industry. The company is now focusing on scaling up its operations, preparing for the integration of three AI-powered technology platforms: STLA Brain, STLA SmartCockpit, and STLA AutoDrive. These platforms represent Stellantis' commitment to in-house software development, utilising a global network of technology hubs to work around the clock on customized software products for each vehicle platform. STLA Brain, the foundational architecture, offers centralised computing with full over-the-air access to sensors and actuators. It aims to reduce vehicle complexity by halving the number of electronic control units (ECUs) to approximately 60 per vehicle. This platform enables faster feature development, with new capabilities potentially ready in less than six months - a quarter of the current timeframe. Technology readiness for integration is expected by the end of the year, with vehicle integration planned for 2025. STLA SmartCockpit focuses on personalisation and connected capabilities, powered by machine learning and AI technologies. It aims to provide seamless integration with users' digital lives, featuring simplified menus and AI-enabled experiences for various in-vehicle functions. This platform is set to debut in a Stellantis brand vehicle in 2025. STLA AutoDrive builds upon the capabilities of STLA Brain and STLA SmartCockpit to deliver advanced, continuously updated Advanced Driver Assistance System (ADAS) technology. The system aims to significantly increase uninterrupted time and distance for ADAS-supported driving, targeting both hands-off/eyes-off-the-road mobility, and a fallback to limited hands-off/eyes-on-the-road cruising within the same system. Eyes-off technology readiness for integration is anticipated by the end of the year, with a commercial launch planned for 2025. These developments underscore Stellantis' commitment to innovation in connected vehicle technology and software-defined automobiles, positioning the company at the forefront of the automotive industry's digital transformation.

Stellantis software revenue soars 150 per cent as 94 million OTA updates roll out

Fiat is banking on the introduction of its new hybrid 500e to drive significant sales, aiming to tap into a broader market segment amid a global slowdown in electric vehicle (EV) sales. The company projects an annual demand of approximately 100,000 to 110,000 units for this new hybrid model, according to a top executive.

Last month, Stellantis, the parent company of Fiat, announced plans to manufacture hybrid versions of the 500e small car and the Jeep Compass SUV in Italy. This decision comes as the automotive industry faces a deceleration in EV sales worldwide. The new "mild" hybrid 500e will combine a petrol engine with a battery but will not require a plug-in system, offering an alternative to fully electric vehicles.

Addressing affordability issues

Gaetano Thorel, Head of the Fiat brand for Europe, highlighted that the market demand for the hybrid 500e is estimated to be between 100,000 and 110,000 units per year. In comparison, the fully electric 500e sold fewer than 80,000 units last year. Thorel explained, "There are many clients out there who would like to own a 500e, but cannot afford it. Now we're giving them a chance to own it."

Platform and production shifts

The hybrid 500e will be built on the same platform as its fully electric counterpart. Fiat is phasing out the old version of the 500, which was both petrol-powered and hybrid, previously assembled in Poland. This shift signifies Fiat's strategy to modernise its lineup and cater to diverse customer preferences while maintaining competitive pricing.

Competitive pricing strategy

The selling price of the fully electric 500e starts at around 29,000 euros ($31,600), excluding government purchase incentives. In contrast, the hybrid version is expected to be priced just "a few hundred euros" more than the older hybrid model produced in Poland, which starts at approximately 18,000 euros. This pricing strategy aims to make the hybrid 500e more accessible to a wider range of customers while offering additional technological features.

Expanding to the U.S. market

In addition to its European launch, Fiat is also introducing the hybrid 500e in the United States. This move aligns with Stellantis' broader strategy to expand its market footprint and capitalise on the growing demand for environmentally friendly vehicles across the Atlantic.

Hybrid technology as a bridge

The hybrid 500e's combination of a petrol engine and battery offers a middle ground for consumers who are hesitant to switch to a fully electric vehicle due to concerns about range, charging infrastructure, or initial costs. By providing a hybrid option, Fiat aims to attract customers who seek the benefits of electric driving without the limitations associated with fully electric vehicles.

Future outlook for Fiat

Fiat's introduction of the hybrid 500e is a strategic response to current market challenges and consumer preferences. As the global automotive industry grapples with the pace of EV adoption, offering hybrid models could provide a competitive edge. Stellantis' focus on producing these hybrids in Italy also underscores its commitment to leveraging local manufacturing capabilities to meet international demand.

Fiat's launch of the hybrid 500e represents a significant step in addressing the affordability and accessibility issues that have hindered broader EV adoption. With an annual demand projection of up to 110,000 units, the hybrid 500e is poised to become a crucial component of Fiat's product lineup. This move not only caters to a wider audience but also reinforces Fiat's strategic pivot towards hybrid technology as a bridge to a more sustainable automotive future.

By focusing on affordability, technological advancement, and strategic market expansion, Fiat is positioning itself to navigate the evolving landscape of the global automotive industry. The success of the hybrid 500e will likely influence Fiat's future product development and its role in the competitive market for environmentally friendly vehicles.

(Inputs from Reuters)

Fiat is banking on the introduction of its new hybrid 500e to drive significant sales, aiming to tap into a broader market segment amid a global slowdown in electric vehicle (EV) sales.

Fiat is banking on the introduction of its new hybrid 500e to drive significant sales, aiming to tap into a broader market segment amid a global slowdown in electric vehicle (EV) sales. The company projects an annual demand of approximately 100,000 to 110,000 units for this new hybrid model, according to a top executive. Last month, Stellantis, the parent company of Fiat, announced plans to manufacture hybrid versions of the 500e small car and the Jeep Compass SUV in Italy. This decision comes as the automotive industry faces a deceleration in EV sales worldwide. The new "mild" hybrid 500e will combine a petrol engine with a battery but will not require a plug-in system, offering an alternative to fully electric vehicles. Addressing affordability issues Gaetano Thorel, Head of the Fiat brand for Europe, highlighted that the market demand for the hybrid 500e is estimated to be between 100,000 and 110,000 units per year. In comparison, the fully electric 500e sold fewer than 80,000 units last year. Thorel explained, "There are many clients out there who would like to own a 500e, but cannot afford it. Now we're giving them a chance to own it." Platform and production shifts The hybrid 500e will be built on the same platform as its fully electric counterpart. Fiat is phasing out the old version of the 500, which was both petrol-powered and hybrid, previously assembled in Poland. This shift signifies Fiat's strategy to modernise its lineup and cater to diverse customer preferences while maintaining competitive pricing. Competitive pricing strategy The selling price of the fully electric 500e starts at around 29,000 euros ($31,600), excluding government purchase incentives. In contrast, the hybrid version is expected to be priced just "a few hundred euros" more than the older hybrid model produced in Poland, which starts at approximately 18,000 euros. This pricing strategy aims to make the hybrid 500e more accessible to a wider range of customers while offering additional technological features. Expanding to the U.S. market In addition to its European launch, Fiat is also introducing the hybrid 500e in the United States. This move aligns with Stellantis' broader strategy to expand its market footprint and capitalise on the growing demand for environmentally friendly vehicles across the Atlantic. Hybrid technology as a bridge The hybrid 500e's combination of a petrol engine and battery offers a middle ground for consumers who are hesitant to switch to a fully electric vehicle due to concerns about range, charging infrastructure, or initial costs. By providing a hybrid option, Fiat aims to attract customers who seek the benefits of electric driving without the limitations associated with fully electric vehicles. Future outlook for Fiat Fiat's introduction of the hybrid 500e is a strategic response to current market challenges and consumer preferences. As the global automotive industry grapples with the pace of EV adoption, offering hybrid models could provide a competitive edge. Stellantis' focus on producing these hybrids in Italy also underscores its commitment to leveraging local manufacturing capabilities to meet international demand. Fiat's launch of the hybrid 500e represents a significant step in addressing the affordability and accessibility issues that have hindered broader EV adoption. With an annual demand projection of up to 110,000 units, the hybrid 500e is poised to become a crucial component of Fiat's product lineup. This move not only caters to a wider audience but also reinforces Fiat's strategic pivot towards hybrid technology as a bridge to a more sustainable automotive future. By focusing on affordability, technological advancement, and strategic market expansion, Fiat is positioning itself to navigate the evolving landscape of the global automotive industry. The success of the hybrid 500e will likely influence Fiat's future product development and its role in the competitive market for environmentally friendly vehicles. (Inputs from Reuters)

