Latest news with #automotiveindustry
CNA
8 hours ago
- Automotive
- CNA
Shortage of skilled mechanics a challenge as workshops pivot to EV repair
SINGAPORE: A lack of skilled personnel and the high cost of overseas training are some challenges faced by Singapore's car workshops pivoting to electric vehicle (EV) repair. Most auto workshops and mechanics currently cater to vehicles powered by internal combustion engines that use gasoline or diesel fuel. But as Singapore drives EV adoption, workshops also need to accelerate to meet shifting demands as traditional automotives gradually phase out. However, industry players say the transition has been tricky. Hong Seh Workshop, for instance, faced a shortage of mechanics who could even understand the basics of EVs when the firm began to offer EV repair services seven years ago. The company sent its mechanics to the factories of various EV brands for training but it was costly – sending 10 staff for one overseas upskilling trip set the company back by around S$45,000 (US$35,000). The workshop's executive director Edward Tan said the industry requires a lot of factory support from the manufacturers as the internal parts of EVs – such as the electronic control units – are proprietary to each carmaker. This means mechanics need to be familiar with the unique systems of each brand before they can work on the cars. 'Our technicians and mechanics are taught by (each manufacturer) on how to service and repair, (on) safety protocols, how to link the vehicles back to the factories … for software updates and upgrades to the systems,' Mr Tan said. The training paid off and today, Hong Seh is an authorised maintenance workshop for EV brands such as Riddara, Farizon, SRM, DFSK, Seres and Joylong. LABOUR SHORTAGE Singapore's transition to EVs has been gradual, accounting for only 5 per cent of the total car population. But numbers are expected to jump, with all new car and taxi registrations to be of cleaner-energy models from 2030. Last year, 26,225 EV cars were registered, more than double that of 11,941 in 2023, according to the Land Transport Authority (LTA). Despite the spike in EV takeups, workshops are hesitant to send their staff for training due to an ongoing manpower crunch. Furthermore, as a majority of EVs are relatively new and still under warranty, most owners are likely to send their vehicles for repair in-house or at authorised workshops instead of third party ones, said Mr Joey Lim, president of the Singapore Motor Workshop Association (SMWA). He added that EVs are still not a common sight at the motor repair workshops that the association represents. Still, demand for technicians specialising in such vehicles is only set to rise as 2030 targets for the Singapore Green Plan approach. RESKILLING TO WIDEN LABOUR POOL Dr Kwan Kian Hoong, director of the Temasek SkillsFuture Academy at Temasek Polytechnic, noted that only around 10 per cent of mechanics in the nation have the skillsets to service EVs and hybrid vehicles. To address the gap, the polytechnic is offering three courses covering topics such as EV safety, energy storage as well as various engine management systems to adult learners. It has accepted more than 100 students since launching the first course last November, including mechanics, workshop owners and car owners. "(We want) to train more professionals so that … there will be a competent pool of workers in Singapore able to service, maintain and educate car owners to embrace green technology,' said Dr Kwan. The SMWA noted that while the current National EV Specialist Safety (NESS) certification programme, launched by the LTA to equip the workforce to handle EVs, provide a good foundation, they do not cover systems unique to each EV brand. The association added that it is working with the tertiary institution as well as Chinese EV giant BYD and German automotive tech firm Bosch for targeted training for their employees. BYD said it works with NTUC Learning Hub to conduct training courses like the NESS for technicians who maintain the Chinese manufacturer's commercial vehicles. Other carmakers like South Korean firm Hyundai said that Singapore's capable talent pool and upskilling efforts make the country well-prepared to deal with new EV technologies. The firm produces four EV models at its Jurong facility, where local employees make up nearly 80 per cent of its around 300 workforce, according to the company. Hyundai noted that Singapore is an attractive location for EV expansion due to its stable business landscape and commitment to sustainability. Looking ahead, Dr Kwan said Temasek Polytechnic will create more 'bite-sized' courses for repair professionals to study at their own pace. 'We hope (to) formally qualify them as a specialised professional (to) service … hybrid and electric vehicles,' he added.
Yahoo
11 hours ago
- Automotive
- Yahoo
Is Tesla a Millionaire-Maker Stock?
