Wind turbine troubles have sent one stock tumbling. There are fears it could be a much wider issue
A Siemens Gamesa blade factory on the banks of the River Humber in Hull, England on October 11, 2021.
PAUL ELLIS | AFP | Getty Images
Costly failures at wind turbine manufacturer Siemens Gamesa last month sent shares of parent company Siemens Energy tumbling, and analysts are concerned about wider teething problems across the industry.
The German energy giant scrapped its profit guidance in late June, citing a “substantial increase in failure rates of wind turbine components” at its wind division Siemens Gamesa.
Siemens Energy CEO Christian Bruch told journalists on a call Friday that “too much had been swept under the carpet” at Siemens Gamesa and that the quality issues were “more severe than [he] thought possible.”
Siemens Energy stock plunged by around 37% on June 23, while other wind companies also saw shares retreat as investors worried that the problems at Gamesa might be a symptom of a wider issue for the industry.
Nicholas Green, head of EU capital goods and industrial technology at AllianceBernstein, told CNBC that the pace of expansion, and the fact that many components of larger turbines haven’t actually been in use for very long, means there could be inherent risks throughout the sector.
“We have to acknowledge that putting brand new machinery — whether it’s on-shore or even more difficult off-shore wind farms — and the pace of change in that machinery has put us into slightly uncharted territory,” he said.
“Although it’s hard to tell at the moment, my best guess is that this probably actually is an industry-wide issue. It wasn’t that Siemens Gamesa is a bad operator as such, it’s that actually some of the normal protocols and time in use, operational data in use, is relatively limited.”
Siemens Gamesa’s board is now due to conduct an “extended technical review” into the issue, which is expected to incur costs in excess of 1 billion euros ($1.09 billion). The company’s shares have recouped some losses, but remain down over 33% in the last month.
A tough two years
The wind industry has expanded rapidly over the past two decades, lowering costs to rival — and sometimes undercut — those of fossil fuels, while boosting efficiency with ever-bigger turbines and reducing reliance on state subsidies.
“These cost reductions have been achieved with innovations in turbine technology and by pushing the boundaries of engineering,” Christoph Zipf, spokesman for industry body WindEurope, told CNBC via email.
He said that 20 years ago, a typical wind turbine would have 1 million watts of capacity; today, European original equipment manufacturers, or OEMs, are testing 15 MW turbines.
“This means that turbines have become bigger as well, posing challenges to components (quality, materials, longevity). The introduction of competitive auctions has also been a driving factor in this cost reduction,” Zipf added.
The Statistical Review of World Energy report published last week revealed that wind and solar power accounted for 12% of the world’s power generation last year, with wind power output increasing by 13.5%.
The industry was hit hard by the Covid-19 pandemic, as resulting lockdowns depressed industrial activity and reduced global energy demand. The ensuing supply chain problems then hampered OEMs.
These manufacturers have since endured a further shock from soaring inflation and input costs as Russia’s invasion of Ukraine disrupted markets and aggravated supply chain disruptions. WindEurope estimates that the rise in commodity prices has increased the price of wind turbines by up to 40% over the last two years.
“OEMs were sourcing some material from Russia (mostly nickel) and Ukraine (mostly steel). The price of both skyrocketed after the invasion. This comes on top of the challenging inflationary environment all European businesses are operating in (i.e. rising electricity prices, etc.),” Zipf explained.
“A main problem for the OEMs is that not all countries had indexed their renewables auctions. Consequently wind turbine orders were not necessarily indexed to inflation. The time between the order intake and the commissioning of a wind turbine can take up to 18 months (especially when supply of materials is short).”
However, Zipf denied that industry-wide technical failures could be on the horizon, insisting that “the problems at Siemens Gamesa are limited to Siemens Gamesa.”
“Big turbine failures are extremely rare given the number of turbines installed in Europe already. However, the competition in the sector is pushing OEMs to come up with bigger and better turbines at a fast rate, may be faster than in other sectors,” he said.
He also challenged the notion that the industry has entered “uncharted territory,” arguing that the changes in turbine technology have been “incremental and evolutionary.”
“Naturally every new turbine model comes with new challenges, requires rigorous testing and certification. But the European wind industry has overcome all of these challenges and maintained its reputation for delivering highly reliable high-quality turbines,” Zipf said.
Facts and figures
According to ONYX Insight, which monitors wind turbines and tracks over 14,000 across 30 countries, most turbines are designed and certified for 20 years but contain components that will fail during that time due to a “compromise between the cost of the system and reliability.”
“We have been aware for some time that turbine failure rates across the industry can — and should — be more widely understood, given the scale of their potential impact on the overall profitability of projects,” Evgenia Golysheva, vice president of strategy and marketing at ONYX, told CNBC.
“It’s not that they are made badly, but we now have a compromise between the cost of energy and targeted reliability. Everyone who builds, finances and operates wind turbines needs to have a realistic picture of how many failures to expect.”
In turbines built in 2023, more than 40% of gearboxes will need to be replaced after 20 years of project life, according to ONYX, along with over 20% of main bearings and more than 5% of blades.
