🎋Autowist Report 109

• 💼BRIEFING

  • BMW/VW Strategy Outlook

  • VW ECARX Collab

  • Leaked New BYD Platform

• 💹FINANCIALS

  • VW

    • Financial Highlights:

    • Strategic Developments:

    • Outlook for 2025:

    • Strategic Initiatives:

    • CARIAD

  • BMW

    • Financial Performance Overview

    • Key Performance Indicators

    • Challenges and Headwinds

    • 2025 Outlook

    • Strategic Initiatives

    • Market Reaction

• ⚡ROUNDUP

• 🔬PATENT WATCH

  • GM: Battery Pack with Integrated Cooling System

    • Innovation:

    • Benefits of This Innovation:

• 🐦AUTO BUZZ

• 📈MARKET SNAPSHOT

• 📆CALENDAR

💼BRIEFING

Top insights and analysis that is moving the needle in the automotive industry

BMW/VW Strategy Outlook

Recently, two major automotive OEMs announced ambitious plans to launch between 30 and 40 new car models within a very short timeframe. To achieve this rapid expansion, both companies have adopted a platform-based approach.

Essentially, this strategy involves creating a standardized platform with built-in flexibility, allowing it to be adapted across numerous vehicle models with minimal re-engineering. This method is not only applied to the physical hardware but also extends to the software integrated into these vehicles.

At first glance, the platform approach seems efficient and logical—standardizing components and software can streamline production, reduce costs, and accelerate time-to-market. However, this strategy overlooks a critical aspect necessary for developing truly exceptional software: focus.

Creating outstanding software requires dedicated attention to detail, clarity of purpose, and the ability to deeply understand and respond to specific user needs. When automotive companies simultaneously manage dozens of product lines, each with distinct customer expectations, regulatory certifications, legal requirements, and long-term maintenance obligations, complexity multiplies exponentially. Rather than simplifying processes, this complexity can become an obstacle that hinders software teams from delivering their best work.

This scenario accurately reflects what is currently unfolding among Europe's largest automotive manufacturers. While their ambitious model-release targets and platform strategies promise increased efficiency and scale, these same strategies inadvertently introduce complexities that make it difficult to achieve excellence in automotive software development.

To truly excel in software innovation within the automotive sector, OEMs must balance their aggressive expansion plans with a renewed emphasis on focused product development and targeted customer experiences.

VW ECARX Collab

Volkswagen is partnering with Chinese software and hardware firm Ecarx, backed by Geely, to develop "smart car" technology aimed at markets in Europe and potentially the United States. Currently, Volkswagen and Ecarx collaborate in Brazil and India, using Ecarx's Antora 1000 digital cockpit system, which includes proprietary chips, voice recognition, and navigation software.

Volkswagen's motivation for this partnership stems from its struggles in China, where local competitors like BYD and Geely have significantly outpaced traditional automakers in automotive software capabilities. Volkswagen's own software division, Cariad, faced substantial delays and technical issues, impacting product launches such as the Audi Q6 E-Tron.

However, Volkswagen faces regulatory challenges in the U.S., where authorities propose banning vehicles equipped with Chinese-developed software starting in 2027. To navigate this issue, Volkswagen has also invested in Rivian to secure a U.S.-based software partner.

Despite these barriers, industry experts expect advanced Chinese automotive technology to eventually reach U.S. and European markets through strategic partnerships like the one between Volkswagen and Ecarx.

Leaked New BYD Platform

BYD will launch its Super e-Platform on March 17, introducing a 1,000-kW ultra-fast charging technology—twice as powerful as Tesla's V4 Supercharger. This could enable EVs to charge as fast as refueling a gasoline car.

At the same event, BYD will begin pre-sales of the Han L sedan and Tang L SUV, both featuring high-performance dual motors. The Han L can accelerate 0-100 km/h in 2.7s, while the Tang L does it in 3.9s.

Leaked images suggest BYD’s new chargers support up to 1,000V and could fully charge a 100-kWh battery in about 10 minutes—a significant leap from current superchargers (200-500 kW).

💹FINANCIALS

A focused look at recent automotive company financials

VW

Volkswagen's recent earnings call highlighted several key financial and strategic developments:

Financial Highlights:

• Volkswagen reported a 15% decline in annual operating profit for 2024, down to EUR 19.1 billion, with an operating margin of 5.9%, primarily due to rising costs and restructuring expenses.

• Total revenue slightly increased to EUR 325 billion from EUR 322.3 billion the previous year.

• Net income decreased significantly by 31%, totaling EUR 12.4 billion.

• Vehicle deliveries fell by approximately 3% to about 9 million units, including a similar 3% decrease in battery electric vehicle (BEV) deliveries, totaling around 745,000 units.

• The automotive division's net liquidity declined by 10.5%, ending at EUR 36.1 billion, with projections for liquidity between EUR 34 billion and EUR 37 billion in 2025.

• Proposed dividends were reduced by about 30% compared to the previous year, set at EUR 6.36 per preferred share.

Strategic Developments:

• Volkswagen introduced over 30 new vehicle models in 2024, aiming to strengthen its market position despite sluggish demand in Europe and intense pricing competition in China.

