Volkswagen still wants to take Porsche public, Stellantis extends a minivan shift, Volvo makes music using car noises. All this and more in today’s issue of The Morning Dump.
Welcome to The Morning Dump, bite-sized stories corralled into a single article for your morning perusal. If your morning coffee’s working a little too well, pull up a throne and have a gander at the best of the rest of yesterday.
That Porsche IPO Reportedly Still Might Happen
Hi, we’re Volkswagen Group. Welcome to Jackass. Alright, so maybe an IPO in today’s market might not bring about the same testicular pain as Knoxville and Co. can muster up, but it still seems like a sketchy idea. Reuters reports that the Porsche IPO is progressing along, with Volkswagen filing an intention to float to see if buyers express sufficient interest in Porsche.
Sources close to the negotiations told Reuters earlier on Monday that Volkswagen may extend the four-week period for buyers to express interest, or pull its plans altogether, should investors not show enough enthusiasm to make the move worthwhile.
“It would be the technical go-ahead, nothing more,” one of the sources said ahead of the decision. “It’s paving the way, but this would not guarantee that the stock market bell will ring in the end.”
So what happens if this float is successful? Well, a value of between 60 billion and 85 billion Euros is expected, which could produce Scrooge McDuck levels of liquidity. In addition, Porsche is expected to get even more Porsche.
Volkswagen also approved a 25 percent plus one share of ordinary shares in Porsche AG to be sold to Porsche SE, giving the controlling Porsche and Piech families a blocking minority and bolstering their push for a tighter leash on the automaker.
Of course, there’s still a good chance an IPO might not actually happen. The markets haven’t been having a great time recently, with factors like inflation and war resulting in both multiple compression and earnings compression. Investors are quite bearish, so getting them to bite on a massive IPO could be tricky.
Stellantis Extends Second Minivan Shift
Good news from the land of poutine. Automotive News Canada reports that Stellantis is extending a second shift in its Windsor, Ont. minivan plant.
Unifor Local 444 President Dave Cassidy made the announcement in a Facebook video message on the Labour Day weekend, saying the automaker informed him of the decision on Sept. 2.
The automaker confirmed the plan, but didn’t say why it extended the shift.
Stellantis said in October 2021 that it would eliminate the second shift in early spring of 2022, but it has since extended the life of the shift three times.
“Which is great news,” Cassidy said in his video. “We’ve been continuing to fight and argue over that second-shift issue.”
Not only is this good news for auto workers, it’s also good news for minivan enthusiasts who wish to see a steady flow of Chrysler vans from the plant to dealerships. It certainly doesn’t hurt that the Pacifica and its kin are experiencing a bit of a surge in popularity.
During the first six months of the year, Canadian sales of the Pacifica were up 81 per cent to 4,217 this year while Grand Caravan sales surged 84 per cent to 2,384.
Oh hell yeah. It’s van time indeed. Look, you can bring your Kia Telluride or Nissan Pathfinder, or even your first-generation Volvo XC90 with its extremely clever seats, Stow N Go will vanquish all comers in regard to flexibility. It’s like having a superpower, long may it live.
Japanese Automakers Suspend Production Due To Typhoon
While war and pandemic have generally dominated the new car shortage, sickness and conflict aren’t the only possible threats to making cars. Reuters reports that Toyota and Nissan battened down the hatches in prep for an incoming typhoon.
Toyota will suspend Monday night shift production starting at 9 p.m. (1200 GMT) and cancel Tuesday morning production at three factories in the western prefecture of Fukuoka.
The automaker expects to resume production on the Tuesday night shift, it said on its website.
Similarly, Nissan Motor Corp and Nissan Shatai Co subsidiaries in Fukuoka prefecture are expected to suspend production for Monday night and Tuesday daylight shifts, a Nissan Motor spokesperson told Reuters.
While a brief interruption, these production suspensions are a good reminder of how nature can affect new car supply. Whether typhoons in Japan, wildfires in Europe, or hurricanes in America, severe weather events can pose a hazard to vehicle production, component production, and shipping. Given how Toyota and Nissan are expecting swift reopening, this typhoon should have a fairly mild effect on new car production, but not all severe weather events will be so quickly managed.
