Archive for ‘Volkswagen’

11/05/2020

Coronavirus: China car sales mark first gain in almost two years after restrictions are eased

  • Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to the country’s largest industry association
  • The number of new energy vehicles (NEVs) sold fell for a tenth straight month to The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP
The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP

China’s monthly car sales rose for the first time in almost two years in April, industry data showed, as more customers visited showrooms after the economy began to open up and authorities loosened coronavirus-related travel restrictions.

Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to data from the China Association of Automobile Manufacturers, the country’s largest industry association.

This follows a 43 per cent drop in March and a sharper 79 per cent plunge in February

 as the pandemic pummelled demand. Monthly sales in China last rose in June 2018.

The number of new energy vehicles (NEVs) sold fell for a tenth straight month to 72,000 units, the data showed. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.

The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures.

Volkswagen reported positive China sales in April, while General Motors’ China ventures saw double-digit year-on-year growth last month.

Source: SCMP

11/03/2020

Cathay Pacific expects ‘substantial loss’ this year

A Cathay Pacific staff member wearing a facemask next to a row of self-check in terminals in Hong Kong.Image copyright GETTY IMAGES

Cathay Pacific has said it expects a “substantial” loss in the first half of this year as the impact of the coronavirus outbreak takes it toll.

The Hong Kong carrier also saw a 28% drop in 2019 profits as it struggled during the city’s political protests.

The airline is now battling with the fallout of the virus as passenger numbers plummet.

Chairman Patrick Healy said the first half of 2020 was expected to be “extremely challenging financially”.

The development comes with thousands of flights already cancelled worldwide, as airlines struggle to cope with a slump in demand caused by the coronavirus outbreak.

British Airways, Ryanair and EasyJet have all cancelled flights to and from Italy until April, while Norwegian Air and American Airlines have also announced significant cuts to services.

Calling 2019 a “turbulent year”, Mr Healy said he expected “our passenger business to be under severe pressure this year and that our cargo business will continue to face headwinds”.

While Cathay Pacific has reduced flights to help save costs, “we expect to incur a substantial loss for the first half of 2020,” he added.

The airline reported a net profit of HK$1.69bn (£170m) for last year, down from a HK$2.35bn profit in 2018.

In other developments:

  • Dutch airline KLM is cancelling all its flights to and from Milan, Venice and Naples until 3 April
  • Austrian rail operator OBB has announced it is suspending all trains in and out of Italy – which has more than 10,000 confirmed cases of the virus – until further notice
  • Seat, the Spanish unit of car-maker Volkswagen, is considering temporary lay-offs at its Barcelona plant
  • Ride-hailing app Uber says it plans to offer an as-yet unspecified amount of financial assistance to its drivers who have to self-isolate for up to 14 days

Embattled sector

The airline industry faces a loss of revenue of up to $113bn this year, according to aviation trade body IATA, as thousands of planes are grounded amid travel restrictions across the globe.

After UK-based airline Flybe went into administration last week, analysts are warning of more failures to come for the embattled airline industry.

Earlier this week, Korean Air warned the coronavirus outbreak could threaten its survival, in a memo sent to employees.

The global spread of the coronavirus has hit both holidaymakers and business travellers. The Global Business Travel Association said on Wednesday that 43% of its member companies have cancelled business trips booked for this month.

Source: The BBC

02/03/2020

Think-tank report on Uighur labor in China lists global brands

BEIJING (Reuters) – Tens of thousands of ethnic Uighurs were moved to work in conditions suggestive of “forced labor” in factories across China supplying 83 global brands, and Australian think tank said in a report released on Sunday.

The Australian Strategic Policy Institute (ASPI) report, which cited government documents and local media reports, identified a network of at least 27 factories in nine Chinese provinces where more than 80,000 Uighurs from the western region of Xinjiang have been transferred.

“Under conditions that strongly suggest forced labor, Uighurs are working in factories that are in the supply chains of at least 83 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen,” the think-tank said in the introduction to its report.

The ASPI report said the transfers of labor were part of a state-sponsored program.

It says the workers “lead a harsh, segregated life,” are forbidden to practice religion, and are required to participate in mandarin language classes.

It also says the Uighurs are tracked electronically and restricted from returning to Xinjiang.

China’s Foreign Ministry on Monday said reports the government had violated the Uighurs’ rights were untrue.

“This report is just following along with the U.S. anti-China forces that try to smear China’s anti-terrorism measures in Xinjiang,” spokesman Zhao Lijian at a regular press briefing on Monday.

The United Nations estimates over a million Muslim Uighurs have been detained in camps in Xinjiang over recent years as part of a wide-reaching campaign by Chinese officials to stamp out terrorism.

The mass detentions have provoked a backlash from rights groups and foreign governments, which say the arbitrary nature of the detentions violates human rights.

China has denied the camps violate the rights of Uighurs and say they are designed to stamp out terrorism and provide vocational skills.

“Those studying in vocational centers have all graduated and are employed with the help of our government,” said the Foreign Ministry’s Zhao, “They now live a happy life.”

The 83 global brands mentioned in ASPI’s report either work directly with the factories or source materials from the factories, it said, citing public supplier lists and the factories’ own information.

