Japanese truck manufacturer Isuzu Motors has reportedly bought UD Trucks, the truck manufacturing unit of Swedish automaker Volvo AB, to develop next-generation technologies like electric and self-driving trucks. Isuzu, which sold over 500,000 vehicles last year, has recently vowed to develop electric vehicles to keep up with consumer demand. Meanwhile, selling off UD Trucks will provide Volvo an added operating income of roughly 2 billion kronor ($212 million) while increasing its cash reserves by 22 billion kronor ($2.3 billion). This deal further reinforces the consolidation happening within the global auto industry and the evident rise in interest towards electric vehicle manufacturing.
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Industrial production increased a seasonally adjusted 1.1% in November from the prior month. This marked the biggest month-over-month increase since October 2017. Excluding motor vehicles and parts, industrial production increased 0.5% last month and the manufacturing index rose 0.3%.
“The conditions for a rising oil price appear favorable at present. Economic optimism coupled with a weaker U.S. dollar and growing investor demand have allowed Brent and WTI to climb to over $65 and to over $60 per barrel respectively.”
– Commerzbank statement on oil prices rising to three-month highs after promised production cuts at the OPEC+ meeting last week.
In other news
U.S. energy chief shrugs off Permian oil slowdown as a ‘pause’
Texas’ Permian basin lost 400 jobs in the first 10 months of 2019. (Bloomberg)
Merck prescribes AI for supply chain complexity
Merck is using artificial intelligence to better understand how its pharmaceutical products traverse a network of suppliers and partners that is becoming more complex. (CIO)
Skyryse shows off end-to-end autonomous flight technology with helicopter demonstration
Skyryse looks to build an autonomous technology “stack” that can work with existing flight and safety-certified aircraft. (TechCrunch)
Fiat Chrysler, PSA boards sign off on merger deal, report says
The board of Fiat Chrysler Automobiles approved a merger with PSA Group of France to create the world’s fourth-biggest auto manufacturer. (Automotive News Europe)
Amazon’s spat with FedEx ruins Christmas for its sellers
Amid the ongoing fight between Amazon and FedEx, the sellers on the platform are no longer able to avail the services of the courier company. (Financial Express)
Deutsche Post DHL has announced that its customers will pay an average of 3% more to send their parcels across Germany. The last time DHL hiked its prices was in 2017, and the reason for the new raise is due to DHL’s growing workforce and the rise in transport costs. The rise of ecommerce has caused a rapid increase in parcel volumes across Germany, which is expected to keep increasing in the near future. The European Green Deal and Germany’s push towards increasing sustainability in transport has led logistics forwarders like DHL to invest heavily in greener alternatives like electric vehicles and modern low-emission vehicles, the price of which would eventually be shouldered by the end customers.
Hammer down everyone!