Automotive News Europe’s Post

Together with my Alvarez & Marsal colleagues Qian Wang and Richard Hell we are discussing the urgent actions which should be taken by Germany industry players to address the looming electric vehicle market mainly driven by China to propel the nation to the forefront of the global electric vehicle market.

📌 Germany: Picking a New Lane in the EV Race A recent report by Alvarez & Marsal throws down a challenging gauntlet for the German auto industry. China's dominance in the EV market isn't just a race for market share, it's a sprint towards a new future of mobility. The choice for German automakers is stark: adapt or get lapped. The report's accuracy in depicting the state of the industry, a credit to the hard work of my good friend Baris Göncü and his colleagues at Alvarez & Marsal, underscores the urgency for the German auto industry to adapt. Key Takeaways: 👉🏻 China's Booming Market: With EVs accounting for over 60% of passenger car revenue in 2023, China offers a massive opportunity, but German OEMs are losing ground. 👉🏻 The Rise of Chinese Titans: Homegrown players like BYD are vertically integrated, controlling battery production and staying ahead in R&D. Their agility stands in stark contrast to the traditional, complex structures of German giants. 👉🏻 The Battery Conundrum: Access to affordable, high-quality batteries is crucial. While Germany invests in R&D, China boasts established battery manufacturers. Collaboration might be the key. 👉🏻 Policy in Play: Subsidies play a role, but China has begun to wean its market off them. Germany's recent subsidy cut could further hinder EV adoption. 👉🏻 Bridging the Infrastructure Gap: China's extensive charging network dwarfs Germany's, contributing to range anxiety and slowing EV adoption. Shifting Gears: Recommendations for German Automakers 👍🏻 Accelerate EV Development: Prioritize EV production and R&D, streamlining operations for faster innovation. 👍🏻 Forge Alliances: Explore partnerships or invest in domestic battery production to secure a reliable supply chain. 👍🏻 Charge Up Infrastructure: Lobby for government support to expand charging networks and ease range anxiety. 👍🏻 Invest in Talent: Revamp talent management strategies to attract and retain skilled personnel for the EV transition. 🏁 The Finish Line: Germany's auto industry, facing disruption from EVs and autonomous driving, can learn from the US. Unlike China's state-backed dominance, the fragmented US market offers an opportunity to close the gap. While catering to American preferences for larger EVs and collaborating on infrastructure like charging networks, Germany must also embrace disruption by investing in R&D, upskilling its workforce, and securing a sustainable supply chain. Leveraging its strong government support, stricter environmental regulations, and robust public transportation, Germany can carve a unique path in the new automotive landscape, ensuring its future as a leader through adaptability, collaboration, and a forward-thinking approach. 🤝🏻 Many thanks to Qian Wang and Richard Hell for their insightful contributions to the report. #automotivenews #automotivereport #automotiveindustry #electricvehicles

We are very happy and excited that Matthias Heutger will join the German Transportation & Logistics team as a Partner, and we are glad to welcome him as our colleague in the Porsche Consulting team!   Matthias joins us from the DHL Group, where he held various leadership positions during his 21 years with the leading logistics provider in the world. For the last 5 years, he shaped the innovation and digitalization agenda of the group as Senior Vice President Innovation & Commercial Development. He brings a wealth of experience in consulting, marketing & sales, operations and digitalization in this exciting industry.   Have a great start Matthias Heutger! We look very forward to working with you – and already have some questions:   What are you excited about at Porsche Consulting? Everything! The brand, the people, the opportunity! Obviously, Porsche is a strong brand and Porsche Consulting leverages that in a great way. Everybody I have met so far from the team has not only been extremely knowledgeable and professional but at the same time very customer-centric and very human. Finally, I am just as excited about learning from each other and the opportunity to develop new business for PCON as well as helping our clients to be more successful in their business!   What are you looking forward to at Porsche Consulting? The logistics and supply chain industry has never been more exciting and at the same time more challenging. Fluctuating volumes, increasing cost and sustainability goals are common challenges for all logistics companies and supply chain professionals alike. I’m looking forward to leveraging my experience from more than 20 years in the industry and combined with the capabilities of Porsche Consulting advance the industry as a whole.   What is your plan for your first 100 days at Porsche Consulting? Porsche Consulting has a lot to offer for their clients, particularly in the areas of operational excellence and organizational efficiency as well as sustainability. However, this is not very well-known in our industry – and that is the first thing we need to change! In order to do so, we need to sharpen the value proposition and continue to build a strong team. First and foremost, we need to be present, engage with our clients and deliver meaningful projects with tangible impact for them.   #Transportation #Welcome #Team #NewHires 

