VW 2020 operating profit beats expectations; Ford's Takata recall to cost $610M

TOP NEWS IN AUTOMOTIVE

* Volkswagen AG said it expects adjusted operating profit for 2020 to fall to nearly €10 billion from €19.3 billion in 2019. The preliminary results far exceeded analysts' expectations of €5.79 billion, as compiled by S&P Capital IQ. Shares of the German carmaker were up 3.64% as it said the vehicle deliveries recovered strongly in the fourth quarter.

* Ford Motor Co. said it will take a $610 million hit on its fourth-quarter 2020 earnings over the recall of 3 million vehicles in the U.S. and Canada to replace Takata airbag inflators in certain vehicles from model years 2006 through 2012. The automaker is expecting a pretax re-measurement loss of approximately $1.5 billion in the fourth quarter related to its pension and other post-retirement employee benefits plans. Shares of Ford closed up 6.17% on Jan. 21.

➤ Steering through the skid – Auto supply chains in 2021

The autos industry has had to negotiate the pandemic's ravages on supply chains and demand in 2020 while also facing logistics challenges, parts shortages and a shifting trade policy.

➤ Japan snaps export downturn as global semiconductor shipments surge

Japan's exports climbed for the first time in two years in December 2020 after a recovery in exports of chemicals, batteries and semiconductors.

➤ New Year brings new surge in US corporate bankruptcies

So far in January, 33 companies have entered bankruptcy proceedings, a higher amount than any comparable period since 2012.

CARMAKERS

* Bayerische Motoren Werke AG expects to return to its pre-pandemic operating margin target of 8% to 10% with improving market conditions, the Brexit deal and its plans to raise its shareholding in its Chinese joint venture to 75% in 2022, Reuters reported, citing CFO Nicolas Peter. The automaker reportedly will have to simplify its vehicle portfolio for big investments in electric cars.

* Nissan Motor Co. Ltd. is exploring options to make new models at its Sunderland facility in the U.K., the Financial Times (London) reported. COO Ashwani Gupta reportedly said the agreement between the EU and the U.K. created a positive environment for the company.

* Nissan Motor will suspend operations at one of its British production lines in Sunderland that makes Qashqai and LEAF cars on Jan. 22 due to supply chain disruptions caused by the pandemic, Reuters reported. The Japanese carmaker expects to resume production Jan. 25.

* McLaren Group Ltd. appointed TalkTalk PLC CFO Kate Ferry as the British sports-car maker's CFO, effective April 1.

ELECTRIC VEHICLES

* Toyota Motor Corp. -owned Japanese minicar-maker Daihatsu Motor Co. Ltd. plans to roll out a hybrid version of its Rocky SUV in 2021, Nikkei Asia reported. Toyota will reportedly co-develop the technology for the new SUV.

*Zhejiang Geely Holding Group's premium electric car unit Polestar is considering to offer subscription packages in the U.K., Car Dealer Magazine reported, citing CEO Jonathan Goodman.

* China's Hefei municipal government plans to invest about 2 billion Chinese yuan in electric vehicle startup Leapmotor, Gasgoo reported, citing local media.

MOBILITY SERVICES

* Aerospace company Joby Aero Inc., which is buying Uber's air mobility unit, is exploring a deal to become public by merging with a blank-check acquisition firm at a valuation of about $5 billion, Reuters reported, citing people familiar with the matter.

AUTO PARTS AND EQUIPMENT

* Electric vehicle charging network EVgo Services LLC is close to merging with Climate Change Crisis Real Impact I Acquisition Corp., a blank-check acquisition company, to become public in a deal that values the combined entity at more than $2 billion, Bloomberg News reported, citing people familiar with the matter.

MARKETS

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