Fiat bets on hybrid 500e to boost sales amid sluggish EV market

Stellantis announced on Wednesday that it has no immediate plans to expand recalls for faulty airbags in certain Citroen models, despite reports suggesting otherwise. The clarification comes after French newspaper Le Parisien reported that the carmaker might widen its recall to include more models due to airbag issues linked to hot weather.

No immediate recalls planned

A Stellantis spokesperson stated, "There is no further upcoming recall action planned at the moment." This statement aims to allay concerns following the newspaper's report, which indicated potential recalls for Citroen's C4, DS4, and DS5 models. These would be in addition to the existing recalls for the CS3 and DS3 models.

Background of the issue

Le Parisien's report suggested that Stellantis was preparing to recall additional models, specifically those operated in the southern part of France. The concern arises from the airbags supplied to these vehicles, which reportedly have issues related to hot weather conditions. The speculation caused some apprehension among Citroen owners about the safety of their vehicles.

The airbag malfunction has been attributed to the prolonged exposure to high temperatures, which can compromise the integrity of the airbag system. This issue has primarily affected vehicles that are frequently exposed to the extreme heat prevalent in southern France.

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Potential for future precautionary recalls

Despite the current stance, Stellantis did not entirely dismiss the possibility of future recalls. "We cannot rule out further precautionary recalls in the future," the spokesperson added. This suggests that the company remains vigilant and ready to act if further evidence of risk emerges.

The company's cautious approach reflects the need to ensure customer safety while managing the potential impacts on its brand and operations. The acknowledgment of possible future actions indicates that Stellantis is monitoring the situation closely and is prepared to take necessary steps if required.

Historical context and precedent

This situation is reminiscent of previous large-scale recalls in the automotive industry, particularly those related to airbags. Notably, the Takata airbag recall, which affected millions of vehicles globally, has made automakers more vigilant about addressing any potential safety issues promptly. For Stellantis, which was formed through the merger of Fiat Chrysler Automobiles and PSA Group, maintaining a proactive stance on vehicle safety is crucial.

Impact on Stellantis and Citroen owners

For Citroen owners, especially those driving the affected models, this news brings a mix of reassurance and caution. The current announcement means no immediate action is needed, but owners should remain alert for any updates. Regular maintenance and check-ups at authorised service centres can help ensure that their vehicles remain safe.

Stellantis, on the other hand, must balance addressing safety concerns with managing the financial and reputational impacts of potential recalls. The company's communication strategy will play a key role in maintaining customer trust and transparency.

Moving forward

As the situation develops, Stellantis will likely continue to evaluate the performance and safety of its airbag systems, especially in regions with extreme weather conditions. The company's proactive monitoring and willingness to conduct precautionary recalls if necessary demonstrate a commitment to safety and customer satisfaction.

While Stellantis has no immediate plans for additional airbag recalls, it remains prepared to take action if new evidence warrants it. Citroen owners should stay informed and ensure their vehicles receive regular maintenance to mitigate any potential risks. This careful balance between vigilance and assurance highlights Stellantis's approach to maintaining safety and trust in its automotive brands.

(Inputs from Reuters)

Stellantis announced on Wednesday that it has no immediate plans to expand recalls for faulty airbags in certain Citroen models, despite reports suggesting otherwise.

Stellantis announced on Wednesday that it has no immediate plans to expand recalls for faulty airbags in certain Citroen models, despite reports suggesting otherwise. The clarification comes after French newspaper Le Parisien reported that the carmaker might widen its recall to include more models due to airbag issues linked to hot weather. No immediate recalls planned A Stellantis spokesperson stated, "There is no further upcoming recall action planned at the moment." This statement aims to allay concerns following the newspaper's report, which indicated potential recalls for Citroen's C4, DS4, and DS5 models. These would be in addition to the existing recalls for the CS3 and DS3 models. Background of the issue Le Parisien's report suggested that Stellantis was preparing to recall additional models, specifically those operated in the southern part of France. The concern arises from the airbags supplied to these vehicles, which reportedly have issues related to hot weather conditions. The speculation caused some apprehension among Citroen owners about the safety of their vehicles. The airbag malfunction has been attributed to the prolonged exposure to high temperatures, which can compromise the integrity of the airbag system. This issue has primarily affected vehicles that are frequently exposed to the extreme heat prevalent in southern France. Read more: Amazon’s Zoox to expand robotaxi testing to Austin and Miami Potential for future precautionary recalls Despite the current stance, Stellantis did not entirely dismiss the possibility of future recalls. "We cannot rule out further precautionary recalls in the future," the spokesperson added. This suggests that the company remains vigilant and ready to act if further evidence of risk emerges. The company's cautious approach reflects the need to ensure customer safety while managing the potential impacts on its brand and operations. The acknowledgment of possible future actions indicates that Stellantis is monitoring the situation closely and is prepared to take necessary steps if required. Historical context and precedent This situation is reminiscent of previous large-scale recalls in the automotive industry, particularly those related to airbags. Notably, the Takata airbag recall, which affected millions of vehicles globally, has made automakers more vigilant about addressing any potential safety issues promptly. For Stellantis, which was formed through the merger of Fiat Chrysler Automobiles and PSA Group, maintaining a proactive stance on vehicle safety is crucial. Impact on Stellantis and Citroen owners For Citroen owners, especially those driving the affected models, this news brings a mix of reassurance and caution. The current announcement means no immediate action is needed, but owners should remain alert for any updates. Regular maintenance and check-ups at authorised service centres can help ensure that their vehicles remain safe. Stellantis, on the other hand, must balance addressing safety concerns with managing the financial and reputational impacts of potential recalls. The company's communication strategy will play a key role in maintaining customer trust and transparency. Moving forward As the situation develops, Stellantis will likely continue to evaluate the performance and safety of its airbag systems, especially in regions with extreme weather conditions. The company's proactive monitoring and willingness to conduct precautionary recalls if necessary demonstrate a commitment to safety and customer satisfaction. While Stellantis has no immediate plans for additional airbag recalls, it remains prepared to take action if new evidence warrants it. Citroen owners should stay informed and ensure their vehicles receive regular maintenance to mitigate any potential risks. This careful balance between vigilance and assurance highlights Stellantis's approach to maintaining safety and trust in its automotive brands. (Inputs from Reuters)

Stellantis clarifies stance on Citroen airbag recalls amid safety concerns

Stellantis CEO Carlos Tavares described the tough test awaiting auto suppliers while highlighting the rapidly increasing EV adoption rate. As western car makers drag themselves in the fray of the fierce battle to cut down costs in order to be competitive with their Chinese counterparts, Tavares was quite emphatic when he underlined the burden that had been shifted to suppliers under this new regime.

