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- ⚔️Auto Giants Slash EV Prices, Stellantis Halts Production, and Volkswagen Faces Plant Closure
⚔️Auto Giants Slash EV Prices, Stellantis Halts Production, and Volkswagen Faces Plant Closure
Chris reeves
October 17, 2024
TL;DR:
As Europe scrambles to fight back against China's dominance with cheaper EVs, Stellantis hits pause on production (again), and Volkswagen's Brussels plant teeters on the edge of closure. Meanwhile, BMW questions the all-electric future, and Lucid takes a stock market nosedive after a bold public offering. On the tech front, German startup Vay secures funding to push remote-driving tech, while Skywell (yes, the TV company) tries to sell you an EV. Finally, in Africa, Roam Electric is proving solar power could be the real deal for long-distance mobility.
This Digest
⚡️ Auto Giants Go Low-Cost to Compete with China
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European automakers are rolling out more affordable EVs to combat a demand slump, aiming to reclaim market share from Chinese brands.
Affordable EVs? I thought Europe was all about premium pricing!
You’d think so, but desperate times call for desperate price cuts. Stellantis, Renault, and Citroën are throwing smaller, cheaper EVs into the ring, hoping to make them a hit before emissions regulations tighten the screws further next year.
And what about China? They’re still winning, right?
Oh, they’re crushing it. Chinese-made EVs cost less than half of their European counterparts, leaving European brands scrambling. Even with new models, catching up to China’s pricing and sales volume is no small feat.
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Stellantis has announced another production halt, this time for the aging Fiat Panda, due to slumping sales. This marks yet another blow for the European automaker struggling to meet market demands.
Production halt: Fiat Panda assembly at Italy’s Pomigliano d'Arco factory will be paused for several days in November due to weak demand.
17% drop: Stellantis reported a 17% drop in European deliveries in Q3 2024, mirroring their performance issues in the U.S.
Old model, new competition: The Fiat Panda, one of the oldest models in Europe, has been on sale since 2011 and will remain in the market until 2027, but faces stiff competition from newer electric and hybrid models.
Broader impact: The engine factories in Termoli and Pratola Serra will also face temporary closures, signaling a broader challenge across Stellantis' production facilities in Italy.
💥 Volkswagen’s Brussels Plant on the Brink
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Volkswagen’s high-end EV plant in Brussels is facing closure, a first for the German automaker, amid poor sales and operational challenges. Workers are furious, and unions are ready to strike.
Wait, VW is closing a factory in Europe? Isn’t that their turf?
Yep, you heard that right. The Audi Q8 E-Tron, an €80,000 EV that nobody wants to buy, has put the future of their Brussels plant in jeopardy. Despite maxing out at only 37,400 cars last year, VW’s optimism is now buried under the weight of unsold electric SUVs.
What’s ticking off the unions?
Turns out, it's not just the dismal sales figures. The Brussels plant is plagued by logistical issues—like lacking a body shop and sitting on an immovable railway line. Workers feel management is rushing to close the plant rather than finding viable solutions. Cue the protests.
⚡️ BMW’s Bold Call on Combustion Ban
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A Ban Too Soon?
BMW CEO Oliver Zipse made waves this week when he called for the European Union to reconsider its 2035 combustion engine ban. With concerns ranging from reliance on China to slowing EV demand, Zipse is leading a growing coalition pushing for a change in policy.
Zipse’s main argument is about dependency—Europe’s EV transition heavily relies on Chinese-made batteries, a precarious position given the geopolitical tensions between the West and China. He’s also quick to note that the rapid drop in EV demand across Europe highlights how much of the market still prefers traditional engines, at least for now.
Is EV Pessimism Justified?
BMW isn’t alone in its concerns. Porsche and Volkswagen have echoed Zipse’s sentiment, each continuing to invest in combustion engines, while many other automakers push ahead with hybrid alternatives. Meanwhile, some European countries, including Italy, have already called for revisions to the EU’s 2023 proposal, which tightly restricts emissions and mandates an all-electric future. The debate
🚙 Lucid’s Stock Spirals After Bold Move
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Lucid, the EV startup that once wowed investors, is now grappling with a stock freefall. After announcing a massive public offering of nearly 262.5 million shares, their stock took a nosedive—leaving investors wondering about the future.
Public Offering Causes a Shockwave
Lucid’s bold move to issue 262.5 million shares of its common stock came with a promise to raise capital for “general corporate purposes.” However, the news wasn't received well by investors. In a single day, Lucid's stock dropped by nearly 20%, causing a ripple effect throughout the EV market. The company’s reliance on Saudi Arabia’s Public Investment Fund (PIF) for a concurrent private placement is the only thing keeping its ownership structure intact.
