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Auto Stock Roundup: BMW Hiring Plans, Tesla Recall Update & More
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Last week, U.S. auto biggie Ford (F - Free Report) grabbed eyeballs as it managed to top General Motor’s (GM - Free Report) market value for the first time in five years. German-based auto giant BMW AG (BAMXF - Free Report) announced plans to hire additional workforce as it accelerates electric vehicle (EV) development. EV maker Rivian Automotive, Inc. (RIVN - Free Report) pushed back the delivery of vehicles requiring big battery packs. Meanwhile, Tesla (TSLA - Free Report) also made it to the headlines as it issued a recall of more than 475,000 cars in the United States.
Here’s a detailed rundown of the top stories of the week gone by.
Rivian delayed the deliveries of its electric pickup truck and sports utility vehicle with big battery packs to 2023. The EV maker has around 71,000 preorders of R1T pickup trucks and R1S SUVs in the United States and Canada, but the majority of them are for the small battery pack version of the vehicles, which provide 314 miles of range on one charge. Conversely, the bigger battery pack — known as the Max pack — is expected to offer 400 miles on a single charge. This version accounts for only 20% of the total preorders.
In order to cater to the larger chunk of preorder holders, Rivian has decided to push back the priority timeline of building the Adventure Package with a large pack battery. Explore Package preorders and vehicles with a Max pack battery configuration will follow suit in 2023. RIVN stated that the timings of its deliveries optimize its build sequence so that the best build combination offering the largest possible positive climate impact is prioritized.
BMW confirmed plans to create up to 6,000 new jobs next year to cater to the raging demand for EVs. The automaker, which currently employs about 120,000 people, is ending its phase of job cuts after having trimmed about 6,000 jobs since 2020. The new positions will be created primarily in Germany. The latest announcement to rev up its workforce by up to 5% next year comes in as the luxury carmaker tries to electrify its vehicle line-up, with plans to introduce an electric version of the luxury sedan 7 series next year.
BMW is set for an electric transformation and has geared its manufacturing plants for e-mobility. So far, BMW has sold more than 1 million EVs, including fully electric and hybrid vehicles. It plans to attain 2 million sales of pure EVs by 2025. Further, the German automaker targets at least 50% of its global sales to be fully electric by 2030.
Tesla issued a recall for more than 475,000 cars in the United States. The EV behemoth maker confirmed that it is recalling 356,309 vehicles because of a defective rear-view camera in 2017-2020 Model 3 cars. Another 119,009 Model S vehicles are being recalled because of potential problems with the front trunk or boot.
For Model 3 sedans, the rear-view camera cable harness can get damaged due to excessive wear caused by the repeated opening and closing of the trunk lid. This can prevent the rear-view camera image from displaying, thereby increasing the risk of a crash. For Model S vehicles, if the primary latch is inadvertently released, the front trunk may open without warning and obstruct the driver’s visibility, increasing the threat of a collision. Tesla states that it is not aware of any crashes, injuries or deaths related to the recalled vehicles.
Ford delivered its first made-in-China Ford Mustang Mach-E in China. The Mach-E model for China has its own localized production, unlike those for the North American and European markets that are produced in Mexico. The China-based production line was launched at Changan, Ford’s manufacturing plant in Chongqing, on Oct 18, 2021. Ford has brought a product differentiation in China where its new electric cars are sold directly to customers instead via traditional dealerships. There are currently 25 stores covered under this network of direct-to-customer stores located in the major metropolitan markets in China.
Meanwhile, Ford’s market cap on Dec 28 exceeded that of General Motors’ (GM - Free Report) for the first time since 2016. Per the GM Authority, Ford had a market value of $83 billion at the close of the trading session on Dec 28, marginally beating GM’s $82.9 billion. The last time Ford’s valuation exceeded General Motors was on Sep 14, 2016, with the former closing the day with a market cap of $48.2 billion.
Ford's aggressive electrification push, with planned spending of around $30 billion by 2025 and the target of 40% of its global vehicle volume to become all-electric by the end of the decade, augurs well. Meanwhile, General Motors aims to spend $35 billion through 2025 for EV and AV development. The automaker plans to roll out 30 fresh EV models by 2025-end.
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What’s Next in the Auto Space
Industry watchers will be keeping a close watch on fourth-quarter and full-year delivery updates of auto biggies that is likely to come out this week. Also, stay tuned for updates on how automakers will tackle the semiconductor shortage and make changes in business operations.