When turning to the essential question of affordability in the EV market, Tavares argued that production costs for EVs are significantly higher, reaching 40 to 50% on average, compared to petrol vehicles. This calls for a strict adherence to cost control measures in all aspects of operations; from supply chains and logistics all the way to transportation.

Tavares described a fundamental shift in the supplier base scenario and expected that a significant portion of sourcing will shift from developed Western countries. He described the trends in the EV industry that reveals that the field is gradually turning into a race to the bottom in terms of cost, while underlining the need for car manufacturers to cut costs.

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Despite the global imperative to address climate change, Tavares highlighted a critical factor hindering EV adoption: The third important factor is cost or affordability. He explained that consumers in the western countries are still unwilling to go for expensive EVs unless they are supported by policies. Tavares emphasised the implicit bargain consumers are making with their governments: stand with us in bringing EVs to the masses, and we shall do the same.

To address these challenges, Stellantis plans to keep adapting through multi-energy platforms that are versatile enough to support both battery electric and hybrid electric-petrol cars. Tavares approached this strategy as a wise way to approach unpredictability in the shifting automotive environment.

To confront affordability concerns more specifically, Stellantis is gradually gearing up to launch new entry-level products, such as a new Jeep model in the US market for under USD 25,000 or the Citroen e-C3 electric vehicle in Europe for around 20,000 euros. Further, with its partner Leapmotor, Stellantis plans to begin importing the T03 model from its Chinese JV for less than 20,000 euros in the European market.

On the specific issue of future M&amp;A prospects, Tavares echoed Stellantis’ readiness to have a healthy balance of power. Similarly, Tavares said the company should prepare for new opportunities to come as opportunities are always available, but stressed on the importance of being ready to act on such opportunities when they are available. 
 
 
(with inputs from Reuters)

Stellantis CEO Carlos Tavares described the tough test awaiting auto suppliers while highlighting the rapidly increasing EV adoption rate. As western car makers drag themselves in the fray of the fierce battle to cut down costs in order to be competitive with their Chinese counterparts, Tavares was quite emphatic when he underlined the burden that had been shifted to suppliers under this new regime.

Stellantis CEO Carlos Tavares described the tough test awaiting auto suppliers while highlighting the rapidly increasing EV adoption rate. As western car makers drag themselves in the fray of the fierce battle to cut down costs in order to be competitive with their Chinese counterparts, Tavares was quite emphatic when he underlined the burden that had been shifted to suppliers under this new regime. When turning to the essential question of affordability in the EV market, Tavares argued that production costs for EVs are significantly higher, reaching 40 to 50% on average, compared to petrol vehicles. This calls for a strict adherence to cost control measures in all aspects of operations; from supply chains and logistics all the way to transportation. Tavares described a fundamental shift in the supplier base scenario and expected that a significant portion of sourcing will shift from developed Western countries. He described the trends in the EV industry that reveals that the field is gradually turning into a race to the bottom in terms of cost, while underlining the need for car manufacturers to cut costs. Also Read: EU delays decision on Chinese EV tariffs amid election concerns Despite the global imperative to address climate change, Tavares highlighted a critical factor hindering EV adoption: The third important factor is cost or affordability. He explained that consumers in the western countries are still unwilling to go for expensive EVs unless they are supported by policies. Tavares emphasised the implicit bargain consumers are making with their governments: stand with us in bringing EVs to the masses, and we shall do the same. To address these challenges, Stellantis plans to keep adapting through multi-energy platforms that are versatile enough to support both battery electric and hybrid electric-petrol cars. Tavares approached this strategy as a wise way to approach unpredictability in the shifting automotive environment. To confront affordability concerns more specifically, Stellantis is gradually gearing up to launch new entry-level products, such as a new Jeep model in the US market for under USD 25,000 or the Citroen e-C3 electric vehicle in Europe for around 20,000 euros. Further, with its partner Leapmotor, Stellantis plans to begin importing the T03 model from its Chinese JV for less than 20,000 euros in the European market. On the specific issue of future M&A prospects, Tavares echoed Stellantis’ readiness to have a healthy balance of power. Similarly, Tavares said the company should prepare for new opportunities to come as opportunities are always available, but stressed on the importance of being ready to act on such opportunities when they are available. (with inputs from Reuters)

EV switch to hit auto suppliers hard, Stellantis CEO says

Stellantis has announced significant plans to bolster its manufacturing operations in Italy. On 27th May, during a meeting in Turin, Stellantis CEO Carlos Tavares outlined the company's future production strategy to union partners, emphasising flexibility in response to uncertain electrification trends.

Tavares officially announced the development of a hybrid version of the Fiat 500 to be manufactured at the Mirafiori factory. Additionally, the Melfi plant will produce a new hybrid version of the Jeep Compass. These announcements follow recent plans to enhance the Fiat 500e with a new generation of batteries and the industrial expansion of the Fiat Panda hybrid in Pomigliano.

Impact on production and employment

The introduction of these hybrid models is expected to positively impact the workload at the Termoli plant and the Mirafiori e-DCT and transmissions plants. Stellantis anticipates that the success of this plan will lead to the hiring of young workers, particularly at the Mirafiori factory, as part of a generational renewal of the workforce.

Also read:&nbsp;<a href="https://www.wionews.com/autonews/connected-car-market-expected-to-reach-usd-41666-billion-by-2030-725990">Connected car market expected to reach USD 416.66 billion by 2030</a>

Addressing competitiveness and external challenges

Tavares highlighted the importance of offering affordable and high-quality cars to Italian customers, which requires enhancing Stellantis's competitiveness in collaboration with suppliers and Italian institutions. He noted that while the company is addressing internal factors, several external challenges need to be tackled. These include high energy costs, inadequate charging infrastructure for battery electric vehicles (BEVs), and market support mechanisms. Tavares also mentioned the need for initiatives to encourage conversion and retraining of the workforce to adapt to new manufacturing demands.

Aiming for increased production

The shared ambition between Stellantis and the Italian government to produce one million vehicles in Italy by 2030 was reaffirmed. However, Tavares cautioned that achieving this goal would require a supportive business environment, especially given the uncertainties surrounding electrification and the intense competition from new market entrants.

Why Stellantis is focusing on hybrids?

The decision to produce hybrid models can be seen as a strategic response to the current transitional phase in the automotive industry. With electrification trends still evolving, hybrids offer a bridge between traditional internal combustion engines and fully electric vehicles. This approach allows Stellantis to remain competitive and adaptable, meeting varying market demands while preparing for a more electrified future.

