Report: Climate Change vs. Carmakers
Report: Automotive headwinds align into a perfect storm
The merger attempt by FCA and PSA will be complicated but makes economic and operational sense, including for investing in technology and systems. Whether or not it goes ahead, more consolidation is likely as the automotive industry gears up for electrification
The pace at which PSA Group and Fiat Chrysler Automobiles appear to have agreed a deal to merge and create the world’s fourth largest carmaker is remarkable, with an agreement in principal hammered ou in just a few days.
Although hurdles remain before a final merger, that speed belies a growing urgency across the automotive industry. In the face of mounting pressure to invest in new technology, notably electrified powertrains, expensive fines over emissions, and the risk of a prolonged slowdown in global vehicle sales, traditional automotive players need to gain even more economies of scale and pool risk to make these transitions – if not to survive.
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BMW will lead a consortium that is developing bidirectional charge management (BCM), a means to intelligently integrate electric vehicles into the energy system.
A squeeze on automotive suppliers, together with the adaptation of new technology, will lead some major players to play a bigger role in overall vehicle development cycles, especially in shaping customer user experiences
As OEMs and automotive parts suppliers see their margins decline, cost pressures are going to increase on logistics operations and service providers further down the supply chain
BMW has sharply increased the amount of batteries it plans to buy from China’s CATL, underlining its expectations of strong growth in electric vehicle (EV) sales in the next decade.
Tesla will build a car factory as well as an engineering and design center in the greater Berlin area, Elon Musk, CEO of the US electric car maker said Tuesday evening.
After Fiat Chrysler and the Renault called off talks earlier this year, FCA is now set to merge with PSA and form the world’s fourth-largest automotive group.
