Results for: Auto industry

Chinese electric car brand Zeekr, owned by Geely, is outperforming Tesla in certain regions of China and plans to expand into Europe and Latin America this year. Despite Tesla reporting its largest global quarterly revenue drop since 2012, Zeekr has seen a surge in sales. According to Zeekr’s data, it outsold Tesla in the provinces of Zhejiang, Anhui, and Guangxi during the first three weeks of April. While Tesla’s Model Y remains the bestseller in China for battery-powered electric cars priced above 200,000 yuan, Zeekr’s 001 and 007 models rank among the top sellers in their respective price categories. Zeekr’s CEO, Andy An, declined to comment on the recent launch of Xiaomi’s electric sedan but highlighted the differences in strategy and resources between the two companies. At the Beijing auto show, Zeekr unveiled a new car structure that offers more interior space. An emphasized the company’s focus on creating a smart mobility experience, with future vehicles designed to accommodate activities such as gaming and dining. Zeekr expects overseas sales to boost revenue this year, with plans to enter six to eight additional countries in Europe and expand into Latin America. The company is also developing right-hand drive cars for markets like Hong Kong, Macao, and Singapore. An confirmed that Zeekr is exploring the possibility of building factories overseas but provided no specific details. Long-term support from its parent company Geely, which owns Volvo, provides Zeekr with access to resources and expertise. An emphasized the importance of combining talent, technology, and capital for long-term success in the automotive industry. Zeekr has filed for an IPO on the New York Stock Exchange but has not yet announced a listing date.

General Motors (GM) exceeded expectations in its Q1 earnings report, leading to positive analyst sentiment and increased price targets. The automaker raised its profit guidance for FY24 and provided a more disciplined EV rollout plan. UBS, Mizuho, and Wedbush Securities reiterated their Buy ratings for GM, citing its strong performance and potential for consistent buyback activity.

Despite the push towards electric vehicles, hybrid cars are experiencing a resurgence in popularity as a practical and cost-effective alternative to both conventional gas-powered vehicles and EVs. With their extended driving range, faster refuelling options, and increased reliability, hybrids offer several advantages that appeal to budget-conscious and convenience-minded consumers.

Tesla is set to lay off 3,332 workers across four cities in California in June, according to Worker Adjustment and Retraining Notification Act (WARN) filings. The job cuts will primarily affect Tesla’s Fremont locations, with 2,267 layoffs planned at a dozen job sites, including the car factory at 45500 Fremont Blvd. Other locations affected include Lathrop, Palo Alto, and Burbank. The company’s main headquarters in Austin, Texas, will also see significant layoffs, with approximately 2,700 job cuts expected. Tesla had previously announced plans to reduce its workforce by more than 10% globally, citing a review of the organization. Despite the layoffs, Musk emphasized that Tesla has created 30,000 manufacturing jobs in California.

Kia and Genesis are offering generous discounts on their electric vehicle (EV) models. Genesis is providing a $7,500 rebate on select EVs, while Kia is offering a $7,500 rebate on the EV9 SUV and a substantial discount on the 2024 G80 Electrified sedan. These incentives are part of a broader trend in the auto industry, with other manufacturers slashing prices on EVs to stimulate sales.

The federal government and Ontario will announce a multibillion-dollar deal with Honda Motor Co. Ltd. this week in a move that will create a comprehensive electric vehicle chain in the province. The agreement includes a battery manufacturing facility, a retooled car assembly plant, and facilities for cathode materials and separator components. The investment is expected to surpass other electric-vehicle deals in Ontario, including the $7-billion Volkswagen EV plant in St. Thomas, Ont.