Porsche’s 2023 first quarter results were; suppliers to Stellantis, General Motors and Ford are fearing the possibility of a United Auto Workers strike later this year; and Ineos’ extremely expensive all-terrain vehicle will make Austria its home. All that and more in this version of Morning shift for Monday, April 17, 2023.
First device: First quarter, best quarter
Porsche just outperformed the same period last year by 18% in the first quarter, a record year-on-year increase. This improvement is largely due to SUVs and also China. polite Reuters:
The German luxury carmaker delivered 21,365 vehicles in China, its largest single market, up 21% year-on-year. The results there, the largest of any region, were driven by a post-pandemic increase in demand.
Peer Mercedes delivered 191,000 vehicles in China in the first three months of 2023, 3% higher than the previous year.
High-end brands are benefiting from a recovery in demand in China, the largest market for luxury products, after the country’s harsh COVID-19 lockdown was lifted at the end of the day. year 2022.
Worldwide, Porsche delivered 80,767 vehicles during this period, with increases in every region. SUVs such as the Macan and Cayenne, as well as the iconic 911 sports car, are among the most popular with Porsche customers.
Of course the Macan and Cayenne will sell the most, although it’s great that the 911 still earns its spot on the podium. The brand’s flagship sales improved 19% compared to the first quarter of 2022. Additionally, Porsche has sold a total of 19,651 vehicles in North Americagood for a 30 percent increase in the market.
As for what’s next for Porsche, it’s hard to say. 718 is expected to go all-electric by 2025, according to Porsche’s own admission. It’s unclear if the internal combustion engine version will be phased out at the same time, but with the Macan, Cayenne, 911 and Panamera all outselling the Boxster/Cayman duo, perhaps electrification of entry-level sports cars is possible. Low first is probably the most reasonable thing.
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2nd Gear: Suppliers Caught in the Middle
The United Auto Workers’ current contract with Detroit’s Big Three expires on September 14. In the event a strike happens this year, tight margins and ongoing production bottlenecks mean suppliers are in a far worse position to weather the storm compared to the last pre-contract strike in 2019. From auto news:
The 2019 strike occurred in a much different economic environment than it does today. Although the new-vehicle market at the time was cooling off from its all-time high at the start of the decade, business was significantly better then than what the industry has been for lately. , due to microchip shortages and other supply chain problems that have cut vehicle production.
The high volume leading up to the 2019 strike means that many suppliers are able to cover some of their strike-related losses, and they are confident of recouping those lost sales in the coming weeks. the next month.
But the pandemic that followed in early 2020 ruined that plan.
“Suppliers were essentially in a much better shape before the pandemic than they are now, especially,” said Carla Bailo, an industry consultant and member of the Board of Directors of SAE International. is when it involves cash.
That is unlikely to happen by the end of 2023, she said.
Although many suppliers have eventually returned to pre-pandemic revenue levels, overall margins have lagged. Suppliers operating on just-in-time delivery have faced a prolonged financial squeeze over the past several years as high raw material costs and more unpredictable vehicle assembly schedules have made reduce profit margins.
New UAW President Shawn Fain recently stated that he is “not married to any philosophy when it comes to bargaining.”” and ready to use any tool at the will of the union, including strike. Most suppliers can do to mitigate the impact of a strike is to hoard inventory — but only up to a point. “When your end customer doesn’t need the part, they don’t need it,” says Michael Robinet, executive director of automotive consulting services at S&P Global Mobility. car news. “Moving forward won’t do you much good, especially with just-in-time deliveries.”
3rd device: Tesla’s Shanghai employees are not happy
Workers at Tesla’s Shanghai factory knew their quarterly bonuses would be reduced last week, and some were told by their supervisors that a February workplace death was the reason why. . Some employees used social media to spread the word, while others shared their accounts with Reuters:
“Pay attention to the (bonus) performance of frontline workers at Tesla’s Shanghai factory being arbitrarily deducted,” wrote one @AFeiywu on Twitter in a tweet aimed at Elon Musk. and Tesla’s Asia unit.
