Technology

Volkswagen Votes $50b on Electric Cars

Published

5 years ago

November 19, 2018

Volkswagen Votes $50b on Electric Cars

German auto giant Volkswagen said Friday it will invest 44 billion euros by 2023 in the smarter, greener cars of the future as it ramps up efforts to shake off the “dieselgate” emissions cheating scandal.

Over the coming five years, VW said it aims to spend “almost 44 billion euros” ($50 billion) on electric, self-driving and connected cars as well as mobility services like car sharing.

The figure represents roughly a third of the group’s planned expenditure between now and 2023, and the bulk of it will go on developing e-cars, VW said following a supervisory board meeting on future strategy.

Volkswagen’s “electric offensive” underscores just how serious the automaker is about closing the gap with Asian competitors and US tech giant Tesla who have had a head start in the e-car race.

“We want to make Volkswagen the global number one in e-mobility,” CEO Herbert Diess told reporters.

“The time has come to take further technology and product decisions to achieve that goal.”

The group, whose brands range from luxury Porsche and Audi to the budget-conscious Skoda and Seat, has set itself the ambitious target of offering more than 50 electric models by 2025, up from six today.

It has high hopes in particular for the “affordable”, zero-emission Volkswagen ID compact which will have a battery range of 550 kilometres (340 miles) and cost roughly the same as a VW Golf — in a direct challenge to Tesla’s mass-market Model 3.

As part of the new strategy, VW intends to reshuffle some production sites in a bid to boost efficiency and achieve savings by bundling production of different models across brands.

“We are making our plants fit for the future,” VW board member Oliver Blume said.

Two existing German plants will be converted into assembly lines for all-electric vehicles from 2022.

The plant in Emden will specialise in building small electric cars and sedans for several of the group’s brands, while the Hanover factory will make the ID Buzz, the clean-energy version of VW’s iconic camper van.

In a nod to concerns about job losses, Diess acknowledged that electric motors, which require fewer parts than combustion engines, are “much less complex” to build.

But VW has promised to guarantee jobs at both sites until 2028, focussing instead on phasing out positions by not replacing those who retire.

VW also announced plans to open a new factory at a yet to be determined location in eastern Europe.

Diess additionally confirmed that VW was “currently in talks” on teaming up with US competitor Ford in building light commercial vehicles, which would involve sharing factories.

But he stayed coy on speculation that the cooperation could extend into electric and autonomous car manufacturing.

Diess said partnerships were becoming necessary to achieve cost savings at a time when the industry is undergoing an expensive transformation.

Looking further ahead, VW said it was still “exploring the potential” of manufacturing its own batteries for electric cars as concern grows in Europe about the Asian dominance in battery cell production.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Fintech

Flutterwave Expands Financial Frontier: Acquires Money Transfer Licenses for 13 U.S. States

Africa’s Leading Payments Tech Firm Facilitates Faster, Affordable, and Secure Transfers between the U.S. and Africa

Published

3 hours ago

December 8, 2023

Investors King

In a significant move towards advancing financial connectivity between Africa and the United States, Flutterwave, Africa’s premier payments technology company, has proudly announced its acquisition of money transfer licenses for 13 key U.S. states.

This strategic expansion aims to expedite, streamline, and secure the transfer of money from the U.S. to Africa and back.

The states covered by the newly acquired licenses include Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota.

These additions, combined with Flutterwave’s existing partnerships and licenses, now empower the company to serve customers seamlessly across 29 states in the U.S.

Money transfer licenses, issued by state regulators, play a pivotal role in enabling financial technology companies like Flutterwave to engage in the transmission of money.

The acquisition of these licenses fortifies Flutterwave’s commitment to regulatory compliance, safety, and the soundness of its services.

Stephen Cheng, Executive Vice President, Global Expansion and Partnerships at Flutterwave, emphasized the significance of this milestone.

“Getting these licenses expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters trust among regulators, partners, and customers,” stated Cheng.

“We’re growing and are committed to servicing customer needs in as many geographies as possible, particularly with a significant African diaspora.”

Flutterwave’s popular solutions, such as the Send App, are set to benefit greatly from this expansion.

