|Bid||0.00 x 0|
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|Day's Range||17.75 - 17.86|
|52 Week Range||14.70 - 18.84|
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(Bloomberg Opinion) -- At various times during his 14-year tenure as chief executive officer of Fiat Chrysler Automobiles NV, the late Sergio Marchionne held takeover talks with Volkswagen AG.The news that VW is considering a stock-market listing of its Lamborghini supercar division suggests Marchionne continues to influence the German carmaking giant. By spinning off high-value operations such as trucks and sports cars, VW’s boss Herbert Diess would be imitating his Italian peer’s successful approach to creating shareholder value. But Diess is struggling to be as daring, which will make it harder to achieve his goals.When Marchionne took the helm at Italy’s Fiat SpA in 2004, its market capitalization was a pitiful 5.3 billion euros ($5.9 billion). During his reign, he merged Fiat with America’s Chrysler and spun off Ferrari NV and Fiat’s trucks and agriculture machinery business (CNH) into separate companies. When he died last year, the combined equity value of Ferrari, Fiat Chrysler and CNH Industrial NV was 57 billion euros. His successor then completed the 6.2 billion-euro sale of the Magneti Marelli SpA auto parts division.Diess wants VW to hit a market value of 200 billion euros — up from 80 billion euros now, Bloomberg News reported as it broke the news about Lamborghini, adding that a sale of the brand is also under consideration. (VW says there are “no plans for a sale or public offering of Lamborghini”). Including all of Volkswagen’s 12 brands, its financial services arm and its Chinese joint ventures, the company’s sum-of-the-parts valuation could top 215 billion euros, Bloomberg Intelligence analyst Michael Dean estimated in August.In an attempt to realize that value, Diess has started off by following the Marchionne playbook. Fiat began by spinning off CNH in 2012. Diess also kicked off with a June listing of VW’s trucks arm, Traton SE.Marchionne followed the CNH divestment with the listing of Ferrari in 2016, and now it looks like Diess’s next step might be his own supercar brand. A sale of Volkswagen’s industrial machinery operations Renk AG and MAN Energy Solutions, which is being considered, would be akin to the Magneti Marelli sale. Analysts have even speculated that VW’s alliance with Ford Motor Co. could evolve into a merger, similar to the Fiat-Chrysler deal.Yet there’s a difference between the boldness of the two companies. Fiat spun out CNH by distributing the stock to existing shareholders, and it did the same with what was left of Ferrari’s equity after selling 20% of the company in an initial public offering in New York. Volkswagen, by contrast, sold just 11.5% of Traton to new investors in an IPO and then kept the rest of the stock for itself. In fairness, Diess has to manage a difficult set of stakeholders. The Porsche-Piech family controls VW, while the German state of Lower Saxony has 20% of the voting shares. He also has employee representatives on the board. The Agnelli family, which controls Fiat, backed Marchionne’s ambitions — and became significantly wealthier.Because of its arcane multiple voting-class structure, most Volkswagen shareholders have no say in the running of the company. That might explain why Diess opted for an IPO of Traton rather than a spin-off: Replicating the current VW voting arrangements in a new company wouldn’t have been attractive for new investors. But the listing was so small as not to give new investors any real say in the company’s running anyway. If the Porsche-Piech dynasty really want Diess to increase their riches, they should encourage offerings that unpick some of their own control.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Volkswagen AG’s plan to review options for its Lamborghini supercar division marks a further step in Chief Executive Officer Herbert Diess’s campaign to transform the world’s biggest automaker and more than double its market value.The German manufacturer is weighing a potential sale or stock listing for the Italian brand, according to people familiar with the matter, as Diess channels resources to the main VW, Porsche and Audi units. No decision has been made and an earlier plan to move Lamborghini from under the Audi umbrella to Porsche remains an option, they said.Structural change is always a challenge at Volkswagen because of the multiple power bases that play a role in major decisions. Diess has been sounding out support for ideas to reshape Volkswagen as part of a broad strategy review ahead of an expected industry shakeout. His goal is to reach a market value of 200 billion euros ($220 billion), the people said.The company has started preparations to fold Lamborghini into a separate legal entity and the process might conclude toward the end of next year, the people said, asking not to be identified because the deliberations are confidential.Restructuring the super-luxury brand would fit with Diess’s goal to channel resources more efficiently and avoid duplicated efforts. VW signaled on Sunday that any decision is likely a ways off, saying it has no plans for a Lamborghini sale or IPO.Diess, 60, has been pushing an overhaul of Volkswagen since he became CEO 18 months ago -- investing billions in electrification, selling a stake in truckmaker Traton SE, and putting industrial-transmission and diesel-engine units up for sale. He’s also forged an alliance with Ford Motor Co. to share the costs of developing commercial vans, e-cars and autonomous driving.