Bayerische Motoren Werke AG ADR Azioni (OTC: BMWYY)

Ultime notizie per Bayerische Motoren Werke AG ADR (OTC:BMWYY) Azioni

Bayerische Motoren Werke AG ADR

<h3 class="wp-block-heading">New On The Block</h3>
<ul>
<li>Starbucks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) is looking to sell a stake in its Chinese operations. Same-store sales in China fell 14% last quarter, with the Seattle-based coffee retailer seeking partnerships to adapt to tough <a href="https://www.benzinga.com/news/asset-sales/24/11/42117962/starbucks-eyes-stake-sale-in-china-amid-fierce-competition-and-falling-sales">economic and competitive pressures</a>.</li>
</ul>
<h3 class="wp-block-heading">Bankruptcy Block</h3>
<ul>
<li>Snack producer Hearthside Food Solutions went bankrupt. The private equity-owned company looks to offload the $1.9 billion in debt accumulated under the ownership of Partners Group Holding AG and Charlesbank Capital Partners. The two firms bought Hearthside for more than $2.4 billion. Assets and liabilities hover between $1 billion and $10 billion. Last year, bankrupt private equity portfolio companies in the U.S. <a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/private-equity-portfolio-companies-on-track-for-most-bankruptcies-since-2020-74886821">outpaced</a> the number of <a href="https://www.benzinga.com/news/20/10/17861269/bankruptcy-update-ruby-tuesday-files-chapter-11-while-progress-slows-for-jcpenney">bankruptcies in 2020</a>. It remains to be seen whether 2024 will be worse.</li>
</ul>
<ul>
<li>Northvolt <a href="https://northvolt.com/articles/peter-carlsson-steps-aside/">filed</a> for bankruptcy with debt of $5.8 billion. Recall how the Swedish battery maker, which supplies Volkswagen AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) and&nbsp;Bayerische Motoren Werke AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), bargained with banks to <a href="https://www.benzinga.com/news/23/03/31506581/volkswagen-bmw-battery-supplier-northvolt-eyes-raising-5b-via-debt">raise debt last year</a>. Now, it&#8217;s hoping to restructure under U.S. Chapter 11.</li>
</ul>
See Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/11/42024210/benzinga-bulls-and-bears-tesla-disney-gold-and-hedge-funds-project-bitcoin-to-hit-100k-150k">Benzinga Bulls And Bears: Tesla, Disney, Gold — And Hedge Funds Project Bitcoin To Hit $100K-$150K</a>
<h3 class="wp-block-heading">Updates From The Block</h3>
<ul>
<li>Google&#8216;s $2-billion <a href="https://www.benzinga.com/news/large-cap/23/10/35474706/googles-ai-ambitions-grow-with-major-investment-in-openai-rival-anthropic">investment</a> in Anthropic is in jeopardy, according to <a href="https://www.bloomberg.com/news/articles/2024-11-21/us-justice-department-seeks-to-unwind-google-s-anthropic-deal">Bloomberg</a>. Anthropic is a Jeff Bezos-backed rival to artificial intelligence (AI) innovator OpenAI. The U.S. Department of Justice (DOJ) recommended in <a href="https://www.benzinga.com/tech/24/11/42105079/googles-unlawful-behavior-stifles-market-entry-for-rivals-doj-says-alphabet-must-sell-chrome-to-end-search-monopoly">a court filing Wednesday</a> that Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google divest its Chrome browser to dismantle its monopoly on online search. It doesn&#8217;t end there. Google should be barred from doing any deals with companies that control where consumers search for information, regulators say. <a href="https://www.benzinga.com/tech/24/11/42123646/google-anthropic-deal-in-jeopardy-as-us-justice-department-looks-to-snap-online-search-monopoly">That includes AI products</a>.</li>
</ul>
<ul>
<li>Ricky Williams&#8216; Highsman merges with hemp brand Frozen Fields, forming Top Seed Inc. The partnership blends cannabis and hemp sectors, leveraging R&amp;D to enhance products <a href="https://www.benzinga.com/markets/cannabis/24/11/42097662/ricky-williams-highsman-merges-with-hemp-brand-frozen-fields">and control supply chains</a>.</li>
</ul>
<ul>
<li>MakeMyTrip acquires Happay from CRED. The deal is expected to enhance corporate travel and expense management solutions in India. Happay&#8217;s team will integrate with MakeMyTrip, supporting <a href="https://www.benzinga.com/general/travel/24/11/42039458/makemytrip-agrees-to-acquire-happay-bolstering-its-arsenal-for-corporate-travel-solutions">over 900 clients post-acquisition</a>.</li>
</ul>
<ul>
<li>Amcor plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMCR#NYSE">AMCR</a>) and Berry Global Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BERY#NYSE">BERY</a>) agreed to merge in an all-stock transaction, with the deal valuing Berry stock <a href="https://www.benzinga.com/news/large-cap/24/11/42069248/amcor-and-berry-seal-the-deal-73-59-per-share-merger-to-forge-packaging-powerhouse">at $73.59 per share</a>.</li>
</ul>
<ul>
<li>Nippon Steel (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NISTF#OTC">NISTF</a>) executives have traveled to Pennsylvania to garner support for their $15 billion acquisition bid for U.S. Steel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>). The Japanese steel giant is encountering political resistance in Washington. Takahiro Mori, vice-chair of Nippon Steel, arrived in Pittsburgh on Saturday to advocate for the acquisition. The deal faces opposition from both President Joe Biden and President-elect Donald Trump, who prefer U.S. Steel to <a href="https://www.benzinga.com/markets/24/11/42056111/nippon-steel-execs-rally-support-in-pennsylvania-amid-pushback-on-us-steel-takeover">remain under American ownership</a>.</li>
</ul>
<h3 class="wp-block-heading">Notes From The Block</h3>
Joshua Robinson, co-founder of Darwin Financial Company, announced a $55-million financing deal with INYOAG LLC. The funds will help develop a solar-powered mine in Inyo County, California where there are proven reserves of silver, lead, zinc, tungsten, and copper. Here&#8217;s our conversation with Robinson:
<h4 class="wp-block-heading">BZ: What is the deal structure between Darwin Financial and base metals miner INYOAG? </h4>
Robinson: The deal structure is a $55M project financing package split into three components: $17.5 million and $12.5 million in six-year notes tied to sulfide and oxide production respectively, plus a $20-million conditional equity commitment that only triggers if the mine hits $10 million in monthly revenue. We get 17% of gross revenues from both production tracks, structured through secure lockbox arrangements. It&#8217;s not a straight equity investment, we specifically designed it this way to provide further upside exposure.
<h4 class="wp-block-heading">Are you looking for additional investors/joint venture partners? </h4>
Yes, we&#8217;ve deliberately structured this to create multiple layers of upside potential, which is pretty unique in the mining space. We&#8217;ve created a hybrid model that offers both near-term cash flow from production and significant expansion potential. We&#8217;re already seeing interest from established mining players, but we&#8217;re particularly excited about bringing new investors into the space who understand the strategic value of critical minerals.
<h4 class="wp-block-heading">What are the downsides to depending on foreign sources of critical minerals?</h4>
China&#8217;s recent actions really highlight the urgency here. They&#8217;ve already implemented export controls on germanium and gallium, and just added antimony to that list. This isn&#8217;t theoretical anymore, it&#8217;s actively happening. We need to build regional resilience in our supply chains, particularly for these minerals that are crucial for defense and technology. The Darwin Mine gives us a unique opportunity to establish a domestic source for multiple critical minerals in a single asset, which is rare to find.
<h4 class="wp-block-heading">Will the mine be powered by solar? </h4>
The 100MW facility wouldn&#8217;t just power the mine. It would generate significant excess clean energy that we can sell back to the grid. What&#8217;s particularly interesting is that we can develop utility-scale energy storage systems using minerals we&#8217;re already producing. It creates a virtuous cycle where our mining operations directly support clean energy deployment
<h4 class="wp-block-heading">What are your 2025 goals?</h4>
For 2025, our key goals are reaching 300 tons per day on sulfide production within six months and 200 tons per day on oxide within nine months of funding. That puts us at $ 10 million in monthly revenue, which then triggers the deeper mine development program.
For last week&#8217;s Deal Dispatch, <a href="https://www.benzinga.com/ma/24/11/42025534/deal-dispatch-shell-unilever-and-more-are-on-the-sell-side-the-onion-makes-alex-jones-cry-foul">click here</a>.
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/41699259/nvidia-rides-ai-wave-to-replace-intel-on-dow-jones-industrial-average-ending-its-25-year-run">Nvidia Rides AI Wave To Replace Intel On Dow Jones Industrial Average, Ending Its 25-Year Run</a></li>
</ul>
Image: Benzinga

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Deal Dispatch: Starbucks Considers China Sale, Private Equity Bankrupts Snack Company, Darwin Financial Talks Mining

