Europe’s top five carmakers more than double profits since 2019 | Automotive industry

Europe’s top five carmakers have more than doubled their profits since 2019 despite claiming that they cannot afford to comply with planned EU pollution rules, analysis reveals.

The European auto industry’s “big five” – BMW, Mercedes, Renault, Stellantis and Volkswagen – collectively pocketed €64bn in profits by selling fewer cars, yet at more expensive prices, according to the study by Transport and Environment (T&E), a green thinktank.

But the five companies, which are this year paying out €27bn in shareholder dividends and stock buybacks, argue through their trade association that detoxifying car exhaust emissions would send car prices soaring by up to €2,000.

CEO pay at the car companies has ballooned, too. VW was the only one of the five large automobile companies not yet to have increased its top executive’s pay since 2019, but at the other four companies surveyed CEO pay rose between 22% and 103% over the same period, the report says. The average pay hike for a big five CEO over the three years of pandemic, war and inflation was 50%.

Europe has introduced a number of measures – the “Euro 7” – to cut the annual toll of 70,000 premature deaths in Europe from roadside emissions, and would cost €90-€150 a car according to European Commission figures. Globally, air pollutants such as particulate matter (PM2.5) and nitrogen oxides (NOx) have been blamed for 6.7 million premature deaths and more than a million stillbirths each year, as well as respiratory diseases, dementia and mental illness.

But earlier this month, Volkswagen called for the start of the Euro 7 scheme to be delayed, owing to its lead-in time and expense. Dirk Ameer, a spokesperson for Volkswagen, said the proposal would push up prices and “lead to lower sales, longer holding periods of older vehicles and a slowed down fleet renewal [and] could even negatively affect air quality. Without changes, especially in [the] timing of the Euro 7 proposal, a lack of engineering time will lead to significant production and job losses all over Europe. This will affect all production sites in Europe and all vehicle classes.”

According to T&E the cost of limiting the company’s toxic tailpipe emissions would amount to a maximum of €5.7bn over the regulation’s lifetime – or 37% of its profit in 2022.

Anna Krajinska, T&E’s vehicle emissions and air quality manager, said: “We don’t begrudge carmakers their record profits, but claims that they cannot afford cheap pollution fixes are simply corporate greed. The auto industry is maximising profits by selling more expensive premium vehicles while at the same time pretending pollution rules would make cars unaffordable. EU lawmakers need to put public health before the industry’s money grab.”

Although they collectively sold 25% fewer cars in the years after 2019, Stellantis and BMW respectively doubled and tripled their profit margins in these years, as an industry wide “volume to value” switch to pushing premium vehicles such as SUV’s took hold. At the same time, smaller and more popular models such as the

Read More... Read More

Automotive sector hits the brakes on Europe’s power changeover

For a very long time, the automotive field was not a trailblazer in the power changeover. But it appeared that due to the fact the previous 12 months anda fifty percent or so, the marketplace experienced been turned all over. Frans Timmermans, European Commissioner for Climate Action, proclaimed that just two months ago. That may possibly be the scenario, but there is even now a whole lot of skepticism amid the important automobile makers, beginning with Stellantis.

For a year now, Stellantis has been the name of the new merger combination of FCA (as in Fiat) and PSA (Peugeot in a nutshell). In an report in the Italian high quality newspaper Corriere della Sera, the CEO of Stellantis slammed the European Union’s local weather programs.

“Of course we respect the legislation and check out to do our ideal with whichever features of them are dictated to us. But electrification is a engineering that has been preferred by politicians, not by the market,” suggests Carlos Tavares. The 63-12 months-outdated Portuguese thinks that the European Fee is not using a prudent solution to the power transition.

Carlos Tavares © Stellantis

This is for the reason that he doubts that Peugeot, Opel, Fiat, Chrysler and the other manufacturers in Stellantis’ stable will be capable to provide only 100 per cent electrical automobiles (EV) by 2030. “There are much less expensive and more quickly approaches to lessen emissions. The technique that has been adopted does not permit carmakers to be inventive and come up with various strategies.”

