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News

Ford is delaying the 12 billion dollar investment

Ford has announced that it is delaying a $12 billion investment due to huge losses in the production of electric vehicles, and predictions are that by the end of the year the loss will be almost $4.5 billion. This is due to large investments in next-generation electric vehicles and difficult market conditions.

According to the company’s report, in the last three months, Ford sold 20,962 electric vehicles, which is not bad, and the best seller was the Mustang Mach-E (14,824 units). However, the report shows an operating loss of US$1.3 billion, which means that each electric car sold generates a loss of around US$36,000. That’s definitely something to worry about.

Ford will slow down with electric vehicles, and keep the main focus on the classic range of vehicles powered by fossil fuels, because customers interested in electric vehicles are reluctant to pay a premium compared to gasoline or hybrid alternatives.

“A great product is no longer enough in the electric vehicle business. We have to be completely cost competitive. “Tesla has actually given us a tremendous gift, with a precise focus on the price and scale of the Model Y. They set the standard, and now we’re really moving forward in our second and third cycle of electric vehicle development,” said Ford CEO Jim Farley.

Ford won’t give up on electric cars entirely, but the demand from the UAW, who are seeking a 25 percent wage increase, definitely puts additional pressure on the company and will make business more difficult in the future.

Source: Ford

News

Porsche will receive an €85 billion investment

The global world crisis caused by the war and the constant political conflicts of the great powers also affected the automotive industry. Many car manufacturers are trying to find a way out of the current crisis in various ways, and one of them is Porsche, which decided to offer its shares to the market next month. Certainly, there will be no shortage of interested parties, and predictions are that Porsche will receive €85 billion ($85 billion) in investment.

According to Bloomberg, several major global investment groups and companies have shown interest in investing in the global brand. Some of them are T Rowe Price Group, Qatar Investment Authority and billionaire Dietrich Mateschitz (Red Bull). However, the largest shareholder will remain the VW Group. Plans for the Initial Public Offering (IPO) will be announced after the approval of the supervisory board.

Even before, there were interested investors, but doubts about the way the company is managed and the influence of the VW Group turned them away. This continued even more after Oliver Blume became VW Group boss.

Last year, Porsche achieved record sales growth worldwide with over 300,000 cars sold. The highest sales growth was achieved in the United States with 22 percent (70,025 cars), Germany with 9 percent (28,565 cars) and China with 8 percent (96,671 cars). The best-selling Porsche model in Europe was the Macan (88,262 units), and what is most surprising is that the Taycan surpassed the 911 model in sales, even though the popular “elf” achieved a historic result with 38,464 units sold.

In the first six months of 2022, Porsche delivered almost 150,000 cars, which is less than last year. The pandemic and the supply chain caused the most problems. Despite this, growth was achieved in some markets. For example, in Europe, compared to last year, sales increased by 7 percent (43,087 vehicles), and in Germany alone, 13,785 vehicles were sold. Despite the difficulties, Porsche managed to sell 62,245 cars in the Asia-Pacific region, Africa and the Middle East, while in the United States the number was 32,529. In the Chinese market, sales fell by 16 percent (40,681 vehicles).

Source: Bloomberg