Top Industry Developments Making Headline in the Automotive Industry

Top Industry Developments Making Headline in the Automotive Industry

Top Industry Developments Making Headline in the Automotive Industry

General Motors Aims to Outsell Japan’s Toyota Motors Corporation

July: General Motors (GM) is planning to outsell Japan’s Toyota Motors Corporation in the second quarter of 2022 as sales of renowned automotive manufacturers are expected to decline in the U.S. owing to inventory shortage.

GM lost its position as the dominant automotive seller in the U.S. in 2021 to Toyota for the very first time since 1931. The company is aiming to sell new vehicles among all leading automakers in the quarter.

GM reaffirmed its aim of surging its 2022 vehicle production earlier this month by 25-30%, as compared to 2021. The automotive industry in the U.S. was hit by a labor crunch, a global semiconductor shortage, and supply chain logjams. Thus, it is failing consistently to keep up with the ever-increasing demand from consumers.

Volvo Car Group to Invest US$ 1.2 Billion in New Electric Vehicle Plant

July: Volvo Car Group announced its plans to invest approximately US$ 1.2 billion to develop a new electric vehicle plant in Slovakia. The new site will be the company’s fifth plant in Slovakia and it would enable Volvo to maintain its position as the largest per capita automotive producer in the world. Slovakia’s plants produced nearly 1 million cars in 2021.

The European Union (EU) wants to implement new norms to encourage consumers to purchase fossil fuel-powered vehicles by 2035. As per one of the company officials, the current expansion plan of Volvo is anticipated to help it to incline towards continued growth and rapid electrification.

The new plant will be constructed in the Kosice region, eastern Slovakia and is expected to produce nearly 250,000 electric vehicles every year. Volvo is aiming to shift towards annual sales of more than 1.2 million cars by mid-decade.

Micron Announces the Fall of Chip Stock and Easing Demand for Semiconductor

July: AMD, Micron, and some of the other leading chipmakers declared declining demand as inflation hit customers and corporate investments. It would further simplify a two-year global semiconductor shortage that was pushed by disruptions in the supply chain.

Micron predicted a low revenue for the present quarter and mentioned that the market was distiurbed at a steady pace in a very short period of time. Chip stocks fell including those of Germany’s Infineon (IFXGn.DE), Taiwan’s TSMC (2330.TW), Franco-Italian firm STMicroelectronics, Dutch chip-gear maker ASML (ASML.AS), and MediaTek (2454.TW).

Lamborghini to Invest US$ 2.6 Billion in Hybrid Vehicle Production Lineup

Lamborghini, a manufacturer of luxury sports cars based in Italy, announced its plan to invest about US$ 2.6 billion to manufacture a hybrid lineup by the end of 2024 to bring out its fully electric model by the end of the decade.

Last year, the company had mentioned that it will be investing nearly 1.5 billion euros to transform its currently sold models, namely, Aventador and Huracan sports cars, as well as the Urus SUV to hybrid petrol-electric powertrains by 2024.

The investment is likely to create a huge milestone for Lamborghini as it wants to face the full electric era, while maintaining numerous crucial values of its DNA. The company is currently wrestling with how to incline towards battery powered vehicles without disrupting the performance of vehicles that mainly supports their high prices, just like its competitors, such as McLaren, Aston Martin Lagonda, and Ferrari.

As per the company officials, Lamborghini has already initiated investments worth US$ 1.8 billion earlier. However, this particular investment is expected to be the biggest in the history of Lamborghini Automobili.

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