What’s more, he believes that hybrid cars and trucks will be much more of an possibility. Tavares is not on your own. CPC, Europe’s leading supplier in the luxurious segment, has the very same feeling, as was disclosed all through our coverage of Italy’s Motor Valley earlier this calendar year.


“We have to consider a hard look at the carbon footprint of batteries,” says Tavares in Corriere della Sera. “An electric powered auto has to travel 70,000 kilometers just before the carbon footprint of its battery creation is offset. It is only at that issue that the hole between it and a mild hybrid automobile starts to widen. A light hybrid motor vehicle charges fifty percent as considerably as an electric motor vehicle. Hence, in the conclusion, wouldn’t it be greater to take highly efficient hybrid fuel cars and trucks so that they continue to be reasonably priced and generate some fast reductions in CO₂?”

He anticipates that the middle course will not be able to find the money for to acquire fully electric autos, or only if governments ramp up their funds deficits by giving acquiring incentives. It is an argument that will come up extra normally than not, rightly or wrongly, when it will come to the European activity of ‘all bets on EVs.’ 

Tavares, who enjoys newbie racing as a interest, argues that battery engineering significantly drives up expenditures. An electrical motor is explained to be 50 % much more highly-priced than

Read More... Read More

Northvolt rolls out Europe’s to start with ‘gigafactory-era’ motor vehicle battery | Automotive business

Electrical vehicles have gone mainstream in Europe – they accounted for virtually a fifth of all car buys in the Uk last month. Yet 1 piece has been lacking up to now: European batteries.

That is now transforming. On Tuesday night, Northvolt, a startup, made its 1st lithium ion battery mobile at a plant in northern Sweden. It is the very first of a series of new factories that buyers hope will allow for Europe to carve out a major proportion of the electric auto sector – and weaken the stranglehold developed up by brands in China, Japan and Korea.

The Northvolt Ett site will be the to start with European-owned plant to develop at so-named gigafactory scale. Gigafactories are commonly regarded to be people able of making adequate batteries just about every year to give about 15 gigawatt hours (GWh) of cumulative storage.

Only two big battery factories are operational in Europe, according to Benchmark Mineral Intelligence (BMI), a battery information organization: a factory in Wrocław, Poland, run by Korea’s LG, and a further owned by Korea’s Samsung close to Budapest in Hungary.

Yet there are 25 gigafactories planned for the continent by 2030, in accordance to BMI, as the industry races to retain up with soaring demand from customers for electric powered cars. Nine of individuals are owned by Asian companies, which handle most of the world provide.

The Uk is arguably additional at the rear of the rest of Europe, with options for only two gigafactories. A single will be a key growth of a compact battery plant in Sunderland by the Chinese corporation Imagine, although the Glencore-backed startup Britishvolt is making an attempt to safe funding for a homegrown rival in close by Blyth.

Area authorities in Coventry are seeking to uncover a producer for a 3rd site at the area airport, but nobody has nevertheless stepped ahead – a circumstance that has solid a shadow more than the prospects of the United kingdom automotive sector as it strives to exchange the declining inner combustion motor sector.

Simon Moores, BMI’s main government, hailed Northvolt’s first cell as “Europe’s 1st gigafactory-period lithium ion battery”.

Regardless of its startup position, Northvolt has attained heavyweight financial backing from Volkswagen, the world’s greatest automobile producer, and the investment financial institution Goldman Sachs. Its $2.75bn (£2.1bn) funding round in June valued it at $12bn.

Northvolt hopes to rapidly extend manufacturing at the plant at Skellefteå in northern Sweden to generate 60GWh a year – sufficient to source batteries for a million electric powered autos. Industrial deliveries will start out in the new year.

Indicator up to the day by day Organization Now e-mail or adhere to Guardian Organization on Twitter at @BusinessDesk

The startup already boasts contracts worth $30bn with significant European providers such as the carmakers BMW, Volkswagen, Volvo Cars and trucks and Polestar, the truck company Scania, and the power storage company Fluence. Carmakers are belatedly ramping up electric powered auto output to satisfy tightening emissions targets as well

Read More... Read More