Hyundai Q4'20 profit up 79%; TSMC considers auto chip price hike amid shortage

TOP NEWS IN AUTOMOTIVE

* Hyundai Motor Co. reported a 78.7% increase in net income for the fourth quarter of 2020 and forecast 2021 revenue to jump 14% to 15% as it expects global demand to rebound strongly. Net income for the fourth quarter rose to 1.38 trillion South Korean won but missed the S&P Capital IQ estimate of 1.47 trillion won.

* The world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co. and its domestic peers are considering raising prices of automotive chips amid the global semiconductor shortage, Nikkei Asia reported. Separately, Stellantis NV CEO Carlos Tavares said he will make sure that the carmaker is "treated fairly" and will "fight back" to ensure its chip contracts are met, the Financial Times (London) reported.

➤ Consumer companies float incentives over mandates for US worker COVID-19 shots

Consumer companies are offering incentives to thousands of their U.S. employees to get vaccinated for COVID-19 and helping out with government distribution efforts. But so far they have shied away from handing down vaccine mandates.

➤ December 2020 auto sales grow across US, China, Japan; Europe sales drop YOY

Auto sales across Japan and China continued to grow at a steady pace in December 2020, with the U.S. experiencing a sales increase thanks to higher retail activity during the Christmas period, an analysis by S&P Global Market Intelligence showed.

EARNINGS SPOTLIGHT

* Chinese SUV- and pickup-maker Great Wall Motor Co. Ltd. reported that 2020 adjusted net income dipped slightly to 3.97 billion yuan from 3.99 billion yuan the year prior, missing the S&P Global Capital IQ mean consensus estimate of 4.99 billion yuan. Total operating revenue jumped 7.4% to 103.28 billion yuan. Separately, Great Wall told regulators that it intends to issue convertible bonds worth no more than 8 billion yuan, or $1.24 billion, to fund the research and development of new vehicle models and automobile digitalization, Gasgoo reported.

CARMAKERS

* Volkswagen AG said it will appeal a Spanish court ruling that ordered it to pay €16.3 million in compensation to residents who bought cars with emissions-cheating devices installed, Reuters reported.

* Toyota Motor Corp. is not expecting any significant impact on its fiscal 2021 production from the global shortage of semiconductors, Nikkei Asia reported. The Japanese automaker reportedly continues to target production of about 8.25 million vehicles worldwide for the year ending March.

* Ford Motor Co. said its global head of design, Moray Callum, will retire May 1. He will be replaced by Anthony Lo, who was most recently vice president of exterior design at Renault.

ELECTRIC VEHICLES

* Stellantis subsidiary FCA Italy spa and French energy company Engie EPS agreed to form an e-mobility joint venture to offer residential, business and public charging infrastructure. The pair will offer charging subscriptions and vehicle-to-grid technologies.

* Nissan Motor Co. Ltd. is accelerating the rollout of electric vehicles in China and will focus on using more locally produced components and technologies as part of its new strategy for the country, Reuters reported, citing four sources. The EVs will be sold under the Nissan and Venucia brands.

* Vietnam-based conglomerate Vingroup said it will start selling three new autonomous electric SUVs from May, with plans to start delivering them to the U.S., Canada and Europe in June 2022. The group is looking to raise 7 trillion dong, or $303.6 million, by issuing domestic bonds to fund its automobile and smartphone units, Reuters reported.

AUTONOMOUS AND CONNECTED VEHICLES

* Chinese autonomous driving tech company UISEE said it has raised over 1 billion yuan, or $150 million, in its latest funding round, China Daily reported.

* Automotive technology company Veoneer Inc. signed an agreement with chipmaker Qualcomm Technologies Inc. to create new autonomous driving software brand Arriver. The unit, which will be 100% owned by Veoneer, will offer scalable, open advanced driver assistance systems and autonomous driving systems, utilizing Qualcomm's Snapdragon Ride hardware.

POLICY, REGULATION AND SAFETY

* South Korean authorities are investigating Hyundai's recall of Kona electric vehicles after a recalled EV caught fire, Reuters reported, citing a South Korean transport ministry official.

MARKETS

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