Latest news with #ChristinaAmann
Yahoo
a day ago
- Automotive
- Yahoo
China's rare earths are flowing again, but not freely
By Christina Amann and Laurie Chen BERLIN/BEIJING (Reuters) -The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." Volkswagen said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. FROM 'FULL PANIC' TO 'BARE MINIMUM' The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted."
Yahoo
a day ago
- Automotive
- Yahoo
China's rare earths are flowing again, but not freely
By Christina Amann and Laurie Chen BERLIN/BEIJING (Reuters) -The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." Volkswagen said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. FROM 'FULL PANIC' TO 'BARE MINIMUM' The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Automotive
- Yahoo
Audi keeps outlook after Q1 sales rise, but tariff impact not included
By Christina Amann (Reuters) -Volkswagen's premium brand Audi on Monday kept its full-year guidance, with the caveat that any impact from U.S. tariffs was not included, after its first-quarter revenue rose 12.4% on higher sales of electric models. Quarterly revenue rose to 15.43 billion euros ($17.49 billion) in January-March, compared with 13.73 billion a year earlier, it said in a statement. The company expects full-year revenue of between 67.5 billion and 72.5 billion euros, up from 64.5 billion in 2024, and an operating margin of 7%-9%. "Financial implications of import tariffs, particularly in the United States, cannot be conclusively assessed," Audi said, adding that implications of a March agreement between Audi's management and the works council were also not yet taken into account in the guidance. Audi, which has no factories in the United States, confirmed it would decide this year whether to set up production capacity there. CEO Juergen Rittersberger told journalists that this could include the production of EVs. "We will also have a very close look at electric cars because that's still an area of focus, also in the U.S.," said Rittersberger. While the company delivered 3.4% fewer vehicles globally in the first quarter, unit sales of its electric cars rose 30.1%. In North America, excluding Mexico, Audi's deliveries fell 2.1% to 48,599 vehicles, as many models there are due to be upgraded, the company said. Deliveries in China fell 7% to 144,471 vehicles in the quarter, hit by intense competition, the company added. Like other European carmakers, Audi has been dealt a severe blow by the tariffs, which are expected to raise car prices by thousands of dollars and rattle an automobile sector already struggling with high costs and intensifying competition. Audi currently serves the U.S. market through a plant in San Jose Chiapa, Mexico, which makes the popular Q5 model and employs over 5,000 people. ($1 = 0.8824 euros) (Writing by Ludwig Burger and Amir Orusov. Editing by Friederike Heine and Mark Potter) Sign in to access your portfolio
Yahoo
28-03-2025
- Automotive
- Yahoo
Carmakers weigh risk of price hikes as Trump tariffs loom, sources say
By Christina Amann and Victoria Waldersee BERLIN (Reuters) - European carmakers are trying to work out how much their prices might have to rise in response to looming U.S. import tariffs, industry sources said, fearing any first-movers could risk a backlash from U.S. President Donald Trump. The United States late on Wednesday announced 25% duties on imports of finished cars and certain components from April 3, dashing hopes for lower rates or exemptions after several short-term policy changes suggested there might be wiggle room. Export-oriented car companies in Europe, most notably Germany's major automakers, are heavily exposed, with few options on how to respond in the near-term other than smaller discounts and price increases. "Nobody can afford not to pass on the tariffs," said a source at a European automaker, adding there was a waiting game around who would be the first to raise prices. "Nobody will take a stand in the coming months for fear of Trump's revenge." These deliberations add to the challenges facing carmakers already struggling with lacklustre demand, high labour costs and stiff competition from Chinese rivals. Ferrari was the first brand to declare that it would raise prices by up to 10% on cars imported into the U.S. after April 2. French supplier Valeo also said it would have no choice but to raise prices if tariffs on autos parts - looming from May 3 - came into effect. But most auto industry executives are reluctant to reveal their plans, fearing retribution from the U.S. president who has made clear that his aim is for carmakers not to raise prices, but to move production to the United States, three auto industry sources, who declined to be identified because of the sensitivity of the matter, said. Volkswagen, Porsche AG, BMW, and Mercedes-Benz all declined to comment when asked about price increases as a result of tariffs. Among the German automakers, Porsche and Volkswagen's Audi - two brands with no U.S. production - have both said recently they would assess the option of price increases to mitigate tariff risks. BMW has previously said it would keep the price of its 3 Series, one of its most popular U.S. models which is being built in Mexico and Germany, unchanged until May. UBS analysts see a risk of at least a 10-20% hit to earnings per share at Germany's carmakers due to the U.S. tariffs on EU imports, an analysis which already factors in some mitigating price action where possible. Carmakers like Porsche and Ferrari will have an easier time passing through some of the tariff costs for more unique models like the Porsche 911, analyst Daniel Schwarz of Stifel Research said. For Porsche's SUVs this would be more difficult because rival models, including the Mercedes GLE and BMW X5 are produced in the United States, he added. Another auto industry source said: "Everyone has plans up their sleeve, you just have to decide when you play which cards. It's a poker game." Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
Northvolt asks shareholders for $1.3 billion for next two years, sources say
By Marie Mannes, Christina Amann and Emma-Victoria Farr STOCKHOLM/BERLIN/FRANKFURT (Reuters) - Northvolt asked more than 100 shareholders at a meeting this month to provide $1.29 billion over the next two years to help restore the bankrupt Swedish battery maker's business, two sources familiar with the matter told Reuters. Considered Europe's best shot at a home-grown electric vehicle battery champion to compete with Chinese rivals BYD and CATL, Northvolt filed for Chapter 11 U.S. bankruptcy in November after talks for fresh funding with investors collapsed amid production and other problems. Former CEO and co-founder Peter Carlsson told journalists in November that the company would need between $1 billion and $1.2 billion in the long term, but did not give a specific timeframe. The request for funding to last until 2027 comes as Northvolt intensifies a search for investment before its cash reserve runs out in February. In response to Reuters' questions, Northvolt said "numerous parties" had submitted indications of interest in its financing process. "The company and its advisers are engaged in productive conversations and due diligence with both strategic and financial investors," a spokesperson said, declining further comment. It is not clear how shareholders responded to the request or if they will stump up any cash. The sources declined to be identified because the details are confidential. Northvolt's shareholders include Goldman Sachs and BMW as well as customers Volkswagen and Scania. It is not clear which investors were present at the meeting. The two sources said the shareholders were told the company had sufficient funds until at least mid-February, largely in line with information in the company's bankruptcy court filing. A third person familiar with the situation said Northvolt would only exhaust its cash towards the end of February. At the time of filing, the company secured $245 million in financial support for the bankruptcy, including a $100-million loan from Swedish truck maker Scania, its biggest shareholder and customer. RESCUE Chinese, South Korean or Japanese battery makers are the best hopes for a rescue of the company given their expertise in EV battery making, three other sources close to the matter said. Northvolt's lawyers said at a court hearing in December that the company hoped to present a longer-term financing proposal to the bankruptcy judge at a hearing on Tuesday. It is not clear if this will happen and the company did not reply to a request for comment. If Northvolt is able to find more funds, it is likely to come from a mix of financial and strategic investors, and a combination of existing and new stakeholders, another person with knowledge of the situation said. Sign in to access your portfolio
