Trade News

Volkswagen Group's potential listing of Porsche would be another signal that the ongoing upheaval of the auto industry is picking up pace.

The German industrial giant and other incumbents have navigated a global pandemic far better than initially feared, posting robust profits and ample amounts of cash flow. Even still, their valuations are stubbornly low compared with Tesla Inc.

No automotive CEO has lamented this as openly and frequently as VW's Herbert Diess, who routinely makes headlines by emphasizing the urgency with which VW must move to transform itself. Exploring a Porsche listing is a nod to that need and will be a litmus test of sorts for its future.

"There's a loss of power due to the low valuation, which Diess has complained about in the past, and that's a significant disadvantage," said Bankhaus Metzler analyst Juergen Pieper. "An IPO of Porsche would be the silver bullet."

Porsche's appeal is obvious to investors.

Bloomberg …

TOKYO -- Honda said CEO Takahiro Hachigo will step down and will be succeeded by Toshihiro Mibe, the head of the automaker's research and development arm, on April 1.

Hachigo will remain on the board, Honda said in a statement on Friday.

Mibe, 59, joined Honda in 1987, with stints in engine development and the drivetrain business. He became the president of Honda's R&D unit in 2019, working with Hachigo to push through structural reforms.

Mibe's appointment comes as Honda races to catch up in the field of all-electric cars and faces competition from new entrants and tech giants such as Tesla, Apple and Amazon.

Traditionally known for its fuel-efficient internal-combustion engines, Honda launched the Honda e, its first mass-produced all-battery vehicle, last August. It has said it wants new-energy vehicles such as plug-in hybrids and fuel-cell cars to make up two-thirds of its sales by 2030.

During his six years as CEO, Hachigo so…

PARIS -- Renault posted its biggest full-year loss on record as restrictions to contain the spread of the coronavirus decimated car sales in its key market of Europe.

The automaker reported a net loss of 8 billion euros ($9.7 billion) for 2020, worse than the 7.85 billion euro-deficit forecast by analysts. Much of the damage was done during the first half, when lockdowns crippled auto shipments.

"2021 is set to be difficult given the unknowns regarding the health crisis as well as electronic components supply shortages," CEO Luca de Meo said in a statement on Friday. "The priority is profitability and cash generation."

Renault said business improved significantly during the final six months of last year, when it generated an operating margin of 3.5 percent and positive automotive operational free cash flow.

De Meo took over in July after his predecessor was ousted as part of the fallout from the arrest of former leader Carlos Ghosn. He is now push…

NEW DELHI/DETROIT --  Ford Motor Co. has frozen all projects it was working on with Mahindra & Mahindra while it finalizes a new India strategy, three people familiar with the U.S. automaker's plans told Reuters, weeks after the two companies called off their planned joint venture.

"The options could include working out a new relationship with Mahindra or ending the relationship and related vehicles completely," one of the people said.

The two other people said they expect Ford to make a decision in about a month on whether to proceed with Mahindra in a different form or not, adding Ford CEO Jim Farley wants to see a path to greater profitability in India.

Ford and Mahindra had proposed a joint venture to develop at least three utility vehicles for India and emerging markets, as well as share suppliers, powertrains and technology. The $275 million deal, which would have ended most of Ford's independent operations in India, was called off in Dec…

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

Dave Sargent, vice president of automotive quality at J.D. Power, discusses the firm's latest U.S. Vehicle Dependability Study. He says the industry performed well overall, with a 10 percent reduction in problems reported from last year.

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WASHINGTON -- More than a dozen business groups representing automakers, medical device makers and manufacturers sent a letter to President Joe Biden on Thursday calling on him to work with U.S. lawmakers to provide federal funding for the construction of new chip factories.

The groups, which include the U.S. Chamber of Commerce as well as industry-specific associations representing General Motors, Caterpillar Inc. and Medtronic PLC, among others, sent the letter as a shortage of semiconductors continues to disrupt U.S. automobile factories and threatens to lower the automakers' profits by billions of dollars.

