Auto subscription models, Brazil’s recovery, virtual software development – the week

For some, owning a car means commitment, responsibility and hassle. The emergence of new purchase models such as the car subscription brings a breath of fresh air for everyone who prefers more flexibility when getting around. So we looked at some Netflix-style subscription models that offer consumers a more flexible model of car ownership that adapts to changing circumstances.

Our Brazilian correspondent got in touch there this week with his H1 update and good news: Anfavea is now forecasting 4.1% growth to 2,340,000 units. Domestic sales in Brazil fell 23.2% in H1 below the same period in 2021 and was a clear indication that 2022 would not see a notable recovery. A rebound in the second quarter proved insufficient to erase the losses and only mitigated losses earlier in the year. “The global semiconductor crisis continues to advance, more than we expected,” said the President of the National Association of Automobile Manufacturers (Anfavea), Marcio Leite. “The war in Ukraine and the lockdowns in China triggered by a new wave of Covid have created new conditions affecting both raw material supplies and global logistics since we last issued our forecast for 2022.” In June, the Production reached 203,600 units, exceeding the 200,000 mark for the second time this year. A total of 1,092,000 motor vehicles were produced, 5% fewer than in the first half of the previous year. Still, the second quarter improved 20% sequentially. Around 170,000 vehicles were not produced in the first half, according to reports from Anfavea members, with assembly lines halted in whole or in part.

As a provider of advanced semiconductor solutions, Renesas Electronics Corporation has announced the launch of a virtual development environment that enables the development and evaluation of automotive application software. The launch of this environment includes a virtual turnkey platform that enables engineers to develop application software before evaluation boards or devices are available. Alongside this, the environment provides users with a multi-core debug and trace tool that allows users to analyze and evaluate the operation of software as if it were running on a chip. We spoke to Darren Buttle, Head of RTA Solutions, ETAS Germany, to learn more about this new technology.

One of the best performing brands in Europe is Dacia. Its latest acquisition pushes Citroen to fourth place in France and sets a new sales record in June. The Romanian brand also captured more than 10% of the French market for the first time last month. What drives this newfound success? In the French market and elsewhere, it’s the affordability (and availability) of the Sandero, along with the evergreen Duster and new Jogger. Lots more to read including a round up of Dacia’s H1 sales.

There is a cost and political imperative to localize battery production in Europe, so we asked where is the UK? Brexit and the resulting Brexit deal essentially locks the UK auto industry into using either UK or European BEV/battery components rather than depending on imported systems. Currently the threshold for Rules of Origin (RoO) before the application of duties is 55% (UK/EU) content. There is an exception for electric vehicles, which will temporarily have a lower RoO requirement (40%) until 2027, after which it will return to the normal rate (55%). The battery is critical due to its high proportion of the total vehicle deployment cost and its impact on the RoO threshold. The EU tariff for not reaching this threshold is 10%. Transport costs associated with imports between regions add to these costs. As the shift towards electrification gathers pace, European production sourcing decisions for new BEV capacity are beginning to be formulated, with the UK potentially at a disadvantage given RoO thresholds from 2027 onwards.

Older BEVs were mostly ICE conversions and therefore front-wheel drive. But BEV automakers are starting to introduce rear-wheel drive. Analysts from GlobalData/LMC took a closer look.

Jaguar Land Rover announced that its global retail sales for the first quarter of fiscal year 2022/2023 were flat compared to the fourth quarter of 2021/2022 as renewed Covid-19 lockdowns in China curtailed local manufacturing and forced the temporary closure of some dealerships. Despite a record order backlog, sales continued to be hampered by global chip shortages, exacerbated by the phasing out of the legacy Range Rover Sport model as deliveries of the fully redesigned model have only just begun. Retail sales for the quarter ended June 30, 2022 were 78,825 vehicles, largely flat (down 183 units) compared to the previous quarter ended March 31, 2022 and down 37% (46,000 units) from the prior year quarter ended June 30, 2021 In the previous quarter, retail sales were higher in the UK (+10%) and Europe (+49%), but lower in China (-5%), North America (-30%) and overseas (-10%), reflecting the move to new Products reflect models and delivery times for these markets.