The Send App facilitates easy and secure money transfers between the U.S. and Africa, catering to both individual users and enterprises that rely on Flutterwave for global last-mile payouts.

“Sending money between the U.S. and Africa has been challenging for the African diaspora. These licenses pave the way for Flutterwave to make the Send App available to the African diaspora in the U.S., offering a super user-friendly money remittance experience,” explained Olugbenga Agboola, Founder and CEO at Flutterwave.

“Our mission is to connect Africa to the world and the world to Africa by simplifying payments for endless possibilities. These licenses move us one step closer to our vision, and we will continue to expand this feat to ensure coverage for all states in the U.S. and beyond.”

Flutterwave remains steadfast in its commitment to providing accessible remittance services across the U.S. and has outlined plans for further expansion of licensing coverage in the near future.

This ambitious endeavor reflects the company’s dedication to fostering financial inclusion and creating a seamless financial bridge between continents.

E-commerce

Alibaba Faces Rare Downgrade as PDD Surpasses It in Market Value

Published

7 days ago

December 1, 2023

Investors King

Alibaba Group Holding Ltd. received an unusual downgrade from Wall Street on the same day it ceded its position as China’s most valuable e-commerce company to one of its primary competitors.

Morgan Stanley downgraded Alibaba’s American depositary receipts (ADRs) from overweight to equal-weight, concurrently lowering the price target from $110 to $90.

This marks the first downgrade for Alibaba’s US-listed shares since late June, according to Bloomberg data.

Analysts at Morgan Stanley, including Eddy Wang and Gary Yu, expressed concerns about Alibaba’s slower-than-expected turnaround and the uncertainty introduced by the decision to withdraw the spinoff of its cloud business.

In a report dated Thursday, they stated, “brings uncertainty to the value-unlocking from reorganization.”

Simultaneously, Morgan Stanley named PDD Holdings Inc. as its top pick in China’s e-commerce sector, citing its favorable positioning amid the growing trend of consumer price sensitivity.

PDD, an eight-year-old upstart recognized for its successful Temu marketplace, closed Thursday trading in the US with a market capitalization of approximately $196 billion, surpassing Alibaba’s value for the first time.

PDD has experienced a remarkable 80% surge in value this year, while Alibaba has faced a 15% decline in US trading.

Although Alibaba has been a dominant force in China’s online shopping landscape for over a decade, PDD has managed to attract customers with competitive pricing and expand its reach globally.

Morgan Stanley’s move to downgrade Alibaba and elevate PDD underscores the shifting dynamics within China’s e-commerce sector.

Despite this downgrade, brokers remain predominantly bullish on Alibaba, with 44 buy ratings and eight hold recommendations for its ADRs. In comparison, PDD has 52 buy ratings and three holds.

Startups

Bolt Expels Over 5,000 Drivers in Kenya to Enhance Safety Measures

Published

1 week ago

November 30, 2023

Investors King

Estonian ride-hailing giant Bolt has taken decisive action in Kenya by removing more than 5,000 drivers from its platform over the past six months.

This move comes as part of Bolt’s commitment to bolstering safety and ensuring compliance among its driver partners.

The company, operating in over 15 towns and cities in Kenya, has earmarked KES 20 million ($130,000) for investments in safety-related practices.

The decision to expel drivers follows recent safety concerns raised by the National Transport and Safety Authority (NTSA).

Bolt faced scrutiny and was asked to outline its strategy for addressing safety issues, including instances of physical assault on passengers and unauthorized sale of driver accounts.

The NTSA’s directive was a prerequisite for Bolt’s annual license renewal.

Linda Ndungu, Bolt Kenya’s Country Manager, emphasized the company’s commitment to user trust and safety.

Ndungu stated, “We understand the trust our users place in us, and we are taking proactive steps to ensure their well-being during every ride.”

To enhance safety measures, Bolt is implementing internal measures such as random driver selfie checks, providing training for both riders and drivers, and enforcing strict compliance with swift consequences for violations.

Bolt has also introduced improved reporting tools to facilitate the reporting of safety concerns.

Bolt’s move is a response to recent driver dissatisfaction, attributed in part to commission rates exceeding the government’s recommended 18%, including booking fees.

The company aims to address these challenges and reinforce its commitment to safety and compliance within its platform.