Latest news with #Schuster
Yahoo
a day ago
- Automotive
- Yahoo
Volvo's little-used U.S. assembly plant is $1.4 billion migraine
The sprawling U.S. assembly plant that Volvo Cars powered up in the summer of 2018 signaled a bold ambition to expand into the world's second-largest auto market. But seven years later, Volvo has failed to capitalize on the $1.4 billion investment. Sign up for Automotive News' daily podcast series featuring interviews with industry leaders, insiders and our journalists. The 2.3 million-square-foot factory in Ridgeville, S.C., about an hour northwest of Charleston, was designed to turn out 150,000 vehicles annually. According to Automotive News Research & Data Center estimates, Volvo built 20,000 vehicles there last year — 13 percent of its capacity. Production of the S60 sedan ended a year ago, leaving just two electric crossovers: the Volvo EX90 and Polestar 3. 'Auto assembly plants require a utilization rate of at least 50 percent to break even,' analyst Jeff Schuster said. Volvo's industrial predicament can be traced to poor product decisions and a mistimed bet on electric vehicles. The factory was challenged from the start as Volvo struggled to find skilled production talent in a largely rural area of South Carolina. There also has been churn in plant leadership. Given the factory's sustained losses, coupled with a more recent slump in Volvo's global sales and financial performance, some question whether the Swedish automaker has the financial firepower to persist with its U.S. manufacturing effort. 'Volvo can minimize the damage by cutting shifts and slowing the lines, but it doesn't reduce the fixed costs,' Schuster said. If Volvo is having second thoughts about U.S. production, it's not showing them. Volvo is 'fully committed' to the South Carolina plant, a spokeswoman said in a statement. She described the industrial operation as a 'key strategic advantage' in Volvo's plan to 'build where we sell.' To boost factory utilization, Volvo is considering building a higher-volume model, potentially the midsize XC60 hybrid crossover, in the U.S. 'We want to bring in something rather fast, and something selling in good numbers, so something midsize core is a good guess,' Volvo Cars CEO Hakan Samuelsson said in mid-May. However, that would require pouring several hundred million dollars more into the factory. 'The question Volvo has to ask internally is: If we do this, is it the right plan that gets the plant to where it needs to be in volume?' Schuster said. 'Or, do we cut our losses now?' It's a valid question as a global sales slide taxes Volvo's balance sheet. The automaker, which is majority-owned by China's Geely Holding, reported a 60 percent plunge in first-quarter operating income. Volvo has lost more than two-thirds of its value since its 2021 initial public offering and has become a target for short sellers. In May, the company announced a corporate restructuring to cut expenses by 1.5 billion Swedish crowns ($140 million). The automaker will jettison about 15 percent of its salaried workforce. President Donald Trump's 25 percent tariff on imports creates an existential crisis for Volvo, which ships in 90 percent of the vehicles it sells in the U.S. Yet, it also gives Volvo a reason to keep the lights on in South Carolina. Samuelsson sees Trump's tariffs as an opportunity to revive production in the U.S. Globalization is being 'dismantled,' Samuelsson said April 3 during the automaker's annual general meeting. 'To get around these high 25 percent import tariffs, we need to look at localizing more, increasing the volumes in the factory, and getting the volumes up to get the cost down,' Samuelsson said. Analyst Sam Fiorani suggested that it would be prudent for Volvo to make the additional investment and build the 'right products' in South Carolina, rather than walking away from its U.S. manufacturing investment so early. 'With the current tariff climate, Volvo could find it challenging to continue in the U.S. profitably without domestic production,' said Fiorani, vice president at AutoForecast Solutions. Production in South Carolina began with the third-generation S60 in a market that was shifting away from sedans. Automotive News estimated that the factory made nearly 40,000 sedans at the peak in 2019. The S60 'was the wrong vehicle for the market,' Schuster said. 'Not that there isn't a market for sedans, but you're not going to get the volume required to get up to capacity.' Volvo had planned to build the XC90 large crossover — a vehicle more in tune with the U.S. — in Charleston in 2021. But that plan got derailed when Volvo pivoted toward an all-electric strategy to capitalize on post-pandemic demand and government backing of zero-emission vehicles. Last year, Volvo began building the battery-powered EX90 at the U.S. plant, followed by the Polestar 3. That bet also proved to be wrong once early demand for EVs fizzled. Volvo eventually backed off its EV-or-bust strategy to instead lean on its more practical plug-in hybrid models. 'Volvo established the plant with a plan to grow as the market and the brand transitioned to electric vehicles,' Fiorani said. 'But the EV market has not developed to the level the automaker planned for.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Bayern back on top as Schick shines brightest: the Bundesliga season review