Elon Musk is turning into a liability for Tesla. But the company would struggle without his hype and energy. The stock's valuation looks high, even in the best-case scenario. These 10 stocks could mint the next wave of millionaires › Tesla's (NASDAQ: TSLA) stock has already created plenty of millionaires. After all, its CEO, Elon Musk, is the world's richest man, due in large part to his 13% stake in the company. But past performance doesn't guarantee future success. It's unclear if Tesla still has what it takes to continue its bull run, especially as political pressure and electric vehicle (EV) industry weakness bite. Let's dig deeper to decide if Tesla's pivot to new opportunities, like robotics and self-driving technology, could help it overcome its weaknesses in its legacy automotive operations and its uncomfortably high valuation. Cars have been around for over 100 years, which means the industry is incredibly mature, leading to low margins and stiff competition. For a time, Tesla had been able to buck these dynamics through high levels of vertical integration, economies of scale, and innovations like giga casting, which replaced complex assembled parts with large single-piece structures. But over time, the company's economic moat has eroded. The main challenge has been competition from low-cost Chinese EV rivals like BYD and legacy automakers like Ford and General Motors, which have leveraged their massive production infrastructure and dealership networks to scale rapidly. However, Musk certainly hasn't made things easier through his foray into U.S. politics, with his outspoken support for President Donald Trump. Taking a strong political position on one side or the other will inevitably rub a large portion of potenital buyers the wrong way. Tesla's first-quarter earnings demonstrate its deteriorating brand appeal. Revenue dropped 9% year over year to $21.3 billion, driven by a 20% collapse in the automotive segment, which represents 82% of sales. The collapse was worst in Europe. Sales on the continent slumped by a stunning 37.2%. The good news is that Tesla's U.S. operations have held up much better -- for now. So far, many American consumers appear to be keeping their politics separate from their car-buying decisions. U.S. first-quarter sales were down by a relatively modest 9%, according to data from Cox Automotive. However, it's unclear how much longer Tesla's honeymoon period will last. Musk has had public disagreements with Trump over his Big Beautiful Bill legislation, which is currently being debated in Congress. The bigger threat could come from Trump's legislation, which could strip away the $7,500 tax credit for EV purchases. The loss of government support could undermine Tesla's U.S. business, just as it is facing international weakness and higher costs from tariffs. CNN also reports that under the current language, support may remain for smaller EV companies like Rivian and Lucid, allowing them to maintain lower prices and eat away at Tesla's market share. With a price-to-earnings (P/E) ratio of 186, Tesla stock is abnormally expensive for a business with declining sales and profitability. The valuation seems to price in the expectation of dramatic operational growth from its self-driving and robotics ambitions. There is some reason to be excited. Analysts at McKinsey & Company believe autonomous driving could generate $300 billion to $400 billion in revenue by 2035. Tesla seems to be an early leader in the opportunity, with plans to launch automated taxis in Austin, Texas this month. The company's focus on low-cost cameras and "computer vision" could give it an edge over rivals like Waymo (a subsidiary of Alphabet), which relies on pricey LiDAR and must source its vehicles from expensive third-party suppliers, adding cost and complexity to its operations. But while Tesla definitely has the potential to make more millionaires, success is already priced into its valuation. So, the downside risk seems to outweigh the upside right now -- especially considering the immense political uncertainty Musk has brought upon the company. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $377,293!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,319!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $659,171!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Is Tesla a Millionaire-Maker Stock? was originally published by The Motley Fool
Motor 1
a day ago
- Automotive
- Motor 1
Mercedes Makes 'Course Correction' to Extend Combustion Engine Life
It was only a few days ago that Audi announced plans to continue producing gas-powered cars longer than initially intended , and now its long-time rival, Mercedes, is essentially saying the same thing. Head honcho Ola Källenius admitted the Stuttgart-based automaker has had to make a 'course correction' and retain internal combustion engines longer than initially planned. As a refresher, the company announced a few years back that it aimed to go fully electric 'where market conditions allow' as early as 2030. The Mercedes chairman and CEO told German magazine Auto Motor und Sport that 'electrified high-tech combustion engines will run longer than we originally expected.' While he didn't provide an exact timeline, he referred to the dual gas-and-electric strategy as the optimal solution given the slower-than-expected EV adoption: 'In the current situation, I think the most rational approach is for an established manufacturer to do both and not neglect either technology." Photo by: