Latest news with #Daimler
Bloomberg
2 hours ago
- Automotive
- Bloomberg
Toyota, Daimler Agree to Finalize Merger of Truck Units in 2026
Toyota Motor Corp. and Daimler Truck have agreed to finalize a merger of their truck manufacturing subsidiaries, Hino Motors Ltd. and Mitsubishi Fuso Truck & Bus, under a new holding company by April 2026 as they seek to boost margins and develop new technologies. Toyota and Daimler will each own a quarter of the holding company, they said in a joint statement Tuesday, confirming their original agreement announced two years ago. Hino will also issue shares and transfer its Hamura plant to Toyota for ¥150 billion ($1 billion).
Forbes
20-05-2025
- Automotive
- Forbes
Why Have Start-Ups With $1B Valuation Still Failed To Disrupt The Automotive Industry?
The modern black sports car ,3d ,render. Yet arguably, it is being disrupted but not from these players. But we will get to that later. The automotive industry is complex, capital-intensive, and highly competitive. It has been a long road to get where we are today. Ford was one of the first automakers in the USA to be formed in 1903, when 12 investors raised $28,000. In Europe, Daimler was formed around the same time in 1890 and sold the first contemporary automobiles, the Mercedes, in 1901. Since then, the Big Three, General Motors, Stellantis (formerly Chrysler), and Ford Motor Company have long dominated as the American car companies. In Germany, the Big Three have been Volkswagen, Daimler and BMW. A lot can be said about the positive progress and impact these companies have had on the GDP, job creation, and innovation. But when comparing this to the progress in market capitalization, there is a disconnect. The new kids on the block Shanghai,China-April 3rd 2024: Chinese customers at Xiaomi ev store test SU7 electric car Today the market cap for the USA 'Big Three' companies summed together is roughly $112 billion and for the German 'Big Three' it is $140 billion. This pales in comparison to the not-so-new newcomer (founded in 2003), Tesla, which has a market cap larger than all of those 6 companies combined, at ~$800 billion (even with the recent turmoil). And has survived the valley of death around 'scaling' and impressively sold ~1.8 million vehicles in 2023 (of the 17M global EVs sold). BYD was founded in 1995 and designed and sold their first car in 2005. This, similar to Tesla, is nearly 100 years after the first car companies in Michigan and Germany were formed! Yet, BYD has a market cap of ~$107B, equivalent to more than 2 of the 3 'Big Three' in the USA or Germany. Xiaomi was founded even later, in 2010, focused on smartphone devices, and only in 2021 was Xiaomi automobile founded. They recently just reached their 100,000th unit of their first production vehicle, the SU7. This pales in comparison to the production numbers at Volkswagen, where ~9M vehicles were produced in 2024. Yet Xiaomi has a market cap of nearly 3x that of Volkswagen. Surviving the valley of death How have these new kids on the block survived and apparently thrived, when so many others have not. Starting from the beginning, starting a new automotive OEM is monumental and requires billions – up to $1 billion alone for the vehicle R&D. Production of a new vehicle can cost between $1 billion and $5 billion (e.g., one capable of producing 20,000+ cars annually), tooling can add another $1 billion. This is all before the supply chain, sales and marketing, and working capital. To put it in perspective, new full-scale OEMs would need to raise $10-$20 billion to just join a ticket to the party. And surprisingly – or maybe not so, Tesla did exactly that. It did not hurt that Elon Musk was able to personally invest, he contributed $70 million since 2004 and this helped keep the company afloat during critical times such as the 2008 financial crisis. Turns out this was a good investment, as in November 2024, the shares of Tesla soared again reaching $1 trillion (valued more than Toyota, Ferrari, Porsche, GM, and Ford combined) and continued to increase until January, 2025 – but due to several months of turmoil it has fallen ~32%. And there is uncertainty about the future. Unicorn failure GENEVA, SWITZERLAND - FEBRUARY 26: A Lucid Air Pure fully electric EV car is displayed during the ... More Geneva Motor Show 2024 at Palexpo on February 26, 2024 in Geneva, Switzerland. The 2024 Geneva Motor Show opens today for the first time in five years. The event last took place in 2019 with the coronavirus pandemic forcing organisers to cancel the 2020 show just days before the show was due to open. This year's Show will be a smaller affair with just four major manufacturers confirmed to attend. (Photo by) There have been other companies successful in fundraising ~$1 billion, but their success has not followed the same path. Arrival, the British electric vehicle startup, raised over $1.3 billion during its development and was valued at $13 billion before going into bankruptcy. And this all happened before delivering a single electric van. Rivian raised a $1.3 billion round led by T. Rowe Price in 2019 and a $2.5 billion round in 2020, with major backers such as Amazon, Ford, and BlackRock. In total, Rivian raised over $10 billion prior to its IPO in 2021. It has a market cap of ~$13 billion. Recently, it created a joint venture with Volkswagen Group combined with a total investment of $5.8 billion. But in 2024, Rivian sold only ~51,600 vehicles. Lucid raised over $1 billion from Saudi Arabia's Public Investment Fund (PIF) in 2018, and more recently another $1.75 billion to secure runway for 2025. It has a market cap of ~$7 billion. Yet again in 2024, it sold only ~10,241 vehicles. Adding contrast again, GM sold ~6 million vehicles in 2024 worldwide and in their peak sold 10 million in 2016. It is safe to say