Two workers at the factory, where Tesla employs about 20,000 people, told Reuters they were notified by their supervisor over the weekend of a cut to their quarterly bonus, which is related to the performance of the house. machine.
The workers said Tesla supervisors mentioned a “safety incident” when they were asked about the reason for the cut in bonuses. They declined to be named out of concern for their jobs. […]
Some workers said in online posts their quarterly bonuses had been cut by about 2,000 yuan ($291.19).
Base salaries at the Shanghai factory start at around 5,340 yuan ($776.70) per month, with additional income in some cases coming from overtime, shifts and annual bonuses. and quarterly.
A labor researcher in China is quoted by Reuters as saying that while it is not uncommon for companies to withhold additional compensation after an accident at work in the country, it usually does not appear. from performance bonuses. The electric-car maker has slashed prices on its vehicles since the start of the year, particularly in China, though those programs eventually expanded to North America and Europe also.
4th gear: Lithium roller coaster
In other news regarding electric vehicle production in China, lithium prices appear to have bottomed out and some believe that it could finally start to stabilize again, according to the latest information from Bloomberg:
Smaller manufacturers are looking to stem losses after the price of key battery material fell by more than two-thirds in just five months. Low stockpiles and improved prospects for battery storage and electric vehicle sales suggest demand may be on the verge of a recovery.
According to Huaan Securities Co. In the second quarter, lithium prices may stop falling and stabilize,” the broker said in a note.
If you’re wondering why lithium is collapsing so quickly, Tesla’s aforementioned EV price drop, which has sparked a price war in the market, certainly played a role:
According to data from Asian Metal Inc. The price of a lithium-bearing rock, spodumene, mined in Australia is down 16% from last year’s peak, according to Benchmark Mineral Intelligence.
The drop comes as companies in the battery supply chain avoid high prices by leveraging inventory rather than buying, while China’s subsidies for electric vehicles end and price wars between manufacturers come to an end. Auto production has reduced demand. While the drop has provided some relief to downstream customers, the mineral is still more than four times more expensive than it was in 2020.
5th device: Grenadier has a house
Ineos Grenadier, which contains cost its creator an amazing amount of money to put into production, will in fact be built by Magna Steyr in Austria, just like the Supra! From auto news:
The Canadian parts supplier is expected to begin production of the Ineos EV at the Magna Steyr complete vehicle assembly plant in Graz, Austria, in 2026. The companies did not disclose how many vehicles Magna plans to have. Designed and assembled for Ineos, they also did not reveal more details about the EV model.
Roland Prettner, interim president of Magna’s complete vehicle business unit, said: “Right now, we’re working on getting design concepts ready and working on a supply base. application to support this program. auto news.
The addition of Ineos as a customer at Steyr adds to Magna’s growing portfolio of electric models that it makes there. Magna is presenting itself to automotive newcomers like Ineos and Fisker as a one-stop shop for engineering and assembly capabilities as these companies seek to bring their vehicles to market quickly. than.
This news truly represents the latest chapter of a five-year partnership between Ineos and Magna, which began when the Canadian contract manufacturer that provided engineering services to the SUV maker switched over to the company. chemicals in 2018. Magna has publicly flirted with the idea of raising a new EV facility in North America for tax incentives, but the business model specializes in limited production models for companies. Starting a business makes it difficult. relatively difficult position.
Reverse: At the World’s Fair
On this day in 1964 — 59 years ago — the Ford Mustang was unveiled by Henry Ford II at Flushing Meadows, New York. From History.com:
Neutral: New Face
i have seen a Treaty of 2023 on the road for the first time this weekend, and it looks great. A few days ago I saw a new one M2 in the gender reveal blue, looks less impressive. Which new car recently made you turn your head the first time you saw it in the flesh?