Team of the season It's Bayern Munich, despite Mainz and Freiburg, unexpected troublers of the European places, deserving praise for their stratospheric improvement from 2023-24. The Rekordmeister is rarely more provoked than when presented with serious opposition, and Xabi Alonso's Bayer Leverkusen had done just that with last term's domestically unbeaten double-winning exploits. Leverkusen were still excellent but could simply not match Bayern's pace in the end. They played with dazzle but Vincent Kompany also did the one thing that was beyond Julian Nagelsmann and Thomas Tuchel in beginning to sort out Bayern's leaky defence, conceding their lowest total in the Bundesliga (32) since Hansi Flick's treble-winning season of 2019-20. He also made them competitive in the Champions League, in which they were unlucky to lose to Inter. Player of the season There can be reasonable shouts for Bayern's Michael Olise in a stellar first Bundesliga season, his teammates Harry Kane and Jamal Musiala, Mainz's Jonathan Burkhardt (whose brilliant season propelled him into the Germany side), Serhou Guirassy in continuing to score consistently domestically and continentally for Borussia Dortmund as their season fell apart – all while acknowledging that it probably would have been Omar Marmoush had he not left Eintracht Frankfurt for Manchester City in January. Advertisement The prize, though, goes to Patrik Schick, a player whose body has consistently rebelled against his elite talent but who was Leverkusen's motor through much of a season when few thought he would be a key player. Schick scored 21 Bundesliga goals despite starting only 19 matches (albeit with 12 substitute appearances tacked on) and they were, as per his varied palette, goals of all sorts, with left, right and head. As with last season, he had his share of clutch moments, notably the stoppage-time winner in the comeback victory at Stuttgart in March, as well as a brace in the win at Dortmund. It was a delight to see him at his best again. Coach of the season While Kompany's first season worked well and Bo Henriksen transformed Mainz, there can only be one choice: Freiburg's Julian Schuster began the campaign with an impossible job in succeeding Christian Streich – the Bundesliga's longest-serving coach, club legend after almost three decades of continuous service, perpetual overachiever and beloved philosopher – when stepping into his first head coaching role. He missed out on Champions League qualification on the final day but returned the Black Forest club to the Europa League with 13 points more won than in the previous season; a remarkable achievement. Schuster was modest about his efforts, handing Streich much of the credit after that final-day loss to Eintracht Frankfurt. 'What I was able to learn from Christian is still deeply embedded in me,' he said, 'and without him I wouldn't be sitting here.' The club's chief financial officer, Oliver Leki, spoke for many when he said Schuster 'was already a bit of a coach as a player' and while the club deserves credit for having plotted the succession plan so well, the rave reviews Schuster gets from his players says all that needs to be said. Game of the season Get ready to catcall; the Leverkusen-Bayern goalless draw in February stands out. It was the game that the title race hinged on, with Florian Wirtz's incredible miss in stoppage time allowing Bayern to escape with a draw and to have the breathing space that defined the rest of the title race. It had been an exhilarating match (despite the lack of goals), run by Wirtz, dominated by Leverkusen from start to finish and a testament to their remarkably high standards when a significant drop-off from their historic double-winning season would have been understandable. Advertisement If goals are more your thing (which is forgivable) then Holstein Kiel's 4-3 win over Borussia Mönchengladbach – their 4-2 win over Dortmund in January was in with a shout as well – in which they lost a two-goal lead and a 3-2 lead before the excellent Shuto Machino hit the winner in stoppage time, was thrilling. Kiel were one of the high points of the season, top-flight first-timers and heavy favourites to be relegated before a ball was kicked yet competitive for most of the campaign and the Michael Myers of the Bundesliga season who kept coming back even when it looked as if they were done, until the drop was confirmed in their penultimate game. Goal of the season Here comes our first bit of rule-bending. Olise's solo goal against Shakhtar is not a Bundesliga goal, having come in the Champions League, even if it was scored by a Bundesliga team on a ground (with the Ukrainian club playing this season's European games at Schalke) but it demands mention, with the France international gliding through a host of defenders before sitting the goalkeeper down and stroking the ball home. If we want to be more strict, let's go back to the first goal of the Bundesliga season because there is nothing quite like a Granit Xhaka piledriver from range, this one coming against his former club Mönchengladbach. Shock of the season Arminia Bielefeld had a Rolodex of them. While winning the Michél Kniat's team knocked out four Bundesliga sides on their way to the DFB Pokal final in Berlin – most notably Leverkusen, who were unbelievably denied the season consolation prize of retaining the cup by Maximilian Grosser's back-post volley on an unbelievable April night in the semi-finals. Arminia couldn't quite get it done against Stuttgart in the final (though they did hit the woodwork at 0-0 before the Swabians took control) but it has still been a historic season for the club. Comeback of the season Dortmund's rally from 10 points behind the top four with eight games left to snatching a Champions League place on the final day was special (Lars Ricken dizzily claimed Niko Kovac's work was 'one of the greatest coaching achievements in the history of BVB'), but the return of Friedhelm Funkel was even more out of leftfield. The 71-year-old stepped back into the FC Köln head coach's position with two games of the second-tier season left and Effzeh wobbling within sight of the finishing line, which led to the dramatic double sacking of coach Gerhard Struber and sporting director Christian Keller. They won the last two, clinched the title and with the party clear-up still ongoing Funkel was off again, seemingly piqued that the board were hesitating over offering him the permanent position for next season. It was fun anyway, totally in keeping with the mania of the club – and Funkel made €250,000 for his brief intervention of a third spell there. Quotes of the season