Across the wind industry, around 65% of operations and maintenance costs are unplanned, according to ONYX. It projects that major corrective spending will rise to $4 billion by 2029.
“The growth of wind installations has been unprecedented, and the industry has had to scale up very quickly with little time to digest it. It’s not a capacity issue, and it’s not new, but it is good that OEMS (who are under pressure from supply chain and from inflation) are bringing this conversation into the public domain,” Golysheva explained.
“It’s a conversation that is overdue, because the underlying issues aren’t going away. For example, wind turbine rotors are getting bigger, the turbines are getting bigger, and the development cycles are short, so it’s crucial to have digital and other diagnostic tools to be able to deal with reliability issues.”
Environment
Hyundai Ioniq 9 first drive: Stylish SUV outside, spacious and versatile 3-row minivan inside
Hyundai flew us out to Savannah, Georgia, a few weeks ago to get our first impressions of the much-anticipated Ioniq 9 three-row SUV. The vehicle uses the same E-GMP platform as the Kia EV9 and some smaller HMG EVs but the real question is: how is the Ioniq 9 different? Let’s take a look…
Size matters
This is a big EV with spacious three rows that seat six or seven adults comfortably. As far as I am concerned,the Ioniq 9 is Hyundai’s flagship vehicle.
The drive was similar to the Kia EV9, which is obviously a good thing. The big vehicle has solid electric acceleration, and Hyundai has done great work with the suspension to make this heavy car feel light on its toes. But Hyundai has made efforts to make the drive even smoother and quieter. The foam-filled tires, soft suspension, acoustic glass, and active noise cancellation all make the ride feel like floating rather than driving.
Front-row seats are not only spacious but also offer ample comfort and legroom. Also, there’s plenty of legroom in the second row (42.8 inches) and spacious third row (32.0 inches). Did I mention this is a big vehicle?
What stands out to me on the interior is the flat floor enabled by the E-GMP battery and remarkably long wheelbase (3,130mm / 123.2 inches). It doesn’t feel like an SUV inside, it feels like a big minivan (oxymoron noted). While many folks are embarrassed to be seen in a minivan, nothing beats the configuration internally for trips and driving more than 4 people around – so the comparison is fully complimentary.
Hyundai obviously kitted us out with their top-end interiors, and they definitely felt sporty and luxurious.
Frunk
The Frunk o the Ioniq 9 isn’t anything to write home about and one of the few downsides to this vehicle. Hyundai of course says that their customers don’t want it, just like the bigger Frunk-maker’s say that their customers love it. For better or worse, it is a great place to put some charging cables, a tire inflator kit or some valuables but don’t expect it to be used frequently like a Tesla/Rivian or F-150/Silverado Frunk for groceries and general purpose cargo.
I really love the look of the Ioniq 9, which the company says is shaped like a sailboat hull with its big taper at the back. That also gives the Ioniq an otherworldly low drag coefficient of 0.259. That, along with the big 110kWh battery and Hyundai’s always efficient EVs, gets this thing to 335 miles for the RWD version. The performance AWD variant only drops down to 311 miles, a hit worth taking.
That range and the spacious interior mean that this is a great road trip EV. AWD versions can even tow up to 5000lbs. HMG’s software adjusts range predictions based on towing. Aerodynamics and efficiency of the trailer will all determine how much range is sacrificed but with over 300 miles to start with, odds are it will get you where you are towing.
NACS charging
The Ioniq 9 is one of the first non-Tesla EVs to come standard with a NACS charger, meaning it can natively charge at most Tesla Superchargers. Hyundai also includes an adapter so it can charge at CCS Combo stations and use a J-1772 Level1/2 charger.
Exterior
I am torn on the exterior look of the Ioniq 9. I love the shape, which Hyundai says is reminiscent of the aerodynamic hull of a sailing ship. I love the pixel lights that have become iconic in Hyundai’s EV lineup. Even the overall silhouette, something that Hyundai calls “Aerosthetic”—a harmonious blend of aerodynamics and aesthetics— is pretty incredible.
But I don’t love some of the design ornaments–like the cutout pieces over the front and back wheels. While I realize that seems like a nit-pick, I can’t unsee it. It is more subdued in the darker colors, however.
Pricing: starts at $58,955 for the RWD S trim and goes up to $76,490 for the Performance Calligraphy Design AWD trim. Eligible for $7500 Federal tax credit and various state/local and utility discounts.
Electrek’s take
I really love this take on the 3rd row electric SUV. Would I take the Ioniq 9 off-road like a Rivian? No. Does it accelerate like a Telsa Model X? No.
However, it does everything most third-row SUV owners expect, and it does it quietly and effortlessly. For those looking for a luxurious 3-row electric SUV with an interior that rivals the comfort of a minivan, you have to put the Hyundai Ioniq 9 at the top of your list.
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That larger Honda electric SUV may be a pipe dream after all. Honda follows Ford, Toyota, and other automakers in adjusting major EV plans in the US.
Honda scraps plans for a larger electric SUV
Although Honda’s first electric SUV, the Prologue, was one of the top-selling EVs in the US last year, the Japanese automaker is preparing for a slowdown.
