+++ In CHINA , sales of passenger cars rose 10.2% in October over a year earlier, an industry association said Wednesday, as makers ramped up promotions and customers opted for electric and hybrid vehicles. Sales of electric and hybrid vehicles climbed 37.5% from a year earlier, accounting for 767,000 of the 2.03 million vehicles sold in October. Exports of passenger cars jumped nearly 50% to 391.000 units in October and have risen 66% this year, to just over 3 million units. The robust improvements partly reflect slow growth a year earlier, when China was grappling with factory shutdowns and other disruptions from the COVID-19 pandemic. Demand for vehicles also tends to be stronger in September and October, which are dubbed the “9 silvers and 10 golds”. So far this year, auto sales in China have climbed 3.2% to just under 17.3 million units. Notably, the market witnessed significant activity in the new energy vehicle (NEV) sector in October, with 195.000 electric vehicles (EVs) and 272.000 plug-in hybrid electric vehicles (PHEVs) finding buyers. NEVs accounted for 37.7% of total vehicle sales. Regarding market dominance, BYD emerged as the top-performing auto brand in China for the month, achieving remarkable sales figures. BYD sold 246.389 vehicles, securing an impressive 12.1% market share. Volkswagen maintained its second-place position as the second best-selling brand in China, with total sales reaching 198.210 cars. This achievement translated to a 9.8% market share. Toyota secured the third spot, selling 151.003 vehicles, equivalent to a 7.4% market share. Honda closely followed in 4th place, with 130.221 vehicles sold, capturing a 6.4% market share. Geely rounded off the top-5, recording sales of 92.770 cars, which accounted for a 4.6% market share. Tesla has updated its Model 3. Deliveries of the new edition only started in the last few days of this month, while the delivery of the old model has long been stopped. Only about 2.000 Model 3 vehicles were delivered this month. This brings total deliveries for the month to 28.686 vehicles, the lowest level since January 2023. However, because most of the production capacity in the same period last year was exported overseas, Tesla’s sales in China this month still increased significantly year-on-year. BYD showcased a commanding presence within the Chinese NEV segment, excelling in both the EV and PHEV categories. BYD captured a substantial 27% market share in the Chinese EV market. Impressively, the brand secured an even more significant 41% market share in the PHEV category for the month. In the pure electric vehicle market, BYD maintained its dominance, selling 133.785 vehicles and securing a notable 27.0% market share. Wuling claimed the second position with 45.087 cars sold, constituting a market share of 9.1%. Aion secured the third spot with 40.825 vehicles sold, capturing a market share of 8.3%. Tesla and Volkswagen completed the top five list as the best-selling pure electric brands. In terms of individual models, the top-3 vehicles in the Chinese market for this month were BYD models. Tesla delivered 47.164 Model Y vehicles and 24.951 Model 3s made at its Shanghai plant. Chinese automaker BYD led sales of new energy battery of electric vehicles by far, with 63.965 Song model sedans its best seller. The China Passenger Car Association said the outlook for November was unclear given the current “complex and severe” economic outlook. +++
+++ The next new model from Stellantis’s CHRYSLER brand will be a 2-row electric crossover in 2025, Chrysler CEO Christine Fuell said. Fuell also said Chrysler expects to continue offering the popular hybrid Pacifica minivan “through end of decade”. Chrysler has in the past suggested a battery electric crossover by 2025 and promised to be fully electrified by 2028. Fuell said the design of the new crossover is inspired by the Chrysler Airflow concept unveiled at the 2022 Consumer Electronics Show. Chrysler has been showing the Airflow in one form or another since the 2020 CES, and the concept was refined in 2022 to something closer to production. Yet based on comments from Stellantis design chief Ralph Gilles earlier this year, the production vehicle may have “zero to do with anything” we’ve seen so far in the Airflow concept, and in fact it may not even be called Airflow, with Fuell saying of internal conversations at the time: “There is a group of people who love the Airflow name and just as many who beg us not to use it”. Assuming much of anything from the concepts carry over, the new Chrysler crossover could have a relatively conservative outward appearance. Inside, the Airflow has a light, rounded aesthetic. Most of the dash consists of screens. The 2022 concept allowed each passenger to customize their screens, and information could be sent to other passengers’ screens at will. Each passenger position had a camera for video calling, too. Feuell is plotting a remake of the entire the Chrysler experience, from shopping its products online and at dealers to after-sales care. She’s said before she wants Chrysler to become Stellantis’ “startup brand”, offering “clean mobility, seamless technology” and affordable pricing. Tesla buyers have been mentioned as one of Feuell’s targets. The new crossover will share the STLA Large architecture with other Stellantis models, Fuell said. That platform could offer 400- and 800-volt electrical architectures, and pack batteries that power up to 640 km of range. +++