Earnings

News

BMW Group Q3 2024 Deliveries 540,881 Vs 621,699 YoY

BMW Group Q3 2024 Revenue €32.4B Vs €38.46B YoY

Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is having its Robotaxi Day this week. The &lsquo;We, Robot&rsquo; event will be held on October 10th&nbsp;in Hollywood as Tesla booked the massive&nbsp;Warner Bros. Discovery Inc. Studios to unveil its latest model. Considering the impressive venue and the fact&nbsp;that Tesla had delayed this&nbsp;event in order to make some important changes, expectations are high and there are many speculations of what the EV king plans to unveil, the day promises to be &quot;one&nbsp;for the history books&quot;.
Optimizing the charging process.&nbsp;
Yet, the week got kicked off by Nissan Motor Co Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/nsany#OTC">NSANY</a>)&nbsp;deciding to join Bayerische Motoren Werke Aktiengesellschaft (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>), Ford Motor (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>), and Honda Motor Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hmc#NYSE">HMC</a>), or more precisely the trio&rsquo;s EV integration joint venture.&nbsp;Through its investment, Nissan revealed it will become an equal 25% investor&nbsp;in ChargeScape. BMW and Honda had presented ChargeScape&rsquo;s software that optimizes charging. Through ChargeScape, BMW, Honda, Ford and now Nissan, will provide bidirectional charging, allowing EVs to send power back to the grid when needed, while optimizing the charging process by coordinating with real-time grid demands. Also, BMW, Ford, Honda and Nissan will be providing financial incentives to EV owners to reduce energy use during peak times.&nbsp;
Bringing more clean energy to the EV table.
Having already established a reputation for its &lsquo;made-in-the-USA&rsquo; hybrid and clean energy solutions for light trucks, Worksport Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wksp#NASDAQ">WKSP</a>) is preparing for a market release of its solar-powered tonneau cover, SOLIS&nbsp;&nbsp;and the COR portable energy system. This clean energy power duo that promises off-grid power on the go has the potential to propel Worksport&rsquo;s mid to long-term revenues. Worksport already has an ongoing collaboration with Hyundai who secured access to these groundbreaking accessories. Also, Worksport will be releasing one of the most in-demand tonneau cover models, AL4 premium tonneau Cover, in the fourth quarter, with innovative four-fold design that offers enhanced functionality and ease of the use. By launching three new product lines, Worksport is aiming to strengthen its positioning and expand market reach. In the fourth quarter, Worksport will also be implementing cost-saving measures to&nbsp;enhance margins and&nbsp;lower operational overhead&nbsp;without compromising growth. With these key strategic advances that will undoubtedly accelerate revenue growth and boost margings, Worksport is aiming for&nbsp;cash flow positivity un 2025.&nbsp;
While Tesla still holds the EV crown, long gone are the days it had the EV throne to itself. Besides already sharing the crown with BYD Company Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddy#OTC">BYDDY</a>) on some fronts, both traditional automakers and newcomers are also shaping the EV landscape that is in the making, such as Worksport whose SOLIS and COR off-grid clean power duo promises to revolutionize the pickup experience altogether.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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The EV Evolution Goes On With New Developments

<a href="https://europeancapitalinsights.substack.com/p/german-recession-fears-rise-after?r=3nmatg">German recession concerns</a> increased after factory orders declined more than expected in August, adding concerns about Europe's largest economy.
New orders dropped 5.8% month-on-month in August, the Federal Statistical Office (Destatis) said today. Economists had forecast a decline of 2%, making it the steepest fall since January, according to<a href="https://www.bloomberg.com/news/articles/2024-10-07/german-factory-orders-drop-in-yet-another-sign-of-industry-woe?utm_source=website&amp;utm_medium=share&amp;utm_campaign=twitter?sref=R17xFhjo"> Bloomberg</a>.
Factory orders dropped after "<a href="https://www.destatis.de/EN/Press/2024/10/PE24_381_421.html">very large orders" for aircraft, ships, trains</a>, and military vehicles&nbsp;were placed in July, Destatis said. When large-scale orders are excluded, new orders in August fell 3.4% lower than in July 2024, it said.
<a href="https://www.benzinga.com/topic/germany">Germany&#8217;s economy</a> ministry<a href="https://www.dw.com/en/germany-reckons-with-another-recession-in-2024-report/a-70416091#:~:text=The%20German%20Economy%20Ministry%20expects,major%20newspaper%20reported%20on%20Sunday."> will downgrade its 2024 economic forecast</a>, expecting gross domestic product (GDP) to shrink by 0.2%, newspaper Sueddeutsche Zeitung reported.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="922" height="410" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2.png" alt="" class="wp-image-2013" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2.png 922w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2-300x133.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2-768x342.png 768w" sizes="(max-width: 922px) 100vw, 922px" /></figure>
A recovery in the industrial economy in the second half&nbsp; "is unlikely," the ministry said in a statement. It pointed to "<a href="https://insiderpaper.com/recession-fears-mount-as-german-factory-orders-plunge/">persistently weak demand</a> and continued deterioration in corporate sentiment."
DAX fell 170 points following the news, finding its footing around the 19,000 level. The index remained down 0.3% at 12 PM CET. However, as the price failed to reach lows from Friday, the technical thesis of a short-term pullback at the beginning of Q4 remains intact.
<h3 class="wp-block-heading">German Recession Appears More Likely </h3>
Germany is facing an increasing number of economic headwinds.&nbsp;
The country may feel the <a href="https://europeancapitalinsights.substack.com/p/europe-carmakers-criticize-eus-chinese">impact of trade tensions</a> after the European Union <a href="https://europeancapitalinsights.substack.com/p/european-tariffs-on-chinas-ev-makers">imposed tariffs against China's electric vehicle makers</a>. Germany vetoed the decision after pressure from Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) and BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>).
Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) warned that<a href="https://europeancapitalinsights.substack.com/p/volkswagen-considers-first-ever-closure"> it is considering closing factories</a> amid increased competition with rival Chinese car makers. 
The recessionary outlook adds to <a href="https://open.substack.com/pub/europeancapitalinsights/p/confidence-in-german-economy-plunges?r=3nmatg&amp;utm_campaign=post&amp;utm_medium=web">growing concerns about the German economy</a>. GDP shrank by 0.1% in the second quarter of this year.
<a href="https://www.zew.de/en/zew/news/stagnation-expected-for-the-german-economy">Experts are now signaling economic stagnation</a> this year, the ZEW Institute said on September 23. They lowered their 2024 growth forecast by 0.1 percentage points to just 0.1%.
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="768" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-1024x768.jpg" alt="" class="wp-image-2011" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-1024x768.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-300x225.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-768x576.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Germany is falling behind the rest of the eurozone in terms of &#8220;both actual growth and growth expectations," ZEW said.
Germany <a href="https://www.destatis.de/EN/Press/2024/09/PE24_337_421.html">releases industrial production data</a> on Tuesday, which is <a href="https://tradingeconomics.com/germany/industrial-production-mom">forecast to increase by 1%</a>. 
In July, industrial production declined by 2.4%, with the automotive industry having "a particularly negative impact," Destatis said.
New orders in the capital and intermediate goods sectors in Germany fell 8.6% and 2.2%, respectively, Destatis said. New orders for consumer goods declined by 0.9%.&nbsp;
<h3 class="wp-block-heading">German Business, Consumer Sentiment Sours</h3>
Business and consumer sentiment in Germany has soured as well.&nbsp;
The ifo Institute's expectations gauge fell in September to 86.3, the lowest since February.
The Ifo expectation index for German retail "clouded over" in September. <a href="https://www.ifo.de/en/facts/2024-10-07/business-climate-german-retail-clouds-over">It fell to -25.6 points, down from -23.1 points</a> in August. Retailers assessed their current situation as slightly worse and have become more pessimistic about the coming months, ifo said today.
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="567" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-1024x567.png" alt="" class="wp-image-2012" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-1024x567.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-300x166.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-768x425.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1.png 1033w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
"Consumers are unsettled about the economic policy environment,"&nbsp; ifo expert Patrick Höppner, said. "No further dynamic growth in private consumer spending can be expected for the rest of 2024."
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.&nbsp;
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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MERCEDES BENZ GROUP AG by Mercedes Benz Group AG