“We shouldn’t spread ourselves too thin,” Diess said in an interview published over the weekend in Germany’s Sueddeutsche Zeitung newspaper. “That might be hard in some cases, but it’s the only viable way.”SZ also reported on a possible sale or IPO of Lamborghini, without saying where it got the information, as VW drafts a revamp of its 12 automotive brands.Such a move would allow VW to focus on VW’s brands that are global household names, and allocate funds to the highest-returning brands, potentially at the expense of nameplates like the mass-market Skoda and Seat. Analysts have urged VW to consider deep changes including an initial public offering of Porsche to unlock value. The sports-car unit is VW group’s most profitable division while Audi contributes the biggest share of earnings.A higher valuation would let Diess use VW’s stock as currency for partnerships and consolidation opportunities. Despite robust operating results, VW shares are down by more than one-third from highs set before the 2015 diesel-cheating crisis. VW’s current market value is about 81 billion euros.Progress in restructuring has been hampered by convoluted governance at Volkswagen. Unions, politicians and the powerful Porsche-Piech ownership clan each have a say in big decisions.An asset review that began in 2016 has so far led to an aborted attempt to sell the Ducati motorcycle brand, and the ill-timed Traton IPO that was almost derailed by internal wrangling. Diess mapped out a plan last year to shift Lamborghini away from its home within Audi and tie it to sister brand Porsche.The potential payoff for Volkswagen is massive. Ferrari NV, once part of Fiat Chrysler Automobiles NV, is now valued at about $30 billion. VW declined as much as 1.2% in Frankfurt during early trading, after Chinese auto deliveries fell in September for the 15th month in 16 to extend an unprecedented slump.Success with its Urus sport utility vehicles has probably boosted Lamborghini’s valuation to about $11 billion, analysts at Bloomberg Intelligence estimated in August.Top management decided earlier this year against pursuing the sale of units like Bugatti for now, partly because it was unclear if sub-scale assets could be divested without paying cash on top, according to one person. Still, smaller nameplates might face reshuffling going forward.Other automakers face similar pressures to VW. Investors are pessimistic traditional players will be able to manage such an expensive technology shift amid trade wars and a global demand slump.Daimler AG Chief Executive Officer Ola Kallenius, who has acknowledged that the “future is electric,” hasn’t said how and when he plans to restore operating profit margins to the targeted 8% to 10% margin corridor. He’s scheduled to give investors a full download on Nov. 14 in London and in New York the day after.The industry’s transformation has already started to claim casualties. China’s Nio Inc. is staring into the abyss, Dyson Ltd. mothballed its electric-car project and market leader Tesla Inc. is struggling to turn profitable even as it made the biggest strides in the still nascent field. The status of Apple Inc.’s electric-car ambitions remains unclear.“The truth is, barriers to entry in autos remain high. Making cars is hard,” Sanford C. Bernstein analyst Max Warburton said in a note. “The move to electric vehicles will be expensive, but will probably be led by traditional manufacturers. There will be less disruption than feared.”(Updates with share move in 13th paragraph.)\--With assistance from Eyk Henning.To contact the reporter on this story: Christoph Rauwald in Frankfurt at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Kenneth WongFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Volkswagen does not expect the shift in production toward electric cars aimed at averting billions of euros in European pollution fines to hurt its profit margins, Chief Executive Herbert Diess said in a newspaper report on Monday. Diess said the German car maker expected to sell nearly 20,000 Audi e-Tron in 2019, adding the first year's production of the electric Porsche Taycan was already sold out. Orders for the VW ID.3, the group's recently unveiled compact electric model, are already covering the production planned until mid-2020, Diess said.