that these newcomer OEMs are still in the scaling phase. And there are several other newcomer OEMs who have recently had a stop in the road, filing bankruptcy or are shortly before doing so. This includes companies like Faraday Future, which raised $2 billion since its founding in 2014. It has not formally declared bankruptcy but has consistently struggled with funding shortages and scaling production. Fisker Inc. raised significant funds, including through a SPAC merger in 2020 that brought in approximately $1 billion, but was not able to scale. There are other players such as Canoo, Lordstown Motors and Electric Last Mile Solutions, all raising significant cash – but somehow not enough to survive 'the death valley curve'. According to Joan Magretta, award-winning contributor to the Harvard Business Review and author, it could be as simple as ensuring the growth ambitions align with the right business model. This makes a lot of sense as the growth ambitions help secure the initial VC funding with a compelling vision and narrative, which led to many companies reaching unicorn status with valuations exceeding $1 billion. But often the start-up underestimates the costs associated with the challenges of scaling an OEM and eventually just runs out of cash. This is the nut that needs to be cracked. Being the fast fish is key to success LEIPZIG, GERMANY - MAY 6: Workers assemble the new all electric Porsche Macan at the Porsche ... More assembly plant on May 6, 2024 in Leipzig, Germany. The electric Macan is Porsche's second electric car after the Taycan. The company also offers two hybrid cars. (Photo by) But there is immense value in helping to ensure that new players do not just come on to the field, but stay to play, and disrupt – as they can help push the boundaries of innovation as shown in the software race and how Chinese newcomers are revolutionizing the customer experience. They can accelerate sustainability as shown with Tesla, which doubled down on an all-electric fleet from day 1. And can increase competition and consumer choice. Mobility is the backbone of economic growth, social connectivity, and sustainable development. It ties together commerce, urbanization, and technology. And this is true both in Europe and the USA with it representing about 14 million jobs and ~7% of the GDP and 10 million jobs and ~3% of GDP, respectively. In order to stay competitive, the Western incumbents have started considering to join forces with the newcomers (as shown with VW Group and Rivian). But this alone will likely not be enough. For newcomers to establish themselves and achieve commercial viability, they need a supportive ecosystem that fosters growth. Access to venture capital funding, state grants, loans, and tax incentives can provide the necessary financial boost. Beyond financial backing, technical expertise is critical. New OEMs must leverage experienced development and manufacturing partners to properly implement their innovations, scale production efficiently and take off into the right direction. Strategic investments from industrial players and tech giants can offer private growth capital that ensures long-term sustainability. It was nearly 10 years ago but couldn't be more true today as stated by Klaus Schwab, WEF, '… it is not the big fish which eats the small fish, it's the fast fish which eats the slow fish.' And in the automotive industry, it is time to do what cars do best - speed up!
Yahoo
18-05-2025
- Business
- Yahoo
France to unveil €37 bn in foreign investment at Versailles summit: presidency
France will announce 37 billion euros ($41.3 billion) in foreign investment on Monday as President Emmanuel Macron hosts more than 200 top executives at a business summit in Versailles, the French presidency said. Of the total, 20 billion euros are "entirely new" projects -- a record for the event, which drew 15 billion euros in commitments last year. The remaining 17 billion euros was announced in February and has now been finalised and tied to specific sites, the presidency added. Among the headline deals, US logistics giant Prologis is set to invest 6.4 billion euros in four data centres in the Ile-de-France region, according to the newspaper Le Parisien. Emirati investors are also committing 8 billion euros as part of a larger 50-billion-euro data infrastructure project, previously flagged in February, La Tribune reported. Amazon is expected to announce a 300-million-euro development, while Le Figaro reported four other major projects totalling 800 million euros. They include 90 million euros from German automaker Daimler to expand its electric bus plant in Ligny-en-Barrois and 450 million euros from US recycler Circ for a textile recycling facility in Moselle. The government also announced plans to reform the textile recycling sector, calling the current model "exhausted". Netflix chief executive Ted Sarandos told La Tribune that France remained "very important" for the platform. It has employed 25,000 French actors and technicians between 2021 and 2024 on productions including "Lupin", "Tapie" and "Sous la Seine". Macron will host several roundtables, including on artificial intelligence and energy transition. Attendees include South Korean executives, Mexican tycoon Carlos Slim, Stella Li of China's BYD, and the CEO of Saudi entertainment firm Qiddiya. Gulf sovereign wealth funds Mubadala, PIF and QIA will also be present, with Macron set to open the Paris office of the Saudi Public Investment Fund on Tuesday. od/srg/jj Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
15-05-2025
- Automotive
- Yahoo
Telsa rival Daimler Truck wants to know if Elon Musk's Semi EV can actually live up to the hype: ‘We'd love to get our hands on one'
