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Volkswagen (VWAGY) in Talks With Mahindra for MEB Platform
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Volkswagen (VWAGY - Free Report) moves the conversation forward with Mahindra & Mahindra, which plans to use the German automaker’s modular electric drive matrix (MEB) platform.
Per Volkswagen’s statement, the Indian automaker aims to use MEB components such as the e-drive and unit cells.
Volkswagen Group and its subsidiaries developed a modular car platform for electric vehicles (EVs) called the MEB platform. So far, VWAGY and other auto companies like Cupra, Skoda, Ford and Audi have used the platform to build their cars.
Per the term sheet signed by Volkswagen and Mahindra in August 2023, the German carmaker would supply electric components to Mahindra.
Ludwig Fazel, COO of Volkswagen Components, said the company is persuading other automakers to adopt its technology.
In a separate news, Oliver Blume, CEO of Volkswagen, said that the German car maker has prepared itself for Europe's 2035 ban on new sales of fossil-fuel cars by ramping up the production of its electric lineup.
Leveraging its partnerships in China, the automaker will be able to lower its battery cost through a 50% cost reduction at the cell level.
Chinese automakers are giving tough competition to European EV manufacturers by providing cheaper models in the Chinese market and expanding their presence in the European market.
Blume said Volkswagen needs to work hard on the cost side.
FAW-Volkswagen ID.4 CROZZ, VWAGY’s joint venture in China, slashed the prices of new cars to 145,900 yuan (20,100 USD) compared with their debut price of 193,900 yuan (26,700 USD). VWAGY ID.4 was built upon the MEB platform and had hit the Chinese market in January 2021.
Previously, VWAGY lowered the price of the ID.3 in China, following which sales of cars climbed. The sales volume in July increased to 7,378 units, up from 1,819 units in June.
The German carmaker has now adopted the same strategy for ID.4 to fuel car sales. However, VWAGY also said that only 3,000 units will be eligible for this promotion.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 47 cents in the past 30 days. The EPS estimate for 2024 has moved up by 5 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 7 cents and 8 cents, respectively, in the past 30 days.
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Volkswagen (VWAGY) in Talks With Mahindra for MEB Platform
Volkswagen (VWAGY - Free Report) moves the conversation forward with Mahindra & Mahindra, which plans to use the German automaker’s modular electric drive matrix (MEB) platform.
Per Volkswagen’s statement, the Indian automaker aims to use MEB components such as the e-drive and unit cells.
Volkswagen Group and its subsidiaries developed a modular car platform for electric vehicles (EVs) called the MEB platform. So far, VWAGY and other auto companies like Cupra, Skoda, Ford and Audi have used the platform to build their cars.
Per the term sheet signed by Volkswagen and Mahindra in August 2023, the German carmaker would supply electric components to Mahindra.
Ludwig Fazel, COO of Volkswagen Components, said the company is persuading other automakers to adopt its technology.
In a separate news, Oliver Blume, CEO of Volkswagen, said that the German car maker has prepared itself for Europe's 2035 ban on new sales of fossil-fuel cars by ramping up the production of its electric lineup.
Leveraging its partnerships in China, the automaker will be able to lower its battery cost through a 50% cost reduction at the cell level.
Chinese automakers are giving tough competition to European EV manufacturers by providing cheaper models in the Chinese market and expanding their presence in the European market.
Blume said Volkswagen needs to work hard on the cost side.
FAW-Volkswagen ID.4 CROZZ, VWAGY’s joint venture in China, slashed the prices of new cars to 145,900 yuan (20,100 USD) compared with their debut price of 193,900 yuan (26,700 USD). VWAGY ID.4 was built upon the MEB platform and had hit the Chinese market in January 2021.
Previously, VWAGY lowered the price of the ID.3 in China, following which sales of cars climbed. The sales volume in July increased to 7,378 units, up from 1,819 units in June.
The German carmaker has now adopted the same strategy for ID.4 to fuel car sales. However, VWAGY also said that only 3,000 units will be eligible for this promotion.
Zacks Rank & Key Picks
VWAGY currently carries a Zacks Rank #4 (Sell).
Some top-ranked players in the auto space are Oshkosh Corporation (OSK - Free Report) , Gentex Corporation (GNTX - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 47 cents in the past 30 days. The EPS estimate for 2024 has moved up by 5 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 7 cents and 8 cents, respectively, in the past 30 days.