MBGAF

German Recession Fears Rise After Factory Orders Drop

Germany is poised to vote against the European Union&#8217;s <a href="https://www.benzinga.com/news/24/09/40810974/us-ally-urges-eu-to-reconsider-tariffs-on-chinese-evs-we-dont-need-another-war">proposed tariffs on Chinese electric vehicles this Friday</a>. This decision comes after significant pressure from industry leaders on German Chancellor Olaf Scholz.
What Happened: Germany had previously abstained from a non-binding vote in July concerning the European Commission&#8217;s tariff proposal. The Commission&#8217;s plan requires a qualified majority of 15 EU member states, representing 65% of the EU population, to be implemented, Reuters reported on Friday, citing people with knowledge of the matter. 
France, Greece, Italy, and Poland are reportedly in favor of the tariffs, which could push the measure through.
The Commission argues that the tariffs are necessary to counteract subsidies such as cheap loans and raw materials, aiming for a level playing field rather than excluding Chinese manufacturers. 
However, German carmakers, who derive a significant portion of their sales from China, oppose the tariffs due to fears of retaliatory actions and potential trade conflicts.
The influential German labor union IG Metall and employee representatives from major car manufacturers have issued a joint statement urging Germany to vote against the tariffs, stating, &#8220;tariffs are the wrong approach because they will not improve the competitiveness of the European automotive industry.&#8221;
Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) has been granted provisional approval by <a href="https://www.benzinga.com/news/24/07/39640029/teslas-giga-berlin-expansion-gets-environmental-authority-approval-after-chancellor-scholz-voiced-ai">German authorities to expand its Gigafactory</a> near Berlin, a key move that underscores Tesla&#8217;s growing presence in Europe&#8217;s EV market. 
The German Automotive Industry Association (VDA) reports that 1.27 million battery electric and plug-in hybrid vehicles were manufactured in Germany in 2023, making it the second-largest EV producer globally, behind China. 
Although China dominates global EV output, most of its vehicles are sold domestically, whereas 76% of German EVs are exported, highlighting Germany&#8217;s pivotal role in the international EV market.
Germany&#8217;s carmakers are renowned for their engineering excellence, with brands like Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), which owns ŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, and Porsche; Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>); and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), which owns BMW, MINI, and Rolls-Royce. 
See Also: <a href="https://www.benzinga.com/news/24/10/41161763/european-telecom-giants-threaten-legal-action-against-elon-musks-starlink-over-potential-fcc-rule-ch?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">European Telecom Giants Threaten Legal Action Against Elon Musk&#8217;s Starlink Over Potential FCC Rule Changes</a>
Why It Matters: The European Union&#8217;s decision on tariffs for Chinese electric vehicles has been a contentious issue, with potential repercussions for international trade. The EU aims to protect its automobile industry from the influx of cheaper Chinese EVs, which <a href="https://www.benzinga.com/news/24/10/41143690/european-tariffs-on-chinas-ev-makers-could-backfire">accounted for 54% of total EV imports</a> to the EU in 2023.
However, this protectionist stance could spark a broader trade war with China, jeopardizing the EU&#8217;s export-dependent companies and its EV targets.
China has already approached the World Trade Organization regarding similar tariffs imposed by Canada, highlighting the potential for <a href="https://www.benzinga.com/news/24/09/40914629/china-warns-eu-tariffs-on-evs-will-harm-trade-with-germany">escalating trade tensions</a>. China&#8217;s commerce minister has warned that the EU&#8217;s tariffs could significantly disrupt trade, particularly with Germany. 
Additionally, Spain&#8217;s Prime Minister Pedro Sánchez has called for a <a href="https://www.benzinga.com/news/24/09/40810974/us-ally-urges-eu-to-reconsider-tariffs-on-chinese-evs-we-dont-need-another-war">reevaluation of the EU&#8217;s stance</a>, emphasizing the need for compromise to avoid further trade disputes.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41169516/tesla-recalls-27-185-cybertruck-vehicles-over-rearview-camera-delay?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Recalls 27,185 Cybertruck Vehicles Over Rearview Camera Delay</a></li>
</ul>
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Germany, Home To Mercedes And BMW, Set To Oppose EU Tariffs On Chinese EVs: Report

The European Union is set to <a href="https://www.france24.com/en/live-news/20240930-eu-states-plan-friday-vote-on-chinese-ev-tariffs">vote on Friday</a> on whether to back final tariffs on China's electric vehicle (EV) makers.&nbsp;
The EU <a href="https://europeancapitalinsights.substack.com/p/european-tariffs-on-chinas-ev-makers?r=3nmatg">wants to protect its automobile makers</a> against the increasing number of less expensive Chinese EVs entering the market. Of the total <a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">EV imports to the EU in 2023</a>, 54%&nbsp;originate from China.
But the 27-member bloc's protectionist stance could cause a wider trade war with China. That could hurt the EU's export-dependent companies, its EV targets and threaten critical raw material supplies.&nbsp;
The European Commission (EC)<a href="https://www.nytimes.com/2024/07/04/business/european-union-china-ev-tariffs.html"> imposed provisional tariffs on China's EVs</a> in July <a href="https://asia.nikkei.com/Economy/Trade/China-Europe-in-EV-tariff-stare-down-as-Beijing-drops-retaliation-hints">despite Beijing's previous warning</a> that it would retaliate.
Beijing has denied that it improperly subsidizes EV companies, arguing that its leading role in EVs results from efficient manufacturing.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="805" height="448" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart.png" alt="" class="wp-image-1771" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart.png 805w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart-300x167.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart-768x427.png 768w" sizes="(max-width: 805px) 100vw, 805px" /></figure>
<a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">Source</a>: JATO Dynamics, BNEF, ING Research
<h3 class="wp-block-heading">Europe-China EV Talks Stall</h3>
So far, both sides have been unable to compromise on their EV trade differences.&nbsp;
The EU's Commissioner for Trade, Valdis Dombrovskis, and China's Minister of Commerce, Wang Wentao, <a href="https://policy.trade.ec.europa.eu/news/readout-meeting-between-evp-dombrovskis-and-chinese-commerce-minister-wang-2024-09-20_en">held unsuccessful talks</a> on September 19.&nbsp;
"Both sides <a href="https://x.com/VDombrovskis/status/1836795726308708712">agreed to intensify efforts</a> to find an effective, enforceable and WTO compatible solution," Dombrovskis said.&nbsp;
The EC then told EU member countries t<a href="https://www.reuters.com/business/autos-transportation/eu-continue-china-electric-vehicle-talks-even-after-final-vote-say-sources-2024-09-30/#:~:text=BRUSSELS%2C%20Sept%2030%20(Reuters),EU%20official%20said%20on%20Monday.">hat it would continue negotiations with China</a> after the October vote, Reuters reported.&nbsp;
 EU members are split on whether to levy European tariffs for the next five years, adding a further complication. Spain has called on th<a href="https://www.france24.com/en/live-news/20240911-spain-pm-urges-eu-to-reconsider-china-ev-tariffs-plan">e EU to &#8220;rethink&#8221; the duties, aligning</a> with Germany, while France supports them.&nbsp;
<h3 class="wp-block-heading">Automakers Warn Against European Tariffs</h3>
Automobile industry leaders in Europe have pushed back against the tariffs.&nbsp;
Executives from BMW AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) have warned that imposing tariffs on Chinese EVs was a bad idea.
&#8220;Protectionism risks starting a spiral," <a href="https://europe.autonews.com/automakers/german-automakers-slam-eus-high-tariffs-chinese-ev-exports">BMW CEO Oliver Zipse said</a> in June. "Tariffs lead to new tariffs, to isolation rather than cooperation."&nbsp;
<a href="http://www.bmw-brilliance.cn/cn/en/news/news/2024-1-09.html#:~:text=Munich%2FBeijing.,mainland%20market%20(%2B4.2%25).">China is a core sales market for BMW</a>. It delivered 824,932 BMW and MINI vehicles in the Chinese mainland market in 2023.
<a href="https://europeancapitalinsights.substack.com/p/volkswagen-considers-first-ever-closure?r=3nmatg">Former Volkswagen AG CEO</a> Herbert Diess reiterated a similar message. "An <a href="https://x.com/economics/status/1799352437800612022">escalating trade spat</a> between China and the West would fuel inflation," he said in June.&nbsp;
Would European tariffs actually slow China's EV expansion into the region? The Rhodium Group, a New York-based independent research provider, doubts their impact.&nbsp;
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="855" height="431" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2.png" alt="" class="wp-image-1772" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2.png 855w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2-300x151.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2-768x387.png 768w" sizes="(max-width: 855px) 100vw, 855px" /></figure>
<a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">Source</a>: ITC Trade Map, BNEF, ING Research
"<a href="https://rhg.com/research/aint-no-duty-high-enough/">Duties in the 40-50% range</a> would probably be necessary to make the European market unattractive for Chinese EV exporters," it said in April.
<h3 class="wp-block-heading">Provisional European Tariffs On China</h3>
The EC launched its <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3231">anti-subsidy investigation against Chinese EVs</a> last year.
The investigation concluded that China's value chain of battery electric vehicles (BEV) benefited from unfair subsidization. This caused a "threat of economic injury to EU BEV producers," the EC said.
The <a href="https://www.bloomberg.com/news/articles/2024-08-21/saic-motor-blames-impending-eu-duties-for-slumping-sales">highest tariffs were imposed</a> on Chinese state-owned automobile manufacturer SAIC Motor (Shanghai:<a href="https://finance.yahoo.com/quote/600104.SS/">600104.SS</a>) at 36.3%. BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) and Volvo's (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VOLAF#OTC">VOLAF</a>) parent, Geely (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GELYF#OTC">GELYF</a>), received lower tariffs of 17.4% and 19.9%.
The EC then cut<a href="https://ec.europa.eu/commission/presscorner/detail/en/qanda_24_4302"> European tariffs marginally</a> at the end of August. It considered submissions and technical corrections by EV companies operating in China.
<h3 class="wp-block-heading">European Tariff Trade Spat With China</h3>
In response to the threat of tariffs, China has accused the EU of violating World Trade Organization (WTO) rules.&nbsp;
"Judgment in the EU's provisional conclusion lacks factual and legal foundation," a Chinese ministry spokesperson said on August 9.&nbsp; "It severely<a href="https://www.bloomberg.com/news/articles/2024-08-09/china-takes-europe-s-ev-tariffs-to-wto-as-trade-tensions-rise?utm_medium=cpc_search&amp;utm_campaign=NB_ENG_DSAXX_DSAXXXXXXXXXX_EVG_XXXX_XXX_COUSA_EN_EN_X_BLOM_GO_SE_XXX_XXXXXXXXXX&amp;gad_source=1&amp;gclid=Cj0KCQjwo8S3BhDeARIsAFRmkOMKaKYs36uGBlOIi64HxfnrIRqjbZv_QwFuVa65JaDuGzVZtWJDcKYaAmA4EALw_wcB&amp;gclsrc=aw.ds"> violated WTO rules</a>."
It then brought the case to the <a href="https://www.wto.org/english/news_e/news24_e/ds626rfc_14aug24_e.htm#:~:text=WTO%20%7C%202024%20News%20items%20%2D%20China,subsidy%20duties%20on%20electric%20vehicles">WTO's rules dispute settlement mechanism</a> on August 14 to "safeguard the development rights and interests" of the EV industry.
A week later, China initiated an anti-subsidy investigation targeting EU milk, cream, and cheese products.
The <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_4821">EC challenged China</a> in September at the WTO against China&#8217;s investigation into EU dairy products. <a href="https://x.com/VDombrovskis">China's investigation</a> "is based on questionable allegations and insufficient evidence," Valdis said on <a href="https://x.com/VDombrovskis">X</a>.&nbsp;&nbsp;
<h3 class="wp-block-heading">Europe Depends On China For Raw Materials</h3>
But a trade war with China would likely hurt European companies and the broader economy.
China imports 22% of its <a href="https://www.reuters.com/breakingviews/eus-china-trade-weak-spots-hide-plain-sight-2024-07-09/#:~:text=Methodological%20complexities%20and%20statistical%20revisions,the%20world's%20second%2Dlargest%20economy">consumer goods from Europe</a>. This puts <a href="https://europeancapitalinsights.substack.com/p/european-luxury-brands-feel-pinch?r=3nmatg">luxury groups</a> like LVMH (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LVMHA#OTC">LVMHA</a>) and Kering (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PPRUY#OTC">PPRUY</a>) at risk.
European tariffs could increase the cost of EVs for consumers as Europe moves to phase out n<a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">ew gasoline and diesel cars by 2035</a>, according to ING.
The bloc remains highly <a href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/european-critical-raw-materials-act_en#:~:text=The%20EU%20is%20heavily%20dependent%20on%20imports%20of,is%20extracted%20in%20the%20Democratic%20Republic%20of%20Congo">dependent on China</a> for critical raw materials. It sources 97% of its magnesium and 100% of its rare earths for permanent magnets from China.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="830" height="418" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3.png" alt="" class="wp-image-1774" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3.png 830w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3-300x151.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3-768x387.png 768w" sizes="(max-width: 830px) 100vw, 830px" /></figure>
"Europe will not be self-sufficient in EV production or the EV supply chain any time soon," ING wrote on June 19. "It needs to act carefully, considering any further retaliation from China."
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