Cash Crunch and Sluggish Sales
The company's struggles aren’t new. Lucid’s sales haven’t exactly met the soaring expectations set during its market debut. With cash reserves dwindling and the EV market becoming increasingly competitive, this latest financial move seems like a Hail Mary. Their market cap, once a bragging point, has now dwindled to $7.6 billion, significantly lower than anticipated.
🏭 Hyundai’s $5.5 Billion IPO Shakes India
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Hyundai’s $3.3 billion IPO in India is attracting significant institutional interest despite lukewarm participation from retail investors.
$3.3 billion IPO, $5.5 billion in bids: Hyundai's IPO raised $3.3 billion but attracted $5.5 billion in bids, showing strong institutional demand despite subdued interest from retail investors.
Retail reluctance: Despite the strong institutional demand, retail investors only subscribed to 50% of their allocated shares, citing concerns over pricing.
Valuation game: Hyundai is eyeing a $19 billion valuation with its share price set at around 1,960 rupees, valuing the company at about 40% of its Korean parent.
Record-breaking year: Over 260 Indian companies have gone public in 2024, raising more than $9 billion, making it a record year for the country’s IPO market.
🛠️ Vay Secures Major Funding for Remote-Driving Tech
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German startup Vay is driving innovation—quite literally. With a fresh €34 million investment from the European Investment Bank, the company plans to expand its remote-driving technology across Europe, aiming to revolutionize transportation without fully autonomous vehicles.
Remote Driving: The New Frontier
Forget self-driving cars for a moment. Vay is betting that remote-driving technology will pave the way for smarter, more efficient transportation before full autonomy is ready. The idea? A remote driver controls the vehicle from a central location, with all the car’s surroundings relayed via camera sensors. It’s like a real-life video game, but with much bigger stakes.
From Vegas to Europe: Growth Plans
After a successful launch in Las Vegas, where Vay’s service costs half as much as an Uber ride, the startup is eyeing Europe. With this new funding, the company aims to expand its fleet to 100 vehicles in Vegas and launch services in cities like Hamburg and Brussels. The eventual goal? Phasing in more self-driving features as they fine-tune the remote-driven model.
📺 From TVs to EVs: Skywell’s Confusing Leap
Skyworth
Skywell (or is it Skyworth?)—the budget TV brand you may know from Walmart—is now venturing into the electric vehicle market. Debuting at the Paris Auto Show, their compact EV hatchback, the Skywell Q, raises eyebrows with its mix of modest ambition and a confusing brand identity.
What’s the Skywell Q All About?
The Skywell Q is a production-ready concept aimed at entering the European market in 2025. Here's a quick snapshot of what this EV promises:
Power and Range: It boasts a 201-horsepower motor and claims a 300-mile range on a full charge.
Design: The hatchback shape and low hood offer a refreshing break from the oversized SUVs dominating the market, with sporty touches like digital-camo details and a sleek aquamarine interior.
Audio System: It's equipped with an audio system by German company Metz, bringing a touch of European engineering to the mix.
A Sketchy Track Record
Despite the appealing specs, Skywell/Skyworth’s reputation raises major questions.
Flopped EV Sales: Their previous EV, the Skywell EV6, sold just 18,000 units against a goal of 40,000, earning a measly one-star rating in China's C-NCAP crash test.
Bizarre Claims: Founder Huang Hongsheng has made outlandish statements, including that his cars can cure high blood pressure and even help you live to 100.
Shaky Past: Huang’s credibility took a hit after serving three years in jail for embezzling money from Skyworth’s companies, adding to concerns over the company’s ability to compete in Europe’s highly competitive EV market.
Bottom Line
The Skywell Q may look great on paper, but its shaky history and unproven performance make it more of a wild card in the race for EV dominance. Will this be the car that changes Skywell's fate, or just another bump in the road?
☀️ African Startup Proves the Power of Solar
Roam Electric
Roam Electric is embarking on a 3,700-mile journey across Africa using only solar power. The goal? To prove that solar energy can be a game-changer for electric mobility in even the harshest environments.
Solar-powered journey: Roam Electric’s adventure will cover 3,728 miles, relying entirely on solar power to keep their bikes juiced up.
Versatile workhorse: The Roam Air electric motorcycle is designed to handle everything from last-mile delivery to personal commuting across Africa’s rugged terrain.
Solar’s potential: This journey could be a turning point, showcasing the power of the sun as a reliable energy source for long-distance EV travel in remote areas.
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