THE challenges facing the car industry in its switch to electric were laid bare yesterday with a double dose of bad news.
Vauxhall owner Stellantis, which last year caused shock waves by shutting its Luton factory in a row over the UK’s punishing net zero mandate, saw profits tumble.
James Bond’s favourite producer Aston Martin again delayed the launch of its battery-powered motor[/caption]
James Bond’s favourite producer Aston Martin, meanwhile, again delayed the launch of its battery-powered motor, until “the latter part of the decade”.
Boss Adrian Hallmark, who joined from Bentley last year, said battery models were “for a lot of luxury customers, too extreme”.
The firm, which will prioritise its hybrid electric, posted £289.1million losses for 2024, on top of £239.8million in 2023.
Around 170 staff — about five per cent — are facing redundancy.
It has watered down its £500million earnings goal and now aims only to be in “positive” territory this year.
Aston Martin has also seen demand fall in China and will sell 1,000 fewer cars there.
Stellantis, meanwhile, saw a 70 per cent slump in net profits to £4.55billion in the second half of 2024.
Chairman John Elkann said results were “falling short of our potential”.
The car giant is still looking for a new boss after Carlos Tavares left in December following a boardroom row.
Russ Mould, analyst at AJ Bell, said: “The latest numbers are ugly. The market will be aware that any new boss will want to kick the tyres on the business before committing themselves to any meaningful targets. They may well look to take the kitchen sink to guidance to give themselves a manageable bar to clear.”
Despite the Luton closure, Stellantis has invested more than £4billion in the US to try to woo President Donald Trump amid the threat of tariffs.
Orwa Mohamad, analyst at Third Bridge, said: “Stellantis faces a ‘crunch point’ over the next six to 12 months, requiring significant strategic adjustments. Cost-cutting measures, better alignment of production with demand, and improved software and electrification strategies will be crucial.”
There are raised hopes within the car industry that the Government will soften its harsh zero-emission vehicle (ZEV) mandate to include either exports or hybrid vehicles in targets for 2030.
PRODUCTION LINES STALL
THE number of cars rolling off production lines fell 17.7 per cent in January to 71,104, figures by The Society Of Motor Manufacturers And Traders suggest.
The report shows UK manufacturers have been limiting petrol cars to avoid fines for failing net zero mandate thresholds.
This year, they have to ensure 28 per cent of cars sold are electric. SMMT chief Mike Hawes said: “The sector needs promised funding as soon as possible.”
FIRM DITCHES DIET SHAKES FAST
SlimFast has been ditched by its owner[/caption]
MEAL replacement shake brand SlimFast is being offloaded by its owner — after the rise of fat jabs shook up the diet market.
Mark Garvey, finance chief of parent company Glanbia, said the business is moving on from SlimFast “because we believe there is a significant change in how weight management is being managed by our consumers”.
SlimFast boomed in the Nineties during the height of diet culture — and supermarkets were full of their branded shakes and snacks.
Its popularity had already been waning, but it then became one of many brands to get a serious overhaul when jabs Ozempic, Wegovy and Mounjaro revolutionised the food and drink industry.
Kit-Kat maker Nestle launched portion-controlled, high-protein frozen meals to cater to those on the jab, while protein shake maker Huel reported a rise on their products from people using the medication.
And last year, City fund manager Terry Smith dumped his entire stake in Gordon’s gin-maker Diageo, reasoning that the injections would also lead to people cutting back on drinking.
BUYGONE DAYS FOR RENTERS
NEARLY nine in ten first-time buyers cannot afford to get on the property ladder in their local area, fresh figures show.
And stamp duty changes set to arrive in April will make it even more challenging for Brits to own a home, Skipton Building Society warned.
The group’s boss, Stuart Haire, says many Brits are stuck in a rental trap, with four in ten potential buyers spending 45 per cent on their income on essential housing costs.
The members-owned group, which owns estate agents Connells, says it is sharing its Affordability Index with the Government to show where new homes are most needed.
Meanwhile, the mutual says it expects the property market to stabilise this year as interest rates come down.
It has stepped up its mortgage business by 8.2 per cent to £30.9billion in the past year, with 44 per cent of its home loans to first-time buyers.
BOLT TALK ON LISTING
CAR-HIRING firm Bolt is working with its advisers on a potential stock market listing.
The company, which is a rival to Uber, is based in Estonia but has drivers across British cities.
It has hired investment boutique PJT Partners, according to Bloomberg.
The firm was most recently valued at £6.1billion in a 2022 fundraising. It has not yet decided whether to list in New York or London.
