Electrified cars will soon outsell ICE vehicles in Europe
Electrified vehicles are having a moment in Europe, BMW and Stellantis are raking it in and wouldn’t you believe that a company that primarily sells chips for cars isn’t doing the best right now. All this and more in The morning shift for Thursday, May 5, 2022.
1st gear: one in 10 vehicles sold is a VE
Sales of pure electric vehicles in Europe doubled last year, Reuters reported Thursday citing industry data. Surprisingly, new registrations of battery electric cars actually exceeded those of plug-in hybrids in the first quarter of 2022:
BEVs accounted for 10% of total passenger car sales in the EU, according to data from the region’s automakers association (ACEA), overtaking plug-in hybrid electric vehicles, which took an 8.9 share %.
A total of 224,145 BEVs were sold in the EU in the January-March period, compared to 146,125 in the same period last year.
Regular hybrids are also large:
Hybrid electric vehicles accounted for more than a quarter of the market, up from about a fifth in the same period last year. Petrol and diesel cars lost market share, but still accounted for 52.8% of the EU market over the period.
Put them together, and almost one in two new cars sold between January and March on the continent were electrified in some way. The top seller among plug-in cars (i.e. battery electric and plug-in hybrids) was the Kia Niro EV, followed by the Peugeot 3008 PHEV and the Audi Q4 E-Tron, by Inside electric vehicles.
All the while, I’ve been skeptical that manufacturers will really abandon internal combustion engines as quickly as they’ve told their investors. At this rate, however, some may well succeed – in Europe, anyway. Of course, electric vehicle sales records are continuously broken in the United States, although we are lagging behind our neighbors across the Atlantic. Battery electric cars accounted for 5.2% of new vehicle sales on our shores in the first quarter of 2022, up from 2.5% a year earlier, according to data cited by Cox Automotive last month.
2nd Gear: BMW and Stellantis are doing well
Both saw their profits rise in early 2022 despite selling fewer cars. In the case of BMW, first-quarter revenue jumped 16.2%, even though the German automaker moved 6.2% fewer vehicles than a year ago. Since Reuters:
A global shortage of semiconductor chips has hit car production across the industry, but BMW said demand for its vehicles remained “very robust”.
“Never before in the history of our business have our pre-orders been higher than they are today,” chief executive Oliver Zipse said on a conference call. “Markets are signaling that this strong demand will continue.”
As usual, what is music to the ears of executives and shareholders makes me not want to get out of bed in the morning. BMW was trading up 1.9% on Thursday morning. Meanwhile, Stellantis managed to trade 12% of vehicles sold for a 12% increase in revenue. Since Automotive News:
Net sales rose 12% to 41.5 billion euros ($44.1 billion) in the January-March period, the automaker said in a statement Thursday.
The automaker, since the PSA-Fiat Chrysler merger, does not disclose its quarterly financial performance – only its half-year and annual results.
“Our full-year guidance of double-digit adjusted operating margins and positive cash flow is confirmed, despite supply and inflationary headwinds, as good product momentum and strategic partnerships continue to lead the way,” Chief Financial Officer Richard Palmer said in the statement.
Vehicle shipments, however, fell 12% in the quarter, primarily due to the impact of unfilled semiconductor orders.
All this despite the fact that the supply of Stellantis has been seriously pinched in Europe in recent months, less so in North America. Both manufacturers expect semiconductor production to improve only slightly, if at all, before the end of 2022. Given how demand is so deeply on their side, I don’t know if the one really cares whether the fleas start circulating again or not.
3rd gear: there will be Nismo electric vehicles
What, did you think Nissan was going flat-kill a brand in the era of electrification? Courtesy of Top of the linewho heard it first hand from the president of the Japanese automaker in Europe, Guillaume Cartier:
“Nismo is an asset we have,” Cartier explained, “and it’s something we want to revitalize. And will we have, say, cars with the Nismo derivative? The answer is yes.”
And Cartier says it doesn’t want it to amount to an appearance package:
“The thing is, it’s not a gimmick,” insists Cartier. “To use an English expression, it’s not lipstick on a pig. So it requires some investment to make sure you bring performance.
So what does “performance” mean in a nismo-electric context? “Here it’s relatively easy to understand: specific suspension and powertrain. The point on Ariya is a challenge because we already have a big battery with high performance. So we have to go higher than that.
Here in the US, unless you’re Tesla or Ford More precisely in the case of the Lightning F-150, electric vehicles are not sexy. They are only a means to an end, in this case, they are not dug at the pump. Most automakers have to rely on anything that might entice buyers to make the switch – the more irrational and nostalgic the better. that’s why Volkswagen makes an electric surf vanand why Hyundai keeps remodeling its 70s and 80s flagships for Instagram.
Nissan isn’t a brand with a strong performance pedigree today – aside from Z, it has nothing – and so far its EV offerings have started and ended with the Leaf. He will be desperate to change this perception and attempt to do so through Nismo.
4th Gear: Not a good time to be part of Aptiv’s line of work
Electrical component suppliers are getting the upper hand, and Aptiv’s first-quarter earnings reflect that. Since Automotive News:
Aptiv posted lower first-quarter earnings on Thursday as soaring raw material prices and a shortage of electrical components hampered the auto parts supplier’s shipments in the quarter.
First-quarter net profit fell 74% to $73 million while revenue rose 4% to $4.2 billion, Aptiv said in a statement Thursday.
Aptiv, whose main customers are Stellantis, Volkswagen and General Motors, provides several key electrical and software components for modern vehicles that are used for everything from infotainment systems to integrated driver safety systems.
However, rising raw material prices and a global shortage of semiconductors have forced several car manufacturers to reduce their production cycles and, in some cases, produce cars without certain features, which has had an impact on the Aptiv commands.
As the last two years have proven, automakers can still sell vehicles without hardware and therefore without certain features. But Aptiv is responsible for that hardware and can’t make money without selling it. Despite this, the company’s shares rose 2.2% on Thursday morning. He found a way to survive on the ashes of Delphiand maybe he will find a way to survive this.
5th gear: 30-year-old truck runs out until 2024
It’s the Toyota Land Cruiser 70, which you can’t buy here of course, but you can still do in Australia. Provided you want to wait, of course. Since Conduct:
Proving that age is no barrier to success, the iconic Toyota LandCruiser 70 Series – which is now over three decades old – has a waiting list of up to two and a half years.
Toyota dealers surveyed by Drive said that, based on current production rates and forecasts, it will take more than two years to fill orders placed today.
However, Toyota dealers say they hope wait times for the Toyota LandCruiser 70 series will be reduced once production ramps up in the coming year.
The current model – which dates back to the 1980s – is due to receive another round of safety upgrades by the end of this year, when new side impact regulations come into force in Australia.
I’m amazed that for three decades Toyota has had a habit of upgrading the Land Cruiser 70 in various ways to ensure it remains compliant with the new Australian car regulations. Most manufacturers would simply abandon the offending model and move on to the next.
Neutral: 15 minutes, 116 miles high
Back: what’s stopping you?
What’s stopping me from going pure electric? The infrastructure, coupled with the fact that I live in an apartment, so I can’t get hooked up overnight. To a lesser extent, probably the idea that weight has an impact on ride feel – but that’s something I could probably overcome over time. And you?