One of the factories, O-Film Technology Co Ltd, which has manufactured cameras for Apple Inc’s (AAPL.O) iPhones, received 700 Uighur laborers as part of the program in 2017, a local media article cited by the report said.

Apple referred Reuters to an earlier statement that said “Apple is dedicated to ensuring that everyone in our supply chain is treated with the dignity and respect they deserve. We have not seen this report but we work closely with all our suppliers to ensure our high standards are upheld.”

The other companies mentioned in the introduction to ASPI’s report – BMW (BMWG.DE), Gap Inc (GPS.N) , Huawei Technologies Co Ltd, Nike Inc (NKE.N), Samsung and Sony Corp (6758.T) did not respond to requests for comment on Monday.

O-Film Technology did not respond to a request for a comment either.

Volkswagen told Reuters in a statement that none of the listed companies is a direct supplier. It said the company holds “direct authority” in all parts of its business and “respects minorities, employee representation and social and labor standards.”

The report said a small number of the brands, including Abercrombie & Fitch Co [ANF.N], advised vendors to terminate their relationships with these companies in 2020, and others denied direct contractual relationships with the suppliers.

ASPI describes itself as an independent think-tank whose core aim is to provide insight for the Australian government on matters of defense, security and strategic policy.

Source: Reuters

02/12/2019

Factbox – The world’s biggest electric vehicle battery makers

(Reuters) – Asian companies dominate the market for electric vehicle (EV) batteries and they are expanding their production capacity in Europe, China and the United States in a fight to win lucrative contracts from global automakers.

Some carmakers worry, however, there won’t be enough batteries for all the EVs they plan to launch in the coming years and a bitter row between South Korea’s SK Innovation and LG Chem risks exacerbating the potential shortfall.

Below are details of the world’s leading EV battery makers with details of their customers and expansion plans:

CATL

China’s Contemporary Amperex Technology (CATL), the world’s biggest EV battery maker, counts BMW (BMWG.DE), Volkswagen (VOWG_p.DE), Daimler (DAIGn.DE) – which makes Mercedes cars – Volvo, Toyota Motor Corp (7203.T) and Honda Motor Co (7267.T) among its customers.

The company emerged as a major force partly thanks to Beijing’s policy of only subsidising vehicles equipped with Chinese batteries in the world’s biggest EV market. Beijing is phasing out EV subsidies next year.

CATL, which operates factories in China, is building its first overseas plant in Germany and is considering a U.S. factory.

PANASONIC CORP (6752.T)

Japan’s Panasonic, a supplier of U.S. EV pioneer Tesla (TSLA.O), said it has installed equipment to ramp up production at Tesla’s Nevada plant to 35 GWh from its current production of around 30 GWh as of late October. Panasonic has said it is investing about $1.6 billion in the factory.

Panasonic also produces EV batteries in Japan, China and plans to shift some of its plants to a new joint venture with Toyota. Panasonic’s clients also include Honda and Ford Motor Company (F.N).

For a graphic of expansion plans: tmsnrt.rs/35tFmOL

BYD CO LTD (002594.SZ)

China’s BYD, which is backed by U.S. investor Warren Buffett, is also one of the world’s biggest EV battery makers. It mainly uses them in-house for its own cars and buses. BYD said last year it is was considering cell production in Europe.

LG CHEM LTD (051910.KS)

The South Korean firm was an early industry mover, winning a contract to supply General Motor’s (GM.N) Volt in 2008. It also supplies Ford, Renault (RENA.PA), Hyundai Motor (005380.KS), Tesla, Volkswagen and Volvo.

It is investing 3.3 trillion won ($2.8 billion) to build and expand production facilities near Tesla’s plant in Shanghai. It has a joint venture (JV) in China with Geely Automobile Holdings (0175.HK), which makes Volvos, and is in talks with other carmakers about JVs in major markets.

The firm is considering building a second U.S. factory in addition to its facility in Michigan and is expanding its plant in Poland.

SAMSUNG SDI CO LTD (006400.KS) Samsung SDI an affiliate of South Korean tech giant Samsung Electronics (005930.KS), has EV battery plants in South Korea, China and Hungary, which supply customers such as BMW (BMWG.DE), Volvo and Volkswagen. Samsung SDI is investing about 1.2 billion euros ($1.3 billion) to expand its factory in Hungary though the EU is investigating whether Budapest’s financial support complies with the bloc’s state aid rules.

Samsung started production last year on the Hungary plant, which will produce batteries for 50,000 EVs a year.

SK INNOVATION CO LTD (096770.KS) LG Chem’s cross-town rival SK Innovation supplies batteries to Volkswagen, Daimler and Kia Motors (000270.KS), as well as Jaguar Land Rover [TAMOJL.UL] and Ferrari (RACE.MI).

An oil refiner that came to the battery industry late, SKI is investing about $3.9 billion to build three plants in the United States, China and Hungary, with a goal of expanding its annual production capacity to 33 GWh by 2022.

SKI currently operates one battery factory in South Korea, with a capacity of 4.7 GWh annually.

It set up a joint venture with Beijing Automotive Industry Corporation (BAIC) of China in August 2018 and another Chinese partner. It is in talks with Volkswagen about another battery JV and is building a $1.7 billion factory in the U.S. state of Georgia, not far from Volkswagen’s Chattanooga plant.

Source: Reuters

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