• The company is actively restructuring, incurring significant associated costs, and focusing on cost-cutting measures aimed at saving approximately EUR 1 billion by the end of the year.

• Volkswagen continues to invest heavily in capital expenditures and R&D, totaling EUR 37.9 billion or about 14.3% of sales revenue.

• Strategic partnerships with XPENG and Rivian were emphasized as critical steps forward in Volkswagen's global software strategy and electric vehicle ambitions.

Outlook for 2025:

• Volkswagen expects revenue growth of up to 5% compared to last year, projecting an operating margin between 5.5% and 6.5% for the year.

• The automotive investment ratio is expected to decrease slightly, ranging from 12% to 13%, reflecting adjustments in reporting logic and ongoing investment discipline.

• Automotive net cash flow is anticipated to be between EUR 2 billion and EUR 5 billion, considering continued expenses related to BEV expansion and restructuring initiatives.

• Challenges anticipated include political uncertainty, escalating trade restrictions, geopolitical tensions, increased competition intensity, volatile commodity prices, and stringent emissions regulations.

Strategic Initiatives:

• Volkswagen continues its global software strategy through partnerships with companies like XPENG and Rivian.

• Plans are underway for significant battery capacity expansion and ramp-up of electric vehicle production despite associated higher costs.

• The company is evaluating introducing its CUPRA brand into select U.S. markets starting around 2030 as part of its North American growth strategy.

Overall, Volkswagen described its financial results as solid given the challenging global economic environment and industry transformations underway, emphasizing disciplined cost management and strategic investments moving forward

CARIAD

BMW

Financial Performance Overview

BMW experienced a significant decline in profitability in 2024, with net profit dropping by 36.9% to €7.68 billion ($8.32 billion). The company's full-year revenue decreased by 8.4% to €142.38 billion compared to €155.5 billion in 2023.

The automotive segment delivered an EBIT of €7.89 billion with a margin of 6.3%, which was within their adjusted guidance but below their original target range of 8-10%. Group earnings before tax (EBT) amounted to €10.97 billion, resulting in a group EBT margin of 7.7%.

Key Performance Indicators

Vehicle Sales and Production:

• Total deliveries: 2,450,854 vehicles, representing a 4% decrease year-over-year

  BEV (Battery Electric Vehicle) sales: 426,594 units, constituting 17.4% of total sales

• Q4 showed sequential improvement over Q3, which had been impacted by delivery stops related to Integrated Braking System issues

Financial Metrics:

• Earnings per share: €11.62, down 34.2% from €17.67 in 2023

• Dividend: €4 per share for 2024, down from €6.02 in 2023

• Dividend payout ratio: Over 36%, one of the highest in BMW's history

• Free cash flow: €4.9 billion in the Automotive segment

Challenges and Headwinds

The primary factors affecting BMW's 2024 performance included:

1. Weak Demand in Key Markets: Persistent weak demand in China and Germany significantly impacted sales volume

2. Delivery Disruptions: Issues with the Integrated Braking System (IBS) caused delivery stops that affected performance, particularly in Q3

3. Tariff Impacts: Recently imposed tariffs are expected to reduce the automotive earnings margin by approximately one percentage point in 2025

4. Intense Price Competition: Particularly in the Chinese market, affecting overall revenue

2025 Outlook

For 2025, BMW has provided the following guidance:

• Sales Volume: Expecting a slight increase in deliveries

• Automotive EBIT Margin: Projected between 5-7%, below analyst expectations of 7.3%

• Group EBT: Targeted to remain at the previous year's level

• Free Cash Flow: Expected to exceed €5 billion in the Automotive segment, an increase from 2024

• BEV Share: Planning a slight increase in the proportion of electric vehicles in total sales

• R&D and Capital Expenditure: Both expected to decrease meaningfully after reaching peak levels in 2024

Strategic Initiatives

BMW is focusing on several strategic initiatives to drive future growth:

1. Neue Klasse Platform: The first production model, the BMW iX3, will launch at the end of 2025, initiating a significant product offensive with over 40 new and updated models planned by 2027

2. Technology Openness: Maintaining a flexible approach to drivetrain technologies rather than focusing exclusively on electric vehicles

3. Cost Optimization: Planning a turnaround in operational costs in 2025, with a decrease in nominal terms that will cover inflation effects

4. Sustainability Reporting: Voluntarily adopting the full European Sustainability Reporting Standards

Market Reaction

Following the earnings announcement on March 14, 2025, BMW's stock price dropped by approximately 4%, marking the largest decrease on Germany's DAX index that day. The market response reflected investor disappointment with the earnings miss and lower-than-expected guidance for 2025.

Despite these challenges, BMW maintains its long-term target corridor of 8-10% EBIT margin in the Automotive segment and remains committed to balancing short-term results with long-term strategic objectives.