Volvo Tries Selling XC60s Using Noises
Here’s a strange one. Presented with the task of getting younger buyers into XC60 crossovers, Volvo has used an XC60 to create a piece of electronic music. While songs incorporating door slams and window regulators aren’t anything new, this Volvo spot brings car ASMR production to new levels. While pitch-shifted horns are quite novel, the project raises a big question of why? Let’s see what Volvo told Automotive News about the project.
“We wanted an opportunity to see if we could create a new piece for XC60 that could introduce our audience in a new and engaging way to the different features of the car.”
New is certainly right. Volvo collaborated with Canadian YouTuber Andrew Huang and musician Dresage to produce the track in order to showcase XC60 features like the infotainment system, air purifier, panoramic roof, and remarkably solid door thud. Rather oddly for Volvo, there’s no mention of safety or crash protection whatsoever, although that might be a good thing since everyone is showcasing advanced driver assistance suites these days. The ad itself is quite simple, primarily using video overlays of sounds like sun visors closing and air vents being adjusted. While I have no idea if this will actually sell XC60 crossovers, it’s really quite a satisfying project for anyone fond of a well-tuned door.
The Flush
Whelp, time to drop the lid on today’s edition of The Morning Dump. Happy Wednesday, everyone. We’ve made it to the middle of the week. Speaking of things in the middle, I want to ask what your ideal center console would look like. Would it fold up to be a seat, feature tiered storage, be ergonomically perfect for shifting a manual gearbox, or would it be something else completely?
If Volvo wants younger people in their cars, they should, y’know, not make them cost so much? I like them, but they’re not exactly competing on performance
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I’ve never really considered buying a Boxster before, but that colour…oooooh nice.
I still don’t understand the press spin of “Oh, why would Porsche do this offering now?”.
The market’s still pretty good. There’s lots of liquidity in the marketplace, especially for one of the most valuable brands in the universe. They might not get the pricing they’d have gotten a year ago, but they’ll get a fair price, build up the VW balance sheet, and be better braced for a coming recession.
It’s a winner all the way around, so I’m curious what the “auto journalist” class thinks holds back an offering that the investment banks, the sellers and the market all seem keen for?
“While a brief interruption, these production suspensions are a good reminder of how nature can affect new car supply. Whether typhoons in Japan, wildfires in Europe, or hurricanes in America, severe weather events can pose a hazard to vehicle production, component production, and shipping.”
Yeah, you thought shipping was going to improve? Ha ha no. This is the bad timeline. Shipping from Taiwan, South Korea, Russia, China, the Philippines, and Japan have all been severely disrupted by Hinnamnor. South Korea recorded over 37 inches of rain in some areas, in less than 12 hours. New Taipei saw enough rain to fully replenish two reservoirs and flood the Keelung River.
Hope you like more delayed parts and cars.
P.S
My 7yr old can make better car noises than they can.
I dont have a center console.
I have French Doors on both sides of my vehicle.. allowing me to climb in the driver or pass side and sit in either seat. I can enter or exit from either seat.
Dont need a center console.
Too bad the Chrysler minivans don’t have a 4-cylinder option. In particular, I wish the hybrid was a 4-cylinder instead of the V6.
But yeah, minivans are better than SUV’s and crossovers for the intended purpose.
Umm….
Chrysler hasnt has a good 4cyl since the dark ages. (Back when they were actually a company.) I also have little to no faith in Chrysler.. with a good 4cyl.
…and that was a Mitsubishi mill.
It doesn’t have to be their own I4 😉
Why do you say that? Are you assuming a significant bump in MPG with a smaller engine?
better MPG helps a little, but they’re also MUCH easier to work on than a transverse V6, especially in a minivan! :O
Yeah, I’d be selling a hybrid Stellantis product well before it got to the phase of its life where I had to work on it.