(Bloomberg) -- Volkswagen AG is weighing options for its Lamborghini supercar brand, as the German manufacturer moves ahead with an overhaul aimed at more than doubling its market value and getting ahead of an industry shakeout, according to people familiar with the matter.The options VW is mulling include a sale or stock listing, said the people, who asked not to be named because the deliberations are confidential and no decisions have been made. VW has started preparations to fold Lamborghini into a separate legal entity and the process might conclude toward the end of next year, the people said.Chief Executive Officer Herbert Diess wants to focus future expansion on the group’s main global brands -- VW, Porsche and Audi -- in a push to channel resources more efficiently and avoid duplicated efforts. VW is drafting a revamp of its sprawling stable of 12 automotive brands, Sueddeutsche Zeitung reported over the weekend, citing an interview with Diess.“We shouldn’t spread ourselves too thin,” Diess told the newspaper. “That might be hard in some cases, but it’s the only viable way.”Volkswagen signaled on Sunday that any decision on the Lamborghini brand is likely a ways off, saying it has no plans for a sale or IPO. A company representative had earlier declined to comment.The German automaker’s American depositary receipts climbed 4.8% to $17.68 in New York trading Friday.Lamborghini’s stretch from supercars to roomier sport utility vehicles probably has helped boost its valuation to about $11 billion, making it a viable candidate for an initial public offering, analysts at Bloomberg Intelligence estimated in August. Sales of the Urus SUV have soared since its introduction in mid-2018. A redesigned Aventador and new hybrid supercar slated to hit the market next year may help boost margins beyond 30%, BI’s Michael Dean and Gillian Davis wrote in a report.Diess’s TargetInvestors have long urged Volkswagen, the world’s biggest automaker, to free up assets whose value is subsumed within a cumbersome structure that includes everything from Italian supercars to motorcycles and heavy trucks. While Ferrari NV, once part of Fiat Chrysler, is now worth about $30 billion, VW’s key stakeholders have stood in the way of similar moves in Germany.Diess, who took the helm in April 2018, has shown some success, completing an IPO of the Traton truck unit earlier this year. He has also started a review of units that make large diesel engines and transmissions, and has forged a broad alliance with Ford Motor Co. on commercial vehicles and electric-car and self-driving technology.The 60-year-old CEO often emphasizes the urgency of maximizing VW’s value as it contends with a costly technology transition, and recently key members of VW’s founding Porsche-Piech clan have voiced support. He’s targeting a market value for Volkswagen of 200 billion euros ($220 billion), the people said, from about 81 billion euros now. His efforts are aimed at helping VW defy the auto industry’s current gloom and keep both existing peers and new rivals from the technology industry at bay.In intense debates earlier this year, VW’s top management decided against pursuing the sale of units like Bugatti for now, partly because it was unclear if sub-scale assets could be divested without paying cash on top, according to one person. Still, smaller nameplates might face reshuffling going forward.(Updates with CEO interview with Sueddeutsche Zeitung in third paragraph.)\--With assistance from Eyk Henning.To contact the reporter on this story: Christoph Rauwald in Frankfurt at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Craig Trudell, Kenneth WongFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Volkswagen AG said there are no plans for a sale or public offering of Lamborghini.“The speculations are unfounded,” VW said in an emailed statement.Bloomberg News reported Friday that Volkswagen is preparing an overhaul to focus on three main global brands of VW, Porsche and Audi, and that it’s mulling strategic options including an IPO of Lamborghini.\--With assistance from David Verbeek.To contact the reporter on this story: Christoph Rauwald in Frankfurt at email@example.comTo contact the editors responsible for this story: Andrew Davis at firstname.lastname@example.org, Sara Marley, Matthew G. MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Volkswagen on Sunday said that it has no plans for a sale or an initial public offering of luxury brand Lamborghini, after Bloomberg reported that it was considering shedding the unit. Bloomberg reported https://www.bloomberg.com/news/articles/2019-10-11/vw-is-said-to-mull-options-for-lamborghini-brand-in-overhaul on Friday that Volkswagen was readying to fold Lamborghini into a separate legal entity, in a process that may wind up toward the end of next year, and to focus VW's future expansion on the group’s main global brands Volkswagen, Porsche and Audi.