Preparing for an electrified future

Stellantis's announcement also reflects its commitment to transitioning towards more sustainable transportation solutions. By developing hybrids and enhancing the Fiat 500e, the company is positioning itself to cater to the increasing consumer demand for eco-friendly vehicles. The hybrid models serve as an intermediate step, enabling Stellantis to gradually scale up its electric vehicle production capabilities while continuing to utilise existing manufacturing infrastructure.

Collaboration with stakeholders

Tavares's emphasis on collaboration with suppliers and Italian institutions underscores the need for a cohesive approach to tackle the challenges of the automotive industry's transformation. Addressing high energy costs, expanding the charging network for BEVs, and implementing market support tools are critical for creating a conducive environment for the growth of hybrid and electric vehicles.

Stellantis's latest announcements indicate a proactive approach to navigating the complexities of the automotive industry's shift towards electrification. By introducing hybrid models and planning for future electric vehicle enhancements, the company aims to maintain its competitive edge while supporting workforce renewal and addressing external challenges. The commitment to producing one million vehicles in Italy by 2030 underscores Stellantis's long-term vision and the need for a collaborative effort to achieve this ambitious target.

Stellantis has announced significant plans to bolster its manufacturing operations in Italy. On 27th May, during a meeting in Turin, Stellantis CEO Carlos Tavares outlined the company's future production strategy to union partners, emphasising flexibility in response to uncertain electrification trends.

Stellantis has announced significant plans to bolster its manufacturing operations in Italy. On 27th May, during a meeting in Turin, Stellantis CEO Carlos Tavares outlined the company's future production strategy to union partners, emphasising flexibility in response to uncertain electrification trends. Tavares officially announced the development of a hybrid version of the Fiat 500 to be manufactured at the Mirafiori factory. Additionally, the Melfi plant will produce a new hybrid version of the Jeep Compass. These announcements follow recent plans to enhance the Fiat 500e with a new generation of batteries and the industrial expansion of the Fiat Panda hybrid in Pomigliano. Impact on production and employment The introduction of these hybrid models is expected to positively impact the workload at the Termoli plant and the Mirafiori e-DCT and transmissions plants. Stellantis anticipates that the success of this plan will lead to the hiring of young workers, particularly at the Mirafiori factory, as part of a generational renewal of the workforce. Also read: Connected car market expected to reach USD 416.66 billion by 2030 Addressing competitiveness and external challenges Tavares highlighted the importance of offering affordable and high-quality cars to Italian customers, which requires enhancing Stellantis's competitiveness in collaboration with suppliers and Italian institutions. He noted that while the company is addressing internal factors, several external challenges need to be tackled. These include high energy costs, inadequate charging infrastructure for battery electric vehicles (BEVs), and market support mechanisms. Tavares also mentioned the need for initiatives to encourage conversion and retraining of the workforce to adapt to new manufacturing demands. Aiming for increased production The shared ambition between Stellantis and the Italian government to produce one million vehicles in Italy by 2030 was reaffirmed. However, Tavares cautioned that achieving this goal would require a supportive business environment, especially given the uncertainties surrounding electrification and the intense competition from new market entrants. Why Stellantis is focusing on hybrids? The decision to produce hybrid models can be seen as a strategic response to the current transitional phase in the automotive industry. With electrification trends still evolving, hybrids offer a bridge between traditional internal combustion engines and fully electric vehicles. This approach allows Stellantis to remain competitive and adaptable, meeting varying market demands while preparing for a more electrified future. Preparing for an electrified future Stellantis's announcement also reflects its commitment to transitioning towards more sustainable transportation solutions. By developing hybrids and enhancing the Fiat 500e, the company is positioning itself to cater to the increasing consumer demand for eco-friendly vehicles. The hybrid models serve as an intermediate step, enabling Stellantis to gradually scale up its electric vehicle production capabilities while continuing to utilise existing manufacturing infrastructure. Collaboration with stakeholders Tavares's emphasis on collaboration with suppliers and Italian institutions underscores the need for a cohesive approach to tackle the challenges of the automotive industry's transformation. Addressing high energy costs, expanding the charging network for BEVs, and implementing market support tools are critical for creating a conducive environment for the growth of hybrid and electric vehicles. Stellantis's latest announcements indicate a proactive approach to navigating the complexities of the automotive industry's shift towards electrification. By introducing hybrid models and planning for future electric vehicle enhancements, the company aims to maintain its competitive edge while supporting workforce renewal and addressing external challenges. The commitment to producing one million vehicles in Italy by 2030 underscores Stellantis's long-term vision and the need for a collaborative effort to achieve this ambitious target.

Stellantis announces hybrid model production in Italy amid electrification uncertainty

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Leapmotor, the chinese electric vehicle manufacturer, is preparing for the Indian market following the line of predecessors, including MG and BYD. In collaboration with Stellantis, which acquired a stake in Leapmotor’s global operation, aims to make its investment and initiation plans for the Indian public.

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Stellantis is a prominent player in India through Jeep and Citroen. And with partnership with Stellantis, Leapmotor has bolstered confidence in the enterprise in India even after strict policies and regulations monitoring investments from neighbouring countries.&nbsp;&nbsp;

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Due to approval issues from the government, BYD is currently facing challenges broadening the operations in India. On the other hand, MG Motor had to get an Indian partner involved to comply with the regulations – Sajjan Jindal’s JSW. In the previous year, Stellantis made an investment of USD 1.6 billion in Leapmotor and acquired approximately 20 percent of stakes, charting the way for a fruitful partnership.

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According to media reports, this strategic partnership has facilitated the creation of Leapmotor International, a joint venture predominantly focused on exporting and retailing Leapmotor products outside of China.

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&nbsp;"Leapmotor and Stellantis are likely to make an announcement about the India plans, and this may happen as early as the next few weeks," said media reports.

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Even though Stellantis has refused to comment on Leapmotor’s future entry into India, media reports indicate that the move could initiate the launch of affordable electric cars, further intensifying competition in the green car segment. The announcement of Leapmotor’s India plans along with Steallantis is predicted in the coming weeks, revealing a significant development in the Indian EV landscape.

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One of the world’s top automakers, Stellantis currently holds the reins of many brands across continents including Citroen, Jeep, Chrysler, Peugeot, Fiat and Maserati. Stellantis which is present in India through Jeep and Citroen and is currently gearing up to go on an override when it comes to expanding operations, introducing brands, widening retail, or making new investments.

Leapmotor, the chinese electric vehicle manufacturer, is preparing for the Indian market following the line of predecessors, including MG and BYD. In collaboration with Stellantis, which acquired a stake in Leapmotor’s global operation, aims to make its investment and initiation plans for the Indian public.

