The CEO of Swedish-Swiss multinational robotics firm ABB said he has been “disappointed” by the state of the Chinese market, adding he expects conditions will prove challenging for the rest of the year.
“China is not really developing as we hoped in the beginning of the year,” said Bjorn Rosengren, CEO and chairman of ABB, speaking with CNBC’s Joumanna Bercetche on Wednesday, adding ABB has been impacted by a “softening” in China’s property sector.
Rosengren said that a decline in Chinese real estate development and hefty debts faced by the sector have meant pain for its residential construction segment, which is more cyclical and therefore prone to changes in the economy.
“We are pretty pessimistic at the moment” on China, said Rosengren. “We thought in the beginning of the year that we should see some recovery from the Covid period, but I think everybody has been pretty disappointed.”
“China continues to be pretty soft. It’s a big market though, so it’s not dead. It’s still living there, but not really developing as we’d hoped. I think it will be challenging for the rest of the year.”
ABB is one of the largest companies globally operating in the realm of industrial manufacturing. With its machines embedded in so many major global companies’ factories, the company’s performance serves as something of a barometer for the health of the manufacturing sector — and the broader economy.
Notably, China, a powerhouse of manufacturing often referred to as “the world’s factory” due to the country’s influence on global trade, is the company’s second-biggest market.
In the second quarter of 2023, ABB reported a 2% increase in orders on a comparable basis, to $8.7 billion. Comparable revenues were up 17%, to $8.2 billion. Income from operations, meanwhile, climbed 15.9%, to $1.3 billion. However, in China, the firm saw its order intake decline 9% on a comparable basis in the period.
More than 50 Chinese property developers have defaulted or failed to make payments in the last three years, according to credit ratings agency Standard and Poor’s.
More recently, economists have flagged concerns with structural issues in China’s economy, such as debt, an aging population and young people unable to find work, and a growing fear of a “decoupling” from the rest of the world as tensions with the United States reach boiling point.
The Chinese real estate sector has been in a state of turmoil over the last two years, most notably marked by the financial woes of heavily indebted property developer Evergrande, which earlier this month filed for U.S. bankruptcy protection.
On Monday, Evergrande’s shares lost as much as 87% of their value after the company resumed trading for the first time since March 21, 2022. The shares have struggled to recover since.
A silver lining?
Rosengren said that, despite the weakness it is seeing in China, electric mobility is proving a fast-growing area for the company globally — especially in China.
“One of the positive things is EV vehicles, which also are getting a position globally as you’ve seen also in Europe today, Chinese cars from that perspective,” said Rosengren.
“I think that’s one of the sectors which has been good, which had some positive for the robotics market. But I think actually the real estate construction part which is low and has been low for quite some time.”
ABB is currently planning an initial public offering for the e-mobility business, which in raised 325 million Swiss francs ($370.6 million) from investors in a pre-IPO placement.
Rosengren said that most businesses and governments are “aligned” on the need to push toward a green energy future, so the ceiling for growth remains high.
In Europe, especially, greater impetus has been placed on the need to accelerate the energy transition due to Russia’s invasion of Ukraine and resulting restrictions of natural gas supplies to the continent.
“Energy generation is of course one of the sectors that needs to go green,” Rosengren said.
“You also need to build up infrastructure, electrification infrastructure globally. And I think that is what we are feeling today and that’s what we are seeing and that’s why we see still very strong market in electrification and that’s why that is important.”
ABB has an e-mobility division responsible for developing electric charging solutions, which are the backbone of the EV industry.
Still, this part of the business has proven challenging as macroeconomic conditions have deteriorated.
In the second quarter, ABB’s e-mobility unit lost $67 million, which the company attributed to “inventory related provisions as well as technology investments triggered by a shift back to a more focused product strategy to secure a continued leading market position.”
Tesla uses frameless doors with electronic door handles. The button to open the doors first causes the window to lower slightly, allowing the door to open. Then, it electronically unlatches, enabling the door to be swung open.