A group of chipmakers last week sent a similar letter. Congress authorized programs last year to provide subsides for chip research and factory construction, but U.S. lawmakers still need to provide specific funding for the program.

"To be competitive and strengthen the resilience of critical supply chains, we believe the U.S. needs to incentivize …

Toyota Motor North America said it will invest $210 million into its engine and transmission plant in Buffalo, W.Va., to expand production of I-4 engines there, adding 100 jobs and a third shift at the plant.

The additional production capacity is expected to begin in the second half of 2022, and the added jobs will bring employment at the plant near Charleston, W.Va., to more than 2,000, the automaker said in a Thursday statement.

The investment will be used to upgrade the plant's current six-cylinder production line with additional equipment and machinery to make it more flexible, the automaker said. The additional jobs will allow the plant to boost engine production for the RAV4 by 5,900 engines per month.

The 25-year-old plant was originally championed by former U.S. Sen. Jay Rockefeller, D-W.Va., through his longtime friendship with the Toyoda family.

The plant annually produces nearly 1 million engines and transmissions for vehicles assembled…

BEIJING -- Search engine giant Baidu and automaker Geely hired Mobike co-founder and former chief technology officer Xia Yiping as CEO of their new electric vehicle venture, according to two people with knowledge of the matter.

Baidu last month announced it would set up a company with Zhejiang Geely Holding Group to leverage its intelligent driving capabilities and Geely's car manufacturing expertise.

On Thursday, Baidu CEO Robin Li said they had appointed a CEO for the venture, without disclosing the name. He also said they had decided on a brand and would try to launch a new EV model in around three years.

The sources declined to be named as the information was not yet public. Baidu declined to provide immediate comment while a Geely spokesman said he was not familiar with the appointment. Xia did not immediately respond to a request for comment.

Xia served as Mobike's chief technology officer until the company was acquired by food delivery gian…

Volkswagen Group is considering a separate listing of its Porsche sports car brand in a deal that could boost its valuation, according to people familiar with the matter.

VW is speaking with advisers to study the merits of a potential initial public offering or spinoff of Porsche, the people said, asking not to be identified discussing confidential information.

VW could use any proceeds from a listing for acquisitions or technological investments, according to the people.

A listing of Porsche could take place next year, though no firm timetable has been decided, the people said.

VW plans to keep a majority stake if it pursues an IPO of the business, according the people.

Deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said. VW declined to comment.

Citing company insiders, Manager Magazin reported earlier Thursday that VW is weighing a listing of Porsche in a move that could raise 20 bil…

PARIS -- Nissan will lift recent investments in its British plant to more than 1 billion pounds ($1.4 billion) in the next few years as it rolls out greener technology such as its e-Power full hybrid drivetrain, the company said as it showcased its latest Qashqai car on Thursday.

The automaker decided in 2016 to build the vehicle in Britain at its Sunderland factory in what was seen as a key vote of confidence just months after the Brexit referendum raised uncertainty over its trading relationship with the European Union.

On Christmas Eve last year London and Brussels struck an agreement that allows for tariff-free trade as long as local content thresholds are met.

Nissan said in January it would source more batteries in Britain as a result, and on Thursday its Europe boss Gianlucca de Fichy told reporters it planned further investment.

"We've invested over 400 million pounds so far in our English factory, and we are planning over the coming years…

BERLIN -- Robert Bosch will work with Microsoft on a software platform for vehicles, the German supplier said Thursday.

By using cloud technology, the software platform will ensure that vehicles' control units and computers can get software throughout their lifetime, Bosch said in a statement.

The technology is based on Microsoft Azure and includes software modules from Bosch, the supplier said, adding that they plan to use the software platform in vehicle prototypes by the end of 2021.

"We are thus creating the conditions for wireless updates to work just as smoothly and conveniently on vehicles as they do on smartphones," said Bosch Managing Director Markus Heyn.

The companies will also cooperate to adapt existing software tools to let automakers and suppliers simplify and accelerate their own software updates.

Last week Volkswagen Group announced a similar cooperation with Microsoft to use its cloud computing services to help it streamli…