+++ European Parliament lawmakers voted to dilute the proposed “ EURO 7 ” law, but it kept the proposal for limits on pollution from cars, including nitrous oxides (NOx). However, they weakened NOx limits for trucks, and delayed when the rules will apply for cars to 3 years after all secondary legislation associated with the proposal is passed. Alexandr Vondra, EU Parliament’s lead lawmaker on the rules and a member of the right-wing European Conservatives and Reformists group, said the decision was good for motorists and a “major defeat” for Green and Socialist lawmakers who had sought stricter rules. +++
+++ NISSAN plans to invest 2.8 billion reais ($575 million) in its Brazilian factory, with the goal of doubling its market share in Latin America’s biggest economy by 2026. The carmaker had previously planned to invest 1.3 billion reais, a figure that was announced in April 2022. It’s now adding another 1.5 billion reais through 2023 to 2025, the company said. Makoto Uchida, Nissan’s chief executive officer, was in Brasilia to present the spending plan to President Luiz Inacio Lula da Silva. Nissan currently exports Kicks, the only product made in Brazil, to 8 countries in Latin America. The plant investment is part of a plan to introduce a renewed Kicks, as well as another SUV at the factory located in the city of Resende, in Rio de Janeiro, in addition to a new turbo engine. “Nissan has already been in the country for 23 years and believes that there is a great possibility of growth in the automotive market as a whole in Brazil”, Uchida said to journalists in Brasilia. The goal is for one of the new SUVs to be exported to at least 20 countries in the region, according to Uchida. That opens up the possibility that the Resende plant, which currently operates in 2 shifts, could open a third production shift around 2027. The goal is to more than double the carmaker’s market share in Brazil, to 7% from the current 3.4% in 2026. In addition to Nissan’s investments, 4 new suppliers will be installed next to the Resende complex, also opening up the possibility of generating indirect jobs. The platform to be produced in Brazil will offer Nissan’s e-Power technology, which combines electricity and a combustion engine, when the consumer market demands this type of product, Guy Rodriguez, Nissan Latin America president, told journalists. Asked whether e-Power could work with ethanol-based fuels, Rodriguez said that Nissan is still working to ensure that the biofuel will have the necessary performance. “The logic based on market demand would be either flex and electricity or gasoline and electricity, not just ethanol”, he said. Uchida told reporters that Brazil, as well as Latin America, is a strategic market for Nissan. “There was a conversation with the president Lula about how to make the local automotive market grow, because to continue selling cars and improving everyone’s experience, it is very important that the economy is growing”. +++
+++ POLESTAR has trimmed its 2023 delivery forecast to the lower end of its earlier guidance and halved its gross margin target, amid fears of a slowdown in EV demand and global economic uncertainty. High interest rates to cool stubborn inflation have hampered sentiment as consumers looking to buy EVs face higher borrowing costs that largely offset price cuts by automakers to stimulate demand. Polestar, which operates in 27 markets globally, said it would now deliver about 60.000 vehicles this year, down from between 60.000 to 70.000. It had reiterated that forecast just last month after slashing the target in May from the 80.000 it had estimated earlier. The U.S.-listed company, founded by China’s Geely and Volvo Cars, also said it would achieve a gross margin of 2% in 2023, down from its prior 4% forecast. The company said it would double down on cutting costs to boost margins and that it had secured additional term loans from Volvo and Geely totaling $450 million, maturing June 2027. “These actions and these initiatives are done in the context of what is currently a more challenging market environment and that’s reflected in our volume aspirations”, Polestar chief financial officer Johan Malmqvist said in an interview. CEO Thomas Ingenlath said Polestar, with its focus on premium rather than mass market sales, was chasing profitability rather than volumes and would shy away from cutting prices. The revised forecast from Polestar came after market leader Tesla’s CEO Elon Musk last month flagged his concerns over expanding factory capacity until interest rates fall, in line with similar caution from General Motors and Ford. EV startup Lucid cut its full-year production forecast on Tuesday “to prudently align with deliveries”. Even as pandemic-driven supply chain bottlenecks eased, Polestar has grappled with a delayed production start and growing competition, especially from Chinese players, forcing the company to cut jobs to keep a lid on costs. After the additional loans from Volvo and Geely and efforts to reduce costs, Polestar said it would need external funding of about $1.3 billion in debt and equity until cash flow breaks even in 2025. The company said it sees gross margin in the high teens with a total annual volume of about 155.000 to 165.000 vehicles in 2025. Polestar reported cash and cash equivalents of $951.1 million as of the end of September, compared with $1.06 billion 3 months prior. Revenue for the third quarter rose 41% to $613.2 million, driven primarily by increased prices of its vehicles, but higher expenses led to operating losses swelling 33% to $261.2 million. +++