Chief Executive Herbert Diess in March said Volkswagen was reviewing its portfolio of brands, which also include Ducati and Bentley, and whether to divest some non-core businesses. Volkswagen is readying to fold Lamborghini into a separate legal entity, in a process that may wind up toward the end of next year, Bloomberg reported, citing sources.
Tesla is dominating the electronic vehicle market for long but the trade war and frequent controversies have distracted it from its sky-high goals.
Volkswagen was accused on Friday of installing technology after the diesel emissions scandal that resulted in affected cars releasing higher levels of nitrogen oxide on most of the journeys they made in the UK. ensures cars are only in low-emission mode when driving in temperatures between 15 and 33 degrees Celsius. At a pre-trial review in London, Thomas de la Mare QC, acting for the claimants, cited analysis of data from the UK’s Met Office and the Department for Transport that approximately 70 per cent of all journeys in England and Wales are made in temperatures below 15 degrees.
(Bloomberg) -- Dyson Ltd.’s sudden decision to scrap its $2.5 billion electric-vehicle ambitions is the latest reality check creeping into the once soaring EV industry.The famed maker of vacuum cleaners and hair dryers couldn’t find a way of making the project commercially viable, billionaire James Dyson said in a letter to staff Thursday. The announcement came about two years after the company first disclosed its plans to jump into car manufacturing.Dyson represents one of the most high-profile players to pull out of a sector that’s attracted hundreds of start-ups in recent years seeking to become the next Tesla Inc. But there are mounting signs that the bubble is bursting as China scales back handouts in the sector and competition heats up. Sanford C. Bernstein estimates that global EV sales fell for the first time ever in July and dropped by a record 23% in August.“Tesla’s future remains uncertain. Almost all the EV start-ups trying to follow look challenged,” Bernstein analysts, including Max Warburton and Robin Zhu, said in a report that cited the Dyson decision as a worrisome development in the industry. “Most of these start-ups will likely fold. The truth is barriers to entry in autos remain high. Making cars is hard. The move to EVs will be expensive.”Take the case of China’s NIO Inc., one of the most prominent electric-car makers in a country that makes about half of the world’s EVs. Last month it reported a wider-than-expected quarterly loss, leading the stock to tumble to a record low and prompting analysts to openly question the company’s viability. The shares jumped on Tuesday after NIO reported third-quarter deliveries exceeded the company’s forecast, but the stock has since erased all those gains.Elsewhere in China, Lifan Industry Group Co. and Zotye Automobile Co. have had to issue statements denying speculation that they’re planning to file for bankruptcy, though the former conceded it’s under liquidity pressure.The competition is also getting tougher. Besides Tesla, traditional automakers such as General Motors Co. and Volkswagen AG are throwing massive resources into electrification. VW has vowed a $33 billion push to bring battery-powered autos to the masses. Apple Inc. has had an automotive project since about 2016, although it is said to have scaled back its ambitions.There are growing concerns that the ample supply of cheap funding for new-age carmakers is about to dry up, according to Bernstein.As to Dyson, the company said it plans to continue its 2.5 billion-pound ($3.1 billion) investment program into new technology, and will concentrate on manufacturing solid-state batteries and other technologies including machine learning and robotics.“Singapore will play an important role in Dyson’s growth plans,” Tan Kong Hwee, assistant managing director at Singapore’s Economic Development Board, said in an emailed statement Friday. Despite Dyson’s decision, Singapore “remains interested in advanced manufacturing activities, including for EVs,” he said.Experts had questioned the company’s costly plans to build an electric car plant in Singapore, where average salaries are among the highest in the world. Ford Motor Co. closed its factory in the city-state about 40 years ago, effectively ending car production on the island.“If everybody else is building a plant in China at a fraction of the cost in terms of labor, it didn’t make a lot of sense for anybody to build that size of a manufacturing facility over there,” said Steve Man, an analyst at Bloomberg Intelligence in Hong Kong. “I hope Singapore wasn’t expecting much from this.”Still, Singapore has much riding on Dyson in its efforts to attract start-ups and advanced technology companies. Dyson became one of the biggest global industry names to ever relocate there.There’s another sector Dyson is looking to invest in Singapore. The family office of James Dyson has incorporated in the city state and is in the process of hiring IT and finance-service staff, according to job advertisements posted on Dyson’s website. The family office was established in 2013 and employs around 55 people globally.