Yahoo
27-05-2025
- General
- Yahoo
Jewish leader calls for 'caution' as German criticism of Israel rises
The Central Council of Jews in Germany has called for "caution" amid mounting German criticism of the Israeli military's actions in Gaza. "I call for caution in the debate: Politicians should avoid using anti-Semitic narratives that relativize hatred of Jews by referring to Israel's conduct of the war," Central Council President Josef Schuster told dpa on Tuesday. Schuster said he did not oppose Chancellor Friedrich Merz's rare rebuke of the Israeli government on Monday, agreeing that "civilian casualties must be minimized as much as possible and humanitarian aid for the civilian population in Gaza is necessary." But he warned that the fight against the Hamas "terrorist militia" is existential for Israel, and said that Jews in Germany must not be collectively made responsible for the Israeli military's actions. "This exonerates all the Jew-haters who follow precisely this anti-Semitic logic," said Schuster. "The result is a normalization of Israel-related anti-Semitism, which worries the Jewish community in Germany." "In this fight, Germany must stand unwaveringly by Israel's side," he added. Schuster said Hamas bears responsibility for the suffering in Gaza, and could end it by releasing the hostages and laying down its weapons.
Mail & Guardian
26-05-2025
- Business
- Mail & Guardian
South Africa's biggest polluters accused of derailing climate policy for 20 years
South Africa's largest corporate polluters have worked persistently over the past two decades, in public and in private, to derail an effective climate policy response by the government, according to non-profit shareholder activism organisation Just Share. South Africa's largest corporate polluters have worked persistently over the past two decades, in public and in private, to derail an effective climate policy response by the government, according to non-profit shareholder activism organisation The group has released a new 'Various aspects of our work … over the past five years have strongly indicated that business was influencing the evolution of climate policy,' 'We wanted to understand the degree of that influence and establish an evidence-based account of its impact.' She said the two Acts have been 'the targets of persistent industry intervention'. Just Share used corporate submissions on legislative processes and records of industry's private meetings with the government, which were largely obtained via requests under the Promotion of Access to Information Act. This demonstrated how industry interventions, predominantly via '… What is actually striking is how much we can't see, especially when it comes to the bilateral meetings between government and high-emitting companies, which remain hidden from public view and knowledge, unless specific requests for this information are made. Even then, we have no idea whether we are getting the full picture,' Schuster said. While the report is by no means a comprehensive record of government and business interactions, 'even so, it demonstrates a clear pattern of influence'. Resisting regulation The implications of corporate influence are profound. 'The failure of the government's climate policy response to drive meaningful greenhouse gas emission reductions by big polluters means that the just transition to a low-carbon economy is not supported by a robust regulatory framework, which holds emitters accountable,' the report said. This threatens to leave South Africa 'economically vulnerable, environmentally compromised and increasingly out of step' with global efforts to mitigate climate change. Major polluters with powerful financial incentives to maintain the status quo inevitably resist regulation aimed at forcing them to internalise the social and economic costs of their operations — costs which are often borne by the rest of society, especially the poorest and most vulnerable. 'It is the government's role to stand firm in the face of such resistance and to develop effective regulation, which addresses this profound injustice. But, as this report demonstrates, [the] government is susceptible to industry pressure. 'The corporate actors responsible for the pushback against climate regulation do not act for the benefit of the majority of South Africans but instead represent a narrow set of elite vested interests.' Their historically powerful role in the economy, and the access that this affords them to policymakers, means that a 'cohort of major polluters dominates the national economic dialogue' and appears to have succeeded repeatedly in persuading the government to roll back its progressive climate-related policy initiatives.' This success has been reinforced by the absence of any significant countervailing action from other local businesses, which stand to be severely affected if the country fails to decarbonise. This includes the automotive, agricultural, tourism and insurance sectors and the renewable energy industry. 'These industries do not appear to play any significant role in engaging the government on climate policy, leaving industry associations representing the interests of high emitters to set the agenda, and establishing major polluters as the arbiters of what constitutes acceptable climate progress,' the report said. Schuster said industry associations play a crucial role because they allow individual companies to project their public commitment to positive climate action while they are able to act on their behalf and take positions that might contradict these. 