A decision by the Mayor of Paris
Effective October 1, 2024
Anne Hidalgo, the Mayor of Paris, announced that the speed limit on the Parisian périphérique will be reduced to 50 km/h starting October 1, 2024. This change was made official after several years of discussions and votes in the Council of Paris since 2018. The périphérique had already seen its maximum speed reduced from 90 km/h to 70 km/h in 2014. This new limitation follows the reduction of speed to 30 km/h in the majority of Parisian streets in 2021. The objective is to reduce pollution and improve road safety around the capital.
Impact on production and profitability
Consequences for markets and in China
BMW announced the recall of 1.5 million vehicles due to a braking system issue, although the brakes still comply with legal standards. This recall is expected to result in a slight decrease in deliveries in 2024, also affecting profitability with a drop in operating margin. Demand in China, a key market for BMW, remains weak despite government support measures. The situation has also led to a more than 10% fall in BMW and Continental shares on the Frankfurt Stock Exchange. This recall represents a new blow to the German automotive industry, already facing the challenges of rapid electrification of the Chinese market.
A criticism of the European strategy
Market challenges and economic threats
At the Cernobbio economic forum, two Italian ministers expressed their opposition to the European decision to ban internal combustion engine cars by 2035, calling for a more pragmatic approach. According to them, the transition to 100% electric mobility is in difficulty, with slower adoption than expected on the European market. The decline in electric vehicle sales is endangering manufacturers like Volkswagen, which is considering closing factories in Germany for the first time. In addition to these challenges, manufacturers risk fines for non-compliance with CO2 quotas. Economic concerns are growing as Chinese competitors gain ground in the European market.
A potentially serious fire risk
Update and repairs planned
BMW has recalled 140,000 Mini Cooper SEs produced between 2018 and 2024, due to a battery defect that can cause fires even when stationary. This issue has not caused any accidents or injuries, although two fire incidents have been reported in Germany and the United States. Affected owners are invited to visit a Mini or BMW workshop for a software update and diagnosis. If a defect is detected, the battery will be discharged to less than 30% to prevent overheating, and a repair will be carried out free of charge. This recall follows another battery issue concerning waterproofing, reported earlier in the year.
A multi-sector strategic alliance
Exploring new opportunities
On September 12, 2024, Hyundai Motor and General Motors signed a memorandum of understanding aimed at strengthening their collaboration in several key sectors. This agreement, concluded by Euisun Chung and Mary Barra, presidents of the two manufacturers, focuses on exploring joint vehicle production, the design of internal combustion engines, as well as the development of electric and hydrogen technologies. The objective is to pool their resources to improve their competitiveness against new players in the automotive industry. This non-binding agreement comes after Hyundai unveiled its ten-year plan to increase its production by 30% by 2033. Together, GM and Hyundai aim to accelerate their growth to remain among the leaders in the global market.
Opening of new centers in Saint-Ouen and Annemasse
A brand in full evolution
Despite a 31.8% contraction in sales in France in 2024, Tesla is continuing its development with the opening of two new centers in Saint-Ouen-sur-Seine and Annemasse. The Saint-Ouen center, which serves as the head office, is the 27th center in France, while the Annemasse center is the 28th. Tesla France, which had sold more than 100,000 cars by the end of 2023, continues to strengthen its physical presence to reassure first-time electric car buyers and offer after-sales services. In addition to sales centers, Tesla offers remote test drive centers in several cities to attract new customers. Finally, the brand is also structuring its used car market by offering reconditioned vehicles with software updates.
A lengthy trial for the former Volkswagen CEO
Denial of all responsibility
Nine years after the Dieselgate scandal, Martin Winterkorn, former CEO of Volkswagen, is appearing before the Braunschweig court in Germany, accused of fraud, perjury, and market manipulation. He faces ten years in prison for his alleged role in using software to cheat on diesel engine emission tests. Winterkorn, who has denied any direct involvement in the development of this software, rejects the accusations, claiming that his responsibilities were limited to strategic decisions. His approach differs from that of Rupert Stadler, former CEO of Audi, who pleaded guilty in 2023, thus receiving a more lenient sentence. Winterkorn's trial could last several months before a final verdict.