⚡ROUNDUP

Key headlines shaping the auto industry this week

1. Sunwoda to invest over $1 billion to set up EV battery plants in Thailand (Link)

2. Pure Lithium secures DOE funding to scale lithium metal anode production (Link)

3. BMW’s Big Bet: 40 New Models, New R&D Boss and Outgoing CEO (Link)

4. VW’s next-gen EV batteries arrive soon: How they’ll cut costs, boost range (Link)

5. BYD to unveil all-new BEV platform, ultrafast-charging technology (Link)

6. Smartest Mercedes-Benz Ever Made Will Smile and Talk Back With AI Voices (Link)

7. Tesla denies FSD collaboration rumors with Baidu (Link)

8. Mahindra starts showing advertisements on the XUV700's infotainment display (Link)

9. Lucid Gravity Spotted With Lidar (Link)

10. Mercedes-Benz and will.i.am are futurizing in-car entertainment with AI-powered FYI RAiDiO app (Link)

11. Supervisory Board of BMW AG sets course for unchanged leadership in innovation and technology (Link)

12. Volkswagen: Brand Group Core reports solid results for 2024 in a challenging environment (Link)

13. Northvolt files for bankruptcy in Sweden (Link)

14. Tesla’s upcoming cheaper electric car is basically a stripped-down Model Y (Link)

15. China’s 'Smart Car' Tech Could Get To The U.S. Through Volkswagen (Link)

16. Jaguar Land Rover halts EV production plans in India (Link)

17. Ecarx in talks with VW to supply smart tech for EU/US market (Link)

18. Costco Starts Listing Rivian Vehicles in Auto Program (Link)

19. NXP unveils first 16-nanometer FinFET automotive microcontrollers (Link)

20. Shanghai to subsidize installation of battery-swap stations (Link)

21. BMW details new ‘Superbrain’ computers powering its Neue Klasse platform (Link)

22. MB.CHARGE Public to replace the Mercedes me Charge service (Link)

23. RTI's Connext Drive reaches over one million vehicles globally (Link)

24. Trade uncertainty drives down production in Canada and Mexico (Link)

25. Porsche’s Declining China Sales Force New Strategy (Link)

26. BMW Spots An EV Sales Opportunity As Tesla Tumbles (Link)

27. Volkswagen ID.4 Motor Teardown: Killed By A Very Simple Problem (Link)

28. Android Auto 14 Spotted Online, Here's How to Download It Today (Link)

29. Dramatic number of Americans are falling behind on auto loans (Link)

30. Ford Recalls Maverick Hybrid Over Improperly Updated Instrument Panel Cluster Software (Link)

31. Volkswagen brings back buttons: ‘It’s not a phone, it’s a car’ (Link)

32. BMW Plans To Crank Out 40 New Cars In The Next Three Years (Link)

33. Change on Volkswagen Supervisory Board: Christiane Benner to follow Jörg Hofmann (Link)

🔬PATENT WATCH

Fresh Innovations from global automotive OEMs

GM: Battery Pack with Integrated Cooling System

The patent describes an innovative battery pack cooling system designed for electric vehicles, featuring an integrated coolant plate assembly to efficiently manage thermal conditions within battery packs. This technology specifically addresses the challenge of maintaining optimal temperatures for battery cells, which is critical for performance, safety, and longevity.

Innovation:

The core innovation lies in the design of a specialized coolant plate assembly positioned between rows of energy storage cells. Key features include:

• Integrated Coolant Channels: The cooling system comprises coolant plates arranged between rows of energy storage cells. These plates feature internal channels that allow coolant fluid to flow directly adjacent to the battery cells, enhancing heat transfer and temperature regulation.

• Protrusions for Improved Heat Transfer: The coolant plates have specially designed protrusions extending into the coolant channels. These protrusions vary in height and spacing, creating controlled turbulence within the fluid flow. This turbulence significantly improves heat exchange efficiency by increasing local fluid mixing and enhancing thermal management performance.

• Thermal Interface Material: A thermal interface material coats the surfaces of the coolant plates that directly contact the battery cells. This material fills microscopic voids, improving thermal conductivity and further optimizing heat dissipation.

• Flexible Design for Compression Management: The protrusions inside the coolant channels also serve as mechanical stops that limit compression under operational stress. This ensures consistent coolant flow rates and maintains structural integrity despite thermal expansion or mechanical deformation.

Benefits of This Innovation:

• Enhanced Thermal Management: By increasing local turbulence and optimizing heat transfer through targeted protrusion arrangements, this system effectively manages battery temperatures, prolonging battery life and improving overall performance.

• Improved Structural Reliability: The integrated mechanical stops provided by protrusions ensure stable operation under varying conditions, reducing risks associated with deformation due to thermal expansion or operational stresses.

• Increased Efficiency and Performance: Efficient cooling allows batteries to operate at optimal temperatures consistently, improving energy efficiency, reliability, and safety during vehicle operation.

• Scalability and Adaptability: The modular design allows flexibility in accommodating different battery configurations and sizes, making it adaptable across various electric vehicle models without significant redesign efforts.

🐦AUTO BUZZ

Top posts, tweets, and videos from the automotive industry

📈MARKET SNAPSHOT

This week’s key movers in the automotive stock market

📆CALENDAR

Upcoming auto industry events and and earnings calls