+++ RENAULT KOREA will gear up for its transformation into a global carmaker manufacturing cutting-edge hybrid and eco-friendly electric vehicles (EV), as part of its major growth strategy for next year, its CEO Stephane Deblaise said. The leader of the French carmaker’s local subsidiary spoke highly of the importance of the Korean market as a global hub for Renault Group’s development of mid-sized flagship sedans. “Renault Korea has achieved a cumulative production of 3.7 million vehicles after making investments worth 5 trillion won ($3.81 billion) here over the past 23 years and has contributed to continuous exports”, he said. He also shared its vision to drive future mobility by enhancing R&D. “Renault Korea has been developing future mobility technology focusing on connected, infotainment, shared mobility and electrification under the company’s future mobility vision of ‘Toward a Thriving Automotive Tech Company’ ”, he said. The Renault Korea chief has taken on the leadership role for the past 2 years since March 2022. His previous career as an automotive engineer has helped Renault Korea’s development of new vehicles. Another noteworthy achievement is his leadership in enhancing communication between labor and management. The company and a group of 4 other global firms promised on the sidelines of the summit to make combined investments worth 1.2 trillion won in Korea’s state-of-the-art industries. Renault Korea is particularly set to place its investment focus on future mobility. Under the plan, the company is known to have agreed to transform its Busan production line for vehicles with internal combustion engines into a manufacturing facility for eco-friendly vehicles. Busan has been a strategic base for Renault Korea’s production. The company will also enhance its partnerships with local subcontractors for mutual growth, it said. He also underscored Korea’s industrial prowess and manpower as a backbone of foreign investment here, saying that he will play a part in elevating Renault Korea’s status as a global production hub for not just production, but also development of the group’s high-end, mid-sized vehicles down the road. +++
+++ The electric ROLLS-ROYCE SPECTRE made its debut earlier in 2023, and the British brand is already looking at ways to expand the range. While nothing is official, leaked certification documents suggest that a Black Badge model with more power is on its way. An Australian website wrote that the Spectre Black Badge’s unveiling is imminent. It noted that the Black Badge treatment will include a 650 horsepower evolution of the standard car’s dual-motor drivetrain. For context, the standard variant of the Spectre is rated at 577 horsepower. If the figure is accurate, the Spectre Black Badge will be the most powerful series-produced car in the Rolls-Royce range, eclipsing models like the 592 horsepower Cullinan Black Badge. The extra power shouldn’t have a major effect on driving range. The aforementioned certification documents peg the coupe’s range at up to 545 km, compared to about 550 km for the standard Spectre. Keep in mind those figures won’t necessarily carry over to the European-market model, because Australia uses its own methods to obtain a range figure. Beyond the drivetrain, the Spectre Black Badge will receive the same basic tweaks as other Black Badge-branded members of the Rolls-Royce range, according to the same report. The list will include a suspension system revised for sportier handling, blacked-out design details, trim-specific wheels, and new-look interior trim. Of course, buyers will be able to customize nearly aspect of the Spectre Black Badge. Rolls-Royce hasn’t commented on the report, and it hasn’t confirmed plans to launch a Black Badge variant of the Spectre, let alone one with a 650 horsepower drivetrain. If the rumor is accurate, we should learn more about the big electric coupe in the not-too-distant future. Pricing hasn’t been announced, but the Black Badge will cost more than the standard Spectre. Don’t try to flip one: Rolls-Royce will blacklist you. +++