'The industry associations are not bound by the same transparency requirements as companies are. They don't face shareholder or customer pressure and, crucially, they can speak within a unified voice, which obviously is much more influential with the government.' Economic hostages The report said industry players opposed to climate action have mastered the art of 'economic hostage-taking' through inflating their contributions to society and ignoring the damage they cause, while creating a false dichotomy between climate action and economic prosperity. The carbon tax, initially proposed in 2006, has been systematically weakened over time in the face of consistent industry opposition. 'Consequently, the effective carbon tax is one of the lowest in the world … and has achieved neither the internalisation of the cost of emissions by big polluters nor a meaningful reduction in greenhouse gas emissions,' the report said. After repeated extensions of the low-rate, introductory 'phase 1', South Africa's carbon tax, is now set to continue to allow up to 85% to 95% of tax-free allowances to remain at least until 2031. Between December 2024 and January, following the release of the treasury's discussion paper on phase 2 of the tax, Sasol had three private meetings with it, the report said. When the now defunct March budget review was released, the most important proposals for increasing the effectiveness of the carbon tax in phase 2 had been abandoned. Similarly, after at least a decade of preparation, the first Climate Change Bill was released for public comment in 2018. Also 'the subject of protracted opposition from industry', the Climate Change Act was only promulgated in 2024 and became operational in March 2025. The report said that, not only have key provisions of the Climate Change Act not commenced, but high emitters have successfully lobbied to eliminate criminal penalties for exceeding carbon budgets. Corporate narrative Corporate actors have persistently driven a narrative which appears to have had a significant impact on policy outcome. This is characterised by three themes, which are 'deployed repeatedly over time', Schuster noted. The first theme is 'positive contribution framing', where industry positions itself as essential to jobs, growth and the economy, and 'then threatens that regulation making its life more difficult will have catastrophic impacts on these things'. The second is developing country framing. Here, it argues that South Africa is only a small emitter and should not be a leader in climate action to the detriment of their industry. 'Finally, is the pace and scale framing where industry acknowledges that a transition is necessary but again that Schuster said each of these arguments that industry uses is 'politically potent' and together they manage to frame climate action in opposition to development goals, 'wilfully ignoring that the transition is about growth and development that replaces the current high unemployment, high poverty, coal-based economy with one that is more just and sustainable'. Critical reforms The scale and success of corporate influence is undeniable and yet most of it remains invisible, Schuster added. 'This imbalance has real consequences. South Africa's climate policy is not achieving its goal of reducing emissions and implementing the polluter-pays principle and it's ordinary people, especially the poor and vulnerable, who will bear this cost.' The development of climate policy has been fundamentally imbalanced, allowing corporate interests to consistently override public interests in effective climate action. 'The success of high emitters in weakening climate policy now threatens the competitiveness and the stability of the entire economy.' This, however, is not an inevitable outcome, she emphasised. Just Share is calling for greater transparency in government dealings with industry, inclusive policymaking that elevates marginalised voices and evidence-based policy impact assessment that is free from corporate interference. Without these changes, South Africa's climate policies will continue to serve elite interests 'at the expense of people and the planet'. Sasol noted the release of Just Share's report and said it would study it further, while Business Unity South Africa had not responded to the Mail & Guardian by the time of publication. Minerals Council South Africa spokesperson Allan Seccombe said it acts as the principal advocate for mining in the country in engagements with the government on policy, taxes and other areas affecting mining. 'The Minerals Council seeks to create, in partnership with key stakeholders, a conducive policy, legislative and operating environment that facilitates growth and investment to grow the mining industry for the benefit of the economy and all South Africans,' he said. He added that the council participated in workshops and provided data and responses 'to the challenges we were facing as an industry and as broader business' and its members were supportive of climate action within the national context and compliant with relevant laws. 'The Minerals Council has supported critical reforms that reduced load-shedding and accelerated renewable energy adoption,' Seccombe said. He added that the mining sector is leading South Africa's energy transition, with about 16 000MW of embedded renewable energy projects with an investment value of R275 billion, according to data from Operation Vulindlela, a joint initiative of the presidency and treasury to accelerate the implementation of structural reforms and boost the economy. 'These investments enhance energy reliability, lower operational costs and drive sustainability, aligning with both national and global decarbonisation goals.'
