Mitsubishi is doing great, thanks for asking

Mitsubishi is profitable again, Tata, the parent company of Jaguar Land Rover, is not and another man has found a job. All this and more in The morning shift by July 27, 2021.

1st gear: Mitsubishi

I didn’t realize until today how hideous the fourth-gen Outlander is. It released in february, when we were all worried about more important things, that’s probably why I missed it. But, god damn it, it’s an ugly car, so ugly, in fact, that I respect it. Let’s have another look:

I am referring to this look here as encrusted with light, and I hate it, although other people disagree, and have bought it. It gave Mitsu a boost, by Automotive News:

The redesigned Outlander crossover fueled increased sales in the United States, while the global microchip shortage had the positive side effect of crimping production, helping Mitsubishi to drain inventory.

As a result, Mitsubishi was able to attract new, higher-level customers with the Outlander while increasing profitability, CFO Koji Ikeya said on Tuesday when announcing the financial results.

The Japanese automaker reported operating profit of 10.6 billion yen ($ 95.9 million) in the fiscal first quarter ended June 30, reversing an operating loss of 53.3 billion yen (482 , $ 1 million).

Mitsubishi also reported net profit of 6.1 billion yen ($ 55.2 million), compared to a net loss of 176.2 billion yen ($ 1.59 billion) in the same quarter a year earlier. .

Global sales climbed 65% to 230,000 vehicles in the quarter, driven by volume doubling in North America and Southeast Asia and sales nearly doubling in Australia and New Zealand.

Mitsubishi is probably in my top three favorite car makers because it is both an underdog in the sense that people love to dismiss Mitsubishi and also not an underdog as they are part of a huge multi-industry conglomerate. . Long live Mitsubishi.

2nd gear: Volkswagen is closing in on the purchase of a major European car rental company

This company is creatively called Europcar. It’s about the future of transportation, what the industry likes to call “mobility“, which is a global term meaning taxis, rental cars, car subscriptioniptions, car shares, et al., or pretty much anything that isn’t going to a car dealership and handing over a bag of money and leaving with a new car.

Going through Bloomberg:

A consortium led by the German automaker has increased its offer for Europcar to around 50 cents per share, or around 2.5 billion euros ($ 3 billion), [people familiar with the matter] said, asking not to be identified when discussing confidential information.

[…]

While a deal can be reached as early as this week, terms could still change and talks could also be delayed or collapse, people said. The negotiations are particularly complex given that there are around 10 different stakeholders involved, including more than half a dozen hedge fund investors in Europcar, they said.

VW’s previous offer with its partners Attestor Ltd. and Pon Holdings BV of 44 euro cents per share was rejected about a month ago by Europcar as being too low. An offer of 50 cents per share would represent a 27% premium to the Europcar share price on June 22, the day before Bloomberg News first report on the initial offer.

VW wants to access Europcar’s infrastructure and technology in a bet on the future of mobility services.

A good rule of thumb is that if you are talking to someone in the auto industry and they say the word ‘mobility’, it is best to walk away quickly.

3rd gear: Jaguar Land Rover’s parent company isn’t that hot

Tata Motors reported a quarterly loss of $ 598 million on Monday, while JLR specifically reported a loss of $ 152 million, according to Bloomberg. This is largely for predictable reasons.

Raw material costs for Tata Motors jumped to 373.1 billion rupees in the last quarter, from 99.4 billion rupees in the same period last year.

“JLR now expects semiconductor supply shortages in the second quarter to be greater than in the first quarter, which could result in wholesale volumes approximately 50% lower than expected,” said Tata in a statement. “In the second quarter, JLR expects a negative EBIT margin with free cash outflow of less than £ 1 billion. JLR expects the situation to start improving in the second half of the year.

Earlier this month, Jaguar Land Rover warned that second-quarter deliveries would be 50% worse than expected as the global chip shortage shows no signs of slowing down.

The chip crisis has forced the luxury automaker to temporarily halt production at its factories in Castle Bromwich and Halewood.

Jaguar Land Rover is in the midst of a vast transition, with Jaguar planning to be fully electric by 2025 and Land Rover electrifying as well, making this loss a short-term concern as Jaguar Land Rover has a bigger landing. .

4th gear: Wall Street is lucid

The VE startup went public this week via SPAC, and the initial response was positive, according to Bloomberg.

A Lucid Air with its limited edition metallic paint called “eureka gold” reflections, parked outside the Nasdaq.

The luxury car, which is part of the electric vehicle manufacturer’s Dream lineup, evokes the path it has taken in public markets via a blank check.

Lucid Group Inc.’s first listing on Monday comes after the completion of a reverse merger with financier Michael Klein’s special purpose acquisition company, Churchill Capital Corp. IV. The stock, now listed under the symbol LCID, received a warm welcome. Shares rose 5.9% to close at $ 24.25 on Monday.

I love Lucid, and his business plan seems a bit more thoughtful than the many others who have taken this shortcut to the stock market. We’ll see how it goes!

5th gear: the man gets a job

It would be a guy from 3M going to General Motors. Congratulations to this man.

Of Detroit News:

General Motors Co. has hired Omar Vargas as vice president and head of global public policy effective August 1, the automaker said on Monday.

Vargas, who was most recently senior vice president and director of government affairs at 3M Co., will be tasked with leading policy efforts as GM accelerates its aspiration to roll out an emission-free electric vehicle lineup by 2035. For To achieve this, the automaker will need buy-in from policymakers, including growing electric vehicle infrastructure and consumer purchasing incentives.

[…]

The hiring of Vargas comes as GM and rivals step up efforts to shape federal policy around electrification, charging infrastructure, and tax incentives to accelerate adoption of electric vehicles. A top priority: changing public perceptions of the ability of the traditional automotive industry to successfully transition to an electrified future.

I don’t know exactly what the role of this guy is, beyond knowing a bunch of people in DC, and GMs Press release doesn’t really help in this regard.

“Omar Vargas brings over 20 years of experience leading public policy teams and working collaboratively to find policy solutions to complex problems,” said Craig Glidden, GM executive vice president, Global Public Policy and General Counsel. “His vast experience in managing problems across multiple industries and working with governments, in the United States and around the world, make him the ideal person to advocate for policy solutions in support of the vision of GM, including our commitment to a fully electric future. ”

If that helps accelerate GM’s electric future, sure.

Reverse: De Havilland