Toronto, Ontario — In this weekly Tuesday Ticker, we’re taking a look back at some of the highlights from 2024 to see the financial ups and downs that gave each season a unique financial forecast.
Ramped up production; dwindled deliveries
In January 2024, the year began with automaker Rivian announcing its production of 75 percent more EVs in Q4 2023 than it was able to achieve in the same quarter the previous year.
In 2023, Rivian produced more than 57,000 units and delivered more than 50,000 vehicles.
However, in November, the company experienced its first first revenue decline since going public in 2021.
In the third quarter of 2024, the company’s revenue fell by 34.6 percent to US$874 million, falling short of analysts’ average forecast of US$989.6 million.
Summer sales
Then, in the summer of 2024, Advance Auto Parts announced the sale of its Worldpac unit to a private equity firm and the Canadian government further highlighted the plan to place tariffs on Chinese-made electric vehicles.
In May, Advance Auto Parts announced that it had sold its Worldpac unit for US$1.5 billion to Carlyle Group. The sale was part of an attempt at streamlining operations as the company reduced its annual results forecast.
The announcement came just before Advance Auto Parts’ previously scheduled webcast to discuss Q2 2024 results. Shares dropped more than 15 percent after Advance Auto Parts cut its forecast.
Furthermore, during this part of 2024, Canadian Prime Minister Justin Trudeau announced that Canada would be imposing a 100 percent surcharge on Chinese-made EVs, including hybrid vehicles, trucks and buses.
The announcement came into effect in October, with the Prime Minister having accused China of violating international trade rules and attempting to have an “unfair edge” in the emerging EV market globally.
He specifically commented that these tariffs would “level the playing field for Canadian workers” and allow for a competitive Canadian and North American EV industry.
Record rates
Finally, in November of this year, Ford Motor Company agreed to pay a near-record $165-million penalty to the National Highway Traffic Safety Administration (NHTSA) for allegations of failing to quickly respond to recall measures, while Northvolt considered bankruptcy protections.
For Ford, the recall related to defective rearview mirrors and marked the second-largest fine ever levied by the NHTSA.
Ford was also required to pay an additional $45 million to develop a safety data analytics system alongside other safety compliance rules.
The automaker remained in total compliance with the NHTSA to resolve the issue.
And, when looking at Northvolt during this period, inside sources revealed that the electric vehicle battery maker was “considering the possibility of bankruptcy protection in the United States.”
Within the previous months leading up to this announcement, the company highlighted continued challenges, such as BMW cancelling an order due to delivery delays caused by production issues.
As a result, the company initiated a strategic review, announced cost-cutting measures and reorganized its management board.
In looking to the new year, it is clear that the automotive industry is once again poised for a year filled with both challenges and opportunities. Continue tuning into the weekly Tuesday Ticker report to see how 2024 will close as well as how 2025 will shape up.
