Stellantis NV – TheNewsHub

Volkswagen's Scout Motors reveals first EVs as it shifts to include plug-in hybrids

suimt — Fri, 25 Oct 2024 00:49:43 +0000

Scout Terra pickup truck and Scout Traveler SUV concepts

Scout

NASHVILLE, Tenn. — Volkswagen-backed Scout Motors revealed its first electric vehicles Thursday and announced plans for the brand to expand its lineup to include an emerging type of plug-in hybrid electric vehicle in addition to EV models.

Scout, a former American vehicle brand from 1961 to 1980, was expected to exclusively offer EVs in a bid for the German automaker to expand its presence in the U.S. However, slower-than-expected adoption of EVs and higher costs have led it to change course and include extended-range electric vehicles, or EREVs.

“Being a startup that moves quickly, we can pivot,” Scout CEO Scott Keogh, a longtime auto executive who previously led VW’s operations in the U.S., told CNBC. “The pivot that we made a number of months ago into offering range extender definitely was a smart play.”

EREVs are basically a type of plug-in hybrid electric vehicle. They include EV motors and battery cells, as well as a traditional internal combustion engine to power the vehicle’s electric components when the battery loses its energy. The engine essentially acts as a generator to power the EV components when needed.

Scout Terra pickup truck concept

Keogh said Scout added EREVs to better protect the brand from any market volatility amid less-than-expected consumer demand for EVs.

“We think electrification is the future. Range extender sets it up as an EV car, so it introduces people to electrification, yet it has a super smart, let’s say, ‘backup plan,'” he said during an interview Thursday. “It will drive like an EV.”

He said Scout has no plans to offer a traditional, non-electric vehicle with only an internal combustion engine.

The company’s first vehicles — a full-size pickup truck and large SUV — will cover about 40% of the highly profitable U.S. sales market.

Keogh said the company targets to be profitable on an operational basis within the first full calendar year after initial production of the vehicles, which will be built at a $2 billion plant that’s under construction in South Carolina.

“If you look at these profit pools, these two areas, from this size pickup truck to this sized SUV … these are the largest profit pools in the world,” Keogh said.

Scout Traveler SUV concept

Scout

Being profitable during that timeframe would be quite a success, as current EV startups such as Rivian Automotive and Lucid Group lose tens of thousands of dollars on each vehicle they produce after several years.

Meanwhile, Keogh said an announced software deal between VW and Rivian will not impact Scout’s operations. He described the $5 billion software deal, which includes the establishment of a joint venture, as an “exciting opportunity” for Scout.

“It’s good for scaling. It’s good for technology. It’s good for everything,” Keogh said.

Scout’s South Carolina plant is planned to have a production capacity of 200,000 vehicles. Scout expects to use batteries — the most expensive part of an electric vehicle — from VW’s joint venture battery cell manufacturer in Canada.

The company opened reservations for the vehicles Thursday night on its website. Scout plans to sell the vehicles directly to consumers instead of through a traditional franchised dealer network like VW does in the U.S.

North American Charging Standard, an 800-volt architecture with up to 350-kilowatt charging capability, and will be capable of bi-directional charging that will allow the vehicle to act as a generator.

Toyota Land Cruiser. It’s larger than Jeep’s well-known Wrangler, which is currently available as a plug-in hybrid electric vehicle.

The truck is a full-size pickup — a segment currently dominated by Ford, General Motors and Stellantis’ Ram brand. But the electric pickup market where Scout will compete remains a developing market.

Automakers such as GM and Ford rushed to release all-electric pickup trucks early in this decade to compete against several EV startups, many of which never materialized, as well as Tesla. Stellantis is expected to release all-electric and EREV full-size pickups by next year.

Scout Traveler SUV concept

But after rushing the vehicles to market, sales slowed. Much like the overall EV industry, the large vehicles went from commanding significant price premiums to being highly incentivized.

Overall, this electric “truck” market, including the SUVs, accounted for nearly 58,000 vehicles sold during the first half of this year, according to estimates from Motor Intelligence. That’s less than 1% of the roughly 7.9 million light-duty new vehicles sold during that time in the U.S., but a 35% quarterly increase from the first to the second quarter, according to the data.

Keogh believes Scout can differentiate itself in the market with its products, lower pricing and brand appeal. Additional Scout products are expected to follow in the years ahead, Keogh said.

