Daimler fared better than expected, there is a purge at Volkswagen, and New York is investing hundreds of millions in electric vehicle infrastructure. All That and more on Tomorrow’s turn by July 17, 2020.
1st Gear: Daimler’s second quarter results aren’t as bad as feared
The company, which produces Mercedes cars in addition to a large truck, bus, and van business, expected to lose $ 2.1 billion in the second quarter due to the coronavirus pandemic. mein the end It was a little better than that.
Of Bloomberg:
Daimler reported a preliminary deficit of 1.68 billion euros ($ 1.9 billion) before interest and taxes in a statement Thursday night. That beat a consensus estimate of 2.1 billion euros provided by the German manufacturer, which said free cash flow and liquidity also held up better than expected.
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China is helping, while Merc is also leaning heavily on … big money S-Class to aid your recovery.
Deliveries of Mercedes-Benz in China, the brand’s largest market, hit a record in the second quarter, and global retail sales of its cars increased in June. To keep the momentum going, the Stuttgart-based company is gearing up to launch new iterations of its flagship S-Class sedan, a key profit driver that continues to sell to rivals, including the BMW 7 Series.
The S-Class will be flanked by a fully electric sibling, dubbed the EQS, the first dedicated platform-based car for electric cars with a battery range of more than 700 kilometers (435 miles). Chief Executive Ola Kallenius said Mercedes plans to shore up its offerings, especially in the lucrative segment of larger luxury vehicles.
Meanwhile, Kallenius had this to say. in a press release:
“This has been a complex quarter. We make proactive cost and expense decisions and focus intensively on working capital management. Later, we were able to take advantage of the opportunities allowed by the recovery of the market, thanks to our attractive line of products. We also announced key strategic partnerships in vehicle electrification and software during the quarter that position us well for the future. But there’s still a lot to do. Our systematic efforts to reduce the balance of the company by reducing costs and adjusting capacity should continue, “said Ola Källenius, Chairman of the Board of Directors of Daimler AG and Mercedes-Benz AG.
2nd gear: Related: Mercedes has finished building sedans in the U.S.
His Tuscaloosa, Alabama, factory does C classes. But Daimler said Friday that (together with his plant in Aguascalientes, Mexico, which produces a form of class A) He would stop making sedans and focus on SUVs.
Daimler is in a soul search mode. Of Reuters:
Daimler is evaluating whether to sell its plant in Iracemapolis, Brazil, Handelsblatt said, citing company sources, adding that an extension to its factory in Kekskemet, Hungary, was unlikely to come to light.
The automaker is also reviewing its portfolio of specialty cars, such as the coupe and convertible variants of its C-Class and E-Class, as well as the compact B-Class, Handelsblatt reported.
Daimler declined to comment on details of possible cuts.
3rd gear: purge on Volkswagen
The company’s development of its new all-electric cars. it has been rockyWhile a group of executives have recently been fired, what Bloomberg reports does not appear to be a coincidence.
Of Bloomberg:
And it’s the German giant whose executive suites are changing: Within days, his trucking boss resigned, the leader of his van unit was demoted, and his software boss was reassigned.
Even CEO Herbert Diess’ work seemed unsafe for a moment before VW’s supervisory board decided to strip him of the responsibility for the company’s namesake division.
The circumstances of each individual’s cases vary, and VW continues to have a great advantage over Tesla in many ways. But some investors worry that it’s not a coincidence that the four VW executives in question were outsourced recruits installed to push for deep changes at the automaker.
The next ID.3 and ID.4 are from Volkswagen major new cars in decades, probably from the Beetle. It is mission critical that VW hit the landing.
4th Gear: Meanwhile, VW is doing better in China
Its sales are only expected to decrease by a single-digit percentage as the country recovers from the pandemic. That is smaller than what the company had originally been planning. SUVs and luxury car sales are helping.
Of Reuters:
The German automaker sold 1.59 million vehicles in China in the first six months of 2020, down 17% from 1.92 million units in the same period last year. For all of 2019, Volkswagen sold around 4.23 million vehicles in the country.
Volkswagen is China’s largest foreign automaker, followed by US rival General Motors Co (GM.N).
The country’s total auto sales, which include passenger cars and commercial vehicles, fell 17% in January-June. The China Automobile Manufacturers Association predicted that full-year sales will drop from 10% to 20%.
Volkswagen China chief Stephan Woellenstein said the automaker’s sales in the second half of this year are likely to be at the same level as last year, although a possible second wave of the new coronavirus outbreak creates uncertainty.
5th gear: New York pouring $ 750 million into EV infrastructure
The money will go to charging stations as the state tries to encourage the broader adoption of electric vehicles. Say what you want about Tesla, but electric vehicle sales it still hasn’t really taken off in a wide scale road here or anywhere else
Of Reuters:
The measure is slated to create more than 50,000 charging stations and will be largely funded by state investor-owned utility companies, with a total budget limited to $ 701 million through 2025.
An additional $ 48.8 million is allocated from a 2017 deal with German automaker Volkswagen Group over its diesel emission cheating scandal to finance electric buses and transit buses, as well as charging stations.
The New York announcement comes immediately after a similar move by Florida, which on July 10 announced a $ 8.6 million investment to expand charging stations.
However, it is difficult to know how significant $ 750 million is in the scheme of things. according to a report It will take $ 2.2 billion to meet U.S. sue until 2025. What I can say for sure is that Florida’s $ 8.6 million is ridiculous.
Reverse: transatlantic flight
Neutral: How are you?
I’m going to drive somewhere in August, socially estranged and masked, and probably within New York State, and after getting tested, the first trip since this all started. I’ve spent too much time plotting where.
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