Leapmotor, the chinese electric vehicle manufacturer, is preparing for the Indian market following the line of predecessors, including MG and BYD. In collaboration with Stellantis, which acquired a stake in Leapmotor’s global operation, aims to make its investment and initiation plans for the Indian public. Stellantis is a prominent player in India through Jeep and Citroen. And with partnership with Stellantis, Leapmotor has bolstered confidence in the enterprise in India even after strict policies and regulations monitoring investments from neighbouring countries. Due to approval issues from the government, BYD is currently facing challenges broadening the operations in India. On the other hand, MG Motor had to get an Indian partner involved to comply with the regulations – Sajjan Jindal’s JSW. In the previous year, Stellantis made an investment of USD 1.6 billion in Leapmotor and acquired approximately 20 percent of stakes, charting the way for a fruitful partnership. According to media reports, this strategic partnership has facilitated the creation of Leapmotor International, a joint venture predominantly focused on exporting and retailing Leapmotor products outside of China. "Leapmotor and Stellantis are likely to make an announcement about the India plans, and this may happen as early as the next few weeks," said media reports. Even though Stellantis has refused to comment on Leapmotor’s future entry into India, media reports indicate that the move could initiate the launch of affordable electric cars, further intensifying competition in the green car segment. The announcement of Leapmotor’s India plans along with Steallantis is predicted in the coming weeks, revealing a significant development in the Indian EV landscape. One of the world’s top automakers, Stellantis currently holds the reins of many brands across continents including Citroen, Jeep, Chrysler, Peugeot, Fiat and Maserati. Stellantis which is present in India through Jeep and Citroen and is currently gearing up to go on an override when it comes to expanding operations, introducing brands, widening retail, or making new investments.

Chinese EV maker Leapmotor plans entry into India in collaboration with Stellantis

Volkswagen, Mercedes-Benz and Stellantis, top players in the European automotive market, are continuously experience falling sales and reduction in net revenues in the first quarter, citing the reasons of new model launches, increasing expenses and the general slowdown of the consumer markets.

Impact on stocks

The disclosure of unimpressive sales numbers plunged the stock market into turmoil as the shares of Mercedes, Stellantis and Volkswagen all faced a price drop. Mercedes was definitely the least successful of the European stocks represented in the blue-chip euro STOXX sub-index, with the VW and Stellantis also showing some notable downs as the main losers.

Challenges in sales

While the mass market and the premium car market were hit by sales decline, automakers kept car prices steady by assuring consumers about forthcoming upgrades that would happen with the launch of new models. According to analysts, the delivery problems and shrinking margins are considered to be the main factors that hinder the further development of the industry.

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&nbsp;

Market weakness and demand dynamics

In a time considered by European manufacturers as the "transition year", their business faces a combination of challenges such as a market slump aggravated by inflation, massive price hikes, and weak progress in the field of electric vehicles transportation. This situation raises the questions of whether the reduction in demand is only resulted from model switches or differs in the market downturn.

Competitive landscape

The competitive landscape brings further obstacles, especially for the German auto manufacturers like Volkswagen as they have to fight for what they have in the intensifying competition from their domestic rivals in China. CFO of Volkswagen, Arno Antlitz, accepted that China, being a fiercely competitive market, called for strategic moves to be held that will help the company stay relevant in the market place.

Shift to electric

European automakers are funneling substantial investments into electric vehicles to counter the dominance of Tesla and fend off competition from Chinese counterparts entering the European market with cost-effective electric models. This crucial decision-to-electriﬁc, considered to be imperative from the long term sustainability viewpoint, does have short term earnings conundrums.

Earnings report

The first-quarter result of the automotive majors was pretty grim as Mercedes showed 30% decrease in earnings, Volkswagen showed 20% decrease in operating profit and Stellantis showed 12% decrease in revenue. Despite these setbacks, all three companies reaffirmed their profit or sales targets for 2024, buoyed by the imminent launch of new models.

Outlook and strategies

While the auto industry is supposedly lacking a boost in quarter 1, automakers are exploring the future with hope, by anticipating the new model launch and a revival in the consumer demand. Volkswagen expects a big increase in order intake within the second quarter, which should be triggered by 30 new models to be made available on the market as the company is dedicated to revitalizing its market share.

Adapting to evolving market dynamics

As European car giants navigate the challenges of a transition year, their resilience and adaptability come to the fore. With a strategic focus on innovation, market expansion, and cost optimisation, these automakers are poised to weather the storm and emerge stronger in a rapidly evolving automotive landscape.

(With inputs from Reuters)

Volkswagen, Mercedes-Benz and Stellantis, top players in the European automotive market, are continuously experience falling sales and reduction in net revenues in the first quarter, citing the reasons of new model launches, increasing expenses and the general slowdown of the consumer markets.

Volkswagen, Mercedes-Benz and Stellantis, top players in the European automotive market, are continuously experience falling sales and reduction in net revenues in the first quarter, citing the reasons of new model launches, increasing expenses and the general slowdown of the consumer markets. Impact on stocks The disclosure of unimpressive sales numbers plunged the stock market into turmoil as the shares of Mercedes, Stellantis and Volkswagen all faced a price drop. Mercedes was definitely the least successful of the European stocks represented in the blue-chip euro STOXX sub-index, with the VW and Stellantis also showing some notable downs as the main losers. Challenges in sales While the mass market and the premium car market were hit by sales decline, automakers kept car prices steady by assuring consumers about forthcoming upgrades that would happen with the launch of new models. According to analysts, the delivery problems and shrinking margins are considered to be the main factors that hinder the further development of the industry. Also Read: US mandates new cars to come with emergency braking systems by 2029 Market weakness and demand dynamics In a time considered by European manufacturers as the "transition year", their business faces a combination of challenges such as a market slump aggravated by inflation, massive price hikes, and weak progress in the field of electric vehicles transportation. This situation raises the questions of whether the reduction in demand is only resulted from model switches or differs in the market downturn. Competitive landscape The competitive landscape brings further obstacles, especially for the German auto manufacturers like Volkswagen as they have to fight for what they have in the intensifying competition from their domestic rivals in China. CFO of Volkswagen, Arno Antlitz, accepted that China, being a fiercely competitive market, called for strategic moves to be held that will help the company stay relevant in the market place. Shift to electric European automakers are funneling substantial investments into electric vehicles to counter the dominance of Tesla and fend off competition from Chinese counterparts entering the European market with cost-effective electric models. This crucial decision-to-electriﬁc, considered to be imperative from the long term sustainability viewpoint, does have short term earnings conundrums. Earnings report The first-quarter result of the automotive majors was pretty grim as Mercedes showed 30% decrease in earnings, Volkswagen showed 20% decrease in operating profit and Stellantis showed 12% decrease in revenue. Despite these setbacks, all three companies reaffirmed their profit or sales targets for 2024, buoyed by the imminent launch of new models. Outlook and strategies While the auto industry is supposedly lacking a boost in quarter 1, automakers are exploring the future with hope, by anticipating the new model launch and a revival in the consumer demand. Volkswagen expects a big increase in order intake within the second quarter, which should be triggered by 30 new models to be made available on the market as the company is dedicated to revitalizing its market share. Adapting to evolving market dynamics As European car giants navigate the challenges of a transition year, their resilience and adaptability come to the fore. With a strategic focus on innovation, market expansion, and cost optimisation, these automakers are poised to weather the storm and emerge stronger in a rapidly evolving automotive landscape. (With inputs from Reuters)

European car giants struggle with lower sales amid transition year

In a tragic incident, a major bridge in the American city of Baltimore collapsed after it was hit by a large cargo ship. The bridge collapse crisis is likely to have significant impact on automakers. Watch in for more details!