🎓 Exciting Update! 📊 Just Completed My Analyst Report on Volkswagen! I'm thrilled to share a significant milestone in my academic journey. As part of my third semester at University College Cork, my group and I successfully completed an in-depth analyst report on one of the automotive giants, Volkswagen with exceptional mentorship by Professor John O'Brien. Really grateful for the guidance provided by our mentor and the efforts put in by my team; Jaden D'silva Keyur U. and Abin Joji. Throughout this project, we dived deep into the financials, industry trends, and market positioning of Volkswagen, gaining valuable insights into the world of corporate finance and strategic analysis. 📈💡 Key highlights of our report included: Thorough valuation of Volkswagen using various methods. Detailed analysis of industry dynamics and challenges. Strategic recommendations for potential growth opportunities. The question now remains How long will it take for the consumer market to fully shift from I.C.E to E.V. and What implications will new discoveries like the LK-99 ambient superconductor (If it passes replication tests) have on the Automobile Industry? It's been an incredible learning experience, and I'm proud of the teamwork and dedication that went into this project. As we analyzed Volkswagen's performance and potential, I've grown a deeper appreciation for the complexities of the business world. I'm excited to continue applying these skills and insights as I progress in my academic and professional journey. If you're interested in learning more about our findings or have any insights to share, feel free to connect or drop a comment below. 📚🤝 #AnalystReport #CorporateValuation #Volkswagen #FinanceStudent #LearningJourney #Equityvaluation

Feels good to be a Trucker Just finished an eventful week. Highlight was the Annual General Meeting of Daimler Truck AG! We had a great meeting and finished rather early – quite uncommon under German circumstances. Only a few shareholders were speaking up and mostly congratulated the management for a great job in 2023. Also rather hard to find in German AGM’s. Often, criticism is on the majority side. Of course, there were also a few points in that category, e.g. that we were doing a “virtual” one, rather than a physical meeting. Emotionally, I do agree with the concerns, and I miss those meetings, too. Factually, I have to say, there are a lot of advantages to the virtual format. Needless to say, that it needs to secure all shareholder rights! In my speech (https://lnkd.in/dxjA8h45) I did acknowledge the company’s achievements in 2023, which delivered all time high earnings and a rock-solid free cash flow. Subsequently, the dividend was raised significantly. So, a lot of happy stakeholders. However, while we applaud the historical trend, we also need to see, that there are better performers out there in the industry. So, work to do in the coming year(s). With regards to the topics of the Supervisory Board’s work, here are the 4 most relevant ones: ▶️ Driving decarbonization Last year, Daimler Truck was able to almost quadruple sales of battery-electric commercial vehicles compared to the previous year - an important milestone on the road to a zero-emission future. Regarding sustainability, the Supervisory Board plays a strong advisory and monitoring role. ▶️ Further strengthening the Management Commitment, empathy, and passion are an integral part of Daimler Truck’s management culture. Eva Scherer as new CFO stands for these qualities, and the reappointments of Karin Rådström,  Dr. Andreas Gorbach and John O'Leary underline our confidence in the Board of Management. As for our CEO, Martin Daum, who will likely retire in February 2025, I thanked him for his outstanding lifetime achievement, and called him out as “Mister Daimler Truck”! ▶️ Incentivizing financial and sustainable performance We are convinced that with our remuneration system 2023 , we have established an appropriate and up-to-date system for the Board of Management remuneration. In addition to strong financial performance, it also rewards performance of sustainability. ▶️ Delivering shareholder value Daimler Truck belongs to its shareholders. That’s why we let them share in our profits with a dividend of EUR 1.90 per dividend-bearing share – an increase of 46%. Together with my Supervisory Board colleagues, I am convinced that Daimler Truck is pursuing the right strategy and taking appropriate measures to succeed even in a more challenging cyclical and transformational environment. As you can see from the photo of our brand new Actros 600, it feels good to be a (Daimler) Trucker!   #DaimlerTruck #SustainableTransportation 