Mercedes-Benz Automakers retreating from their previously lofty EV goals has fueled a misconception about a general decline in the electric car market. While it's true that some companies are struggling, including Mercedes, which reported a 23% drop in 2024, the overall segment is growing. The International Energy Agency reports EV sales jumped by more than 25% last year, reaching 17 million vehicles. Additionally, BloombergNEF's annual Electric Vehicle Outlook, published just yesterday, projects sales of plug-in hybrids and electric vehicles will surge by 25% this year compared to 2024, reaching nearly 22 million units. As you'd expect, China is estimated to account for the lion's share, with almost two-thirds of PHEV and EV sales, according to the same study. As with rivals BMW and Audi, China remains Mercedes' largest market, despite a 7% decline in sales last year to 683,600 combustion and electric vehicles. Speaking of which, Källenius claims Chinese buyers 'don't just use their cars to get from A to B. For many, it's also a second living room.' Maybe that explains the heavy reliance on screens in recent models wearing the three-pointed star. Germany's luxury trio will continue to offer a mix of combustion and electric cars well into the 2030s, appealing to both camps. It remains unclear what will happen in countries that follow European Union regulations, which from the middle of the next decade will prohibit automakers from selling new vehicles that emit harmful pollutants. Some car companies are likely hoping for a delay in the ban, but the EU shows no signs of backing down. Keep Up With Mercedes: Mercedes Is Killing Two Models You Probably Don't Remember Yikes: The Mercedes CLA EV Is Heavier Than a Base S-Class Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Auto Motor and Sport Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Yahoo
a day ago
- Automotive
- Yahoo
China floods Brazil with cheap EVs triggering backlash
By Alessandro Parodi and Victoria Waldersee (Reuters) -The world's largest car-carrying ship - with the equivalent of 20 football fields of vehicles - completed its maiden journey late last month to dock in Brazil's Itajai port. But not everyone is cheering its arrival. BYD, China's top producer of electric and plug-in hybrid vehicles, is offering Brazilian car shoppers relatively low-priced options in a market where the green-car movement is still in its infancy. Brazilian auto-industry officials and labor leaders worry that the vast influx of cars from BYD and other Chinese automakers will set back domestic auto production and hurt jobs. BYD has deployed a growing fleet of cargo ships to accelerate its expansion overseas, with Brazil becoming its top target, according to Reuters analysis of shipping data and company statements. The late-May shipment was the fourth of the Chinese carmaker's ships to dock in Brazil this year, totaling around 22,000 vehicles, according to Reuters calculations. BYD, the world's top producer of electric and plug-in hybrid cars, is the largest among several Chinese brands targeting Brazil for growth. China-built vehicle imports are expected to grow nearly 40% this year, to about 200,000, according to Brazil's main auto association. That would account for roughly 8% of total light-vehicle registrations. Industry and labor groups say China is taking advantage of Brazil's temporarily low tariff barriers to ramp up its exports rather than investing to build Brazilian factories and create jobs. They are lobbying Brazil's government to accelerate by a year a plan to increase Brazil's tariff on all EV imports to 35% from 10%, rather than gradually phasing in higher levies. "Countries around the world started closing their doors to the Chinese, but Brazil didn't," said Aroaldo da Silva, a Mercedes-Benz production worker and president of IndustriALL Brasil, a confederation of unions across six industrial sectors. "China made use of that." BYD did not respond to a request for comment on the industry's concerns. SURPLUS CARS Brazil has emerged as a flashpoint in the China auto industry's torrid global expansion. A growing surplus of new cars being pumped out of Chinese factories has led to an export boom over the past five years, helping China pass Japan in 2023 to become the world's top vehicle exporter. Much of this excess is being shipped overseas, to markets like Europe, Southeast Asia and Latin America. Brazil offers an enticing destination due to its large market - it is the sixth-largest car market by volume - where established players including Volkswagen, General Motors and Jeep-maker Stellantis have been building cars domestically for decades. The Brazilian government has set policies aimed at growing sales of electric and plug-in hybrid cars, BYD's specialty. Meanwhile, BYD's path for growth elsewhere has narrowed, both domestically and overseas. At home, the company is mired in a bruising price war that has seen it slash the price of its entry-level Seagull to below $10,000, squeezing profit margins. Abroad, governments have erected stiff trade barriers for Chinese cars, including a 45.3% duty in Europe and a tariff of more than 100% in the United States, along with a ban on Chinese software in cars. For years, Brazilian officials have taken steps to protect the market from unfettered access by Chinese car companies. But it has been slower to react and less aggressive than other nations. In 2015, Brazil eliminated tariffs on manufacturers like BYD to spur electric vehicle