trending Market Intelligence /marketintelligence/en/news-insights/trending/sdcmngv5xkjjgcuv-c_7gq2 content esgSubNav
In This List

Tesla confirms Shanghai, Europe gigafactory plans; Subaru CEO departs

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Tesla confirms Shanghai, Europe gigafactory plans; Subaru CEO departs

TOP NEWS

* Tesla Inc. confirmed plans to establish its first factory outside the U.S. in Shanghai and another in Europe. Cofounder, Chairman and CEO Elon Musk said at a shareholders meeting that he will make an official announcement for the Shanghai gigafactory as early as July and on the Europe gigafactory "probably towards the end of this year." Musk added that the company eventually planned to set up 10 or 12 such facilities worldwide in a bid to make cars more affordable through localization. Musk said Tesla was "quite likely" to hit the revised production target for Model 3 sedan of 5,000 cars per week at June-end. Shareholders rejected resolutions to strip Musk of his role as chairman and voted for the re-election of three board members, including Musk's younger brother, Kimbal Musk, CNBC reported.

* Subaru Corp. said Yasuyuki Yoshinaga is stepping down as the company's CEO. The resignation of Yoshinaga, who remains a director and the chairman of Subaru's board, follow reports that Japanese regulatory officials searched company headquarters after Subaru admitted that mileage and emissions data for new vehicles were rigged at one of its plants. Tomomi Nakamura will succeed Yoshinaga.

CARMAKERS

* French car maker Peugeot SA will foray into Nigeria and assemble its 301 sedan by the first quarter of 2019 via a joint venture called Peugeot Automobile Nigeria, or PAN, with Nigerian billionaire Aliko Dangote and five provincial governments, Reuters reported. The news agency cited Jimi Lawal, an adviser to the governor of Kaduna province where the plant reportedly will be based, who added that the JV would invest initially nearly $10 million in equity and about $5 million in working capital. Peugeot told Reuters that talks are "still ongoing" without giving more details.

* General Motors Co. is looking to fill 75 temporary, part-time positions at its Flint, Mich., assembly plant by Aug. 1, MLive.com reported, citing the factory's spokeswoman Katy Teer. The site makes GM's Chevrolet and GMC Sierra crew and regular cab trucks.

ELECTRIC AND AUTONOMOUS VEHICLES

* Automakers spending fortunes on a bet that electric vehicles are the industry's future are virtually silent on the mining risks tied to cobalt, a key metal for the batteries on which their plans depend, S&P Global Market Intelligence reported. Car companies expect evolving technology will eventually reduce or even eliminate their need for the blue metal ore, but, in the meantime, they could face pressure from investors who are asking questions about the new "blood diamond" and wondering why companies are not disclosing more information about their involvement with it.

* A rise in electric vehicles' market share to 25% of all cars by 2030 could correlate to 75,000 redundancies in Germany's automotive industry, chiefly among engine, gearbox manufacturing jobs, Reuters reported, citing a study conducted by German trade unions and the country's auto industry. Trade union IG Metall reportedly said a faster growth in the EV market share could raise that number to 100,000 jobs and that by 2030 "every second job in passenger car powertrain" will be impacted by "electromobility." German automotive companies Bosch, Volkswagen AG, Daimler AG, Bayerische Motoren Werke AG and Schaeffler AG supplied the information for the study.

* Electric vehicles made up 22.7% of all car sales in the eco-friendly segment in South Korea from January through April, selling 5,542 units on the back of greater choices of all-electric cars and an improvement in the country's charging infrastructure, Yonhap News Agency reported, citing information compiled by the Korea Automobile Manufacturers Association. The eco-friendly car category is composed of hybrids, plug-in hybrids and hydrogen-fueled cars, the news agency said.

REGULATIONS AND SAFETY

* California Air Resources Board Chair Mary Nichols said the state and automakers are "mostly in agreement" over a need to have vehicular emissions standards "on the books" and that California "should have a place" in implementing those standards, Bloomberg News reported, quoting Nichols at an event in San Diego. She reportedly added that state officials have not yet seen the proposal, under review by the White House Office of Management and Budget, which seeks to discontinue emissions norms for automakers after 2020.

* The International Council on Clean Transportation, a U.S. nonprofit environmental group, published a study concluding that even the latest Euro 6 compliant diesel engines fail to meet EU standards under real-world driving conditions. Following a test for nitrogen oxide, or NOx, pollution on more than 700,000 cars and 4,850 vehicle models across Europe, ICCT reported that most diesel vehicles adhering to Euro 6 standards were "more than twice the type-approval limits" of 90 mg/km NOx.

* BMW Group, Geely Automobile Holdings Ltd.'s Volvo Cars and Volkswagen AG's Porsche AG will recall over 10,000 cars in total in China, Xinhua reported, citing the country's General Administration of Customs. BMW Group's BMW China Automotive Trading Ltd. will reportedly call back 5,763 imported vehicles to fix problems related to auxiliary water pumps and fuel pumps. Volvo will recall 6,415 imported XC90 models over coolant leak risks, while Porsche intends to recall 30 of its 918 Spyder cars due to faulty control-arm connecting shafts, Xinhua reported.

AUTO PARTS AND EQUIPMENT

* German battery systems maker Akasol expects to file in late June a public offering of about €100 million to €125 million on the Frankfurt stock exchange, Reuters reported, citing people close to the matter. Sven Schulz, majority owner and managing director of Akasol, told Reuters that the company will use the proceeds to double production capacities at its Langen, Germany, site by 2020, construct a greenfield factory in the U.S., and establish a research and development unit near its Darmstadt headquarters. The company reportedly could be valued at about €400 million to €500 million.

* Dutch digital mapping systems company TomTom NV rolled out a new navigation app that can be linked to Toyota Motor Corp. vehicles' dashboards across Argentina, Brazil and Paraguay. Toyota owners can use the app to access TomTom's navigation features as well as other proprietary services like TomTom traffic, speed cams, online search and online routing all on their car dashboards.

* Lear Corp. announced that John Absmeier will join the auto parts and equipment manufacturer as its chief technology officer, effective June 18. Prior to his appointment, Absmeier served in Samsung Electronics Co. Ltd. as vice president of smart machines and led the acquisition of consumer electronics producer Harman International Industries Inc. by the South Korean giant.

AUTOMOTIVE RETAIL

* Daimler AG-owned Mercedes-Benz's U.S. unit launched a car subscription service in Nashville and Philadelphia, The Verge reported. The service, first announced in April, is called Collection and offers a $1,095-per-month Signature plan and a $1,595-a-month Reserve plan. Both plans include insurance, roadside assistance, service and maintenance expenses, the multimedia news site added.

* German used-car portal Auto1 Group GmbH teamed up with Deutsche Bank AG and Allianz SE and formed a new entity called Auto1 Fintech to offer refinancing loans and insurance products to dealerships that purchase Auto1 vehicles, Bloomberg News reported, citing Auto1 co-CEO Hakan Koc. The service reportedly is already operational in the country and Koc expects to expand it into Poland and France later in 2018.

The day ahead

Early morning futures indicators pointed to a mixed opening for the U.S. market.

In Asia, the Hang Seng was up 0.53% to 31,259.10, while the Nikkei 225 rose 0.38% to 22,625.73.

In Europe, around midday, the FTSE 100 rose 0.37% to 7,716.06, and the Euronext 100 shed 0.14% to 1,061.64.

On the macro front

The bank reserve settlement report, the MBA mortgage applications report, the international trade report, the productivity and costs report, the EIA petroleum status report, and Treasury STRIPS are due out today.

The Daily Dose is updated as of 8 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.