What a great event! KPMG was honored to support the Automotive Hall of Fame dinner where industry leaders were celebrated. The automotive industry is facing some headwinds while transitioning to Electric Vehicles. For additional details, check out KPMG insights: Finding value as ICE melts. Auto manufacturers urgently require critical business portfolio decision making. Part volumes per plant are dropping below minimum efficient scale and disadvantaged producers will find themselves in a doom loop. Be a consolidator or sell: don’t wait until there is a rush to the exit to divest. Apply a candid evaluation of your company vs market dynamics.

📊 Analyzing Company Performance: BMW vs. Volkswagen 💡 I'm excited to share the results of my recent project, under the guidence of Bekhruzbek Ochilov, MCSI, where I delved into the financial performance of BMW and Volkswagen. Following are the key Ratios analyzed: 🔎 Return on Equity (ROE) 🔎 Return on Sales (ROS) 🔎 Gross Margin 🔎 Current Ratio 🔎 Quick Ratio 🔎 Asset Turnover Ratio 🔎 Receivable Days 🔎 Inventory Days 🔎 Payable Days 🔎 Debt to Equity Ratio 🔎 Interest Cost ❗ Findings: It's fascinating to see how these ratios provide insights into the financial health of these automotive giants. ❗ Lessons Learned: This project has been a tremendous learning experience, where I learned , howto analyze a Company's performance using various Ratios .  Let's foster a discussion! What are your thoughts on these findings? Feel free to share your insights or ask questions. Excited for more projects and learning opportunities ahead! #FinancialAnalysis #CompanyPerformance #DataAnalysis #LearningJourney #LinkedInAnalysis BMW Group | Volkswagen

With the automotive sector witnessing a time of unprecedented change, A&M is delighted to announce the release of our second automotive M&A report - utilizing the most current data and reporting from year-end 2023. 𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗜𝗻𝗰𝗹𝘂𝗱𝗲: - M&A activity increased in the second half of 2023 compared to the first half. Improving quarterly trends in Q3-23 and Q4-23 are tentatively positive signs after the dip observed in Q2-23. - Transactions valued over $50 million represented approximately 21% of transactions disclosed in the second half of 2023. - Strategic buyers accounted for approximately 63% of announced transactions compared to 37% for financial buyers. #Amon #Automotive #MergersAndAcquisitons #Cars https://okt.to/SqATcO

Ford Motor Company Makes Strategic Leadership Moves to Accelerate Growth In a bid to propel its Ford plan forward and drive profitable growth, Ford Motor Company has announced key senior leadership changes, effective early June. John Lawler, who has served as Ford’s CFO since October 2020, will now assume the role of vice chair in addition to continuing as CFO. Lawler’s expanded responsibilities will see him spearheading critical areas crucial to Ford’s long-term success, including strategic development, global partnerships, and engagement with industry leaders across key regions like China, Southeast Asia, and Europe. Commenting on Lawler’s new role, Ford President and CEO Jim Farley expressed confidence in his ability to […] - https://lnkd.in/d8aXm_de #automotive #evs #ev #electricmobility #emobility #ebikes #fleets #evfleet #evnews #autonews #electricvehicles #electricvehicle #automotiveindustry #automotivejobs #cleantech #cleanenergy #hydrogen #lithium #evbattery #sustainability #climatechange #fordmotor #michigan #northamerica #unitedstates