“It would have been nice to have but the reality is OK, it’s not going to work let’s look at something else,” said Song Seng Wun, an economist at CIMB Private Banking in Singapore. “It’s still about making money.”\--With assistance from Craig Trudell.To contact the reporters on this story: Kyunghee Park in Singapore at email@example.com;Molly Schuetz in New York at firstname.lastname@example.org;Yoolim Lee in Singapore at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, ;Jillian Ward at email@example.com, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- The reason it was even conceivable for Dyson Ltd. to make an electric car may also have been why its project was doomed to fail: They’re simply too easy to make. The British company, best known for its expensive vacuum cleaners, has now abandoned its 2 billion-pound ($2.5 billion) plan to branch out and take on the likes of Tesla Inc. and Volkswagen AG. Whereas cars with a combustion engine need about 30,000 components, an electric vehicle needs just 11,000 parts, according to research from Goldman Sachs Group Inc. That reduction in complexity has lowered the barriers to entry for the automotive market, and caused a surge in the number of new carmakers.Dozens of startups have entered the fray over the past few years, from Tesla and Lucid Motors Inc. in the U.S., to Byton Ltd. and NIO Inc. in China. Since 2011, electric vehicle startups have raised $18 billion in funding, and announced 43 models and the capacity to make 3.9 million vehicles a year, according to Bloomberg New Energy Finance. That’s a lot of competition.While Dyson’s 1.1 billion pounds of Ebitda in 2018 gave the relatively small British manufacturer some money to play with, standing out from the electric vehicle crowd would have been quite the challenge.And those earnings are a drop in the ocean compared to the wealth of the automotive giants who are waking up to the epochal shift away from dirty combustion engines. Volkswagen alone has announced plans to invest $52 billion in electrification as it targets production of at least 2 million electric vehicles a year by 2025. Its existing network of dealerships in 153 countries will make it considerably easier to sell those cars.Dyson would also have needed a faster return on its investment than the established carmakers to keep the project going. The small size and embryonic nature of this market would have made that difficult. Just 575,000 electric vehicles were sold globally in the three months through June. That’s 3.7% of the overall automotive market.The ambitions of the British company, controlled by the billionaire inventor James Dyson, won’t be the last to fall by the wayside. Others are struggling. Shares in NIO, a Shanghai-based firm backed by Tencent Holdings Ltd. and Baidu Inc., have fallen 86% from a post-IPO peak last year as its losses have deepened. Faraday Future, a Chinese-backed, U.S.-based rival, teetered on the brink of insolvency before clawing itself back from the edge.Given the brutal environment, Dyson’s retreat looks wise. Such projects often have a detrimental effect on the rest of the business, which in Dyson’s case includes hand- and hairdryers. After Apple Inc. started its own project to build a car back in 2015, it had to carefully control how many software engineers moved from its iOS team (which makes the all-important operating system for iPhones and iPads) to join the secretive project.For Dyson, the car risked becoming a similar distraction. In a letter to employees, he admitted he saw no way to make a car “commercially viable.” Better to concentrate resources on his core competencies. A failure at a later date would have been much more painful, and potentially ruinous. To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
While AutoZone (AZO) cheers investors with an additional buyback of $1.25 billion, Tesla (TSLA) delivers a record 97,000 vehicles globally in Q3 but still falls short of Musk's target of 100,000.
Brazil's auto industry trade group Anfavea has slashed its forecast for 2019 vehicle production growth to a modest 2.1% from 9% previously, it said on Monday. Anfavea had big plans this year for Brazil's auto industry, which has been slowly recovering from a significant slump. In January it said it expected production growth to surpass 2018's 6.7%, but it will now significantly lag that rate.
A school break changed 66-year-old Martin Farber’s life forever. In 2007, his daughter — who at the time was attending Illinois State University — decided she wanted to spend a college holiday volunteering in Costa Rica and staying with a local family, he explains. “The Costa Rican people are warm, open and friendly.