As someone who just drove a pacifica cross-country, you want the V6.
My understanding of the main rationale behind the Porsche IPO is that it’s less about the money and more about restructuring the company to give back control to the family. Although, really, it’s always about the money, too.
I don’t understand the negative spin.
If VW’s worried about recession? Why WOULDN’T you bulk up your balance sheet for the coming economic times and a big EV shift, by putting billions in the bank?
What do “auto journalists” know that the expert investment banks and analysts in the sector don’t know?
Having sold a decontented Pacifica as another model was odd in both cases. It looks like the Voyager has been discontinued stateside altogether. Though since the Voyager replaced the GC as the fleet sales model, calling it a GC makes some sense.
As a huge Porsche fanboy I’m not sure what to think of all the IPO stuff. On paper it truly doesn’t seem like a good time to do this economically speaking…but simultaneously, Porsche is a company run by the ultra wealthy for the ultra wealthy, and the 1% who will buy up the majority of the stock aren’t affected by the current economic challenges like you and I are. They’re doing better than ever, which is a discussion for another time…point being, if anyone can pull this off it’s probably Porsche.
Ah yes, the minivan. First thing that car blogs taught me is WAGONS WAGONS WAGONS WAGONS WAGONS WAGONS!!!! The second thing they taught me is to respect the v a n . I’m being a bit sarcastic here but the point stands. More vans is a good thing, it means less people in mammoth SUVs and trucks that are a greater risk to everyone around them…I also think the vans are marginally better fuel economy wise as well, but don’t quote me on that.
My ideal center console is a well integrated medium sized touch screen with redundant buttons to access everything, physical nobs for climate control, a small amount of storage with multiple USB ports, two cup holders, an arm that’s actually at arm level, and if the car is automatic a mechanical shift lever and a classic rip-it E brake, which I’d also say is vital to a manual.
I can’t stand electronic shift levers. They’re vague, usually tricky to modulate, and needlessly complicate a part of the car that never needed fixing in the first place. I still remember test driving the current 330i and needing the salesman to explain how to manage BMW’s electronic shifter weirdness…and my dad has a Grand Cherokee with an electronic lever that never goes between reverse and drive without a fight.
No thanks, I’ll take mechanical connection with defined gears every time…and I enjoy a rip-it e brake for the same reasons, not to mention I always use the parking brake on my cars. I was told that it puts less stress on the transmission, and since I seek out DCTs to daily, every little bit of wear reduction helps…but feel free to correct me if I’m wrong here. Either way, the electronic ones just weird me out and reduce how connected to the car I feel.
Medium sized touch screen in the dash….
Wouldnt ya want at least.. a throttle cable..
Maybe hyd steering..
Hydraulic Braking….
To at least know.. wtf the thing.. is trying to do…
Explain “on paper” how this isn’t a great idea?
On the books? It’s a spectacularly GOOD idea for VW to bulk up the balance sheet for what’s to come.
I’m not sure why the auto press is so confused by the underlying financial rationale here.
“During the first six months of the year, Canadian sales of the Pacifica were up 81 per cent to 4,217 this year while Grand Caravan sales surged 84 per cent to 2,384.”
For those who were as confused by this as I was, it appears that Chrysler calls the Voyager the Grand Caravan north of the border. Very odd.
Having sold a decontented Pacifica as another model was odd in both cases. It looks like the Voyager has been discontinued stateside altogether. Though since the Voyager replaced the GC as the fleet sales model, calling it a GC makes some sense.
I never understood the branding decisions as they phased out GC– and then the confusion Voyager vs Pacifica.
Seems like the same thing as Ford ditching “Taurus”, the class leader. Why?
They did it for the most Canadian of reasons, so they wouldn’t have to rebrand a youth hockey program they’ve been sponsoring.
https://caravankids.chryslercanada.ca/registrations/dodgecaravankids/en/contest.php
It seems like Voyager Kids would have been a nice step up.
Also weird is that they still call it as a Voyager in their dealer system, with the GC badging as an option on the build sheet.