“Can we consider some point in the future sizing down? Absolutely,” he said. “You want to throw the dart at the best place first. And I think we’ve done that between these two vehicles.”

Stellantis to shutter and sell large testing facility amid cost-cutting efforts

suimt — Fri, 18 Oct 2024 21:54:14 +0000

Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024.

Nathan Laine | Bloomberg | Getty Images

DETROIT — Automaker Stellantis plans to shutter and sell its large vehicle proving grounds in Arizona at the end of this year, CNBC has learned.

The decision is the latest cost-cutting measure by the trans-Atlantic automaker under CEO Carlos Tavares, who has been increasingly under pressure from Wall Street, dealers and the United Auto Workers union amid the company’s lagging financial performance, layoffs and overall business decisions.

The Arizona Proving Grounds covers 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona. It has been used for vehicle testing and development for the automaker since then-Chrysler purchased the property for $35 million from Ford Motor in 2007.

The closure was confirmed by three people familiar with the plans who agreed to speak on the condition of anonymity because the matters are private.

Stellantis plans to use a proving grounds in Arizona owned by Toyota Motor beginning next year, according to two people familiar with the decision. Toyota opened its operations, which are costly to maintain, for other companies to use in 2021.

Stellantis Chrysler Arizona Proving Grounds

Source: Google Earth

Stellantis confirmed the closure Friday morning, citing the company’s ongoing cost-cutting and real estate evaluations.

“Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market,” the company said in an emailed statement.

The automaker also said it is “working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations” but that employees could be placed on an “indefinite layoff, which would entitle them to pay and benefits for two years.”

Stellantis said 41 employees currently work at the Arizona Proving Grounds, including 37 hourly workers represented by a local chapter of the UAW.

The UAW, which has been increasingly critical of Tavares and such layoffs, did not respond for comment on the planned closure.

Stellantis, like most automakers, has several proving grounds in different climates and geographies to develop and test vehicles ahead of selling them to consumers. Stellantis’ other major U.S. proving grounds facility is a 4,000-acre campus located west of Detroit in Chelsea, Michigan.

Stellantis’ complex in Arizona was one of 18 facilities the company notified the UAW it could potentially close during the union’s contract negotiations last year with Stellantis.

A majority of the other operations were parts and distribution centers that were expected to be consolidated into “mega sites,” as well as the company’s massive 500-acre campus in metro Detroit formerly used as Chrysler’s world headquarters.

The status of the other properties was not immediately clear, however, local and state politicians, including Michigan Gov. Gretchen Whitmer, have expressed concerns that Stellantis could move to shutter the former headquarters in Auburn Hills, Michigan.

Stellantis has significantly reduced the number of its U.S. employees in recent years amid Tavares’ cost-cutting measures.

Stellantis has reduced employee head count by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, including a 14.5% reduction in North America, according to public filings. That doesn’t include further head count reductions and layoffs this year.

The automaker had only about 11,000 U.S. salaried employees at the end of last year. That compared with 53,000 at General Motors and 28,000 at Ford.

The reductions have occurred as Stellantis has attempted to outsource many engineering efforts to lower-cost countries such as Brazil, India and Mexico, according to several people familiar with the moves.

Bloomberg News earlier this year reported that Stellantis moved to recruiting a majority of its engineering workforce in those countries, where the cost per employee amounts to roughly €50,000 ($53,000) or less per year — far less than similar positions in the U.S. and Europe.

Here's what investors need to know after GM's capital markets day

suimt — Wed, 09 Oct 2024 14:58:54 +0000

The GM logo is seen on the facade of the General Motors headquarters in Detroit on March 16, 2021.

Rebecca Cook | Reuters

DETROIT — Wall Street reacted to General Motors’ investor day on Tuesday with a shrug.

Executives used the Detroit automaker’s event to focus on broad, near-term updates to the company’s operations in an attempt to separate itself from its competitors amid more challenging market and economic conditions. But it did little to move the company’s stock.

GM believes it is in a unique position to outperform the industry and Wall Street’s expectations with its all-electric vehicles and traditional internal combustion engine vehicles. The company expects to improve profits for both types of vehicles as it targets adjusted earnings next year to be similar to 2024.