GELYF

LVMHA

PPRUY

VOLAF

European Tariffs On China's EV Makers Could Backfire

Gains in European equities may falter on geopolitical and economic fears after receiving a boost from China's stimulus plans and slowing inflation.
The Euro Area Stoxx 600 gained 2.69% in the week ending September 27 to a record, extending its year-to-date climb to 10.1%. Germany's DAX40 closed the week at a record level, gaining 4% after increasing 1.22% on Friday.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="613" height="402" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154001/Image-1-Sept.-28.png" alt="" class="wp-image-1608" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154001/Image-1-Sept.-28.png 613w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154001/Image-1-Sept.-28-300x197.png 300w" sizes="(max-width: 613px) 100vw, 613px" /></figure>
Source: <a href="https://tradingeconomics.com/germany/stock-market">TradingEconomics</a>
Slow economic growth, volatile natural gas prices, and inflation have hurt European economic sentiment. GDP is projected to end 2024 at <a href="https://www.ecb.europa.eu/press/projections/html/ecb.projections202409_ecbstaff~9c88364c57.en.html#:~:text=Overall%2C%20annual%20average%20real%20GDP,year%20of%20the%20projection%20horizon.">0.8%</a>.
Geopolitical developments, including the war in Ukraine and the upcoming U.S. elections, have curbed European stock optimism.&nbsp;European policymakers have expressed concerns about issues from climate change, security and trade if Trump wins a second term.
Fears about a wider Middle East war escalated after Israel <a href="https://www.nytimes.com/live/2024/world/israel-lebanon-hezbollah-hamas">killed</a> Hezbollah's leader Hassan Nasrallah in airstrikes Friday in Beirut.&nbsp;
The EU &#8220;is extremely concerned&#8221; about the confrontation between Israel and Hezbollah,&#8221; Josep Borrell, EU&#8217;s High Representative for Foreign Affairs and Security Policy, <a href="https://www.consilium.europa.eu/en/press/press-releases/">said</a>. 
&#8220;Any further escalation would have dramatic consequences for the region and beyond.&#8221;&nbsp;
<h3 class="wp-block-heading">European Investors Welcome China's ‘Stimulus Blitz</h3>
Despite the ongoing headwinds, investors welcomed the People's Bank of China (PBOC) "<a href="https://www.home.saxo/en-mena/content/articles/macro/chinas-bold-stimulus-measures-what-it-means-for-markets-25092024">stimulus blitz</a>"&nbsp; to tackle the country's economic headwinds.&nbsp;
China announced&nbsp; "a series of bold moves aimed at stabilizing both the economy and the stock market,"&nbsp; Charu Chanana, Head of FX Strategy at Saxo, <a href="https://www.home.saxo/en-mena/insights/news-and-research/authors/charu-chanana">wrote</a> on September 25<a href="https://www.home.saxo/en-mena/insights/news-and-research/authors/charu-chanana">.</a>
The <a href="http://www.pbc.gov.cn/en/3688110/3688172/5188125/5469326/index.html">package included</a> a 50-basis-point cut to banks' required reserve ratios (RRR) and a 20-basis-point cut to the seven-day reverse repurchase rate.&nbsp;&nbsp;&nbsp;
The PBOC announced a 500 billion yuan ($71.3 billion) liquidity support for stock buybacks.
<h3 class="wp-block-heading">European Fashion, Automobile Stocks See Most Gains</h3>
Although European equities rose immediately on the PBOC news, fashion and automobile stocks climbed the most.
France's LVMH (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LVMHF#OTC">LVMHF</a>) jumped 19.2% ,and Hermes (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HESAY#OTC">HESAY</a>) rose 16.5% for the week. 
German automobile makers also clocked gains. Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) rose by 7%, Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) by 6.55 and BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) by 6.6%.
Germany's automobile index rose 8.70% for the week.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="565" height="252" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154104/Image-2-2024-09-28-180054.png" alt="" class="wp-image-1609" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154104/Image-2-2024-09-28-180054.png 565w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154104/Image-2-2024-09-28-180054-300x134.png 300w" sizes="(max-width: 565px) 100vw, 565px" /></figure>
Source: <a href="https://www.boerse-frankfurt.de/indices/daxsector-all-automobile-performance">Boerse-Frankfurt</a>
European companies operating in <a href="https://europeancapitalinsights.substack.com/p/european-luxury-brands-feel-pinch">China have worried</a> that the slowdown in the world&#8217;s second-largest economy may hurt profitability.
The Chinese economy grew 4.7% in the second quarter from April to June. This is the slowest pace since the first quarter of 2023 and below forecasts of 5% to 5.3%.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="742" height="399" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154155/Image-3-2024-09-28-180124.png" alt="" class="wp-image-1610" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154155/Image-3-2024-09-28-180124.png 742w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154155/Image-3-2024-09-28-180124-300x161.png 300w" sizes="(max-width: 742px) 100vw, 742px" /></figure>
Source: <a href="https://www.statista.com/statistics/1102691/china-estimated-coronavirus-covid-19-impact-on-gdp-growth/">Statista</a>

