A year of strong crisis ends for several automotive companies worldwide

There are several companies that are facing crises, but in recent months attention has focused on some high-impact cases.

Cars: the balance of 2024 for companies

An example is the recent announcement of Nissan Motorcyclery Honda Motor. This Monday they signed a memorandum of understanding (MOU) to begin discussions and considerations towards a business integration between the two companies through the establishment of a joint holding company.

The merger of these companies – which includes Mitsubishi – would imply the creation of the world’s third largest automaker in volume, with sales of US$52 billion.

Within the framework of the announcement, Makoto Uchidachairman, president, CEO and executive representative of Nissan, said: “Today is a decisive moment as we begin conversations about the business integration that has the potential to shape our future. If it comes to fruition, I believe that by uniting the With the strengths of both companies, we will be able to offer unparalleled value to customers around the world who appreciate our respective brands. Together, we can create a unique way for them to enjoy vehicles that neither company could achieve alone. “.

On the other hand, after three months of tough negotiations and a prolonged union conflict in Germany, the Volkswagen Group It avoided the biggest crisis in its 87 years of existence.

The parent company reached an agreement with the unions that will avoid the closure of factories in Germany, as initially planned, but will imply a loss of 35,000 jobs between now and 2030at a rate of 7,000 workers per year. This will allow Volkswagen, which employs more than 300,000 people in Germany, to save around €1.5 billion annually in labor costs.

Likewise, the company will reduce the bonuses of up to 4,000 executives by 10% in the next two years. The reduction will also be maintained for the following three years, until 2029, and the bonuses will decrease by 8%, 6% and 5%, respectively.

In Wolfsburg, the main plant in Germany, the Golf and Golf Variant models will be discontinued. Starting in 2027, the production of one of Volkswagen’s most legendary models will be moved to its Puebla plant, in Mexico, in order to reduce costs. They estimate that 4,000 jobs will be cut in this factory, which will continue manufacturing the ID.3 and Cupra.

A little over a month ago, the executive president of Stellantis, Carlos Tavarespresented his resignation.

Tavares, considered one of the most prominent leaders in the auto industry, came under fire this year following a warning from Stellantis about a possible cash sales loss of up to €10 billion in

The Board of Directors, led by John Elkann, promoted a Special Committee to select a new permanent executive president, a process that is expected to be completed in the first half of 2025.

“The company’s Board of Directors, chaired by John Elkann, has today accepted the resignation of Carlos Tavares as executive president with immediate effect,” the company said in a statement.

Meanwhile, Elkann will head an Interim Executive Committee.

The resignation of Carlos Tavares as CEO of Stellantis was motivated by Recent differences between the Board and the CEOas explained Henri de Castries, Independent main director of the company. He highlighted that, although Stellantis’ success was based on an alignment between shareholders, Board and leadership, these divergences led to the decision.

Elkann, president of Stellantis, thanked Tavares for his contribution in the creation of Stellantis and his role in the previous restructurings of PSA and Opel. Elkann affirmed his commitment to working with the Interim Executive Committee to ensure the continuity of the business strategy while a new CEO is appointed, ensuring the long-term interests of the company and its satisfactory parts.

In another order, but also as a reflection of the need to adapt to the new rules of the game, the Japanese company Toyota – the leading company in sales worldwide – is rethinking its production strategy and is setting its sights on the territory of its neighboring country. .

As reported this week by the Japanese economic newspaper Nikkei, the automotive giant will build a plant in China to manufacture electric vehicles. It would be installed in Shanghai and would manufacture models of its luxury brand Lexus. According to this newspaper, the start of production would be in 2027.

The decision of Toyota It is part of a strategy that seeks to strengthen its presence in the largest automotive market in the world.

As reported by the Reuters agency a few weeks ago, the Japanese automaker plans to manufacture at least 2.5 million vehicles annually on Chinese soil by 2030.