AD #3942 – Volkswagen Strike Becoming More Likely; Northvolt Files for Bankruptcy; Ram Reconsiders Mexico Expansion

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

VOLKSWAGEN STRIKE BECOMING MORE LIKELY
We don’t like seeing what’s going on in the European auto industry right now as the disruptive changes that we’ve been warning about here for years are really starting to hit home. And we hate to say it, but this is just the beginning. Let’s start with Volkswagen, where the situation in Germany with its union IG Metall is getting to be pretty tense. The latest round of negotiations ended with both sides far apart on how to cut costs. Up to now, workers were prohibited by their labor contract to go on strike, but that only holds until November 30th. And after that, IG Metall will likely start staging walkouts to pressure Volkswagen at the negotiating table. But both sides are far apart. VW wants to close plants and lay off workers, while the union is offering to forego future pay raises. They start negotiating again on December 9th, but we think we’re going to see strikes and mass protests before this gets resolved. 

BOSCH TO AX 5,500 JOBS IN GERMANY
And VW’s problems are rippling through the German auto industry. Bosch announced it will get rid of 5,500 employees by the end of 2027. Those people work on ADAS, EV motors, and steering at different plants around the country. And IG Metall promises it’s going to fight those plant closings, too. 

WEBASTO SELLING OFF ASSETS
And Webasto, the German supplier that makes sunroofs, convertible tops and heating equipment, says it has to restructure its debt. It’s selling off assets like its EV charging stations and it hired Rothschild & Company, a private equity firm that handles mergers and acquisitions. 

MERCEDES PLANS BILLIONS IN COST CUTS
Next Mercedes-Benz says it needs to cut costs by billions of euros a year, though it didn’t say how or when it will do that. But it sure sounds like layoffs and plant closings could be part of the plan. 

NORTHVOLT FILES FOR BANKRUPTCY
Now, over to Sweden, where Northvolt filed for bankruptcy. The EV battery startup raised over $10 billion in funding from Volkswagen, BMW, Volvo and private equity, but it ran out of money. It only has enough cash on hand to run for a week and it has over $5 billion in debt. NorthvoIt’s CEO, Peter Carlsson, stepped down and says the company needs over $1 billion right now just to keep operations going. Interestingly, Northvolt filed for Chapter 11 bankruptcy in the U.S. because it has some operations in California. And U.S. bankruptcy laws are considered to be easier for companies that are trying to restructure their debts. Launching a battery plant is really hard to do, and we think there’s a good chance that someone could pick the company up for pennies on the dollar.

  

RAM RECONSIDERS MEXICO EXPANSION
In North America, Stellantis says it’s reconsidering moving production to Mexico and other low-cost countries and it’s all because of Trump’s threats to increase tariffs on imported vehicles. Last month, Ram announced plans to move some production from the U.S. to Mexico, where it also builds heavy-duty trucks. But Chris Feuell, the CEO of Ram, now says the company is looking into alternatives for its plant and supplier networks if the Trump Administration imposes tariffs on imports that disrupt its supply chains. But no decisions have been made yet.

CYBERATTACK DELAYED HYUNDAI & AMAZON PARTNERSHIP
Last year, Hyundai formed a partnership with Amazon to allow car buyers in the U.S. to shop for and buy its vehicles on Amazon’s website. It was supposed to kick-off this year but Jose Munoz, the current head of Hyundai North America, but soon to become the CEO of the entire Hyundai Group, says that the launch of the platform was delayed because of that cyberattack on CDK’s Dealer Management System this summer. More than half of its dealers were disrupted by the attack, which forced Hyundai to delay the online buying program. But Munoz says it will be ready to launch in January. The platform allows buyers to search for vehicles, pick the model, trim, color and features they want and choose payment and finance options through Amazon’s checkout.

RESEARCHERS DEVELOP FAST CHARGING BATTERY
The University of Waterloo in Canada revealed a new way of making battery anodes that could significantly reduce charging time, while also increasing lifespan. Anodes are typically made from graphite and other additives and binders. But those additives and binders can block the electrical pathway. So, the University of Waterloo developed graphite binders that have electron, ion, and heat transfer properties, which frees up those pathways. It showed that it could charge a battery from 0-80% in 15 minutes, while still retaining 80% of its original capacity after 800 fast charging cycles. The best part is, there’s no exotic materials being used and battery makers wouldn’t have to make any changes to existing production lines. But they’ve only made prototypes to gauge interest and are still working on how to produce them at scale.  

VW HYBRIDS IN U.S. STILL YEARS AWAY
Yesterday, Volkswagen revealed the all-new Tiguan and we were surprised it won’t have a hybrid option in the U.S. at launch since hybrid sales are really strong. And while VW does plan to offer one, it’s going to be a few years. VW’s head of sales in the U.S. said that a hybrid for the Tiguan will “be coming mid-cycle sometime.” It still hasn’t decided if it will be a regular hybrid or a plug-in but both options are on the table. VW also said the next Atlas will have some form of hybridization but it’s not set for a redesign until 2026. So, if you were hoping for a VW hybrid you’re going to have to wait awhile. VW hasn’t sold a hybrid in the U.S. since it dropped the Jetta Hybrid in 2016.

JEEP WILL LAUNCH NEW HYBRID NEXT YEAR
And while VW is dragging its feet with hybrids, Jeep CEO Antonio Filosa says it will be adding a hybrid to its lineup next year in the U.S. It will be a regular hybrid and not a plug-in and will be a replacement for the Cherokee which was discontinued last year. Filosa also said Jeep could add a pure-electric version of the model in the future, if it sees strong demand for one.

KIA LA AUTO SHOW REVEALS
The LA Auto Show kicked off today and Kia has a trio of new models on display. It refreshed its top-selling and longest running nameplate, the Sportage. It’s highlighted by fresh design on the outside and a standard curved screen on the inside, which can be augmented by an available head up display. The model is still offered with an ICE, hybrid and plug-in hybrid setup, but the electrified versions do see a slight bump in power. Next up, Kia introduced a sportier GT version of the EV9. At its heart is a dual motor AWD system that produces an estimated 500 horsepower, which has Kia targeting a 0-60 MPH time of 4.3 seconds. The model also boasts its own unique styling features, upgraded brakes, a standard NACS charging port and what it calls Virtual Gear Shift. Inspired by the Hyundai IONIQ 5 N, it simulates gear shifts with visuals, engine sound effects, and other adjustments to the motors. That same feature will also be available on the new EV6, which is getting a refresh for the 2025 model year. It doesn’t have major styling changes, but the biggest tweaks are to the front fascia. Kia tweaked battery sizes as well, to a slightly larger 63 and 84 kWh. And it gave the EV6 its latest operating system, which is faster and has expanded standard OTA capabilities. The refreshed 2025 model, excluding the GT version, will be built at the Hyundai Group’s new plant in Georgia, where it joins the EV9 as well as the Hyundai IONIQ 5 and 9. 

VOLVO PLANS PHEV EXCLUSIVELY FOR CHINA
And speaking of new models, CarNewsChina reports that Volvo is going to launch a new plug-in hybrid exclusively for the Chinese market. Interestingly, it says the vehicle will be based on a Lynk & Co model, which is also owned by Geely. Lynk & Co’s sales have not been good in China and Zeekr, another Geely brand, just took a controlling stake in Lynk & Co, even buying out a 30% share from Volvo. So, even though it looks like Lynk & Co is going away, its technology will probably continue to spread throughout the Geely group. 

But that brings us to the end of today’s show. Thanks for making Autoline a part of your day and I hope that you have a great weekend.