adoption, but last year it reintroduced a 10% tariff on electric cars to encourage investment in the domestic auto industry. The tariff is scheduled to increase every six months before hitting 35% in 2026. Brazil's Ministry of Development, Industry & Foreign Trade told Reuters that a request by Brazil's auto association, ANFAVEA, and others to pull forward the higher tariff was under review. "The schedule for the gradual resumption of tariffs, with decreasing quotas, was established to allow companies to continue with their development plans and respect the maturity of manufacturing in the country," a ministry spokesperson added. BYD and other Chinese companies also are taking advantage of a policy in Brazil that allows them to import toll-free up to $169 million for plug-in hybrids imported by July 2025 and $226 million for battery-electric cars. That incentivizes front loading of vehicle shipments to fully benefit from the toll-free quotas before they expire, analysts said. 'EXCESS OF IMPORTS' BYD's export strategy hinges on the carmaker being able to continue growing shipments without triggering resistance from local authorities. But industry representatives in Brazil have grown increasingly worried that BYD's plans to begin domestic vehicle production are being pushed off. In 2023, government officials cheered BYD's plan to purchase a former Ford plant in the state of Bahia, viewing it as a way to create manufacturing jobs and spur the country's green transition. But an investigation into labor abuses on the construction site pushed back its timeline for "fully functional" production to December 2026, local officials said in May. Another Chinese automaker, GWM, also delayed by more than a year its plan to start making cars at a former Mercedes-Benz plant. The Brazilian government expects the plant to begin operating this year. "We support the arrival of new brands in Brazil to produce, promote the components sector, create jobs and bring new technologies,' Igor Calvet, president of ANFAVEA, told Reuters. 'But from the moment that an excess of imports causes lower investment in production in Brazil, that worries us." Da Silva of IndustriALL said his confederation of unions had not heard of any local supplier relationships being developed or contracts being signed for the BYD plant, as would normally be expected 18 months from the start of production. "Even if the factory is here - what value is it really adding if the components, development, and technology is all from abroad?" da Silva said. BYD did not respond to a request for comment on its supplier network. President Lula da Silva's left-wing Workers Party government is scrambling to protect jobs and the environment as it aims to both revive Brazil's industrial economy and restore its green credentials ahead of hosting the COP30 global climate summit this November. Still, the country's nascent green-car movement leans on Chinese imports, which account for more than 80% of Brazil's electric-car sales, according to Brazil's EV association, ABVE. The country has abundant mineral resources including lithium and other key ingredients to make EV batteries. But the infrastructure to produce all the necessary components for electric cars does not exist yet, said Ricardo Bastos, director of government relations at GWM Brazil and president of ABVE. GWM, which bought a factory in Brazil in 2021 with capacity for 50,000 cars a year and is due to start producing its Haval H6 SUV there this July, is in talks with around 100 Brazil-based suppliers on setting up contracts, Bastos told Reuters. "This year, imported cars will coexist alongside cars produced in Brazil," Bastos said. 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
a day ago
- Automotive
- Yahoo
China floods Brazil with cheap EVs triggering backlash
By Alessandro Parodi and Victoria Waldersee (Reuters) -The world's largest car-carrying ship - with the equivalent of 20 football fields of vehicles - completed its maiden journey late last month to dock in Brazil's Itajai port. But not everyone is cheering its arrival. BYD, China's top producer of electric and plug-in hybrid vehicles, is offering Brazilian car shoppers relatively low-priced options in a market where the green-car movement is still in its infancy. Brazilian auto-industry officials and labor leaders worry that the vast influx of cars from BYD and other Chinese automakers will set back domestic auto production and hurt jobs. BYD has deployed a growing fleet of cargo ships to accelerate its expansion overseas, with Brazil becoming its top target, according to Reuters analysis of shipping data and company statements. The late-May shipment was the fourth of the Chinese carmaker's ships to dock in Brazil this year, totaling around 22,000 vehicles, according to Reuters calculations. BYD, the world's top producer of electric and plug-in hybrid cars, is the largest among several Chinese brands targeting Brazil for growth. China-built vehicle imports are expected to grow nearly 40% this year, to about 200,000, according to Brazil's main auto association. That would account for roughly 8% of total light-vehicle registrations. Industry and labor groups say China is taking advantage of Brazil's temporarily low tariff barriers to ramp up its exports rather than investing to build Brazilian factories and create jobs. They are lobbying Brazil's government to accelerate by a year a plan to increase Brazil's tariff on all EV imports to 35% from 10%, rather than gradually phasing in higher