Gauzy’s Post

Continental to Evaluate Making Automotive an Independent Company and Prepare Spin-off The Continental Executive Board has decided to conduct a detailed evaluation on spinning off its Automotive group sector and listing it on the stock market. The key points are: - Decision on spin-off to be made in Q4 2024 - If approved by 2025 Annual Shareholders' Meeting, spin-off would be completed by end of 2025 - Preparations are already underway - Tires and ContiTech group sectors would remain under Continental - Automotive group sector generated €20.3B sales in 2022, would become independent - Focused on rapidly growing future market of software-defined and autonomous vehicles Continental CEO Nikolai Setzer stated: "This move will allow greater flexibility and entrepreneurial freedom to adapt to the transforming automotive industry." The aim is to fully harness Continental's value and growth potential by having two strong, independent companies. 🌍🚗 #ContinentalAG #AutomotiveIndustry #CorporateStrategy #Restructuring #FutureOfMobility https://lnkd.in/gnfs2sHk

📉 𝐃𝐢𝐬𝐫𝐮𝐩𝐭𝐞𝐝: 𝐓𝐡𝐞 𝐅𝐚𝐥𝐥 𝐨𝐟 𝐒𝐭𝐮𝐝𝐞𝐛𝐚𝐤𝐞𝐫 Studebaker was once the world's largest producer of horse-drawn carriages, supplying the U.S. Army during the Civil War and dominating the market. With the creation of the automobile, Studebaker began producing electric cars in 1902 and gas-powered cars in 1904. They continued making carriages until 1920, allowing them to finance their push into the automotive market. However, technological innovation leveled the playing field. Almost all previous advantages in the carriage business were nullified, and they faced competition from emerging giants like Ford and GM, who were completely focused on the auto industry. Under Albert Erskine's leadership from 1915, Studebaker expanded aggressively, including acquiring luxury automaker Pierce-Arrow. 𝐃𝐞𝐬𝐩𝐢𝐭𝐞 𝐭𝐡𝐞 𝐆𝐫𝐞𝐚𝐭 𝐃𝐞𝐩𝐫𝐞𝐬𝐬𝐢𝐨𝐧, 𝐄𝐫𝐬𝐤𝐢𝐧𝐞 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞𝐝 𝐭𝐨 𝐩𝐚𝐲 𝐨𝐮𝐭 𝐝𝐢𝐯𝐢𝐝𝐞𝐧𝐝𝐬 𝐚𝐧𝐝 𝐞𝐱𝐩𝐚𝐧𝐝𝐞𝐝 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐰𝐡𝐢𝐥𝐞 𝐬𝐚𝐥𝐞𝐬 𝐩𝐥𝐮𝐦𝐦𝐞𝐭𝐞𝐝, 𝐝𝐫𝐚𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐲'𝐬 𝐫𝐞𝐬𝐞𝐫𝐯𝐞𝐬. This mismanagement forced Studebaker into bankruptcy in March 1933. During World War II, Studebaker shifted to military production, manufacturing trucks and other military vehicles, which helped stabilize the company temporarily. After the war, Studebaker resumed automobile production and merged with Packard to try and gain market share, but the merger failed to achieve the desired efficiencies. The introduction of the compact Lark model in 1959 saw initial success, selling over 130,000 units and netting $28.6 million in profit. 𝐇𝐨𝐰𝐞𝐯𝐞𝐫, 𝐭𝐡𝐢𝐬 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐰𝐚𝐬 𝐬𝐡𝐨𝐫𝐭-𝐥𝐢𝐯𝐞𝐝 𝐚𝐬 𝐆𝐌, 𝐅𝐨𝐫𝐝, 𝐚𝐧𝐝 𝐂𝐡𝐫𝐲𝐬𝐥𝐞𝐫 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐦𝐨𝐝𝐞𝐥𝐬, 𝐥𝐞𝐚𝐝𝐢𝐧𝐠 𝐭𝐨 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐝𝐢𝐟𝐟𝐢𝐜𝐮𝐥𝐭𝐢𝐞𝐬. In a last-ditch effort to save the company, Studebaker moved production to Hamilton, Ontario, in 1963 to cut costs. Unfortunately, this did not change their fate. The companies relatively high production costs and inability to compete with Ford and GM led to its decline. The final Studebaker rolled off the assembly line in 1966, marking the end of their automotive operations. Studebaker’s story highlights the impact of financial mismanagement and creative destruction. Despite early success, they were outpaced by focused, more efficient competitors. Stay tuned every Friday for more insights in our ‘𝐃𝐢𝐬𝐫𝐮𝐩𝐭𝐞𝐝’ series, as we learn from history’s hard lessons to refine our investment approach. #Disrupted #Studebaker #Ford #GM