Russia's sales of new cars in 2019 are expected to fall 2.2% from last year to 1.76 million units, the Association of European Businesses (AEB) lobby group said on Friday. The AEB had originally forecast sales to rise to 1.87 million this year from 1.8 million units in 2018, but said in July that "market growth in the full year of 2019 is not a realistic scenario anymore". Sales of new cars in Russia fell 0.2% year-on-year in September to 157,129 units, which is "not a bad result looking at the negative track record in recent months", the AEB said in a statement.
Sales of new cars in Russia fell 0.2% year-on-year in September to 157,129 units, after a 1.3% decline in the previous month, the Association of European Businesses (AEB) said on Friday. "With three months to go in the current year, the (AEB) expects a full-year sales result of 1.76 million units, reflecting the same slightly negative trend towards year end," Joerg Schreiber, chairman of the AEB Automobile Manufacturers Committee, was quoted as saying in a statement.
Taking its quest to become a global leader in electro-mobility and software solutions for vehicles, Traton SE has announced investments of €2 billion by the end of 2025 in electric and autonomous vehicles. Chief Executive Officer Andreas Renschler made the announcement on Oct. 2, 2019, at the company's Innovation Day in Södertälje, Sweden. "Our goal is to become the leading provider of e-trucks and e-buses," Renschler said.
The major investor-led Climate Action 100+ report on 161 companies found that 70% have long-term emissions reduction plans, but just 9% have targets that are in line with or go beyond the minimum goal of the Paris Agreement.
(Bloomberg) -- Volkswagen AG’s Traton truck division plans to spend more than 2 billion euros ($2.2 billion) over the next five years on electric vehicles and digital offerings in a bid to keep pace with the industry’s “radical” transformation.The plans come three months after the world’s largest automaker pushed through the unit’s stock market debut to fuel an ambitious global expansion outside its main European market. At the same time, the truckmaker, comprising Sweden’s Scania and Germany’s MAN brands as well as a subsidiary in Brazil, needs to comply with stricter emissions rules for carmakers and truckmakers alike.“The reduction of CO2 emissions is probably the biggest challenge for mankind, our industry, for our customers -- for every one of us,” Traton chief Andreas Renschler said Wednesday in a prepared speech. “It affects a huge, complex ecosystem, and transport is a core element of that.”The weight of trucks and the goods they transport has so far prevented a similar shift toward battery-powered vehicles as with passenger cars. Global leaders Daimler AG and Volvo AB embarked on selected vehicle projects and Tesla Inc. has been plotting to launch a semi truck as well, while details remains scarce.Radical ChangesInvestors remain cautious so far about Traton’s prospects, with some analysts favoring Swedish peer Volvo following a successful restructuring in recent years. Traton stock lost about 10% since shares started trading at 27 euros in late June. Still, it has 9 buy ratings, 6 hold and no sell recommendation among analysts tracked by Bloomberg.Renschler acknowledged “a more and more challenging market environment, and less growth predicted in the outlooks of the markets” during at a briefing in Soedertaelje, Sweden. But he said Traton remains “confident”. Truck manufacturers are prone to large cyclical swings as demand for transportation of goods is often a yardstick for the broader economic trends.He forecast “radical changes in the transport industry,” predicting that “the entire business and its players will consolidate and adapt to new business models.” Traton expects a third of its trucks or buses in the next 10 to 15 years could have new engine technologies. Most will be fully electric, if the required charging infrastructure is in place across Europe. Current battery technology development is “rapid and substantial,” he said.At the same time, development of self-driving trucks for use in mines or ports has already been more encouraging than efforts to roll out software in cars that can navigate busy public roads safely on their own.Scania showed a concept truck dubbed AXL in Soedertaelje, which lacks a cab for a driver. Since last year, Traton’s most profitable unit has deployed a self-driving truck in use at a Rio Tinto mine in Australia. Later this year, it plans to start a project with an electric, self-driving bus in the Stockholm area.MAN will soon start a project in Hamburg where trucks drive partly autonomously to the German city’s port. Upon arrival the driver leaves the vehicle and the truck continues to drive autonomously to the container terminal and back after unloading.To contact the reporter on this story: Christoph Rauwald in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Tara Patel at email@example.com, Elisabeth BehrmannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.