Komatsu to Sell Electric Construction Equipment in Europe

News: Power Systems Research

2021-01-25

Komatsu to Sell Electric Construction Equipment in Europe

Akihiro Komuro
Akihiro Komuro

Komatsu plans to release a battery-powered compact excavator that emits no exhaust gas in Europe in 2022. The company will also promote the quietness of the product and expects to use it in residential areas. Hitachi Construction Machinery will also double orders for electric excavators in fiscal 2021 compared to the previous year. Following the trend in the automobile industry, competition in the field of electric construction machinery is now in full swing.

The compact excavator to be launched by Komatsu will use lithium-ion batteries that are lightweight and can operate for a long time. It uses a motor instead of an engine, making less noise and emitting no exhaust gas. The company will first market the product in Europe, where environmental regulations are strict, and then consider launching it in Japan. Komatsu began renting several small excavators powered by lead-acid batteries on a trial basis in Japan in April 2020.

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Hyundai and Apple in Talks To Develop Self-Driving EVs

Hyundai Motor and Apple are negotiating a partnership in the field of self-driving EVs, reports the Korean newspaper Korea IT News. Other media reported that Hyundai and Apple are aiming to launch a self-driving EV in 2027. Soon after this report, Hyundai announced that it was in early stage talks with Apple. (The above is excerpted from Newsweek)

Hyundai is playing a central role in the Apollo Project, the self-driving EV strategy of Chinese IT giant Baidu and is also actively mass-producing EVs.

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Weichai Takes 60% Stake in Agricultural Equipment Maker

Qin Fen
Qin Fen

Weichai Holding Group Co., Ltd., a leading Chinese powertrain manufacturer, has acquired a controlling stake in Lovol, one of the country’s major agricultural equipment makers.

Source: Xinhua News Agency    Read The Article

PSR Analysis: People look up to leading companies in industry because often times they are not just leading the trend, they are also setting an example of weathering the storm during crisis.

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Italy’s CNH and China’s FAW in Talks Over Truck Maker Iveco

CNH Industrial is in talks with China’s FAW over the future of truck maker Iveco, the Italian-American group said recently after sources told Reuters it had revived previously aborted negotiations.

Source: Reuters    Read The Article

PSR Analysis: Another positive development in the industry during such a gloomy crisis, FAW fits the merger success story I just mentioned about the few surviving companies.  There are for sure many challenges ahead with the acquisition, particularly after the take-over, but there are so much to celebrate if the deal can be finalized.

Both Europe and China are investing in each other’s market, Scania, MAN, Daimler and Volvo are all setting up new factories or strengthening ties with current partners in China. 

And now we see FAW is putting their focus in the European market by engaging with Iveco.  Both sides have seen potential growth on one another’s market.  European truck makers will bring along new concept and technology to China’s market and likes of FAW will bring along cost saving and localization practices for its European counterparts

This is another sign that Chinese companies are moving more and more of their focus on the overseas markets, we will only see more of this coming in the future.  PSR

Qin Fen is Business Development Manager-China for Power Systems Research

VW To Build $3 Billion EV Plant in East China

Jack Hao
Jack Hao

VW China has increased its share in the electric vehicle joint venture JAC Volkswagen to 75% and obtained joint venture management rights. At the same time, it has obtained a 26% stake in the EV battery maker Gotion High-Tech to support the future electrification of the group. The total investment of the above two projects is estimated to be about €2 billion.

The plant, which has an estimated investment of US$3.06 billion (20 billion yuan) from both Volkswagen and JAC Motors, will be finished by the end of 2022, and its first vehicle will roll off the assembly line in 2023.

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2021-01-24

Ford Announces Shutdown of Plants in Brazil

Fabio Ferraresi
Fabio Ferraresi

Ford announced on Jan. 11 plans to shut down all car manufacturing operations in Brazil. Ford produced cars in Camaçari-BA, Taubaté-SP, and off-road vehicles (Troller) in Horizonte-CE.

The company will keep selling vehicles, especially the Ford Ranger, produced in Argentina and other products from other locations, such as the Transit, Bronco and Escape. Because of this action, Ford Expects an impact of US$ 4.1 billion in non-recurring expenses and a US$ 2.5 billion cash impact.

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GM Resumes $2 Billion Investment Program in Brazil

After freezing all investment last year due to the Covid-19 pandemic, GM is now resuming its investment program of 10 billion of Brazilian Reais, equivalent to US$ 2 billion. The program funds new vehicles, infotainment systems, as well as modernization of the plants in Sao Paulo state.

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PSR Analysis: GM has kept and amplified their market leadership position in Brazil. In 2020, they moved into second place. Their continuous investment on new products and productivity has been recognized by the market.   PSR

Fabio Ferraresi is Director Business Development, South America, for Power Systems Research

Prototypes of 100% Brazilian e-Truck Tested at Agrale

Agrale plans to soon start production of electric trucks with the FNM brand, a Brazilian OEM that operated from 1939 to 1979. These trucks will target urban distribution and will be produced at Unit 2 of Agrale, in Caxias do Sul-RS. The Trucks use the base of trucks Agrale completed with an electric propulsion system.

Source: Agrale     Read The Article     Read The Article

PSR Analysis: It is hard to say how many Electric Trucks will be sold under the FNM Brand and Agrale production and when they will be produced. However, the FNM brand appeal is echoing in the press and the electric propulsion for urban deliver seems to put Agrale in the right track. The cost of battery/vehicle and timing will be keys for success, as well as public bids that may sell a significant number of units.

Cost and infrastructure are the key challenges for electrical vehicles in Brazil. Additionally, Brazil has other alternatives such as BioFuel and/or Hydrogen from NG or Ethanol competing with electrical plug-in vehicles to attend future GHG emission legislation. PSR

Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research

2021-01-22

NA Economic Outlook: Slower H1 2021, But Much Stronger H2 2021 Expected

Yosyf Sheremeta
Yosyf Sheremeta

SUMMARY.  In our previous forecasts, we have discussed some hope for a V-shaped recovery, it did not materialize.  Our conclusion was based on several factors, such as the current economic cycle, overall strength of the economy, fiscal policy, political landscape in the US and globally, etc. After managing through the early stages of the pandemic in H1 2020, we saw good trends in H2 2020 and we had reasons to be optimistic for a quick recovery.

However, the recovery took a slight pause during the last few months.  Unemployment continued to increase, and regional lockdowns prevented the necessary demand for a significant year-end growth.  Now that the elections are over, we’ll have yet to see what the new administration will be able to achieve during the next two years.  Specifically, if the long awaited infrastructure reform can be passed.  However, fiscal policy with near zero interest rates, which government has promised to keep in place for the near future, will provide a good platform for the economic recovery and allow us to look optimistically into 2021-2022.

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2020-12-21

VW Truck & Bus To Invest US$ 400 Million in 2021-2025

Fabio Ferraresi
Fabio Ferraresi

VW Truck and Bus has announced a new cycle of investment in Brazil operations of US$ 400 Million, for the period 2021 to 2025. This is higher than the last investment cycle, that was US$ 300 million that ended in 2020. This investment will be allocated in new products, mainly in alternative propulsion systems, such as electric, and improvements in the production facilities.

Source: AutoData       Read The Article

PSR Analysis:  The investment reinforces VW’s Truck and Bus focus in the Brazilian market. Product development for Proconve P8 in January 2023 will use a significant part of the investment; investments also will be made in facilities adjustments for higher volumes of production in the coming years.   PSR

Fabio Ferraresi is Director – Business Development, South America, for Power Systems Research