“It all starts there: scale, capital efficiency and cost discipline. These will differentiate us from others in our industry, and frankly, from our own past performance,” GM CEO Mary Barra said during the roughly three-hour event from its manufacturing operations in Spring Hill, Tennessee.

GM President Mark Reuss even took jabs at its traditional crosstown rivals Ford Motor and Stellantis. Without naming them, he said GM doesn’t need a “skunkworks” team to develop affordable EVs like Ford and that cutting to profitability, like Stellantis appears to be doing, doesn’t work.

Nonetheless, investors have largely failed to reward GM for being ahead of the curve for domestic EV production as well as outperforming many automakers in the profitability of its traditional gas- and diesel-powered vehicles.

Several Wall Street analysts were unchanged in their opinion and ratings of the automaker after the event, citing continued optimism but a lack of details in its overall strategy.

Shares of GM, Ford and Stellantis in 2024

“A missed opportunity — no strategy, just tactics. GM’s investor day showcased many of the company’s current achievements, but did not provide much insight on strategy,” Bernstein analyst Daniel Roeska wrote Wednesday in an investor note.

Others such as Barclays’ Dan Levy and BofA Securities’ John Murphy said while the event lacked some details, it fortified GM’s positioning compared to competitors.

“GM’s Investor Day yesterday didn’t provide much in the way of sharp shifts in strategy. However, we believe it served as a strong reminder of GM’s balanced and pragmatic approach — a thoughtful combination of ramping on EVs alongside a keen focus on execution and cost while continuing to generate robust shareholder returns,” Levy wrote in a Wednesday investor note.

Shares of GM closed Tuesday essentially unchanged at $46.01. The stock remains up nearly 30% this year, but it has been under pressure of late due to several downgrades and price target adjustments by Wall Street analysts.

Here are several topics investors should know from the event:

“similar range” to the company’s results this year, CFO Paul Jacobson said.

Its targeted adjusted earnings before interest and taxes for 2024 were between $13 billion and $15 billion, or $9.50 and $10.50 per share, up from previous guidance of $12.5 billion to $14.5 billion, or $9 to $10 per share, earlier this year.

Through the first half of 2024, GM earned $8.3 billion in EBIT-adjusted and generated $6.4 billion in adjusted automotive free cash flow.

Jacobson said GM’s capital spend also is expected to be consistent in 2025 with this year. GM’s 2024 financial guidance includes anticipated capital spending of between $10.5 billion and $11.5 billion.

is ultimately dead.

GM will drop the “Ultium” name for its electric vehicle batteries and supporting technologies after spending years promoting the brand as it rethinks its EV and battery operations.

The company said the batteries and the technologies will remain, but the name will be gone, except in production operations such as its “Ultium Cells” joint venture plants with LG Energy Solution.

Instead, GM plans to use a variety of battery chemistries and cell designs, said Kurt Kelty, a former Tesla executive who joined GM as vice president of battery earlier this year.

“GM is evolving to a multifaceted approach,” he said. “This should only help GM strengthen our position of producing more EV models than any other automaker.”

previously announced initiative that’s expected to retire roughly 250 million shares of the automaker.

From 2022 through the end of 2024, GM will have returned about $20 billion to shareholders through share repurchases and dividends, Barra said.

The automaker is targeting to get below 1 billion outstanding shares by early 2025, Jacobson said. It has more than 1.1 billion outstanding shares as of Wednesday morning, according to FactSet.

operations in China.

GM’s operations in China have experienced a decade-long slide in earnings, and executives said they are discussing restructuring options with their China-based partners.

“In China, you’ll begin to see evidence of a turnaround this year, with a significant reduction in dealer inventory and modest improvements in sales and share,” Barra said.

Regarding Cruise, GM said its spending next year is not expected to top this year’s. It did not provide updates on its long-term plans for the troubled robotaxi business.

With GM’s investor day being two days ahead of Tesla’s highly anticipated robotaxi day, Wall Street analysts expected some sort of update on the venture, especially regarding future financing or capital spend for the company.

Hyundai Motor: When asked about GM’s announced non-binding memorandum of understanding with Hyundai, Barra said the teams “are working closely and making progress every week on what will become definitive agreements.”
Chevy Bolt: GM said its next-generation Chevrolet Bolt EV that’s expected next year will be only slightly higher than the 2023 Bolt, which started at $28,795.

