BMW’s electrification investment
In a bid to fully electrify its Mini brand by 2030, BMW (ETR:BMWG) (OTC:BMWYY) has announced a major investment of £600 million (£1 = $1.24) in its UK manufacturing facilities.BMW’s Mini brand will produce two electric models – the Mini Cooper 3-door and the Mini Aceman compact crossover – at its Oxford plant from 2026.
BMW said the Oxford plant will transition to exclusive EV production by 2030, with many of these vehicles destined for international markets.
The company also committed to using European-made batteries in these future models, but left the choice of supplier open, stressing that it would depend on market appeal.
The investment underlines BMW’s determination to electrify its range and the growing importance of electric vehicles in the automotive landscape.
BMW shares were up around 1.4% for the week in both Frankfurt and New York, with the former closing at €97.51 and the latter at $34.64 on Friday. Both are up more than 13% year to date.
Tesla’s manufacturing breakthrough
Tesla (NASDAQ:TSLA) is reportedly inching closer to using die-casting techniques – a groundbreaking approach to EV manufacturing that aims to create nearly the entire undercarriage of an electric vehicle as a single unit, rather than the 400 or so components required by the conventional method.
Terry Woychowski of Caresoft Global told Reuters that the development will be a game changer for the industry: “It’s an enabler on steroids. It has huge implications for the industry, but it’s a very challenging task”.
Unnamed sources in the reports suggest that this technique could potentially allow Tesla to develop a car from scratch in just 18 to 24 months, significantly faster than the typical three to four year timeframe for such projects. If realised, this could put Tesla at the forefront of EV manufacturing, leaving competitors scrambling to catch up.
Shares in TSLA ended the week up 3.9% at $274.39 and are up more than 150% for the year to date.
UAW labour dispute begins
The United Auto Workers (UAW) union has launched a series of strategic strikes at selected plants, marking an unprecedented move in the labour dispute, after negotiations between the management teams of three major American automakers hit an impasse.
The parties – the UAW on one side and Ford (NYSE:F), General Motors (NYSE:GM) and Stellantis (NYSE:STLA) on the other – failed to agree on new contract proposals by Thursday night’s deadline.
UAW President Sean Fain described the tactic as a “stand-up strike” aimed at disrupting operations at all three automakers simultaneously. The first wave of strikes will target key facilities including the Ford Michigan Assembly Plant in Wayne, Michigan, the Stellantis Toledo Assembly in Ohio and the General Motors Wentzville Assembly in Missouri.
“This strategy will keep the companies guessing,” Fain told workers during a Facebook Live event. “It will give our national negotiators maximum leverage and flexibility in negotiations. And if we need to go all out, we will. Everything is on the table.”
A key issue in the dispute is the UAW’s demand for wage increases that match the 40% raises recently given to CEOs of the Detroit Three automakers. The companies have countered with wage increases ranging from 17.5% to 20% over four and a half years, which the UAW says is insufficient.
The situation remains fluid as both sides seek a resolution.
Ford slipped slightly on Friday, but was still up around 1.9% for the week, while GM and Stellantis were in the green on Friday, up 2.2% and 4.5% respectively over the last five sessions.