+++ Pressure is growing on TESLA in Sweden, where a trade union is demanding that the Texas-based automaker sign a collective bargaining agreement, which most employees in the Scandinavian country have. Tesla has no manufacturing plant in Sweden, but 130 members of the powerful metalworkers’ union IF Metall walked out on October 27 at 7 workshops across the country where its popular electric cars are serviced. Other trade unions joined in solidarity, including dockworkers at Sweden’s 4 largest ports who decided Tuesday to stop the delivery of Tesla vehicles to increase pressure on the automaker to accept the metal workers’ demands. On Friday, the Painters’ Union said 53 painting companies would not do any work on Tesla vehicles in sympathy with IF Metall. If there is no agreement with Tesla by Tuesday, “a total of 109 companies may be prevented from handling and painting Tesla cars”, it said in a statement. Another major trade union, the Swedish Union for Service and Communications Employees, said it will halt shipments to Tesla on November 20. Its head, Gabriella Lavecchia, said Tesla is “refusing to comply with the rules of the game here in Sweden”, calling it “completely unacceptable”. “The fight that IF Metall is now taking on is important for the entire Swedish collective agreement model”, Lavecchia said. Sweden’s former Social Democratic prime minister, Stefan Löfven, who once headed IF Metall, also encouraged Swedes to suspend purchases of Teslas until an agreement is signed. ”Shame on you, Tesla, shame on you”, Löfven wrote on Facebook on October 26. The IF Metall union and Tesla Sweden have meet twice without results, according to Swedish media. IF Metall said Tesla Sweden has “refused to sign a collective agreement and violates basic principles in the Swedish labor market”. It called such agreements “the backbone of the Swedish model”. “We do not want a model where some companies compete with other (serious) employers by offering employees worse conditions than they would have with a collective agreement”, it said. The union asked for the understanding of consumers, saying “we are doing this for the sake of our members, to ensure that they have safe working conditions”. The strike resembles the situation in 1995 when the Toys R Us toy chain started up in Sweden, refused to sign a collective agreement and hired only non-union workers. It resulted in a three-month strike by the retail-store employees union that snowballed into an all-out boycott as other unions joined in sympathy strikes. The company eventually agreed to sign collective agreements. +++
+++ TOYOTA has told dealers that it will extend a plan to reduce output at one of its joint ventures in China, where it faces rising competition. The cut, which was initially for October and November, will be extended by three months, Toyota’s joint venture with China’s state-owned FAW Group said in a letter dated November 3, which was verified with one of the dealers. Its aim is to ease inventory pressure on dealers and ensure they can operate well in the “severe market environment”. “Production from December to February next year will continue to be reduced by a large amount”, FAW Toyota said. As a result, car sales to Toyota dealers would be reduced to 66.000 units in December, 60.000 units in January and 38.000 units in February, it added in the letter. Toyota declined to comment on its production or the letter. While Toyota has avoided the kind of hit other Japanese automakers such as Nissan and Honda have taken in China from a shift to electric vehicles and the rise of domestic brands, it still faces pressure in the world’s biggest auto market. Chinese rivals such as BYD have been gaining market share, with plug-in hybrids and pure electric cars at competitive prices. In July, Toyota also terminated early the contracts of about 1.000 dispatch workers at its joint venture with Guangzhou Automobile Group, due to production levels. Toyota, ranked third in sales after BYD and Volkswagen in China, sold 1.265 million cars to dealers in the first nine months, data from China Association of Automobile Manufacturers showed, down 9% from the same period a year ago. The CAAM data does not include imported cars.By comparison, BYD’s sales rose more than 60% in the period. +++
+++ VOLKSWAGEN aims to bring an under $35.000 electric vehicle to the U.S. market in 3-4 years, while Chinese automaker Nio said it is still “debating” a 2025 entry into North America, senior executives said on Thursday at a Reuters conference. “We are not scaling back plans for EVs in the U.S. market”, said Reinhard Fischer, senior vice president and head of strategy at VW Group of America. “Things have changed” in terms of geopolitics, global supply chains and other factors affecting a decision to sell its cars in the U.S., said Ganesh Iyer, chief executive officer of Nio USA. Fischer said VW plans to build the under-$35,000 EV in the United States or Mexico. Options include VW plants in Chattanooga, Tennessee and Puebla, Mexico, as well as a new South Carolina assembly plant planned for VW subsidiary Scout. VW also is looking at localizing assembly of battery packs for the under-$35,000 EV to qualify for additional incentives under the U.S. Inflation Reduction Act, Fischer said. The German automaker previously has announced plans to build battery cells in Canada for its current and future North American-built EVs. At the same conference, Iyer said Nio needs to build infrastructure before bringing electric vehicles to North America and that the company is considering “any kind of partnerships”. +++