Continental is considering spinning off and listing its struggling automotive business to separate it from the German parts maker’s more successful tires operations, Bloomberg reported. The manufacturer is evaluating “in detail” the spinoff and a subsequent 100% listing of the business that makes products including brakes and automated driving systems. Continental will make a decision in the fourth quarter, with a target to finalize any move by the end of next year. #MergersAcquisitionsDivestitures #Automotive #Manufacturing

General Motors’ Mark Reuss: Hyundai JV Prospects Are Excellent, Culture at GM Ready To Rock GM President Mark Reuss has high hopes and expectations for successful joint ventures to emerge from a memo of understanding with the Hyundai Group. He says GM’s culture has changed markedly to support joint ventures and points to vehicles like Buick Envista, an entry-level model that is profitable, to make his point. http://spr.ly/6049UHG8T #Automotive #AutomotiveTechnology #IndustryNews

General Motors’ Mark Reuss: Hyundai JV Prospects Are Excellent, Culture at GM Ready To Rock GM President Mark Reuss has high hopes and expectations for successful joint ventures to emerge from a memo of understanding with the Hyundai Group. He says GM’s culture has changed markedly to support joint ventures and points to vehicles like Buick Envista, an entry-level model that is profitable, to make his point. http://spr.ly/6040UHG8p #Automotive #AutomotiveTechnology #IndustryNews

Industry News Update The Joint Venture for Passenger Car Chassis Systems between ZF and Foxconn closes, accelerating strategic innovation Read the full news https://lnkd.in/g7Pv3faC #gear #geartechnology #mechanicalengineering #maintenance #grinding #modernengineering #precision #environment #environmentfriendly #sustainable #engineering #mechanical #magazine #lubrication #industry #engines #tool #tools #mechanicaldesign #mechanics #machinelearning #machine #machinedesign #machinedparts #gearbox #automotive #app #productivity #lubrication #operations #machine #study #notes #engineering #study #articles #energy #economic #efficiency #technology #gearbox #gearboxdesign #automotive #automotiveindustry #power #microstructure

Get used to these type of headlines. #Mercedes #Benz like the rest of the #OEM, mocked #Tesla, #EV startups and EV's in general since #GM launched the #EV1. Instead of giving us the future, they kept us addicted to inefficient #ICE #dinosaurs. But now the shoe is on the other foot and as #EV's and #China surge, the traditional OEM's cannot stuff their dealerships with unwanted cars anymore and we are seeing the paradigm shift in full force.

What drives two traditional rivals to join forces in the automotive world? Let’s take a look at the unexpected strategic partnership between Honda and Nissan. These two Japanese automotive giants, known for their intense rivalry, have come together to collaborate on next-generation software-defined vehicles (SDVs). This partnership focuses on joint research in fundamental technologies for SDV platforms, aiming to accelerate efforts toward a carbon-neutral and traffic-accident-free society. It’s an intriguing move, especially given the competitive pressures in the EV and auto tech markets. So, why now? The answer lies in the rapid technological advancements and the need to stay competitive. This isn’t just about innovation; it’s a defensive strategy to keep pace with global competitors in the EV space. But can this collaboration truly drive the Japanese auto industry forward, known for its conservative approach? It’s a bold step, reflecting the urgency to innovate in an industry where they’ve lagged behind. This partnership isn’t just about business; it’s a necessity in today’s fast-paced automotive landscape. The goal is to complete basic research within a year and consider mass production development based on the results. Think strategic partnerships in tech are simple? Think again. Successful collaborations require meticulous planning and execution. Honda and Nissan’s alliance might be a game-changer, but only time will tell if it lives up to its promise. Like, share, and comment with your thoughts. Follow for more insights on the latest industry moves and major announcements. And remember, strategic partnerships don’t come together overnight—they require expert guidance from folks such as Capital Growth Partners. Bob Lafon Tony Andrews Andrew Till Doreena M Beebe Rich Bulger Stephen John

Is the future for legacy Western OEMs outside of Europe and North America (assuming China is lost to them) lending their brand names to Chinese BEVs in emerging markets? And would that be the worst fate? Stellantis says it's surprised that there's strong interest in what its Leapmotor JV might be able to offer customers in the Middle East, Africa and Latin America. But appetite for a combination of recognised brand and competitively-priced Chinese technology doesn't really seem surprising. Something for Volkswagen Group, General Motors and even the Japanese OEMs to think about? https://lnkd.in/e8AMQJm7 #ev #automotive

Much has been written about Volkswagen Group's #software crisis. Make no mistake. It isn't VW's problem alone. With a #JV with Rivian or without JV, with CARIAD or no #Cariad, every #incumbent #automaker striving to develop a #SDV is staring at the same problem. This is because "#SDV represents a #generational hange in #technology, #supplychain disruption, #engineeringskills, and #businesspractices. Everything [is coming to the automotive industry] at once," Philip Koopman told us.