The first Semis are scheduled for manufacturing in Tesla's Nevada factory at the end of this year, after eight years of development and validation. Rival Daimler Truck is waiting to see how the eHGV compares with its critically acclaimed Mercedes-Benz eActros 600. As Tesla inches closer to the start of volume production for its Semi early next year, industry leader Daimler Truck is keen to see whether the model can live up to its hype. First revealed in 2017, the electric heavy goods vehicle (eHGV) came with such demanding specifications at the time that Bill Gates himself doubted back in 2020 that they were even feasible. When it finally hits the market, the Semi will be the model with the longest development and validation time in Tesla's range, after Musk missed his original 2019 launch date. But recently, Tesla has been offering a glimpse into its Nevada factory, indicating confidence that it can move from field testing into what it calls 'first truck builds' by the end of this year. 'We'd love to get our hands on a Tesla Semi, and really test it,' Daimler Truck finance chief Eva Scherer told reporters on Wednesday. 'We haven't been able to, it cannot be ordered yet.' Tesla has enjoyed a first-mover advantage in the EV space for most of its existence. But legacy truck companies, particularly in Europe, have already been quietly selling EVs for several years now. Daimler isn't the only manufacturer with a headstart on Tesla, either. Swedish rival Volvo Trucks said last month that it has already sold over 5,000 zero-emission electric vehicles. But Tesla aims to surpass these volumes, with a Nevada factory designed to manufacture a peak output of 50,000 Semis annually. Depending on whether customers order a standard or long-range version, these vehicles will be capable of driving between 300 and 500 miles, or roughly 500 to 800 kilometers. While Musk plans to use the first Semis built internally before rolling them out to North American customers, project lead Dan Priestley has said a European launch will follow soon thereafter. Due to recent regulatory changes, the Semi will be street legal in Europe and compatible with local trailers, where it will compete with the Mercedes eActros 600 for demand. So, once the Semi launches next year, expect Daimler to stress-test Tesla's claims, such as a 1,700-kilometer drive completed in 24 hours. 'We keep hearing that it's supposed to be next year,' Scherer said. 'And yes, once it's there, we're interested to have a look.' Notably, her company—the largest manufacturer of HGVs in the world with brands like Freightliner—had cast considerable doubt on Musk's ambitious plans just last year. Daimler Truck is also waiting with a competitor of its own. In September, the group won the International Truck of the Year award with its Mercedes-Benz eActros 600, the German brand's first model designed specifically for long-distance hauling, with a range of 500 kilometers (311 miles). Early this year, Daimler Truck followed that up with the largest order for EV trucks Amazon has ever placed, with a commitment to purchase more than 200 units of the eActros 600 (the number designates its battery capacity in kilowatt-hours) over the course of this year. Since diesels have long been considered the most economical option for long-haul freight transport, eHGVs have mainly earned a spot in last-mile transport. In that segment, the expensive batteries can be smaller but still sufficient in size to last the full day before recharging at the end, once they return to the depot. When Musk took the stage in 2017, he claimed the Semi would be so good at long-haul transport that it would be 'economic suicide' for logistics firms to choose anything else. Even in what Musk claimed was a worst-case scenario, a diesel truck would still be 20% more expensive to operate per mile than his Semi. 'This beats rail,' the entrepreneur said, should they operate in convoy. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Automotive
- Yahoo
Daimler Truck expects Q2 North American orders to be roughly on Q1 levels
By Amir Orusov and Ilona Wissenbach (Reuters) -Daimler Truck, one of the world's biggest truckmakers, told analysts on Wednesday that second-quarter orders in its Trucks North America segment will be roughly on par with the first quarter levels. Late on Tuesday, the company cut its full-year operating profit and revenue forecast, reflecting lower expectations for its North American business on heightened demand uncertainty due to U.S. duties. The effect of U.S. tariffs on first-quarter profitability was minor, chief financial officer Eva Scherer said on the call, adding the impact was mainly on demand. Profitability is ensured for the North American segment in the second quarter though lower than in the first quarter, Scherer said. However, the order books for the second half of the year was not filled yet and the company needed a stronger order momentum, she added. In April, Daimler's peer Traton said U.S. truckers were deferring orders over fears of a global recession, while Swedish Truck maker Volvo cut its North America truck market outlook amid tariff-related uncertainty. As for the U.S.-China trade deal slashing reciprocal tariffs, it is too early to predict but the deal may be positive for orders in the second quarter, Scherer said. Commenting on the billion-euro cost-cutting programme launched in March, Scherer said the company booked a provision in the mid-three-digit million euros range in the second quarter. The truckmaker has already received the necessary approval to reduce personnel-related costs and increase flexibility of the German locations, the company said in a press release. As for the European market, Daimler Truck prioritizes profitability over the market share, the finance chief said, adding the company did not want to regain the lost market share in Europe through excessive incentives. Sign in to access your portfolio