Baltimore Bridge Collapse: Ford & Stellantis devise contingency plans to reduce disruptions

General Motors' (GM) labour deal with the United Auto Workers (UAW) has been ratified, marking a significant victory for workers, Reuters reported on Thursday. The approval comes after an intense six-week campaign involving coordinated strikes across all three Detroit Three automakers.<o:p></o:p>

While GM workers voted in favour of the deal, attention has now shifted to ongoing voting at Ford and Stellantis, where early margins suggest a favourable outcome for the agreement. This development follows years of stagnant wages and concessions, highlighting a shift in the auto industry's approach to workers' remuneration. <o:p></o:p>

The UAW's GM vote tracking site revealed a 55 per cent to 45 per cent margin in favour of the contract, with nearly 36,000 out of approximately 46,000 UAW-represented GM workers participating. Although seven of GM's 11 assembly plants rejected the deal, significant approvals from key facilities, including Arlington, Texas, Detroit, Fairfax, Kansas, and Lake Orion, Michigan, helped turn the tide in favour of the deal.<o:p></o:p>

The new agreement with GM brings a 25 per cent increase in the base wage until April 2028, along with a cumulative 33 per cent rise in the top wage, reaching over $42 an hour with estimated cost-of-living adjustments.<o:p></o:p>

The agreement, set to run through April 2028, lays the groundwork for similar deals at Ford and Stellantis. Ford workers, with a current approval rate of about 67 per cent, are expected to wrap up voting on Friday, while Stellantis voting is set to conclude next Tuesday, with an approximate 66 per cent approval rate. The industry-wide acceptance of such agreements reflects a broader shift in addressing worker compensation concerns.<o:p></o:p>

Despite the victory, GM shares experienced a 1.1 per cent decline in Thursday trading. The turbulent six-week campaign led to an unprecedented series of coordinated strikes and brought attention to the UAW's focus on boosting workers' wages. The aftermath of the strikes prompted all three Detroit automakers to reach tentative agreements about two weeks ago. <o:p></o:p>

&nbsp;(With inputs from Reuters)<o:p></o:p>

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General Motors' (GM) labour deal with the United Auto Workers (UAW) has been ratified, marking a significant victory for workers, Reuters reported on Thursday. The approval comes after an intense six-week campaign involving coordinated strikes across all three Detroit Three automakers.

General Motors' (GM) labour deal with the United Auto Workers (UAW) has been ratified, marking a significant victory for workers, Reuters reported on Thursday. The approval comes after an intense six-week campaign involving coordinated strikes across all three Detroit Three automakers. While GM workers voted in favour of the deal, attention has now shifted to ongoing voting at Ford and Stellantis, where early margins suggest a favourable outcome for the agreement. This development follows years of stagnant wages and concessions, highlighting a shift in the auto industry's approach to workers' remuneration. The UAW's GM vote tracking site revealed a 55 per cent to 45 per cent margin in favour of the contract, with nearly 36,000 out of approximately 46,000 UAW-represented GM workers participating. Although seven of GM's 11 assembly plants rejected the deal, significant approvals from key facilities, including Arlington, Texas, Detroit, Fairfax, Kansas, and Lake Orion, Michigan, helped turn the tide in favour of the deal. The new agreement with GM brings a 25 per cent increase in the base wage until April 2028, along with a cumulative 33 per cent rise in the top wage, reaching over $42 an hour with estimated cost-of-living adjustments. The agreement, set to run through April 2028, lays the groundwork for similar deals at Ford and Stellantis. Ford workers, with a current approval rate of about 67 per cent, are expected to wrap up voting on Friday, while Stellantis voting is set to conclude next Tuesday, with an approximate 66 per cent approval rate. The industry-wide acceptance of such agreements reflects a broader shift in addressing worker compensation concerns. Despite the victory, GM shares experienced a 1.1 per cent decline in Thursday trading. The turbulent six-week campaign led to an unprecedented series of coordinated strikes and brought attention to the UAW's focus on boosting workers' wages. The aftermath of the strikes prompted all three Detroit automakers to reach tentative agreements about two weeks ago. (With inputs from Reuters) WATCH WION LIVE HERE

General Motors workers ratify labour deal, UAW eyes similar outcomes at Ford and Stellantis

The United Auto Workers (UAW) union on Saturday (October 28) reached a tentative labour deal with Chrysler-owner Stellantis, while the union expanded its strike against General Motors to include its Spring Hill, Tennessee, engine plant.

The expansion of the seven-week strike leaves GM the only Detroit automaker without a contract deal. Chrysler-owner Stellantis reached an agreement with the UAW on Saturday and Ford on Wednesday (October 25).

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The deals won workers a record 25 per cent jump in wages over the 4-1/2-year contract and allow the companies to restart their profitable truck assembly lines.

The deal with Stellantis follows a template set by UAW and Ford. The deal&nbsp;will amount to total pay hikes of more than 33 per cent when compounding and cost-of-living are factored in. The contracts will start with an initial increase of 11 per cent.

"We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday.

The Ford and Stellantis agreements will have to be ratified by all workers.

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The deal includes an agreement to reopen Stellantis' assembly plant in Belvidere, Illinois, which will now build midsized trucks, UAW President, Shawn Fain said in a video on social media. The trucks could compete against Ford's Ranger and GM's Chevrolet Colorado and GMC Canyon models.

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We have a tentative agreement at Stellantis. <a href="https://twitter.com/hashtag/StandUpUAW?src=hash&amp;ref_src=twsrc%5Etfw">#StandUpUAW</a> <a href="https://t.co/NsVL6w77WN">pic.twitter.com/NsVL6w77WN</a>
— UAW (@UAW) <a href="https://twitter.com/UAW/status/1718394875253514341?ref_src=twsrc%5Etfw">October 28, 2023</a></blockquote>
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The factory was previously shuttered and became a rallying point for the union's bargaining campaign. Stellantis also agreed to build a battery plant next to the Belvidere plant, UAW said.

Stellantis will also keep open two facilities that were under threat of closure — an engine manufacturing complex in Trenton, Michigan, and a machining operation in Toledo, Ohio, Boyer said.

The United Auto Workers (UAW) union on Saturday (October 28) reached a tentative labour deal with Chrysler-owner Stellantis, while the union expanded its strike against General Motors to include its Spring Hill, Tennessee, engine plant.