The stimulus package "can help to repair some of the confidence levels in the economy and policymakers," Chanana wrote.
<h3 class="wp-block-heading">European Equities Helped by Inflation Data</h3>
European equities received an added boost this week from inflation data.&nbsp;
German preliminary data showed inflation slowing to1.6% in September, compared to 1.9% in August, the country&#8217;s Federal Statistical Office <a href="https://www.destatis.de/EN/Home/_node.html">said </a>on Monday. France and Spain reported on September 27 that inflation <a href="https://europeancapitalinsights.substack.com/publish/posts/detail/149487004?referrer=%2Fpublish%2Fposts">slowed below 2%</a>, beating analysts expectations.
Investors now give the European Central Bank (ECB) a 70% chance of cutting rates<a href="https://www.euronews.com/business/2024/09/27/french-and-spanish-inflation-dips-below-2-fueling-rate-cuts-hopes"> next month</a>.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="596" height="412" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154255/Image-4-2024-09-28-180157.png" alt="" class="wp-image-1611" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154255/Image-4-2024-09-28-180157.png 596w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154255/Image-4-2024-09-28-180157-300x207.png 300w" sizes="(max-width: 596px) 100vw, 596px" /></figure>
Source: <a href="https://tradingeconomics.com/france/inflation-cpi#">Tradingeconomics</a>
Although the latest economic data has buoyed confidence, some investors have expressed caution.
Data is "looking quite shaky," Anwiti Bahuguna, Northern Trust Asset Management&#8217;s chief investment officer of global allocation, told<a href="https://www.bnnbloomberg.ca/business/international/2024/09/28/goldman-blackrock-warn-europes-stock-rally-faces-tough-hurdles/"> </a>Bloomberg TV.&nbsp;
"Inflation is coming down, but not fast enough to think there would be very sharp relief on the rates front."
<h3 class="wp-block-heading">European Consumer Sentiment Improves</h3>
Despite these concerns, European consumer sentiment has started to improve. It rose 0.5 points in the Euro Area in September to -12.9, which was in line with <a href="https://tradingeconomics.com/euro-area/consumer-confidence">preliminary estimates</a>.&nbsp;
"Consumers were markedly more optimistic about their households' expected financial situation," the European Commission <a href="https://economy-finance.ec.europa.eu/document/download/8bdf8526-c9cf-4163-a2ef-88481f6430ab_en?filename=bcs_2024_09_en_0.pdf">said</a> on September 27.&nbsp;
In <a href="https://www.gfk.com/press/moderate-recovery-in-consumer-climate">Germany</a>, France and Italy, Europe's three largest economies, consumer confidence rose moderately, according to monthly surveys.
However, the Nuremberg Institute for Market Decisions (NIM) warned on September 26 that it was too early to conclude German consumer confidence had improved.
The improvement in Germany "can be interpreted more as a stabilization at a low level," Rolf Bürkl, an expert at NIM, said.&nbsp;
"The slight increase cannot be interpreted as the beginning of a noticeable recovery."

Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

HESAY

LVMHF

European Stock Gains May Falter On Geopolitical, Economic Fears

Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), and General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) are lagging behind Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and several Chinese competitors regarding critical software needed to power electric vehicles (EVs), the Financial Times <a target="_blank" href="https://www.ft.com/content/7e5677b8-87fa-41fa-8648-9009ac7f14fc" rel="noreferrer noopener">reports</a>.
Only three legacy automakers—Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors, and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>)—made the top 10 in their &#8220;digital automaker index,&#8221; the Financial Times cites a Gartner report. Tesla, Chinese companies like Nio Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) and Xpeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), and startups such as Rivian Automotive, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) dominated the list.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39880027/should-elon-musk-be-worried-toyota-hyundai-and-ford-challenge-tesla-on-home-turf-with-more-evs-on-us" rel="noreferrer noopener">Should Elon Musk Be Worried? Toyota, Hyundai, And Ford Challenge Tesla On Home Turf With More EVs On US Roads As Billionaire&#8217;s Auto Giant Faces Sales Slump</a>
The automotive industry transition to software development proved challenging for major players like Toyota and Volkswagen, who need help to keep pace with changes focused on software controlling EV batteries, safety systems, and self-driving technology.
However, Chinese EV stocks are also facing <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks" rel="noreferrer noopener">a challenging year</a>, as the domestic economic slowdown led to a price war. The stocks are down 31%- 42% in the last 12 months.
The U.S. sanctions on advanced artificial intelligence chips further affected the industry. Tesla is up 0.80% in the last 12 months.
Meanwhile, another U.S. embargo on the auto industry posed <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks" rel="noreferrer noopener">an additional problem</a>. The U.S. Commerce Department is considering restricting importing and selling Chinese-made vehicles that contain critical communications and automated driving systems, citing national security concerns.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/09/40745366/toyota-scales-back-2026-ev-production-plans-by-30-trims-target-to-1m-cars-as-global-demand-weakens-r" target="_blank" rel="noreferrer noopener">Toyota Scales Back 2026 EV Production Plans By 30%, Trims Target To 1M Cars As Global Demand Weakens: Report</a></li>
</ul>
Disclaimer: This content was partially produced using AI tools and reviewed and published by Benzinga editors.
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Tesla And Chinese EV Startups Outpace Toyota, Volkswagen In Critical Software Race: Report

Europe&rsquo;s biggest automaker, Volkswagen (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vwagy#OTC">VWAGY</a>) is considering plant closures for the first time in its 87-year-old history. But Volkswagen is merely a reflection of a struggling European auto industry that is currently challenged on many fronts, with its struggles being both the global competition and its declining appeal.&nbsp;
Europe&rsquo;s automotive industry is struggling with many issues simultaneously.&nbsp;
According to&nbsp;Bloomberg Intelligence, one in three European factories of carmaking behemoths, namely Volkswagen, Bayerische Motoren Werke Aktiengesellschaft (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>), Mercedes-Benz Group AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mbgaf#OTC">MBGAF</a>)(OTC: <a class="ticker" href="https://www.benzinga.com/stock/mbgyy#OTC">MBGYY</a>), Stellantis N.V. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stla#NYSE">STLA</a>) and Renault (OTC: <a class="ticker" href="https://www.benzinga.com/stock/rnlsy#OTC">RNLSY</a>) is underutilized.&nbsp;Meanwhile, Chinese automakers such as BYD (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddy#OTC">BYDDY</a>) are off to conquer Europe. To avoid tarrifs on China-made EVs, they are planning to make their own factories on the European continent.&nbsp;
Volkswagen is only one of the first victims.
Volkswagen Group CEO Oliver Blume&nbsp;openly spoke of the serious situation that Europe&rsquo;s automotive industry is facing with Germany in particular falling from grace as a competitive manufacturing location. Volkswagen has also fallen from grace in China, its single biggest market. During the first half of 2024, Volkswagen&rsquo;s deliveries in China dropped 7%&nbsp;YoY with group operating profit tumbling 11.4%&nbsp;to $11.2 billion. Volkswagen is losing out to local brands in China like BYD and those brands are now going for its home market.&nbsp;&nbsp;
Stellantis has also been hit by slowing demand in Europe.
In Italy, Stellantis is hitting the brakes. In response to the sales crisis, Stellantis halted production of its electric Fiat 500e for a month at its Mirafiori facility that is located near Turin. Stellantis also revealed that the site will be undergoing a significant transformation that will involve an investment worth&nbsp;&euro;100 million. Stellantis is expected to start making a hybrid version of the Fiat 500&nbsp;sometimes next year.&nbsp;
In addition to its European struggles, Stellantis is also facing a shrinking share in North America. During the first half of 2024, net revenues dropped 14% YoY while net profit took a 48% YoY plunge.
With Chinese EV makers navigating new roads, determined to conquer the world, simple cost-cutting measures won&rsquo;t do.&nbsp;
European automakers are having a hard time keeping up with Chinese EV makers. The increased tariffs that the EU imposed on Chinese EV makers led to significant backlash and concerns that this will make it more difficult for the EU to achieve its net-zero goals as Chinese EVs are more popular with consumers, both due to their more favorable pricing and greater features. Moreover, tarrifs are seen as&nbsp;a minor speed bump for an EV powerhouse like BYD.&nbsp;Regardless of their legacy, European automakers who fail to adapt quickly enough will be left on the sidelines as Chinese EV makers like BYD threaten to leave them in the dust.
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

MERCEDES-BENZ UNSP / ADR by Mercedes Benz Group AG

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Volkswagen's Crisis Is The Reflection Of Europe's Automotive Struggles

Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are trading higher on Wednesday. Ford, Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and, Honda Motor Company, Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>) launched operations for the joint venture, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40917799/bmw-ford-and-honda-begin-operations-of-vehicle-grid-integration-joint-venture-chargescape-name-jos" rel="noreferrer noopener">ChargeScape, that was announced last year</a>.
ChargeScape, the vehicle-grid integration joint venture, is a software platform that connects electric vehicles (EVs) to the power grid, helping to stabilize the grid and reduce charging costs for drivers.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40906726/us-port-strike-in-october-could-lead-to-major-supply-chain-disruptions-says-container-trade-expert" rel="noreferrer noopener">US Port Strike In October Could Lead To Major Supply-Chain Disruptions, Says Container Trade Expert</a>
The companies disclosed the appointment of Joseph Vellone as ChargeScape&#8217;s first CEO and Kalidindi Raju as its Chief Technology Officer (CTO).
Vellone said, &#8220;The U.S. has set ambitious targets for renewable energy deployment and EV adoption, and ChargeScape is here to bridge that gap between supply and demand of electricity.&#8221;&nbsp;
&#8220;We want to transform EVs from a liability into an asset for the power grid and help deliver a clean transportation future for our country.&#8221;
Raju said, &#8220;Although the vehicle-grid integration market is expected to be highly competitive, our partnerships with the world&#8217;s largest automakers gives us a significant edge. With direct access to the vehicles, we enable utilities to optimize EV charging securely and reliably.&#8221;
ChargeScape&#8217;s technology wirelessly connects to electric vehicles and collaborates with utilities to manage energy flow based on real-time grid conditions.
EV drivers can be financially rewarded for their flexibility, while ensuring their vehicles are charged by the specified time.
This month, Ford sold 8,944 electric vehicles in August in the U.S., marking a jump of 29% from the<a target="_blank" href="https://www.benzinga.com/news/24/09/40745466/fords-august-ev-sales-surge-29-driven-by-cybertruck-rival-f-150-lightning-despite-its-slowing-future" rel="noreferrer noopener"> corresponding month last year</a>.
This week, the company said that it is looking to start production of a high-performance race car variant of the&nbsp;Mustang&nbsp;for street <a target="_blank" href="https://www.benzinga.com/news/24/09/40895791/ford-to-roll-out-limited-edition-street-legal-race-car-variant-of-mustang-as-early-as-this-year" rel="noreferrer noopener">use as early as this year</a>.
Investors can gain exposure to the stock via&nbsp;First Trust Nasdaq Transportation ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXR#NASDAQ">FTXR</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Price Action: F shares are trading higher by 1.01% at $11.01 at the last check Wednesday.
Image via Shutterstock
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Large Cap