There’s also a manual latch, but it has been known to be somewhat hard to locate for people who didn’t read the owner’s manual, which is most people.
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If there’s an electronic failure, especially after a crash, it can result in occupants having issues exiting the vehicle when they are in a state of panic.
Additionally, if a child is in the vehicle after a failure, it can be challenging for them to locate and use the manual release, which is what the NHTSA is now investigating.
Following the publicization of this long-standing issue this week, Tesla announced that it is redesigning its manual release.
Franz von Holzhausen, Tesla’s chief designer, said in an interview with Bloomberg that the automaker is going to combine the electronic and manual releases into one:
“The idea of combining the electronic one and the manual one together into one button, I think, makes a lot of sense. That’s something that we’re working on.”
The designer said that Tesla is already testing this in China.
It’s not a novel design. Toyota already has the same concept in some of its vehicles. The electronic button to release the door can also be pulled to activate the manual release, which works even if the car has no power.
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Get ready to see a lot more Hyundai vehicles on the road. The South Korean auto giant just revealed its most ambitious growth plan ever, packed with advanced new EVs and hybrids across nearly all segments. Hyundai is also launching its first midsize pickup and an extended-range vehicle (EREV) that promises to deliver over 600 miles (960 km) of range.
Hyundai bets on new EVs, hybrids, EREVs, and trucks
During its first CEO Investor Day held outside of Korea, Hyundai unveiled “its most ambitious growth strategy” in company history.
Hyundai is promising to lead the industry’s shift to electrification with a slate of new vehicles set to launch across nearly every powertrain and segment imaginable.
“In an industry facing unprecedented transformation, Hyundai is uniquely positioned to win,” José Muñoz, President and CEO of Hyundai Motor Company, said during the event held in New York on Thursday. Hyundai isn’t simply adapting, “We’re leading it,” Muñoz told attendees.
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Hyundai plans to sell 5.55 million vehicles globally by 2030, including 3.3 million “electrified” vehicles, or about 60% of total sales.
With 18 new hybrids, including the first under its luxury Genesis brand, Hyundai expects “significant growth” in North America, Europe, and Korea.
Hyundai said the new vehicles, including EVs and hybrids, will be custom-tailored for buyers in its biggest markets.
2026 Hyundai IONIQ 9 (Source: Hyundai)
Custom-tailored vehicles for the US, Europe, and China
In North America, Hyundai will launch its first midsize pickup by the end of the decade. Hyundai offers the Santa Cruz, which launched in 2021, but the company promises the new model is aimed at “the heart of the US market.”
Those in Europe will see the IONIQ 3, a smaller and more affordable little sibling to the IONIQ 5. It will feature a next-gen infotainment system, Hyundai said, specifically designed for drivers in Europe.
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)
Hyundai announced plans to introduce its first extended range electric vehicle (EREV). Set to arrive in 2027, Hyundai said the new EREV will deliver an “EV-like driving experience with more than 600 miles (960 km) of range” that will use an added gas-powered engine to extend range.
Unlike traditional EREVs, however, Hyundai will use in-house batteries, which it promises will deliver “full EV power performance with less than half the battery capacity.”
The Hyundai Elexio electric SUV (Source: Beijing Hyundai)
In China, Hyundai will take on BYD and other automakers, leading the shift to EVs, with its new Elexio electric SUV. The Elexio SUV is Hyundai’s first locally produced electric vehicle using tech and software from Chinese leaders.
Wait, there’s even more
We will also see seven new high-performance “N” models added to the lineup by 2030. Hyundai aims to sell 100,000 N-branded vehicles by the end of the decade. The new IONIQ 6 N “will introduce a new paradigm for high-performance EVs,” the company said, with advanced new features and tech.
The new Hyundai IONIQ 6 N Line (Source: Hyundai)
The luxury Genesis brand is celebrating its 10th anniversary with big growth plans over the next few years, including new EREVs, hybrids, and a flagship SUV.
The flagship Genesis electric SUV is expected to launch as the GV90, which we’ve seen out in public testing with ultra-luxury features, including coach doors.