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Auto Stock Roundup: BMW Hiring Plans, Tesla Recall Update & More
Last week, U.S. auto biggie Ford (F - Free Report) grabbed eyeballs as it managed to top General Motor’s (GM - Free Report) market value for the first time in five years. German-based auto giant BMW AG (BAMXF - Free Report) announced plans to hire additional workforce as it accelerates electric vehicle (EV) development. EV maker Rivian Automotive, Inc. (RIVN - Free Report) pushed back the delivery of vehicles requiring big battery packs. Meanwhile, Tesla (TSLA - Free Report) also made it to the headlines as it issued a recall of more than 475,000 cars in the United States.
Here’s a detailed rundown of the top stories of the week gone by.
Rivian delayed the deliveries of its electric pickup truck and sports utility vehicle with big battery packs to 2023. The EV maker has around 71,000 preorders of R1T pickup trucks and R1S SUVs in the United States and Canada, but the majority of them are for the small battery pack version of the vehicles, which provide 314 miles of range on one charge. Conversely, the bigger battery pack — known as the Max pack — is expected to offer 400 miles on a single charge. This version accounts for only 20% of the total preorders.
In order to cater to the larger chunk of preorder holders, Rivian has decided to push back the priority timeline of building the Adventure Package with a large pack battery. Explore Package preorders and vehicles with a Max pack battery configuration will follow suit in 2023. RIVN stated that the timings of its deliveries optimize its build sequence so that the best build combination offering the largest possible positive climate impact is prioritized.
BMW confirmed plans to create up to 6,000 new jobs next year to cater to the raging demand for EVs. The automaker, which currently employs about 120,000 people, is ending its phase of job cuts after having trimmed about 6,000 jobs since 2020. The new positions will be created primarily in Germany. The latest announcement to rev up its workforce by up to 5% next year comes in as the luxury carmaker tries to electrify its vehicle line-up, with plans to introduce an electric version of the luxury sedan 7 series next year.
BMW is set for an electric transformation and has geared its manufacturing plants for e-mobility. So far, BMW has sold more than 1 million EVs, including fully electric and hybrid vehicles. It plans to attain 2 million sales of pure EVs by 2025. Further, the German automaker targets at least 50% of its global sales to be fully electric by 2030.
Tesla issued a recall for more than 475,000 cars in the United States. The EV behemoth maker confirmed that it is recalling 356,309 vehicles because of a defective rear-view camera in 2017-2020 Model 3 cars. Another 119,009 Model S vehicles are being recalled because of potential problems with the front trunk or boot.
For Model 3 sedans, the rear-view camera cable harness can get damaged due to excessive wear caused by the repeated opening and closing of the trunk lid. This can prevent the rear-view camera image from displaying, thereby increasing the risk of a crash. For Model S vehicles, if the primary latch is inadvertently released, the front trunk may open without warning and obstruct the driver’s visibility, increasing the threat of a collision. Tesla states that it is not aware of any crashes, injuries or deaths related to the recalled vehicles.
Ford delivered its first made-in-China Ford Mustang Mach-E in China. The Mach-E model for China has its own localized production, unlike those for the North American and European markets that are produced in Mexico. The China-based production line was launched at Changan, Ford’s manufacturing plant in Chongqing, on Oct 18, 2021. Ford has brought a product differentiation in China where its new electric cars are sold directly to customers instead via traditional dealerships. There are currently 25 stores covered under this network of direct-to-customer stores located in the major metropolitan markets in China.
Meanwhile, Ford’s market cap on Dec 28 exceeded that of General Motors’ (GM - Free Report) for the first time since 2016. Per the GM Authority, Ford had a market value of $83 billion at the close of the trading session on Dec 28, marginally beating GM’s $82.9 billion. The last time Ford’s valuation exceeded General Motors was on Sep 14, 2016, with the former closing the day with a market cap of $48.2 billion.
Ford's aggressive electrification push, with planned spending of around $30 billion by 2025 and the target of 40% of its global vehicle volume to become all-electric by the end of the decade, augurs well. Meanwhile, General Motors aims to spend $35 billion through 2025 for EV and AV development. The automaker plans to roll out 30 fresh EV models by 2025-end.
Price Performance
What’s Next in the Auto Space
Industry watchers will be keeping a close watch on fourth-quarter and full-year delivery updates of auto biggies that is likely to come out this week. Also, stay tuned for updates on how automakers will tackle the semiconductor shortage and make changes in business operations.