This article originally appeared in the Financial Post. Below is an excerpt from the article.
By Jack Mintz, October 11, 2024
It’s been a tough year for some auto companies. Sales of electric vehicles continue to grow, especially in China and India, though more slowly than expected in North America and Europe. Demand is even falling in Italy, Japan and Germany. Meanwhile, cheaper Chinese EVs are grabbing market share in Europe and Asia. While improving recently, global vehicle sales remain sluggish at 90 million units in 2023, four million short of 2018.
For some car companies, the market has become very challenging. Volkswagen, Europe’s largest manufacturer, is losing market share to Chinese EVs both in China and Europe. Between the end of last year and June 30, its net liquidity dropped almost a quarter. Much to the chagrin of its unions, the company has announced it will close some German plants.
Sweden’s Northvolt Ab, Europe’s great hope for EV battery manufacturing, lost US$1.2 billion last year and is cutting 1,600 jobs. Its Ett Expansion AB subsidiary filed for bankruptcy this week. BMW pulled a US$2-billion order after Northvolt missed a deadline. Northvolt’s projects — including Canada’s — are being delayed.
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