Daimler to split truck, Mercedes-Benz units; GM shuts plants over chip shortage

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TOP NEWS IN AUTOMOTIVE

* German automaker Daimler AG said it will list Daimler Truck on the Frankfurt stock exchange, with plans to distribute "a significant majority stake" in the unit to shareholders. The transaction is set to close before the end of 2021. Daimler, which will later rename itself Mercedes-Benz, said its truck and bus unit will have fully independent management and governance. The automaker's shares surged 8.9% to €64.56 on Feb. 3.

* General Motors Co. will temporarily shut down three plants and cut production at a fourth as the global auto semiconductor chip shortage continues, adding that it might miss production targets for the year, the Financial Times (London) reported. The automaker will shut down a plant in the U.S., Canada and Mexico and halve production capacity at another site in South Korea.

➤ Supply Chain: Tata Motors creeps ahead as luxury brands struggle to recover

Tata Motors' fourth-quarter 2020 revenues expanded modestly. Shipments of the company's luxury Jaguar and Land Rover brands have continued to languish, though Land Rover is showing signs of growth as the new Defender model starts deliveries.

➤ Supply Chain: Ford, GM fire up Mexican supply chains as USMCA restructuring deferred

The major automakers have won deferrals that will not require them to meet new USMCA rules on sourcing until July 2025. That comes as demand is soaring but supply chain challenges loom in semiconductors and logistics.

➤ Q&A: Recent retail-driven silver run was 'significant event,' HSBC analyst says

HSBC Chief Precious Metals Analyst Jim Steel discussed the silver price volatility occurring in tandem with the r/WallStreetBets retail investment craze in an interview with S&P Global Market Intelligence.

EARNINGS SPOTLIGHT

* Zhejiang Geely Automobile Co. Ltd.-owned Swedish carmaker Volvo Cars said revenue in the second half of 2020 rose 4.9% year over year to 151 billion Swedish kronor, pushing operating profit up 8.2% to 9.5 billion kronor. During the half, Volvo Cars sold 391,751 vehicles. It expects sales and revenue to continue growing and profit to reach the pre-pandemic level in 2021.

* Mazda Motor Corp. raised its sales forecast for fiscal 2021 to ¥2.900 trillion from ¥2.850 trillion, adding that it expects to post an attributable net loss of ¥50 billion instead of its previously forecast loss of ¥90 billion. The Japanese carmaker expects to sell 1.3 million vehicles for the fiscal year ending March 31.

* Auto software company Veoneer Inc. reported its attributable net loss narrowed to $91 million in the fourth quarter 2020 from a loss of $96 million a year ago and beat the S&P Capital IQ consensus estimate for GAAP net loss of $96.9 million. Net loss for 2020 widened to $545 million from $500 million in 2019. Veoneer said it expects its operating losses to narrow in 2021 thanks to an expected 25% in sales growth for the year.

* Auto supplier Aptiv PLC reported an adjusted diluted EPS of $1.13 for the fourth quarter of 2020, down from $1.15 a year ago but beating S&P Capital IQ consensus estimate for normalized EPS of $1.01. Revenue for the quarter rose 17% to $4.2 billion.

ELECTRIC VEHICLES

* Apple is close to finalizing a deal with South Korean carmakers Hyundai Motor Co. and Kia Corp. and will likely work with the sister companies to build an autonomous electric car at Kia's Georgia plant, CNBC reported, citing sources close to Apple.

* Ford Motor Co. terminated plans to launch electric vehicle joint ventures with China's Zotye Automobile, Reuters reported.

* Electrified vehicles made up 16.5% of vehicle sales in Europe in the fourth quarter of 2020, according to data by the European Automobile Manufacturers Association. Diesel vehicle registrations fell 23% to 730,837 vehicles during the period.

POLICY, REGULATION AND SAFETY

* Taiwan's economy minister Wang Mei-hua said the current global auto chip shortage will not be the priority agenda for its meeting with the U.S., but said semiconductor collaboration in the future would be at the center of discussions, Reuters reported.

AUTO PARTS AND EQUIPMENT

* Auto supplier HELLA GmbH & Co. KGaA said it will sell its 50% stake in Mando Hella Electronics to its South Korean venture partner Mando for €60 million in a deal set to close in the first quarter.

AUTOMOTIVE RETAIL

* U.K. vehicle registrations fell 39.5% year over year in January to 90,249 vehicles, according to data by the Society of Motor Manufacturers and Traders.

* Ford Motor Co. said total sales in January dropped 8.3% year over year to 143,578 vehicles. Sales of its electrified lineup jumped 18.5% during the month.

* Honda Motor Co. Ltd.'s U.S. arm sold 92,225 vehicles in January, down 9.2% year over year.

MARKETS

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