Thanks to the Trump Administration’s recently passed “Big, Beautiful Bill,” which kills off the $7,500 federal tax credit at the end of September, Honda expects lower demand for EVs.
According to a new Nikkei report, Honda is now scrapping plans for its larger electric SUV in the US, its largest market. Instead, the company will focus on hybrid vehicles, similar to recent moves from Ford, Toyota, and others.
Honda’s larger electric SUV was due to be released around 2027, about the same time as Ford and Toyota’s three-row EV SUVs. The upcoming Honda 0 Series electric SUV and sedan are still set to arrive starting next year.
We got a sneak peek of the midsize electric SUV in April after a camouflaged prototype made its debut on the streets of Tokyo for the first time.
Honda announced earlier this year that it is reducing its planned EV investments by $21 billion through 2030, as it expects lower demand. Like Ford and Toyota, Honda will focus on hybrids in the meantime.
In a separate report on June 20, Nikkei claimed that Honda and Nissan were considering a new US partnership just months after their global tie-up fell through.
Electrek’s Take
Honda is one of the few Japanese automakers to gain some momentum in the US EV market, but scrapping plans for the bigger model could put it behind rivals like Hyundai and Kia.
Through the first half of the year, Honda has sold over 16,300 Prologues in the US. In comparison, Toyota sold just over 9,200 bZ4X models.
Even Acura’s EV is seeing significantly more demand than expected. Acura sold 10,355 ZDX models in the first half of 2025, outpacing the Cadillac Lyriq, which is based on the same platform. Earlier this year, Mike Langel, vice president of national sales for Acura, told Automotive News that the company expected to sell around 1,000 ZDX models a month this year.
Honda, like most of the auto industry, is bracing for a shakeup as the Trump Administration rolls back EV incentives, putting the US on track to lag even further behind leaders like China.
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Paris’ bike-share system, Vélib has long been considered one of the shining success stories of urban micromobility. With a massive fleet of over 20,000 pedal and electric-assist bicycles around Paris, the service has helped millions of residents and tourists get around the City of Light without needing a car or scooter. But lately, a growing problem is threatening to knock the wheels off this urban mobility marvel: theft and joyriding.
According to city officials and the service operator, more than 600 Vélib bikes are now going missing every single week. That’s over 30 bikes a day simply vanishing from the system – some stolen outright, others taken on “joy rides” and never returned.
“At the moment we’re missing 3,000 bikes,” explained Sylvain Raifaud, head of the Agemob company that currently operates the Velib system. That’s nearly 15% of over 20,000 Vélib bikes across Paris.
The sticky-fingered culprits aren’t necessarily professional thieves or organized crime rings. Instead, they’re often regular users who treat the shared bikes like disposable toys.
The city estimates that many people have figured out how to pry the bikes out of the system’s parking docks, unlocking one for a casual cruise and then ditching it somewhere far from a docking station.
Once pried free, the bikes are technically usable for the next 24 hours until their automatic locking feature kicks in. At that point, the bikes are often simply abandoned. Some end up in alleyways. Others get tossed in rivers. A few just disappear completely.
And since the bikes are intended to be parked at their many docking stations around the city, they don’t have GPS chips, further complicating recovery of “liberated” bikes.
The issue started small but has grown into more than an inconvenience – it’s beginning to undermine the entire purpose of the service. With bikes going missing at such a high rate, many Vélib docking stations are left empty, especially during rush hours.
Riders looking for a quick commute or a convenient hop across town are increasingly finding themselves without available bikes, or having to walk long distances to find a functioning one.
That kind of unreliability chips away at user confidence and threatens to drive potential riders back into cars, cabs, or other less sustainable forms of transport at a time when Paris has already made great strides to dramatically reduce car usage in the city.
The losses are financially painful, too. Replacing stolen or vandalized bikes isn’t cheap, and the resources spent on tracking down missing equipment or reinforcing anti-theft measures are stretching thin. Vélib has faced theft and vandalism issues before, especially during its early years, but this latest surge has officials sounding the alarm with renewed urgency.
Officials acknowledge that there’s no easy fix. Paris, like many cities with bike-share systems, walks a fine line between accessibility and accountability. Part of what makes Vélib so successful is its ease of use and widespread availability. But those same features make it vulnerable to misuse – especially when enforcement is limited and the consequences for abuse are minimal.
The timing of the problem is especially unfortunate. In recent years, Paris has seen impressive results in reducing car traffic, expanding bike lanes, and promoting cycling as a key part of its sustainable transport strategy. Vélib is a cornerstone of that plan. But if the system becomes too unreliable, it risks losing the very people it was designed to serve.
Meanwhile, as Parisians increasingly find themselves staring at empty docks, the challenge for the city and Vélib will be to restore confidence in the system without making it harder to use. That means striking the right balance between freedom and responsibility, between open access and protection against abuse.
In a city where cycling is supposed to be the future of mobility, losing thousands of bikes to joyriders and sticky fingers isn’t just frustrating; it’s unsustainable.
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