Mercedes-Benz appoints new head of North America
Mercedes-Benz $MBG (+0,46 %) has brought a new captain on board for its North American journey. Jason Hoff will now be at the helm, steering the fortunes of the company in a turbulent climate. It is a decisive step, as the automotive industry is facing numerous challenges. There are also exciting developments at Volkswagen. CEO Oliver Blume will benefit from an increase in his remuneration, which will rise by 6.6 percent to an impressive 10.35 million euros in 2024. This is despite the members of the Board of Management forgoing 5 percent of their salary, which will still earn Blume 65,000 euros. These measures are part of a comprehensive savings program that will be continued in the coming years and are intended to strengthen the company's position.
Northvolt insolvency shakes Scania and Porsche
In the USA and beyond, Northvolt's insolvency has had the effect of an earthquake and has shaken up the automotive industry, especially the giants Scania and Porsche. Although the subsidiaries in Germany and North America are not directly affected by this insolvency, the situation in Skellefteå, Northvolt's headquarters, remains tense. The mayor and the head of administration are asking the Swedish government for support, as the city and the province cannot cope with the crisis on their own. The employees are currently being supported by a state wage guarantee, but uncertainty hangs over the municipality, particularly with regard to the residence permits of many foreign employees who are hoping for a quick solution.
Porsche AG shares fall sharply
Porsche AG $P911 (-0,77 %) is facing drastic pressure as a decline in profits has dampened sentiment and the stock has also been affected. CEO Breckner has commented on the company's long-term goals and emphasized that the company is aiming for a return on sales of over 20 percent. However, the tense market situation will make a medium-term target of 15 to 17 percent necessary, which represents an adjustment of previous expectations. This year, around 800 million euros will be invested in adapting the model range and expanding the battery business. The operating margin is expected to be between 10 and 12 percent, while turnover is estimated at between 39 and 40 billion euros.
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