levies. "Countries around the world started closing their doors to the Chinese, but Brazil didn't," said Aroaldo da Silva, a Mercedes-Benz production worker and president of IndustriALL Brasil, a confederation of unions across six industrial sectors. "China made use of that." BYD did not respond to a request for comment on the industry's concerns. SURPLUS CARS Brazil has emerged as a flashpoint in the China auto industry's torrid global expansion. A growing surplus of new cars being pumped out of Chinese factories has led to an export boom over the past five years, helping China pass Japan in 2023 to become the world's top vehicle exporter. Much of this excess is being shipped overseas, to markets like Europe, Southeast Asia and Latin America. Brazil offers an enticing destination due to its large market - it is the sixth-largest car market by volume - where established players including Volkswagen, General Motors and Jeep-maker Stellantis have been building cars domestically for decades. The Brazilian government has set policies aimed at growing sales of electric and plug-in hybrid cars, BYD's specialty. Meanwhile, BYD's path for growth elsewhere has narrowed, both domestically and overseas. At home, the company is mired in a bruising price war that has seen it slash the price of its entry-level Seagull to below $10,000, squeezing profit margins. Abroad, governments have erected stiff trade barriers for Chinese cars, including a 45.3% duty in Europe and a tariff of more than 100% in the United States, along with a ban on Chinese software in cars. For years, Brazilian officials have taken steps to protect the market from unfettered access by Chinese car companies. But it has been slower to react and less aggressive than other nations. In 2015, Brazil eliminated tariffs on manufacturers like BYD to spur electric vehicle adoption, but last year it reintroduced a 10% tariff on electric cars to encourage investment in the domestic auto industry. The tariff is scheduled to increase every six months before hitting 35% in 2026. Brazil's Ministry of Development, Industry & Foreign Trade told Reuters that a request by Brazil's auto association, ANFAVEA, and others to pull forward the higher tariff was under review. "The schedule for the gradual resumption of tariffs, with decreasing quotas, was established to allow companies to continue with their development plans and respect the maturity of manufacturing in the country," a ministry spokesperson added. BYD and other Chinese companies also are taking advantage of a policy in Brazil that allows them to import toll-free up to $169 million for plug-in hybrids imported by July 2025 and $226 million for battery-electric cars. That incentivizes front loading of vehicle shipments to fully benefit from the toll-free quotas before they expire, analysts said. 'EXCESS OF IMPORTS' BYD's export strategy hinges on the carmaker being able to continue growing shipments without triggering resistance from local authorities. But industry representatives in Brazil have grown increasingly worried that BYD's plans to begin domestic vehicle production are being pushed off. In 2023, government officials cheered BYD's plan to purchase a former Ford plant in the state of Bahia, viewing it as a way to create manufacturing jobs and spur the country's green transition. But an investigation into labor abuses on the construction site pushed back its timeline for "fully functional" production to December 2026, local officials said in May. Another Chinese automaker, GWM, also delayed by more than a year its plan to start making cars at a former Mercedes-Benz plant. The Brazilian government expects the plant to begin operating this year. "We support the arrival of new brands in Brazil to produce, promote the components sector, create jobs and bring new technologies,' Igor Calvet, president of ANFAVEA, told Reuters. 'But from the moment that an excess of imports causes lower investment in production in Brazil, that worries us." Da Silva of IndustriALL said his confederation of unions had not heard of any local supplier relationships being developed or contracts being signed for the BYD plant, as would normally be expected 18 months from the start of production. "Even if the factory is here - what value is it really adding if the components, development, and technology is all from abroad?" da Silva said. BYD did not respond to a request for comment on its supplier network. President Lula da Silva's left-wing Workers Party government is scrambling to protect jobs and the environment as it aims to both revive Brazil's industrial economy and restore its green credentials ahead of hosting the COP30 global climate summit this November. Still, the country's nascent green-car movement leans on Chinese imports, which account for more than 80% of Brazil's electric-car sales, according to Brazil's EV association, ABVE. The country has abundant mineral resources including lithium and other key ingredients to make EV batteries. But the infrastructure to produce all the necessary components for electric cars does not exist yet, said Ricardo Bastos, director of government relations at GWM Brazil and president of ABVE. GWM, which bought a factory in Brazil in 2021 with capacity for 50,000 cars a year and is due to start producing its Haval H6 SUV there this July, is in talks with around 100 Brazil-based suppliers on setting up contracts, Bastos told Reuters. "This year, imported cars will coexist alongside cars produced in Brazil," Bastos said.