FTXR

RDIV

ChargeScape Powers Up: Ford, BMW, Honda Launch Vehicle-Grid Joint Venture

In a recent development, German automaker BMW AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) has adjusted its financial guidance for 2024 due to a slump in global sales.
What Happened: As per a press release from BMW on Tuesday, the company&#8217;s Board of Management has revised the 2024 financial year guidance. The decision was influenced by several factors, including delivery stops and technical issues related to the Integrated Braking System (IBS) supplied by a vendor. These problems are expected to negatively affect sales in the latter half of the year.
The IBS-related technical issues impact over 1.5 million vehicles, leading to additional warranty costs in the third quarter. Moreover, despite government stimulus measures, the company is facing subdued demand in China.
Consequently, BMW now expects a slight decrease in deliveries compared to the previous year, an EBIT margin between 6% and 7%, and a Return on Capital Employed (RoCE) between 11% and 13% for 2024. The Free-Cash-Flow in the Automotive Segment is anticipated to be above €4 billion ($4.41 billion) for the financial year.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40758803/did-a-potential-stock-sale-by-elon-musk-lead-to-fall-in-tesla-shares-top-analyst-sa?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Did A Potential Stock Sale By Elon Musk Lead To Fall In Tesla Shares? Top Analyst Says It Could Instead Because Of Broader Selloff In AI Stocks</a>
The revised earnings and additional inventory are expected to impact the third quarter more than the fourth. The full quarterly results and the adjusted outlook report will be published on Nov. 6, 2024.
Why It Matters: The revision in BMW&#8217;s financial outlook comes on the heels of a series of events that have impacted the company&#8217;s performance. In September, BMW had to recall over <a href="https://www.benzinga.com/markets/equities/24/09/40682126/bmw-recalls-over-140k-mini-cooper-se-electric-vehicles-globally-due-to-battery-overheating-risks">140,000 Mini Cooper SE</a> electric vehicles globally due to battery overheating problems. 
This followed a significant achievement in August, when <a href="https://www.benzinga.com/news/24/08/40521564/bmw-outpaces-tesla-with-more-bev-registrations-in-europe-in-july-than-elon-musks-ev-giant-for-the-fi">BMW outpaced Tesla</a> with more BEV registrations in Europe for the first time. The recent technical issues and the recall have, however, dampened the company&#8217;s momentum, leading to the revised financial outlook.
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<li><a href="https://www.benzinga.com/news/24/09/40772132/volkswagens-5b-deal-with-rivian-leaves-software-arm-cariad-workers-frustrated-ceo-left-out-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Volkswagen&#8217;s $5B Deal With Rivian Leaves Software Arm Cariad Workers Frustrated, CEO Left Out: Report</a></li>
</ul>
Image by Studio on Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

BMW Revises 2024 Financial Outlook Amid Sales Slump And Technical Issues Impacting 1.5M Vehicles

By <a href="https://elplanteo.com/author/lucia-tedesco/" target="_blank" rel="noreferrer noopener">Lucía Tedesco</a> via <a href="https://elplanteo.com/canamo-industra-automotriz/" target="_blank" rel="noreferrer noopener">El Planteo</a>
<a href="https://elplanteo.com/que-es-el-canamo-hemp/">Hemp</a> is gaining ground in the automotive industry. Interior panels and structural components are some of the parts now being made from the plant's fibers.
Major automakers like Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAPY#OTC">VWAPY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VLKPF#OTC">VLKPF</a>), BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and Ford (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) are actively exploring hemp use in their vehicles, driven by the need to reduce carbon emissions, improve fuel efficiency and respond to the growing demand for eco-friendly products from consumers.
<h3 class="wp-block-heading">A Commitment Between The Auto Industry And Hemp</h3>
Volkswagen, in collaboration with biomaterials startup Revoltech GmbH, has launched a research project to develop a leather substitute, creating a hemp-based artificial alternative. The new material, called LOVR, is vegan, oil-free, recyclable and compostable, designed to meet the company&#8217;s sustainability standards.
See also: <a href="https://www.benzinga.com/markets/cannabis/22/06/27820626/isiah-thomas-hemp-cars">This 12-Time NBA All-Star Is Making Autoparts With Plants, Predicts &#8216;All Plastics Will Be Made From Cannabis&#8217;</a>
The brand plans to begin using this material in its models starting in 2028, according to Hemp Today. Additionally, the use of hemp fibers, which are byproducts of local agricultural waste, highlights the effort to maximize resource use and minimize waste.
BMW, another renowned automaker and the world's most sustainable, according to the S&amp;P Dow Jones stock index, has incorporated hemp into the door panels of its i3 <a href="https://www.benzinga.com/electric-vehicles">electric vehicles</a> to reduce its carbon footprint. In addition to enhancing sustainability, using the plant helps reduce the vehicle&#8217;s weight, improving fuel efficiency.
The company is also exploring the use of other natural fibers, like flax and kenaf, and is developing "wood foams" made from 100% renewable materials. These efforts are part of a larger goal to cut carbon dioxide emissions by 40% by 2030.
<h3 class="wp-block-heading">Blast From The Past</h3>
<a href="https://elplanteo.com/coches-canamo-ford/">Henry Ford'</a>s vision of a car made from sustainable materials continues to inspire the auto industry. In 1940, he introduced a prototype car made from hemp fiber and resin, described as "ten times stronger than steel." While the idea didn't take off at the time, it's now seen as a precursor to current efforts to use renewable materials in car manufacturing.
Ford has already tested hemp fibers in its interior car components and has incorporated natural fiber composites into models like the Ford Focus.
Mercedes-Benz (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) and Audi are also exploring hemp for their vehicles. Both brands are incorporating the fibers into interior components to reduce weight and enhance sustainability.
Despite advances, integrating hemp into mass automotive production presents technical challenges related to the material's consistency and durability under different conditions. Additionally, the supply chain to source hemp sustainably and at scale remains a developing area. Manufacturers must still balance the cost of implementation and scalability with the environmental benefits.
Cover image by El Planteo, based on the following assets:
<ul>
<li>FDRMRZUSA, Public domain, via Wikimedia Commons</li>
<li>See page for author, Public domain, via Wikimedia Commons</li>
<li>Mercedes-Benz, Public domain, via Wikimedia Commons</li>
<li>SVG based on this imagede:Datei:Ford.svg, Public domain, via Wikimedia Commons</li>
<li>BMW, Public domain, via Wikimedia Commons</li>
</ul>
This article is from an external unpaid contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

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5 Auto Giants Embracing Hemp For Sustainability, From Ford To BMW

<a href="https://www.bmwgroup.com/en/news/general/2024/hydrogen-cooperation.html#:~:text=The%20BMW%20Group%20and%20the%20Toyota%20Motor%20Corporation%20will%20jointly,commercial%20and%20passenger%20vehicle%20applications" title="https://www.bmwgroup.com/en/news/general/2024/hydrogen-cooperation.html#:~:text=The%20BMW%20Group%20and%20the%20Toyota%20Motor%20Corporation%20will%20jointly,commercial%20and%20passenger%20vehicle%20applications">https://www.bmwgroup.com/en/news/general/2024/hydrogen-cooperation.html#:~:text=The%20BMW%20Group%20and%20the%20Toyota%20Motor%20Corporation%20will%20jointly,commercial%20and%20passenger%20vehicle%20applications</a>.