PHEVs: GM reconfirmed plans to introduce plug-in hybrid electric vehicles, of PHEVs, in 2027. In the meantime, Reuss, citing single-digit market share, said GM is “not missing on anything right now without PHEVs.”

— CNBC’s Michael Bloom contributed to this report.

Stellantis files federal lawsuit against UAW union over strike threats

suimt — Fri, 04 Oct 2024 20:40:53 +0000

Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024.

Nathan Laine | Bloomberg | Getty Images

DETROIT — Stellantis is suing the United Auto Workers, escalating a monthslong battle between the trans-Atlantic automaker and American union, CNBC has learned.

In an internal message Friday to employees that was confirmed to be authentic, the company said it is suing the UAW as well as a local chapter in California that participated in a strike authorization request vote at Stellantis’ Los Angeles Parts Distribution Center.

“This lawsuit would hold both the International and the local union liable for the revenue loss and other damages resulting from lost production due to an unlawful strike,” Tobin Williams, Stellantis senior vice president of North America human resources, said in the message.

A supermajority of UAW members at Stellantis’ Los Angeles Parts Distribution Center voted to request strike authorization from the International Executive Board if the company and union can’t reconcile, the union said Friday morning.

United Auto Workers (UAW) President Shawn Fain speaks to the attendees during a campaign rally for U.S. Vice President and Democratic Presidential candidate Kamala Harris and her running mate Tim Walz in Romulus, Michigan, U.S., August 7, 2024.

Rebecca Cook | Reuters

The complaint is intended to “prevent and/or remedy a breach of contract” by the UAW, according to a copy of the lawsuit that was filed Thursday in U.S. District Court in the Central District of California.

The lawsuit argues that if the union does strike, the court “should award Stellantis monetary damages” that result from a breach of contract.

UAW President Shawn Fain addressed the lawsuit Friday in a letter to union leadership at Stellantis. He called it and other actions by the company “desperate actions from a desperate executive who has lost control.”

“Our legal team has complete confidence in our right to strike. The company’s legal threats are just that—threats intended to intimidate us, so we won’t fight back,” Fain said.

The dispute between the two sides centers on the union alleging Stellantis has not kept contractual obligations as part of a deal the two sides reached late last year. It comes after Stellantis has made several cuts to plant production, conducted worker layoffs and delayed potential investments outlined as part of the 2023 contract.

Fain has routinely said the union will strike if needed, however Stellantis has argued that would be unlawful under the contract.

The automaker has contended that there’s language in the contract that gives it leniency to change plans based on market conditions, plant performance and other factors.

The company reiterated that stance in its lawsuit and cited “Letter 311,” which includes the company’s expected investments: “The planned future investments in the letter are conditional, require Company approval, and are subject to change based on these business factor contingencies.”

The lawsuit came the same day Fain and union members held their latest rally against Stellantis in suburban Detroit.

“We’re here today for one reason. Stellantis CEO Carlos Tavares is out of control and it’s once again up to UAW members to save this company from itself,” Fain said during the event. “A strike will cripple this company. And if we have to strike, it’s Stellantis’ decision to do so because they are not honoring their commitment.”

The union and several local chapters have filed grievances against the automaker regarding contract obligations and other issues.

Stellantis, in the lawsuit, called the grievances a sham designed to “justify mid-contract strikes against Stellantis that otherwise would violate the [contract’s] no strike clause.”

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Ford reveals new 2025 Expedition SUV, including off-road and 'Ultimate' models

suimt — Fri, 04 Oct 2024 00:00:01 +0000

2025 Ford Expedition Platinum Ultimate

Ford

DETROIT — Ford Motor is increasing the refinement and technology of its large Expedition SUV as part of a vehicle redesign to better compete with growing competition.

The new three-row SUV features a smoother interior and exterior design, increased comfort and convenience features such as a 24-inch driver display, and the addition of the automaker’s BlueCruise hands-free highway driving system.

“We spent more than 1,100 hours talking with customers about their everyday lives. And with those insights we’ve rethought and redesigned Expedition to help customers make the most of their precious time with family and to make life easier — before, during and after every trip they make,” said Trevor Scott, general manager of Ford Utilities.

Ford declined to release pricing for the 2025 Expedition until closer to when the vehicles will arrive in dealerships in the spring. Current starting pricing ranges from $55,000 to $84,000, depending on the model. The average transaction price of current models is roughly $70,000, according to Ford.

