Ford, GM Earnings Reports Will Tell the Chip Shortage Tale

GM

Ford and General Motors are both slated to show their third-quarter earnings reports on Thursday.

Reports suggest that despite the negative impacts of the global semiconductor chip shortage, there may be positives for the companies, as well.

Both companies have, of course, had to halt production at times to deal with the chip shortage. And supplies, materials, and shipping have higher costs now, which could also prove problematic for profit margins.

On the other hand, strong demand for profitable trucks and SUVs has been more than helpful.

According to Automotive News, this means investors will be wondering how both companies can navigate a turbulent supply chain.

The annual sales rate for new cars and trucks dropped to 12 million in September, thanks to the chip shortage, and forecasters are cutting their forecasts for 2022 thanks to the shortage and general supply-chain disruption. Much depends on if the chip shortage ends in 2022 or 2023.

Wells Fargo is expecting the two companies will tell investors to focus more on the lower end of their forecasts for the year.

That’s not shocking — the industry is facing a lot of headwinds right now, and Ford and GM aren’t exempt.

[Image: GM]

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Porsche Asks For Suppliers to Go Green

Porsche

Porsche is asking its 1,300 suppliers to only use renewable energy as they manufacture Porsche parts, starting this month.

The German automaker is doing so in order to reduce carbon dioxide emissions.

This change applies to any supplier awarded a contract for providing production material for new-vehicle projects. Suppliers who can’t or won’t comply will no longer be considered for Porsche contracts over the long term.

“Our battery cell suppliers have already had to use green energy since 2020. And now we are taking the next important step: we stipulate that our series suppliers also use only renewable energy to produce our components, to help reduce CO2-emissions even further. We recognise that we have a responsibility to ensure that supply chains are transparent and sustainable,” Uwe-Karsten Städter, member of the executive board for procurement at Porsche AG said in a statement.

It’s all part of a larger goal the company has set to be carbon dioxide neutral across the entire supply chain by 2030. As it stands now, the company’s supply chain is responsible for about 20 percent of the company’s total greenhouse-gas emissions, with it projected to rise to 40 percent as electrification becomes more prevalent.

“By using only renewable energy sources, our suppliers are following our example in our efforts to reach CO2-neutrality. We plan to have even more intensive talks with our partners in order to drive forward improvements in our sustainability. It is only by working together that we will be able to combat ongoing climate change,” said Städter.

Porsche is also trying to reduce emissions from its own plants — the company claims that production of the Taycan is carbon-neutral since 2019, for example, and that the same holds true for the 911 and 718 since 2020 and the plant that produces the Macan and Panamera since 2021.

It’s not as ambitious as having an EV Day, but Porsche, like everyone these days, is making claims about its ability to be green.

[Image: Porsche]


Chinese Smartphone Titan Xiaomi Entering the EV Race

Xiaomi

Xiaomi, a Chinese smartphone colossus, has announced they are building their own branded electric vehicles (EVs), just like Apple, Huawei, Sony, and Foxconn.

If you’re prepared to lose money, starting a car company is easy. Just ask Tesla. Xiaomi has plenty, enough to sink $10 billion into the venture over the next 10 years.

Xiaomi, the third-largest smartphone maker, is merging automotive, electronics, and information and communication technology with the traditional auto industry model. Xiaomi’s expertise is in manufacturing, hardware-based Internet service, software, and hardware integration. Their appeal in China, brand recognition, and presence in other countries will no doubt help at launch.

Xiaomi

Xiaomi’s smartphone brand, POCO, has made its way into 35 markets in the past three years. Xiaomi shipped over 9 million phones worldwide in 2020. The POCO F1 was their first release in 2018, adopted early on by techies and later by the media, achieving over 2.2 million shipments.

XiaomiYesterday, Xiaomi released the Mi Mix Fold, a new foldable smartphone. Xiaomi’s entrance in this segment is notable beyond the foldable display. Xiaomi’s new flagship, it has 16GB of RAM and 512GB of storage. The first camera phone to use their Surge C1 chipset, it’s also the first to use liquid lens technology.

Xiaomi

Besides the new smartphone, the company unveiled its new Xiaomi logo, designed by Japanese graphic designer Kenya Hara. Look for Xiaomi’s entrance into the EV segment to intensify the competition within China, as well as elsewhere in the world.

[Images: Xiaomi]

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