Toyota, BMW Update Partnership On Hydrogen Fuel Cell Vehicles, Sign New MoU To Accelerate Development Of Zero-Emission Cars; BMW To Launch First Hydrogen Model In 2028

The world-renowned German automobile manufacturer Volkswagen (OTCPK:VWAGY) could soon be changing the way it produces its faux leather.
What Happened: The second largest auto maker in the world by vehicle sales partnered with the German start-up Revoltech GmbH to research and develop sustainable materials based on industrial hemp. These could be used as sustainable surface materials in Volkswagen models from 2028.
"The sustainable use of resources is a key pillar in our ACCELERATE strategy and is therefore firmly anchored in our mindset and our actions," <a href="https://www.volkswagen-newsroom.com/en/press-releases/leather-from-industrial-hemp-innovative-and-sustainable-material-for-future-car-interiors-18665">stated</a> Andreas Walingen, head of strategy at the Volkswagen brand. "Our clear goal is to fuse customer wishes, sustainability requirements and corporate interests."
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.
<h2 class="wp-block-heading">Groundbreaking LOVR Material</h2>
The 100% biological material, called LOVR – "leather-free, oil-free, vegan and residue-based," is made from industrial hemp grown for the food industry. Material made from 100% bio-based hemp uses residues of the regional hemp industry. It can be produced on existing industrial plants and recycled or composted at the end of its service life in an automobile.
 "Our innovative surface material called LOVR that we are developing and testing for the automotive industry in cooperation with Volkswagen is scalable and groundbreaking for sustainability in the automotive sector," Lucas Fuhrmann, CEO and co-founder Revoltech GmbH said in a statement.
The first presentations of the innovative material have already received positive responses and feedback from customers.
"In our search for new materials, we are very open to new ideas from many different industries. At Technical Development, we place a strong focus on innovative, creative and sustainable solutions for holistic, resource-saving vehicle development," said Kai Grünitz, Volkswagen brand board member for technical development.
Other automotive giants have already researched or used these hemp-based materials in their cars. For example, BMW's (OTCPK:BMWYY) i3 electric cars have door panels made from a combination of hemp, natural fibers and a bio-based plastic, <a href="https://hemptoday.net/volkswagen-says-it-is-developing-hemp-fiber-based-material-to-replace-faux-leather/">writes</a> Hemp Today.
Ford (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) is known for experimenting with sustainable materials, including hemp. Its famous model Ford Focus has natural fiver composites in its interior. Mercedes-Benz (OTCPK:MBGAF), as well, included hemp-based material in various parts of its cars' interiors.
<h2 class="wp-block-heading">Hemp's Versatility</h2>
Hemp has the ability to blend with various polymers, which makes it suitable for various exterior applications. Used in composites, hemp fibers enhance the stiffness and strength of structural parts of a car, improving crash performance and overall structural integrity, writes the outlet. Furthermore, hemp fibers are known to be solid insulators, which is why are used in panels and materials that need to have soundproofing and thermal properties.
Material made from industrial hemp is also used in construction building and is called hempcrete. It is an eco-friendly building material that blends the inner core of industrial hemp with a lime-based binder, creating a bio-composite. Its benefits include climate-friendly and fireproof properties. Hempcrete is considered a "carbon negative" material as its production absorbs more carbon pollution out of the air than it releases.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/21/12/24508964/9-crazy-benefits-of-hemp-fabric">9 Crazy Benefits Of Hemp Fabric</a>
<h2 class="wp-block-heading">The Timing</h2>
Volkswagen's decision to explore hemp's potential comes on the heels of the German government changing its cannabis and hemp laws and aiming to <a href="https://www.benzinga.com/markets/cannabis/24/07/39840487/green-wave-in-germany-now-includes-hemp-new-bill-promotes-industrial-production">promote the industry</a>. In July, the German Federal Ministry of Food and Agriculture published a <a href="https://internationalcbc.com/german-federal-ministry-of-food-and-agriculture-publishes-draft-industrial-hemp-bill/?utm_source=ICBC+Combined+List+Newsletter+and+Outreach&amp;utm_campaign=078816e21e-EMAIL_CAMPAIGN_2024_07_15_03_37&amp;utm_medium=email&amp;utm_term=0_-078816e21e-%5BLIST_EMAIL_ID%5D" target="_blank" rel="noreferrer noopener">draft</a> bill aimed at modernizing the policies surrounding industrial hemp cultivation and handling. The proposed&nbsp;Industrial Hemp Liberalization Act (NLG)&nbsp;is set to eliminate legal uncertainties and open new avenues in the industrial hemp sector, <a href="https://internationalcbc.com/german-federal-ministry-of-food-and-agriculture-publishes-draft-industrial-hemp-bill/?utm_source=ICBC+Combined+List+Newsletter+and+Outreach&amp;utm_campaign=078816e21e-EMAIL_CAMPAIGN_2024_07_15_03_37&amp;utm_medium=email&amp;utm_term=0_-078816e21e-%5BLIST_EMAIL_ID%5D" target="_blank" rel="noreferrer noopener">reported</a> InternationalCBC.
In May, Ministry of Food and Agriculture (BMEL) Minister Cem Özdemir confirmed lawmakers removed the controversial&nbsp;&#8220;intoxication clause&#8221; that states it is theoretically possible that an individual could get high by consuming large amounts of industrial hemp.
Germany, the biggest country in Europe by population, reformed its cannabis laws this year. Partial legalization <a href="https://www.benzinga.com/markets/cannabis/24/04/38023610/heres-what-you-need-to-know-about-weed-legalization-in-germany-that-just-took-effect" target="_blank" rel="noreferrer noopener">took effect in Germany on April 1</a>, allowing adults over 18 to possess up to 25 grams of dried cannabis and cultivate up to three plants at home.
Cannabis clubs became legal on July 1, 2024, and the first such marijuana social clubs <a href="https://www.benzinga.com/markets/cannabis/24/07/39690787/first-cannabis-club-in-germany-opens-lawmaker-says-it-will-stem-illicit-marker-cops-say-the-oppo" target="_blank" rel="noreferrer noopener">opened their doors on July 8</a> in Lower Saxony. However, across many other states, applications for cannabis cultivation associations <a href="https://www.benzinga.com/markets/cannabis/24/08/40100562/germanys-cannabis-clubs-face-setbacks-amid-reg-hurdles-christian-democrat-leader-wants-to-revers" target="_blank" rel="noreferrer noopener">face multiple setbacks</a>.
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<li><a href="https://www.benzinga.com/markets/cannabis/24/08/40418137/industrial-hemps-14b-projected-growth-an-investment-opportunity-too-good-to-miss">Industrial Hemp&#8217;s $14B Projected Growth: An Investment Opportunity Too Good To Miss</a></li>
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Photo: Benzinga edit with images from <a href="https://commons.wikimedia.org/wiki/User:High_Contrast">High Contrast</a> via <a href="https://commons.wikimedia.org/wiki/File:VW_Logo_am_Heizkraftwerk_Wolfsburg_Nord.jpg">Wikimedia Commons</a> and by <a href="https://unsplash.com/@elsaolofsson?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Elsa Olofsson</a> via <a href="https://unsplash.com/photos/a-close-up-of-a-green-plant-with-lots-of-leaves-_lB_DHGmkeQ?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Unsplash</a>

Volkswagen Considers Hemp To Develop Sustainable Substitute For Imitation Leather

BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) recalling its Mini Cooper SE electric vehicles due to battery overheating problems, <a href="https://www.benzinga.com/markets/equities/24/05/38923402/bmw-mini-cooper-imports-linked-to-banned-chinese-components-report">potentially impacting over 140,000 cars globally.</a>
What Happened: According to the company, around 39,000 vehicles in Germany could be affected. The automaker emphasized that there have been no disclosed accidents or injuries related to this issue, Reuters reported on Monday.
The battery system issues could lead to overheating, and &#8220;a vehicle fire, even when the vehicle is parked, cannot be ruled out,&#8221; the statement noted.
The car&#8217;s software includes a diagnostic function that detects battery malfunctions and alerts the driver. Customers receiving this alert are advised to visit a Mini partner, the company added, according to the report.
See Also: <a href="https://www.benzinga.com/news/24/09/40672229/starlink-ineligible-for-nearly-900m-in-subsidies-says-fcc-spacex-ceo-elon-musk-says-it-is-flat-out-l?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Starlink Ineligible For Nearly $900M In Subsidies, Says FCC: SpaceX CEO Elon Musk Says It Is &#8216;Flat-Out Lying&#8217;</a>
Why It Matters: This recall is part of a broader trend of safety concerns for BMW. Recently, the company recalled nearly 721,000 vehicles in the U.S. due to <a href="https://www.benzinga.com/news/24/08/40460548/bmw-recalls-nearly-721k-vehicles-in-us-over-short-circuit-worries-both-gas-and-hybrid-electric-cars">short-circuit risks</a>, which could also lead to fires. This recall included both internal combustion engine (ICE) and hybrid electric cars.
Earlier in August, BMW recalled over 105,000 vehicles in the U.S. due to fire risks stemming from <a href="https://www.benzinga.com/news/24/08/40248854/bmw-recalls-over-105k-vehicles-in-u-s-over-fire-risks-due-to-overheating-starter-motor">overheating starter motors</a>. This issue similarly posed significant safety concerns. 
Additionally, BMW is working to solidify its partnership with Toyota Motor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>) to expedite the development of fuel cell vehicles (FCV), aiming to enhance its <a href="https://www.benzinga.com/news/earnings/24/08/40603154/toyota-bmw-to-solidify-partnership-to-expedite-fcv-development">competitiveness in the hydrogen-powered car market</a>.
These recalls come at a time when Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is reportedly losing its &#8220;cool factor&#8221; among younger consumers, while brands like BMW continue to <a href="https://www.benzinga.com/news/24/08/40244060/teslas-cool-factor-ebbing-while-these-2-auto-brands-command-more-loyalty-than-elon-musks-ev-giant-mo">command strong loyalty</a>, according to a Morgan Stanley survey released in August.
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Image: BMW
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Global

BMW Recalls Over 140K Mini Cooper SE Electric Vehicles Globally Due To Battery Overheating Risks