2025 Ford Expedition Platinum Ultimate

Ford

The last time the vehicle was redesigned seven years ago, its main competition was full-size SUVs from Ford’s crosstown rival General Motors, such as the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon.

While GM’s vehicles continue to lead the segment, new competitors such as the Jeep Wagoneer from Stellantis as well as large three-row crossovers from Kia and Hyundai have also come to market.

Auto data and insights firm Edmunds.com reports three-row crossovers such as the Kia Telluride and Hyundai Palisade, which are smaller but cost less than Ford’s current Expeditions, represent the top cross-shopped vehicle segment of full-size SUVs.

Edmunds reports the mainstream full-size SUV segment that includes the Expedition has grown to represent 2.7% of the U.S. market this year, up from 2% in 2017. Segment sales totaled roughly 312,500 units through September of this year.

2025 Ford Expedition Tremor

Ford

Ford also has shifted the models for the 2025 Expedition to Active, Platinum (including an “Ultimate” version), King Ranch and Tremor. The off-road inspired Tremor is new for the Expedition but is available on other vehicles.

The Expedition will continue to be available in a standard version or longer “Max” model. It will be powered by a 3.5-liter EcoBoost V6 engine or a high-output version of the engine with 440 horsepower and 510 foot-pounds of torque.

Stellantis U.S. auto sales extend free fall in third quarter

suimt — Wed, 02 Oct 2024 15:09:22 +0000

Jeep vehicles are delivered to a dealership on June 20, 2024 in Chicago, Illinois.

Scott Olson | Getty Images

DETROIT — Stellantis‘ U.S. new vehicle sales continued a yearslong free fall during the third quarter, despite CEO Carlos Tavares’ attempts to correct what he has called “arrogant” mistakes.

The trans-Atlantic carmaker reported U.S. sales Wednesday of 305,294 from July through September, a 19.8% decline from the third quarter of 2023 and an 11.5% decrease from the prior three months of this year.

Stellantis was expected to be the worst sales performer of major automakers during the third quarter. Auto industry forecaster Cox Automotive had projected a sales decline of roughly 21% for the carmaker.

Cox and fellow forecaster Edmunds expect third-quarter sales industrywide will be down roughly 2% compared with a year earlier.

Still, Stellantis said its initiatives to boost sales and correct past mistakes are starting to pay off. The automaker cited a market share increase during the third quarter from 7.2% to 8% as well as an 11.6% reduction in its U.S. vehicle inventory.

“We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models,” Matt Thompson, Stellantis head of U.S. retail sales, said in a release.

All of Stellantis’ brands except for its niche Fiat unit experienced sales declines in the third quarter, led by more than 40% reductions for Chrysler and Dodge. Its Ram truck brand recorded a roughly 19% fall, while Jeep was off about 6% year over year.

Stellantis, GM and Ford stocks in 2024.

Stellantis’ third-quarter sales are the latest problem this week for the carmaker, which cut its 2024 profit margin forecast and has been hit with a recall involving popular plug-in hybrid electric Jeep models due to fire risks.

Shares of the company on the New York Stock Exchange are off 41% this year. The stock hit a new 52-week low Tuesday and closed at $13.71, falling 2.4% for the day.

During a June investor event, Tavares said the company would correct “arrogant” mistakes made by himself and the company in the automaker’s U.S. operations that led to sales declines, bloated inventories and investor concerns.

He said the convergence of three factors led to the problems: not selling down vehicle inventory fast enough; manufacturing issues, specifically with two unnamed plants; and a lack of “sophistication in the way to go to market.”

U.S. sales for Stellantis, formerly Fiat Chrysler, have declined every year since a recent peak of 2.2 million in 2018. The company sold more than 1.5 million vehicles last year, a roughly 1% decline from 2022, when it reported a significant drop of 13% compared with the previous year.

Stellantis’ performance compares with the overall U.S. new light-duty vehicle sales market, which increased 13% last year, according to federal data.

Tavares has been on a profit-driven, cost-cutting mission since the company was formed through a merger between Fiat Chrysler and France’s PSA Groupe in January 2021.

He has prioritized profits and vehicle pricing over market share, leading to heavy criticism from the United Auto Workers union and Stellantis’ U.S. franchised dealers.

Correction: Stellantis reported U.S. sales Wednesday. An earlier version misstated the day.