Good morning! Today is Friday, April 26, 2024 and here it is Morning shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
First device: ViFast awarded another 1 billion USD
Vietnamese cars VinFast is really trying to get by It takes itself seriously as a powerhouse automaker. It has a new, established line of electric vehicles brick and mortar dealer in the US and has upset some auto journalists in the process. However, it doesn’t seem to do anything Good car companies should: sell cars.
Now the company has been awarded another billion dollars from its extremely wealthy owner, report Automotive news. The new round of funding from the company’s founder, Vietnamese billionaire Pham Nhat Vuong, is intended to help the company expand its operations worldwide. EQUAL Automotive news report:
This move marks his strongest support for a unit of VinGroup that is considered a potential competitor of Tesla Inc.
“We will put all our resources into VinFast,” Vuong said at a shareholder meeting in Hanoi, without giving a date for the cash transfer. He described VinFast as the future of VinGroup and said there is no way the company will leave.
VinFast, which entered the US in 2022, has been losing money as it competes with the likes of Tesla for market share in the increasingly competitive electric vehicle market. They are investing $2 billion in a manufacturing plant in North Carolina, in addition to plans to build factories in India and Indonesia.
The launch of Vinfast’s electric car model, called VF8, was a difficult undertaking, with some reviewers saying the car simply not ready for sale in the US. This, combined with a sharp drop in share price, means that VinFast is currently valued at about 90 percent less compared to August, all raising questions about the company’s future.
Despite the difficulties, the company still hopes to break even on its investment next year and said can even be profitable theretofore. In its most recent financial filing, the company cut its losses to just over $600 million.
Device 2: Honda invests billions of dollars in an electric vehicle factory in Canada
It seems like Honda saw VinFast receiving another billion dollars and said “hold the beer for me”. The Japanese automaker just committed to injecting a large amount of cash into its North American operations to create a new electric vehicle hub north of the Canadian border.
The Japanese automaker just announced an $11 billion investment in its facilities in Canada, reports CNBC News. This massive injection of cash will support the construction of new battery and assembly plants in Ontario, Canada, as well as other indispensable facilities in the region. Design and assemble electric cars. As CNBC News reports:
The company said the new electric vehicle hub in North America will include new battery and assembly plants as well as other facilities to support production of all-electric and fuel cell vehicles.
Honda said vehicle production will begin in 2028, with an annual vehicle capacity of 240,000 units once fully operational. The investment in Alliston, Ontario, is expected to support Honda’s goal of exclusively offering all-electric and fuel cell vehicles by 2040.
Honda’s commitment to electric vehicles comes amid turmoil in the electric car world, with many of the company’s rivals backtracking on their electric vehicle plans, delaying or canceling some altogether. This week alone, Toyota pushed back its plans electric vehicle production in the US from 2025 to 2026 as it continues to earn millions thanks to its commitment to using hybrid vehicles instead of electric vehicles.
However, Honda is stick its spindle to battery powerand says the new Canadian location could create up to 1,000 jobs in the electric vehicle supply chain.
Device #3: Boeing’s profits decline due to slow deliveries
Prepare for some shocking news, series dangerous mechanical failureOne government investigation of production quality and mystery whistleblower death can have a negative impact on your profits. Shocking, I know.
It was that kind of shock Boeing was on hand this weekafter announcing that first-quarter 2024 profits fell due to slowing deliveries, reports Reuters. The Seattle-based aerospace company was forced to cut production amid a federal investigation into its quality control practices following a series of problems with 737 Max aircraft. As Reuters explains:
Quarterly revenue was $16.57 billion, down from $17.92 billion a year earlier but beating expectations of $16.23 billion. Shares of Boeing and Spirit Aero fell about 3% in early afternoon trading.
Boeing Chief Financial Officer Brian West told analysts second-quarter cash burn would be “significant” although he expected free cash use to improve on cash burn face 3.93 billion USD in the first quarter. That’s less than the $4.49 billion that analysts expected after the Jan. 5 crash involving a nearly new 737 MAX 9 jet.
“Well, it could be worse. While losses and cash outflows are not as bad as feared, the company is clearly still facing some serious challenges,” Vertical Research Partners analyst Robert Stallard said in a note.
ONE Boeing’s production limit was imposed by the Federal Aviation Administration after giving the company 90 days to improve its manufacturing performance. This period will expire on May 29, after which the company could be allowed to operate again if the feds are satisfied with the progress made.
The Trouble for Boeing However, it is expected to continue beyond that deadline. Reuters reports that in 2026, the company has about $8 billion in debt coming due, which will continue to weigh on its earnings.
4th gear: Emily GT could actually go into production
Let’s end the morning with some good news, it turns out somewhat excellent Emily GT EV made by a team of ex-Saab engineers could actually go into production. The car designed by Swedish startup Nevs looked tough last year but now it has backing from Canadian EV company EV Electranow claims to have a factory ready to go in Europe.
EV Electra has reportedly bought a factory in Italy so it can start producing the Emily GT car “within the next few years,” British outlet reports car. As the website reports:
CEO Jihad Mohammad posted on LinkedIn: “Yes, we made an offer to buy a car factory in Italy and it was finally approved yesterday (not the Maserati factory), and at this new location, we will build electric cars that will blow everyone’s mind.” .
“We have more [a] Currently there are very few models, after many acquisitions took place in [the] the last two months, and one more thing happening this week that will allow us to be at the top of our game.
“I promised my team not to provide more details because our investors need to know before everyone else. Afterwards, an official press release will clarify all doubts.”
It remains to be revealed if the cars are assembled in Italy will be Emily GT or another model of the EV Electra. However, in late 2023, the company’s new backers revealed four versions of the Emily GT, including an electric, disc-brake and convertible sedan. If just one of these hits the market I’ll be a happy boy.
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