Yahoo
26-05-2025
- Politics
- Yahoo
North Korea arrests four over failed warship launch as images show vessel shielded from prying eyes
North Korea has arrested four people it claims bear responsibility for a launch accident last week that left leader Kim Jong Un's newest warship lying on its side and partially submerged in a shipyard, state-run media has reported. The four people detained included Ri Hyong Son, vice department director of the Munitions Industry Department of the Party Central Committee, 'who was greatly responsible for the occurrence of the serious accident,' a report from the Korean Central News Agency (KCNA) on Monday said. On Sunday, KCNA said three others had been detained: Kang Jong Chol, chief engineer of the Chongjin Shipyard where the accident occurred, Han Kyong Hak, head of the hull construction workshop, and Kim Yong Hak, deputy manager for administrative affairs. Kim last week called the botched launch, which he witnessed, 'a criminal act' and vowed to punish those responsible. Last Wednesday's accident resulted from a malfunction in the launch mechanism that caused the stern of the as-yet unnamed 5,000-ton destroyer to slide prematurely into the water, crushing parts of the hull and leaving the bow stranded on the shipway, KCNA reported on Thursday in a rare admission of fault from an otherwise highly secretive state. State media reported on Friday that the damage to the warship was less than North Korea's initial estimate, saying there were no holes in the hull, although it was scratched along the starboard side. It also said 'a certain amount of seawater flowed into the stern section.' Repairs could take about 10 days, the report said. Though analysts are skeptical. Kim had ordered the destroyer to be restored before the late June plenary session of the ruling Workers' Party, calling the matter one of national honor. Satellite imagery shows most of the warship covered in blue tarps at the launch site, making it difficult for experts to determine the full extent of the damage it suffered. But analyst Carl Schuster, a former US Navy captain, said repair work could take up to six months, well beyond Kim's June target. 'If the hull damage extends across the ship's port side covered by the tarp, then we are looking at four to six months of repair work,' he said. Repairs could be complicated depending on the amount of sea water that entered the warship, according to Schuster. The interior of the ship would need to be thoroughly flushed with fresh water and then dried to prevent 'salt crust' from forming on metal surfaces, he said. 'If it gets into joints and things, then it becomes destructive,' Schuster said. But the flushing work cannot begin until the ship is righted and any holes in the hull are patched, he said. KCNA reported Monday that 'the work for completely restoring the balance of the warship is being actively conducted,' but it did not give a timeline. Satellite images from Maxar Technologies taken Sunday and supplied to CNN showed the ship still on its side, still mostly covered in blue tarps as smaller boats swarmed around it. South Korean lawmaker and defense analyst Yu Yong-weon said last week that rushing the launch of the ship likely led to the problems encountered on Wednesday and warned hasty repairs could cause more problems down the line. Schuster echoed that thinking, saying optics may be more important than military value to the Kim regime. 'If Kim Jong Un says, 'I want that ship fitted out in six months,' they'll take shortcuts to make it happen. And usually when you do that you wind up with a ship that's not, shall we say optimal for operations? But it meets the propaganda criteria.' CNN's Yoonjung Seo and Gawon Bae contributed to this report.