The Genesis Neolun concept (Source: Hyundai Motor Group)
Hyundai announced plans to ramp up production at its Metaplant America (HMGMA) EV plant in Georgia. With a new $2.7 billion investment, the company is creating 3,000 more jobs in Georgia. By 2028, Hyundai plans to build 500,000 hybrid and EV models at the facility annually.
By 2030, Hyundai expects over 80% of vehicles sold in the US will be made domestically. Its supply chain sourcing in the US will also increase from 60% to 80%.
Globally, Hyundai plans to add 1.2 million units to its production capacity by the end of the decade, including in the US, South Korea, and India.
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Back in August of 2024, I wrote about buying an electric chainsaw for the first time. It was a Father’s Day present for my dad, who has several acres of property to manage and is reaching the point where even his dad strength isn’t enough to hand saw all day. I wasn’t quite sure what to expect from the current state of electric chainsaws, but I was excited to put the new machine to work. Fast forward a full year, and I’ve got an update: we’ve abused the heck out of it – and it’s still going strong!
Over the past 12 months, this Ego Power+ 18-inch 56-volt electric chainsaw has seen more wood than a mom-and-pop lumber mill. I’ve cut through your standard backyard trees, gnarly old branches, telephone poles, construction lumber, and plenty of 2x4s.
We’ve basically started treating it like a general-purpose tool. If anything is fiber-based and currently of a size that is larger than it should be, the standard response is “go grab the chainsaw…”.
And not just on nice sunny days either – this saw’s been dragged through rain, dust, and mud. And more than once it’s been used in situations that absolutely should have killed it: fully underwater.
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At my parents’ place, a good-sized tree had fallen into their lake after the last big storm and needed to be cleared out. We had been putting it off due to the size of the thing, but the water level was rising, and soon it was going to be swamped. One of the most recent times I went over to visit my parents, my dad and I decided it was time to finally tackle the job. Unfortunately, by then the water had risen to the point where the tree trunk was already half-submerged, creating a navigational hazard for all the weird little electric boats I’ve dropped in that lake.
We started by trying to just cut the exposed portion, and I figured we’d then put a long line on the UTV and see if we couldn’t just break the rest of it free. But that’s where my dad’s more hours on the saw than mine played a key role: knowing he could keep pushing it. My dad waded in with the chainsaw and absolutely went to town. He had that thing so deep in the water, cutting through the massive trunk that if it had been a gas-powered chainsaw, it would have literally needed a snorkel to keep running.
And yet, it worked. Not just worked – it powered through. We pulled it out, dried it off, and then it was on to the next job.
I didn’t capture the moments it went deeper, but that thing was water-breathing for a little while!
The battery life has stayed impressive, the power is still solid, and the chain hasn’t even needed a replacement yet (though I should probably give it a sharpening one of these days). I’ve lost count of how many logs this thing has ripped through, and it’s never let me down.
There is one minor downside worth mentioning: the chain tensioner has gotten a bit stiff. It used to adjust nice and easy, but now it takes a little more effort to tighten. It still works, but you’ve got to put a bit of muscle into it. That’s literally the only wear-and-tear issue I’ve noticed after a full year of borderline tool abuse.
I expected an electric chainsaw to be a convenient, eco-friendly option for light-duty work. What I didn’t expect was a rugged, waterproof (apparently), do-it-all beast that could handle nearly anything I threw at it.
So here’s the one-year verdict: I bought an electric chainsaw, I used it for everything I possibly could (and some things I probably shouldn’t have), and it still works like a champ. If you’re wondering whether an electric chainsaw can hold up over time – this one has more than proven itself.
And if I ever buy a second one, I’ll try to keep it out of the pond. No promises, though.
Author’s note: On reading through this again to proofread, it almost sounds like an ad, but I promise it’s not (those have big “Sponsored” labels on them and I generally steer clear of those). This is just a chainsaw I bought for my dad and we’ve been thrilled with it one year later.
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