The United Auto Workers (UAW) union on Saturday (October 28) reached a tentative labour deal with Chrysler-owner Stellantis, while the union expanded its strike against General Motors to include its Spring Hill, Tennessee, engine plant. The expansion of the seven-week strike leaves GM the only Detroit automaker without a contract deal. Chrysler-owner Stellantis reached an agreement with the UAW on Saturday and Ford on Wednesday (October 25). Also read | SeaWorld San Diego witnesses 'once in a decade' emperor penguin hatching The deals won workers a record 25 per cent jump in wages over the 4-1/2-year contract and allow the companies to restart their profitable truck assembly lines. The deal with Stellantis follows a template set by UAW and Ford. The deal will amount to total pay hikes of more than 33 per cent when compounding and cost-of-living are factored in. The contracts will start with an initial increase of 11 per cent. "We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday. The Ford and Stellantis agreements will have to be ratified by all workers. Also read | Mio Dio! Hornet attacks are ruining Italian parties and the issue is serious The deal includes an agreement to reopen Stellantis' assembly plant in Belvidere, Illinois, which will now build midsized trucks, UAW President, Shawn Fain said in a video on social media. The trucks could compete against Ford's Ranger and GM's Chevrolet Colorado and GMC Canyon models. We have a tentative agreement at Stellantis. #StandUpUAW pic.twitter.com/NsVL6w77WN — UAW (@UAW) October 28, 2023 × The factory was previously shuttered and became a rallying point for the union's bargaining campaign. Stellantis also agreed to build a battery plant next to the Belvidere plant, UAW said. Stellantis will also keep open two facilities that were under threat of closure — an engine manufacturing complex in Trenton, Michigan, and a machining operation in Toledo, Ohio, Boyer said.

UAW, Stellantis reach tentative deal to end strike

The strike of the US auto workers union expanded against two of Detroit's "Big Three" on Friday (September 22), as they invited President Joe Biden to extend support to workers on the picket line.

The strike of all 38 US parts and distribution centres at Stellantis and General Motors was announced by UAW President Shawn Fain, as the negotiations remain stalled. &nbsp;

The strike was not expanded by Fain at Ford, where significant gaps are still there, which has offered important concessions after the strike started a week ago.

"As we have said for weeks, we're not going to wait around forever for fair contracts at the Big Three," said Fain, in a press briefing.

"We invite and encourage anyone who supports our cause to join us on the picket line, from friends and family all the way up to the president of the United States," stated Fain, as he extended an invitation which will further entangle the White House into a more politically treacherous issue.

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"The way you can help is to build our movement and show the companies that the public stands with us," he added.&nbsp;

Fain said that earlier proposals were improved by Ford by reinstating a cost-of-living measure, which was suspended in 2009. An enhanced profit-sharing system was also offered by Ford and the union was granted the right to strike over plant closures.

"We're not done at Ford," Fain stated. However, "we do recognise that Ford is serious about reaching a deal. At GM and Stellantis, it's a different story," he said.&nbsp;

The strategy of UAW of slowly expanding its action is part of what Fain has called the "stand-up strike" -- an allusion to the landmark "sitdown" strike of UAW held in the 1930s which is aimed at maximising the bargaining leverage of the union because of the risk of additional plants to be taken down.

<h2>UAW adopts aggressive posture</h2>

Under the leadership of Fain, an aggressive posture has been adopted by the UAW in the talks as the companies have been accused of "corporate greed" and lambasting Big Three CEO salaries of more than $20 million each.

Fain has further shelved the convention of UAW of selecting one of the three companies as a strike target and not launching three independent series of talks which have kept the companies off guard.&nbsp;

WATCH |&nbsp;US: United Auto Workers Union launch strikes at three factories

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The UAW has been seeking a hike of 40 per cent in the wage which will match the average increases by CEOs in the last four years.

Their other key demands include the elimination of various worker pay and benefit "tiers", the re-establishment of retiree medical benefits, a cost-of-living adjustment, and a pension for junior employees. So far, the one-week-old strike had limited effect on company profits, while new pressures were introduced on auto parts suppliers to the Big Three. However, the expanded strike will now pose new challenges for General Motors and Stellantis.

(With inputs from agencies)

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The strike of the US auto workers union expanded against two of Detroit's "Big Three" on Friday (September 22), as they invited President Joe Biden to extend support to workers on the picket line.

The strike of the US auto workers union expanded against two of Detroit's "Big Three" on Friday (September 22), as they invited President Joe Biden to extend support to workers on the picket line. The strike of all 38 US parts and distribution centres at Stellantis and General Motors was announced by UAW President Shawn Fain, as the negotiations remain stalled. The strike was not expanded by Fain at Ford, where significant gaps are still there, which has offered important concessions after the strike started a week ago. "As we have said for weeks, we're not going to wait around forever for fair contracts at the Big Three," said Fain, in a press briefing. "We invite and encourage anyone who supports our cause to join us on the picket line, from friends and family all the way up to the president of the United States," stated Fain, as he extended an invitation which will further entangle the White House into a more politically treacherous issue. ALSO READ | US auto workers threaten to 'amp up' historic strike if wage offers do not improve "The way you can help is to build our movement and show the companies that the public stands with us," he added. Fain said that earlier proposals were improved by Ford by reinstating a cost-of-living measure, which was suspended in 2009. An enhanced profit-sharing system was also offered by Ford and the union was granted the right to strike over plant closures. "We're not done at Ford," Fain stated. However, "we do recognise that Ford is serious about reaching a deal. At GM and Stellantis, it's a different story," he said. The strategy of UAW of slowly expanding its action is part of what Fain has called the "stand-up strike" -- an allusion to the landmark "sitdown" strike of UAW held in the 1930s which is aimed at maximising the bargaining leverage of the union because of the risk of additional plants to be taken down. UAW adopts aggressive posture Under the leadership of Fain, an aggressive posture has been adopted by the UAW in the talks as the companies have been accused of "corporate greed" and lambasting Big Three CEO salaries of more than $20 million each. Fain has further shelved the convention of UAW of selecting one of the three companies as a strike target and not launching three independent series of talks which have kept the companies off guard. WATCH | US: United Auto Workers Union launch strikes at three factories The UAW has been seeking a hike of 40 per cent in the wage which will match the average increases by CEOs in the last four years. Their other key demands include the elimination of various worker pay and benefit "tiers", the re-establishment of retiree medical benefits, a cost-of-living adjustment, and a pension for junior employees. So far, the one-week-old strike had limited effect on company profits, while new pressures were introduced on auto parts suppliers to the Big Three. However, the expanded strike will now pose new challenges for General Motors and Stellantis. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Strike of US auto workers reaches General Motors, Stellantis; Ford remains unaffected

Carmaker stellantis is celebrating an impressive 12% year-on-year jump in net revenues, and an astounding 37% spike in net profit for the first half of 2023. During the second quarter alone, stellantis raked in a whopping 109 billion dollars in net revenues. Their net profit reached an impressive 12 billion dollars, showcasing the company's strong financial position and market prowess.

Stellantis sees a 24% surge in battery electric vehicle sales

Stellantis, the world's third-largest carmaker by sales, had an impressive performance in the first half of 2023, with a remarkable 12 percent year-on-year surge in net revenues and an astounding 37 percent spike in net profit.

In their recent report on Wednesday, the company revealed that their January-June adjusted profits before interest and tax (EBIT) rose by 11 percent to 14.1 billion euros ($15.6 billion), surpassing the analysts' forecast of 12.1 billion euros, as per Reuters&nbsp;poll.

During the second quarter alone, Stellantis achieved a remarkable milestone, generating a whopping $109 billion&nbsp;in net revenues, with their net profit reaching an impressive $12 billion, showcasing the company's robust financial position and market prowess.