Global markets started September cautiously, with thin trading volumes as U.S. stock markets were closed for <a href="https://www.benzinga.com/markets/equities/24/09/40674353/is-the-market-open-on-labor-day">the Labor Day holiday</a>.
European markets closed the session marginally in the green, as traders anticipate imminent interest rate cut by the European Central Bank, The pan-European Euro Stoxx 50 index gained 0.3% for the day, closing at its highest level since mid-July. In Germany, the DAX index edged up 0.1%, setting a new record for its closing price.
Among large-cap European stocks, Sanofi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNY#NASDAQ">SNY</a>) led the gains with a 3.6% rise, followed by Orange (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORAN#NYSE">ORAN</a>) and Telefonica SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEF#NYSE">TEF</a>), which climbed 1.7% and 1.5%, respectively.
The biggest laggards were Airbus SE (OTCPK: EADSY) , which fell 1.4%, Adidas AG (OTCPK: ADDY), down 0.9%, and both Kering SA (OTCPK: PPRUY) and BMW AG (OTCPK: BMWYY), each slipping 0.8%.
<h3 class="wp-block-heading">Other Markets</h3>
In the currency market, the euro rose 0.2% to 1.1070 against the dollar as of 2:00 p.m. ET: , snapping three straight sessions of declines. The British pound inched 0.1% against the greenback, while the Australian dollar rose 0.4%. 
The Japanese yen was the weakest performer on Monday, dropping 0.4% against the dollar, extending the trend from last week amid a reduction expectations for an aggressive Federal Reserve rate cut. 
In commodities markets, U.S. natural gas futures surged 2.8% to $2.10 per Million British Thermal Units, spurred by heightened demand for cooling. The Midwest region faced record-breaking temperatures over the weekend, prompting intense heat warnings for more than 60 million residents and driving up air conditioner usage.
Crude oil futures rose 0.5%, while gold eased 0.2% with the yellow metal falling slightly below $2,498.91. 
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose over 2% to 58,550, after dropping 2.8% on Sunday. 
<h3 class="wp-block-heading">Monday&#8217;s Major Company News</h3>
<ul>
<li>The German automaker BMW is recalling its electric Mini Cooper SE vehicles due to battery issues that could potentially impact over 140,000 cars globally, according to Reuters.</li>
<li>In a note released on Monday by the European Medicines Agency (EMA), Dutch pharmaceutical company Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVO#NYSE">NOVO</a>) advised healthcare professionals to continue restricting the initiation of new patients until the supply situation stabilizes. Shares of Novo Nordisk fell 1%.</li>
<li>Private equity giant Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) has reached an agreement to acquire an 80% stake in a European warehouse portfolio managed by landlord Burstone Resources Inc. (OTCPK: BBSRF). </li>
</ul>
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<li><a href="https://www.benzinga.com/24/09/40676774/september-market-seasonality-why-this-month-is-historically-the-toughest-for-investors">September Market Seasonality: Why This Month Is Historically The Toughest For Investors</a></li>
</ul>

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European Stocks Little Moved On Labor Day, German DAX Mark Record Close, Natural Gas Futures Rise: What's Driving Markets Monday?

Toyota Motor Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tm#NYSE">TM</a>) and BMW AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>) are set to deepen their collaboration on fuel cell vehicles (FCV) to boost the competitiveness of their hydrogen-powered cars.
Per Nikkei Asia, under this expanded partnership, which is expected to be officially announced on Sept. 5, 2024, Toyota will supply essential components like hydrogen tanks and fuel cell systems to BMW, which will then manufacture and sell mass-produced FCVs over the next few years.
Toyota and BMW originally teamed up on FCV development in 2012 to create greener vehicles amid stricter environmental regulations. Hydrogen fuel-cell vehicles produce only water as emissions and don&#39;t face the range anxiety associated with battery electric vehicles (BEVs). They also refuel as quickly as traditional internal-combustion-engine vehicles. However, FCVs are currently expensive to produce, resulting in low profit margins, and require hydrogen storage at extremely low temperatures. The expanded partnership aims to standardize components and reduce the cost of FCVs, which have struggled to gain popularity due to affordability issues.
Toyota, a leader in FCV technology, launched the world&#39;s first mass-produced FCV, the Mirai, in 2014. However, due to the high price of the model of more than 7 million yen compared with the average car price in Japan of 2.64 million yen in 2023, TM sold only about 26,000 units since then, making a small fraction of the company&#39;s total annual sales of more than 10 million vehicles.
Per WardsAuto, BMW has developed a concept FCV, the iX5 Hydrogen, which features two hydrogen tanks and offers a range of more than 310 miles, with a refueling time of just 3-4 minutes. Incorporating Toyota&#39;s fuel cell system could help BMW accelerate the iX5 Hydrogen&#39;s production timeline. Despite the potential of FCVs, they have not yet achieved widespread success, mainly due to the scarcity of hydrogen refueling stations. The expanded alliance is also expected to focus on the development of hydrogen infrastructure in Europe. Per the European Automobile Manufacturers&#39; Association, there are currently only 270 hydrogen filling stations, much less than 632,000 public BEV charging stations in the European Union as of the end of 2023.
<h2>Zacks Rank &amp; Key Picks</h2>
TM &amp; BMWYY currently carry a Zacks Rank #3 (Hold) each.
Some better-ranked stocks in the auto space are Dorman Products, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dorm#NASDAQ">DORM</a>) and Douglas Dynamics, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/plow#NYSE">PLOW</a>), each sporting a Zacks Rank #1 (Strong Buy) at present.
The consensus estimate for DORM&#39;s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW&#39;s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 30 days.
<a href="https://www.zacks.com/stock/news/2328316/toyota-bmw-to-solidify-partnership-to-expedite-fcv-development?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2328316">To read this article on Zacks.com click here.</a>

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Toyota & BMW to Solidify Partnership to Expedite FCV Development

German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) <a href="https://www.benzinga.com/news/24/08/40155730/tesla-registrations-in-uk-dip-13-till-july-end-while-warren-buffett-backed-byd-mg-motor-register-gro">trumped American EV giant </a>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) in BEV registrations for the first time in Europe last month, according to market research firm JATO Dynamics.
What Happened: According to the firm, BMW saw 14,869 of its battery-electric vehicles registered in July, winning over Tesla, which had 14,561 registrations, by a slight margin.
Europe&#8217;s most popular automaker Volkswagen, meanwhile, delivered just 12,213 EVs. However, the automaker continues to lead in overall vehicle sales. 
Key Models: Despite the fall in registrations as compared to July 2023, the Tesla Model Y was the bestselling EV last month, with 9,544 units registered. <a href="https://www.benzinga.com/news/23/12/36345955/bmw-plans-half-a-million-ev-deliveries-in-2024-partners-with-mercedes-report">BMW&#8217;s BEV registrations</a>, meanwhile, were spurred by the popularity of the company&#8217;s new models including iX1, i4, and i5.
Dwindling EV Demand: Overall, the demand for EVs fell in July with market share falling to 13.5% from 14.6% in the corresponding month of last year. 
"The lack of clarity around the incentives for &#8211; and future of &#8211; EVs continues to present a barrier to consumers considering an EV. These factors, alongside the low residual value of EVs contributed to the decline seen in July," Felipe Munoz, Global Analyst at JATO Dynamics,&nbsp;said. 
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
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</ul>
Photo courtesy: BMW

BMW Outpaces Tesla With More BEV Registrations In Europe In July Than Elon Musk's EV Giant For The First Time

German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) is <a href="https://benzinga.com/topic/recall">recalling</a> 720,796 vehicles in the U.S. owing to concerns of a short circuit and increased risks of fire.
What Happened: The recall population includes several model years of both gas and hybrid electric vehicles. Several units of X5, X3, and even a few units of the 2 series convertible are included in the recall. 
An improperly sealed electrical connector on the water pump of some of these vehicles may short circuit on being exposed to water, the National Highway Traffic Safety Administration (NHTSA) said. This may increase the risk of a fire, the auto safety regulator added. 
As for a solution, the company&#8217;s dealers will inspect and replace the water pump as well as the plug connector if required and install a protective shield at no cost to the customer, the regulator said. 
Why It Matters: BMW took cognizance of the issue after it was contacted by the Korean Ministry of Land, Infrastructure and Transport regarding an incident involving a thermal event in March earlier this year.
While the company is not aware of any accidents or injuries related to the issue, it is aware of about 18 related customer concerns in the U.S. market, the regulator added.
Earlier this month, BMW <a href="https://www.benzinga.com/news/24/08/40248854/bmw-recalls-over-105k-vehicles-in-u-s-over-fire-risks-due-to-overheating-starter-motor">recalled over 105,000 vehicles</a> citing concerns of a starter motor overheating and increasing the risks of fire in the engine compartment. 
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40457848/elon-musk-agrees-with-ark-invest-analyst-on-biggest-challenge-of-ride-hailing-opera">Elon Musk Agrees With Ark Invest Analyst On Biggest Challenge Of Ride-Hailing Operations, Echoes Sentiment On Offering Incentives For Tesla Owners To Let Their Vehicles Be Used As Robotaxis During Peak Hours</a></li>
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Photo courtesy: Shutterstock

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