The US light vehicle market is showing signs of weakness in retail sales, according to analysis by GlobalData unit LMC Automotive. Still, the overall picture is that sales will be constrained by supply issues as semiconductor shortages continue to take hold. Light vehicle sales in June were down 13% year-on-year. June volumes added 1.13 million units to the first half year-to-date total, while the annualized rate of 13.0 million units was slightly better than May’s 12.7 million. LMC said that while the 13% year-over-year decline appears to be a notable improvement from May’s 29% decline, there is a base effect due to the relatively weak June last year.

Semiconductor lead times fell a day in June, a sign of slight relief after chronic shortages that have plagued automakers and other industries for over a year. Research by Susquehanna Financial Group found that lead times, a closely monitored gap between a semiconductor being ordered and shipped, averaged 27 weeks last month, compared with 27.1 weeks in May. The waiting time was 27 weeks in April as well. “There are some signs that supply chain inflation is easing and price increases are slowing, but other pockets remain,” Susquehanna analyst Chris Rolland added in a research note, adding, “Among the key companies that we’re tracking, none saw record-high LTs, perhaps another sign of ‘spike cycle’.” Susquehanna said leading or forecasting company-specific data showed contractions in lead times for the second straight month, with some declines as high as 45%. Some of the biggest declines have been in microcontroller units, or MCUs, as well as power management and memory chips.

Stellantis said the Fiat Doblo would become the fourth model to be built at its Mangualde production center in Portugal, joining Peugeot Partner, Citroen Berlingo and Opel Combo LCVs on the line. “We intend to lead the commercial vehicle market and now, with the addition of the Doblo to the Mangualde product line, we will achieve greater efficiency, improve our competitiveness and offer our professional customers the very best,” said Carlos Tavares, CEO of Stellantis, in an explanation. The announcement coincided with the factory’s 60th anniversary celebrations. Mangualde opened in 1962 and has produced 1.5 million vehicles to date. Almost every fourth vehicle produced in Portugal comes from the factory. New product is always good news for its workers, although Doblo is just the Fiat variant of the other three brands’ models. Prior to the Stellantis merger, many European vans were already being produced under such multi-brand alliances – PSA’s Peugeot and Citroen plus GM Europe’s Fiat, Opel and Vauxhall sharing models and factories with the Renault-Nissan alliance. Since then, alliances, JVs and source factories have been heavily overhauled, with Stellantis now transforming the former Opel/Vauxhall Astra assembly plant into a new source of electric vans.

ZF Friedrichshafen is investing 60 million euros (61 million US dollars) in a new plant in Rizhao City, Shandong Province, China to strengthen its position in the local automotive supply chain. According to a contract signed with the city government, the new plant is expected to start producing airbag cushions and other passive safety products by the end of 2022. The plant covers an area of ​​14,000 m² and will also have research and development (R&D) facilities. facilities. The products will be mainly destined for China, with potential for exports to South Korea, Thailand, USA, Japan and Vietnam. The company expects the facility to generate annual sales of CNY 1 billion (US$ 149 million) within three years.

The Volkswagen Group has broken ground on its first cell factory in Salzgitter. Production is scheduled to begin in 2025. VW also said that responsibility for its global battery business will be taken over by a newly formed company called PowerCo. In addition to cell production, the new company is responsible for activities along the entire battery value chain. By 2030, PowerCo is to invest 20 billion euros in the expansion of the business area together with partners, generate annual sales of over 20 billion euros and employ up to 20,000 people in Europe alone.

Have a good weekend.

Graeme Roberts, Associate Editor, Just Auto

Leave a Comment

%d bloggers like this: