16 Jul 2021

1.VOLKSWAGEN : German automaker Volkswagen AG , the top foreign automaker in China, the world’s biggest car market, said on Friday that it expected chip supplies to improve in the next six months.

Automakers around the world have had to adjust assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than-expected recovery from the coronavirus pandemic.

“We hope the chip supply crisis will bottom out this summer and expect to see an improvement in this situation within the second half of the year,” Volkswagen’s China chief, Stephan Woellenstein, told reporters.

Starting in August, Volkswagen will source some chips from a new supplier, Woellenstein said, adding that the move would start to ease the shortage in September.

Because of the chip shortage, Volkswagen, which has partnerships with FAW Group and SAIC Motor, saw its sales drop 12.3% between April and June compared with a year earlier. Volkswagen’s rival General Motors Co  said its China sales in the second quarter grew 5%.

2.FEDEX:- FedEx Corp  will make a $100-million equity investment in Indian e-commerce logistics startup Delhivery as part of a long-term commercial agreement, the U.S. delivery firm said on Friday.

SoftBank-backed Delhivery will sell FedEx Express’ international products and services in India, as part of the deal, and also provide pick-up and delivery services across the country.

FedEx will also transfer some of its assets from its India business to Delhivery, enabling broader access to the the Gurgaon-based startup’s pan-India network.

Don Colleran, chief executive officer of FedEx Express, shall also get a board seat at Delhivery.

Several Indian startups have spelt out plans to go public to cash in on liquidity by foreign funds. According to media reports, the startup which is eyeing a market debut as early as the fourth quarter is weighing a valuation of $4 billion.

3.RENAULT:- French carmaker Renault  on Friday reported a 18.7% increase in first-half vehicle sales though remained below pre-COVID-19 crisis levels.

The group like global peers is pushing into electric vehicles under Chief Executive Luca de Meo while trimming costs, including by focusing on fewer but more profitable ranges.

It said this strategy was starting to bear fruit amid a recovery in demand, although its latest figures reflect sales by volume only.

“In an environment still disrupted by the COVID-19 pandemic, Renault Group sold 1,422,600 vehicles in the first half of 2021, up 18.7% on 2020, but down 24.2% on the first half of 2019,” the group said in a statement.

Vehicle sales across all its brands in 2020 fell 21.3%.

Fabrice Cambolive, head of sales for the Renault brand, said models like hybrid versions of the Clio were selling well, allowing the group to edge upwards in terms of price.

Sales of the Renault brand were up 18.5%, at 901,500 units, during the first six months of the year.

Cambolive said it was hard to evaluate the impact of a global semiconductor shortage in terms of vehicle sales so far this year.

4.PUMA:– German sportswear company Puma raised its 2021 sales outlook on Friday, boosted by strong second quarter demand, especially in North America.

Puma said it now expects 2021 currency-adjusted sales to rise by at least 20%, up from its previous forecast of mid-teens sales growth for the year.

It also specified full-year operating profit guidance, now expecting earnings before interest and taxes (EBIT) between 400 and 500 million euros ($472-590 million).

Second quarter currency-adjusted sales nearly doubled to 1.589 billion euros and EBIT swung to a profit of around 109 million euros, Puma said.

.5. SAMSUNG –Samsung Electronics  has applied for tax breaks to potentially build its planned $17 billion U.S. chip factory in a location in Texas other than Austin, where it has an existing chip plant, according to a document filed with Texas state officials.

Samsung  is considering a location in Williamson County in Texas for the chip contract manufacturing facility that would consist of an investment “in excess of $17 billion dollars” and result in 1,800 new jobs, the document made public on Thursday showed.

Williamson County is home to the Taylor Independent School District, which is considering the tax breaks Samsung has applied for, the documents showed. The school district is considering capping the taxable value of Samsung’s proposed facility at $80 million for 10 years instead of the market value of $4.35 billion estimated as of 2029, according to the document.