Automotive

Price Cuts, Luxury Bounce, and GM’s Last ICE

Tesla’s cutting prices and folk are concerned, China’s car buyers are dusting off their fancy pants, and GM ain’t forgot what Fiat Chrysler did before they changed their name!
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Price Cuts, Luxury Bounce, and GM’s Last ICE

💈✂️ Like a barber who gets paid by the job, Tesla announced another round of cuts Friday. This time the cuts are in the European market and have the competition, like Renault, weighing options. ✂️💇‍♂️

Renault CEO Fabrice Cambolive says they will reevaluate pricing strategy country-by-country to ensure they stay competitive and continue the upward sales trend of Q1 after four years of declining revenue. Sales have risen 9% for the brand so far in 2023. 📈😁
A little more off the top?
Prices are not all Tesla is cutting. A social media protest erupted from the company's Shanghai plant following cuts to performance-related bonuses that the workers call unfair. 🤬

According to the outcry, the monthly bonus cuts are related to compensation being paid out related to a fatal accident at the plant. Workers say they are not liable for the accident and should not be on the hook to pay the compensation.

Porsche AG had a record 18% sales increase in 2022 compared to 2021. The brand saw 21% growth in the Chinese market. 🇨🇳

Luxury Bounce! Premium brands are rebounding as demand returns in China, the world's biggest auto and luxury product market. Porsche isn't alone. Already in 2023, peer Mercedes has delivered 191K vehicles in China, 3% higher than in Q1 2022. 🎩

Buzzin'. Mercedes also showed an 88% increase in EV sales in Q1. Of over 503K global sales, nearly 52K are BEVs. 10% of total sales is impressive, but compared to 6% just last year, the growth's growth is also something to behold with a nod of respect. ⚡️

⛽️ General Motors revealed its final gas-powered vehicle, the 2024 Buick Envista. The crossover Encore replacement will start at just over $24K, with the top-end running nearly $30K. Buick's marketing director says the price point represents an enormous opportunity that GM will champion. 🧊

Quit Tattling... The US Supreme Court has turned away GM's bit to revive a racketeering suit against Fiat Chrysler (FCA). The suit started in 2019 when GM accused Fiat Chrysler, now part of Stellantis, of bribing UAW reps to undermine GM and pressure the company into a merger with FCA. GM said FCA's actions corrupted the bargaining process and cost GM an estimated $6B, which it sought in damages. 🧑‍⚖️👨‍⚖️

👊 The suit was dismissed in 2020 when a federal judge in Michigan said the alleged injuries were not caused by FCA's actions. This week, a judge reviewing the appeal request agreed. 

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