BMW, Daimler pledge to keep prices high as prices drop

BMW IX, as you may have gathered.

BMW IX, as you may have gathered.
Photo: Getty Images (Getty Images)

The chip shortage will end at some point, and when it does, BMW and Daimler want to reassure their shareholders that prices will be lower. No take a decision in all that and more morning shift For September 13, 2021.

1st Gear: What, You Thought New Cars Would Be Cheaper?

Semiconductor chip shortage is wreaking havoc on the car industry, forcing automakers to their most profitable vehicle Repeatedly on hold. I can’t remember how many times we’ve seen production cuts on everything here in America pickup trucks, in Europe on everything including High-end luxury cars.

It’s been a pain for consumers, but no Correct There’s a problem for the car companies themselves, which are turning a profit on these low-volume, high-margin cars. Don’t expect that to change, as financial Times Report:

“The pandemic has really opened everyone’s eyes – that a different paradigm is possible,” said Arndt Ellinghorst, an analyst at Bernstein. “Everyone loves it, including the dealers.”

The discounts typically offered to customers at dealerships – usually around 15 percent in mature markets – have been reduced, with some models being sold above the sticker price.

According to Ellinghorst, a one percent reduction in average rebates would release $20bn in additional benefits for carmakers, and discounts in Europe and the US have at least doubled from their pre-pandemic peak.

BMW’s Peter said that the group’s US dealers “always claimed . . . well we needed the cars in the showroom, the customer is expecting it to arrive at 10 a.m. on a Saturday, and all he did, was fixed number plates. Wants to leave with the car at 1 pm.

Basically, everyone hates that dealers only stock trash no one wants, but you can buy just as much. A paradigm shift is waiting to happen.

2nd gear: Covid beats Toyota again

who is that bloomberg, which is again reporting on production problems to Toyota. Toyota is not alone in Japanese manufacturing shifting production to Southeast Asia to save money on production costs (well-paid workers), and all this outsourcing has set the company up to be hit hard by Covid there. . From B’burg:

The Delta version, once again, surpassed Toyota’s efforts to secure semiconductors. The Japanese carmaker cut its expected production for the business year to March 2022 from 9.3 million units to 9 million units.

It is the latest sign that the world’s No. 1 carmaker, which weathered global chip shortages better than its peers in the early days of the pandemic, may no longer escape the turmoil. The virus, which has spread to Southeast Asia, has led to the downfall of operations at Toyota’s local suppliers, adding to the chip problem.

Here are the highlights of Toyota Announcement on Friday:

  • The outlook for November and beyond is unclear, but demand is strong.
  • Toyota is working to move production to other regions.
  • The demand for chips continues to grow in all industries.
  • Toyota retained its forecast for annual operating profit at 2.5 trillion yen ($23 billion).

When I say Toyota is making losses, I don’t mean that its profits are hurting a lot. Why would they? We are in a global pandemic right now.

3rd Gear: Toyota’s Mad EV Incentive Doesn’t Favor Its Non-Federal Cars

Speaking of Toyota, it’s crazy about EV credits in America that favor union-built cars, like bloomberg It also reports:

under 10 year offer Unveiled Late Friday, union-built EVs will receive an additional $4,500 tax incentive, a measure favored by three traditional Detroit carmakers – General Motors Companyhandjob Ford Motor Company And Stelantis NV – whose factory workers are represented by United Auto Workers. That sweetener will be on top of the $7,500 base incentive that will be available for EVs.

The current draft “discriminates against American autoworkers on the basis of their choices,” Toyota said in a statement on Saturday. “We will also fight to focus taxpayer dollars on making all electrified vehicles accessible to American consumers.”

Discriminating against workers’ choice of not unionizing is some seriously distorted argument. Americans have a better position in unions, and it is only long campaigns of big business that have put any other idea in our minds.

Toyota is not alone. Tesla is outraged, as is Rivian. Maybe they should unionize! Seems like a win.

4th Gear: Nickels for Batteries Are Booming

Lithium isn’t the only front in the weird Wait all these EVs need minerals extracted from somewhere? Front. There is a rush for nickel, which you also find in electric vehicles. Toyota has been very heavy on nickel in its hybrid batteries, and all-electric trucks also use a nickel-oriented chemistry, as financial Times Report:

According to the International Energy Agency, if the world meets the Paris climate goals, demand for nickel, which is used in more powerful electric-car batteries and will be important for larger vehicles such as electric trucks, is expected to grow 19-fold by 2040. ready for .

Yet most of the increase in supply this decade is likely to come from Indonesia, a market powered by coal-fired electricity where Chinese companies are building nickel processing projects.

This has prompted a race to secure new sources of supply as companies in wealthy countries are forced to significantly reduce their carbon footprint.

Some of these mining operations are trying to position themselves as “green” alternatives by using hydroelectricity for electricity and disposing of waste wisely. I think this is a big selling point. You don’t want your eco vehicle to run on coal.

5th Gear: Green… Steel?

Apart from this, the situation of steel production is also increasing, such as wall street journal Report:

The steel industry is one of the largest emitters of carbon dioxide in the world, and the auto sector is one of the largest users of steel. Steel makers looking for avenues To produce your steel more efficiently. Auto manufacturers—inspired by regulators, investors and climate-conscious customers—are joining in on that quest.

Analysts say European carmakers and steel makers are increasingly moving to develop and use low-carbon steel. a European Union climate plan, called the Green Deal, mandates that block producers—including their supply chains—become carbon-neutral by 2050.

Earlier this month, Daimler AG’s Mercedes-Benz signs a deal with Swedish steelmaker SSAB SSAAY 0.19% AB, whose hybrid unit will produce low-carbon steel for the auto company from next year. The agreement is part of Mercedes’ effort to make its entire auto fleet carbon-neutral by 2039. Volvo Cars is already sourcing steel from hybrids, and BMW’s parent company is investing in a separate, low-carbon steelmaking startup in the US.

The auto industry is so heavily focused on image and reputation, which I think is helping here for once.

Reverse: Spigate

Let us celebrate this weekend’s run by remembering one of McLaren’s hit songs. From BBC on 13 September 2007:

McLaren was stripped of their points in the 2007 Formula One Constructors’ Championship following the result of the “Spigate” row.

The team was also fined a record $100m (£49.2m), including any prize money earned from the Constructors’ Championship and televised money.

But drivers Lewis Hamilton and Fernando Alonso can keep their word.

The team must also prove that there is no Ferrari “intellectual property” in their cars before racing next year.

Neutral: How are you?

I’m trying to figure out if a 1980s mountain bike flat tire (and roller cam brakes!) maybe I’ll fix it for them? Maybe I want another hobby?

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