Tuesday Ticker: July 19, 2022

Toronto, Ontario — Looking for your global auto inventory report? Look no further! In this weekly Tuesday ticker, Volkswagen is boosting its electric vehicle deliveries; ex-Nissan exec does post-mortem on OEM’s EV strategy and Porsche prepares for possible IPO.

Volts-wagen

Volkswagen is pushing its emissions-free offerings and seeing the returns, as the German automaker managed to deliver 217,100 battery electric vehicles (BEVs) in the first half of 2022, marking a total increase in deliveries of 27% compared to the same period of a year. earlier.

BEV adoption, in general, is also up across the board for VW, reporting that emissions-free vehicles now account for 5.6% of the company’s total deliveries, up from 3.4%.

These advancements by Volkswagen come amid ongoing supply chain bottlenecks in Europe, as well as the resurgence of COVID-19 lockdowns in China, which have strained production and delivery across the country. respective markets.

“We successfully continued our electric ramp-up despite difficult conditions, especially in the second quarter,” said Volkswagen Group Board Member Hildegard Wortmann.

“Demand remains strong and we expect the supply situation to improve in the second half of the year. BEV deliveries in June have already shown a clear upward trend to reach the monthly levels of the fourth quarter of 2021.

“We are working intensively to reduce the high order backlog and lead times for our customers and are committed to achieving our goal of a BEV share of 7% to 8% for the full year.”

Notes for Nissan

With news that the automaker’s former flagship EV will be discontinued in the next model year, a former Nissan executive has come out to talk about the late Leaf and where the company got EVs wrong.

Andy Palmer, a former Nissan executive who led the development of the automaker’s first all-electric vehicle, the Leaf EV, in 2011, spoke at a panel last week where he said that if the company had taken a different route, Nissan could have been where Tesla is in the EV market.

“For some reason Nissan didn’t stay on the electric track,” Palmer said. “If they had, there was a very clear deployment plan for [electric] cars. If they had followed that, they might have had a similar valuation to Tesla.

He said the high cost of the Leaf to consumers and to Nissan led the company to decide that “discontinuing the electric strategy improved the company’s profitability”. Palmer attributed the uncertainty surrounding the future and profitability of electric vehicles at the time as one of the main causes of hesitation on Nissan’s part.

“Nissan wasn’t just losing on the Leaf, it wasn’t even covering material costs,” Palmer said. “When we started, we were paying $1,000 per kilowatt hour. Now it’s more like $150.

The company plans to fill the gap left by the Leaf with a small coupe-style crossover that it says will be three times as popular as its spiritual predecessor.

A prize for Porsche

The Volkswagen Group plans to list Porsche to the public via an initial public offering (IPO) later this year, with the decision to fund the future of OEM in electric vehicles.

Porsche’s parent company flaunted the possibility of an IPO earlier this year. However, VW chief financial officer Arno Antlitz recently suggested the luxury brand will go ahead with a Q4 listing as the unit has “proven to be resilient to market disruptions over the years”. , including in recent supply chain turmoil.

“We are optimistic that we can continue [the Porsche IPO] in the fourth quarter,” Antlitz said at the Munich Reuters Automotive Europe conference. “Porsche would gain entrepreneurial freedom, we can expect a lot from them.”

Bloomberg thinks Porsche could offer one of the largest IPOs in German history, with an estimated valuation of 118 billion Canadian dollars, or 90 billion euros.

The Volkswagen Group has already stated its goal of beating Tesla’s electric vehicle sales by 2025⁠, a goal that is expected to include the group’s luxury brands.