From CNBC: 2024-11-25 06:00:01

Electric vehicle start-up Lucid has begun production of its first cars for customers at its factory in Casa Grande, Arizona. The auto industry is cutting costs amid concerns about economic slowdown, wasted spending on self-driving vehicles, and uncertain returns on EV investments. Automakers like GM and Ford are reducing expenses, while companies like Nissan, Volkswagen, and Stellantis are taking drastic measures to trim spending and headcounts. Research and development costs for automotive companies have increased significantly, with EV startups like Rivian and Lucid burning through billions in free cash flow since 2022. The industry is facing challenges in achieving returns on invested capital, with inefficient spending on autonomous vehicles and EVs. GM and Ford have faced setbacks with their autonomous and electric vehicle strategies, leading to billions of dollars in wasted costs. Nissan, Volkswagen, and Stellantis are undergoing major restructurings to cut expenses and improve profitability after years of excessive spending. Automakers like Ford, GM, Lucid, and Rivian are striving to reduce costs, with Lucid leading the charge. Volkswagen is undergoing layoffs and potential plant closures in Germany to address ongoing issues. Chinese automakers’ rise has impacted traditional automakers’ profits in China, leading to restructuring efforts and missed earnings expectations.

GM, despite struggles in China, remains profitable and is investing in EVs and self-driving vehicles. Lucid and Rivian are raising capital to sustain operations as they continue to lose money on each EV sold. GM and Hyundai are exploring partnerships to reduce spending and increase efficiency.

Major industry mergers, like those involving Ford, VW, and Rivian, have not always been successful in the long run. Stellantis, formed from the merger of Fiat Chrysler and PSA Groupe, has faced challenges in 2024 despite achieving significant cost reductions. CEO Carlos Tavares acknowledges mistakes in managing the U.S. market and is working on product development and correcting errors in North America. 1. The stock market hit record highs today, with the S&P 500 reaching 4,000 points for the first time. This milestone comes as investors remain optimistic about a strong economic recovery and increased vaccination efforts.

2. In a groundbreaking study, scientists have discovered a new species of dinosaur in Argentina. The newly identified species, named Llukalkan aliocranianus, is a carnivorous dinosaur that lived approximately 80 million years ago.

3. The United Nations reported a 10% increase in global food prices in March, marking the 10th consecutive month of rising prices. This surge is largely attributed to supply chain disruptions caused by the ongoing pandemic and extreme weather events.

4. The European Union announced plans to implement a digital vaccine passport system by the summer, allowing citizens to travel freely within the bloc. The system will provide proof of vaccination, COVID-19 test results, and recovery from the virus.

5. Tesla CEO Elon Musk unveiled a new humanoid robot prototype called “Tesla Bot” at the company’s AI Day event. The robot is designed to perform repetitive, dangerous, or boring tasks and is expected to be available for testing next year.



Read more at CNBC: Auto industry pulls back after unprecedented EV, self-driving spending