The surge in net revenues and profits can be attributed to a substantial nine percent year-on-year increase in consolidated shipments, totaling 3.202 million units, further solidifying its position in the automotive industry.

Pricing power as key driver of earnings and green mobility

Natalie Knight, the newly appointed CFO of the group, emphasised that pricing power remains the primary driver of the group's earnings, encompassing Fiat, Peugeot, Alfa Romeo, Ram, and Jeep. She further elaborated that the company successfully implemented several price hikes and adeptly maintained them while also strategically assessing the need for additional pricing adjustments in the first half.

Stellantis facilitated this impressive boost in earnings by reducing supply constraints and returning to normal inventory levels, enabling the company to meet the demands of a growing market effectively.

However, its achievements extend beyond increased sales; the company is also at the forefront of driving sustainable practices. Their commitment to green mobility has yielded significant results, with sales of battery electric vehicles (BEV) and low-emission vehicles (LEV) surging by 24 percent and 28 percent year-on-year, respectively. Stellantis sold an impressive 169,000 battery electric vehicles and 315,000 low-emission vehicles, cementing their position as a leading force in eco-friendly transportation.

Profit margin concerns&nbsp;

Stellantis is facing concerns regarding its profit margin, particularly after Tesla of the United States initiated a wave of price discounts in China in January, putting pressure on automakers and suppliers to cut costs. The company's adjusted EBIT margin declined to 14.4 percent&nbsp;from 14.5 percent&nbsp;a year ago as the pricing power, boosted by a considerable inflationary environment in the previous year, no longer persisted, according to Chief Executive Carlos Tavares.

Reuters quoted Taveres as saying, "If the market is more competitive in terms of pricing, we need to work harder on cost reduction to make sure that we give back to the market the breathing space it needs while protecting our per unit margins."&nbsp;

However, he highlighted that Stellantis' margin performance still outperformed Tesla's and General Motors&nbsp;margins, which stood at 10.5 percent&nbsp;and 8.3 percent, respectively.

Furthermore, the company's optimism about its future prospects is clearly demonstrated through its share buyback program. The company has already repurchased shares worth 774 million dollars and has set a target to complete a buyback of 1.6 billion dollars by the end of the year. This move highlights Stellantis' belief in its own growth and reinforces its commitment to enhancing shareholder value.

(With inputs from Reuters)

Stellantis, the world's third-largest carmaker by sales, had an impressive performance in the first half of 2023, with a remarkable 12 percent year-on-year surge in net revenues and an astounding 37 percent spike in net profit.

Stellantis, the world's third-largest carmaker by sales, had an impressive performance in the first half of 2023, with a remarkable 12 percent year-on-year surge in net revenues and an astounding 37 percent spike in net profit. In their recent report on Wednesday, the company revealed that their January-June adjusted profits before interest and tax (EBIT) rose by 11 percent to 14.1 billion euros ($15.6 billion), surpassing the analysts' forecast of 12.1 billion euros, as per Reuters poll. During the second quarter alone, Stellantis achieved a remarkable milestone, generating a whopping $109 billion in net revenues, with their net profit reaching an impressive $12 billion, showcasing the company's robust financial position and market prowess. The surge in net revenues and profits can be attributed to a substantial nine percent year-on-year increase in consolidated shipments, totaling 3.202 million units, further solidifying its position in the automotive industry. Pricing power as key driver of earnings and green mobility Natalie Knight, the newly appointed CFO of the group, emphasised that pricing power remains the primary driver of the group's earnings, encompassing Fiat, Peugeot, Alfa Romeo, Ram, and Jeep. She further elaborated that the company successfully implemented several price hikes and adeptly maintained them while also strategically assessing the need for additional pricing adjustments in the first half. Stellantis facilitated this impressive boost in earnings by reducing supply constraints and returning to normal inventory levels, enabling the company to meet the demands of a growing market effectively. However, its achievements extend beyond increased sales; the company is also at the forefront of driving sustainable practices. Their commitment to green mobility has yielded significant results, with sales of battery electric vehicles (BEV) and low-emission vehicles (LEV) surging by 24 percent and 28 percent year-on-year, respectively. Stellantis sold an impressive 169,000 battery electric vehicles and 315,000 low-emission vehicles, cementing their position as a leading force in eco-friendly transportation. Profit margin concerns Stellantis is facing concerns regarding its profit margin, particularly after Tesla of the United States initiated a wave of price discounts in China in January, putting pressure on automakers and suppliers to cut costs. The company's adjusted EBIT margin declined to 14.4 percent from 14.5 percent a year ago as the pricing power, boosted by a considerable inflationary environment in the previous year, no longer persisted, according to Chief Executive Carlos Tavares. Reuters quoted Taveres as saying, "If the market is more competitive in terms of pricing, we need to work harder on cost reduction to make sure that we give back to the market the breathing space it needs while protecting our per unit margins." However, he highlighted that Stellantis' margin performance still outperformed Tesla's and General Motors margins, which stood at 10.5 percent and 8.3 percent, respectively. Furthermore, the company's optimism about its future prospects is clearly demonstrated through its share buyback program. The company has already repurchased shares worth 774 million dollars and has set a target to complete a buyback of 1.6 billion dollars by the end of the year. This move highlights Stellantis' belief in its own growth and reinforces its commitment to enhancing shareholder value. (With inputs from Reuters)

Stellantis surpasses forecasts, achieves remarkable 37% spike in net profit

Ford and Stellantis, two global scale car companies will see most of the electric and plug-in electric hybrid models with tax credits halved to 3,750 from April 18th after new US treasury rules came into effect. The rules aim to move US battery production and supply chains away from China.

Ford and Stellantis EV tax credits slashed

Auto firm Stellantis said, it is pausing all paid advertising posts on Twitter as it waits to see what the platform will look like under the leadership of Elon Musk.

Auto firm Stellantis joins others, pause paid ads on Twitter

Amid geopolitical tensions in China, European car maker Stellantis may stop making cars in the world's second-largest economy. The car company might implement an 'asset-light' plan for some brands in the world's largest auto market.

World Business Watch: Stellantis may stop manufacturing cars in China

Stellantis will halt its Sevel van making plant in central Italy for three days due to a shortage in supplies of parts, a spokesman for the carmaker said on Tuesday.

Stellantis to halt production in Italy amid supply shortages

Indian auto market has continuously attracted MNC's. Stellantis is preparing for a fresh onslaught on Indian market. In a conversation with WION, Stellantis CEO Roland Bouchara said, Indian market could grow to 5 mn by 2030.

Indian auto market to be one of top 5: Stellantis India

Carmaker Stellantis on Tuesday said it was suspending production at its Russian plant due to logistical difficulties and sanctions imposed on Moscow.

Stellantis suspends vehicle production in Russia

Stellantis' Chief Executive Carlos Tavares said external pressure on automakers to accelerate the shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle to manage the higher costs of building EVs.

Electric vehicles' cost burden beyond limits: Stellantis

Stellantis is betting big on electrification. The world’s fourth-largest automaker announced it will invest $35.5 billion over the next five years in a chase to lead the industry, or to at least keep up.

World Business Watch: Stellantis makes $35.5 billion bet on electric vehicle market

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