Ifo | The current situation in the German automotive industry deteriorated sharply in August. In the ifo survey, the value of the indicator fell to minus 10 points, down from plus 7.5 points in July. Expectations, however, brightened somewhat, from minus 4 points to zero. This is the first time since April that the overall climate was below zero. “The general darkening of mood in the economy is also reflected…
Last week, the European Commission gave the go-ahead for the first 10 billion euros of the recovery fund to reach Spain, pending approval from the other Member States. Today, Brussels has given the green light to the first of the six “Strategic Projects for Economic Recovery and Transformation” (PERTE) which Spain has presented, dedicated to the development of electric and connected vehicles. “This €3 billion Spanish plan will help to…
The business climate in Germany’s automotive industry has worsened slightly. The ifo barometer for the industry fell to 8.5 points, down from 9.8 points in September. In July, the indicator had stood at 28.7 points. “Manufacturers and their suppliers have very different takes on the current situation,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. Business for manufacturers continues to be very good; the…
Catherine Macaulay & Rodrigo Kohn (Schroders) | As climate change ambition ramps up across the world, emissions reduction targets in the autos sector will likely be forced to tighten further. Numerous countries – including Norway, France, the UK, Sweden, Ireland and the Netherlands – have already announced internal combustion engine (ICE) vehicle phaseouts between 2025-2040. At the same time, technological advancements continue to transform the industry. Production processes are increasingly automated, autonomous driving technology is growing in sophistication, and consumer expectations around the digital experience of vehicles continue to increase.
Cie Automotive will acquire 100% of the social capital of Somaschini S.p.A. The enterprise value is 79.6 million euros, equivalent to less than five times EBITDA for this year, and will be adjusted at closure of the deal depending on its indebtedness, as is usual in this type of operation.
The dangerous rise of carbon emissions coupled with greater energy efficiency driven by the evolution of battery technology is building momentum towards acceptance of electric cars globally. For analysts at Wisdom Tree, “the proliferation of Electric Vehicles will be tied to the initiatives from governments across the world as they rely on supplementary grid infrastructure.”