The Automotive Update: Northvolt files for bankruptcy

14 March 2025

Northvolt files for bankruptcy, Nissan chief steps down, and Ford invests in loss-making German subsidiary. Autovista24 journalist Tom Hooker explores the week’s biggest automotive news stories.

Tesla shares fall by almost half, and Nissan completes autonomous driving research project. In supplier news, ZF receives Germany-wide Level 4 test permit from the KBA for autonomous driving, plus Bridgestone and Michelin test puncture-free tyres. Listen to these stories in the latest edition of The Automotive Update from Autovista24.

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Northvolt files for bankruptcy

Electric vehicle (EV) battery manufacturer Northvolt has filed for bankruptcy in Sweden. In a statement, the startup cited rising capital costs, geopolitical instability, supply chain disruptions, market demand shifts and production struggles.

It marks the end of a downward spiral for the company. Northvolt was once seen as Europe’s best hope for EV battery production in an industry dominated by China. Since 2016, the business received backing from Volkswagen, Goldman Sachs and BlackRock, attracting more than $15 billion (€13.8 billion) of corporate and government investment, according to the Financial Times. 

‘This is an incredibly difficult day for everyone at Northvolt,’ commented Tom Johnstone, Interim chairman of Northvolt’s board of directors. ‘We set out to build something groundbreaking, to drive real change in the battery, EVs and wider European industry and accelerate the transition to a green and sustainable future.’ 

Nissan chief steps down

Nissan CEO Makoto Uchida has stepped down from his position as part of a significant restructuring within the company’s senior leadership team. Ivan Espinosa, currently the chief planning officer, has been appointed as his successor. The changes are focused on achieving Nissan’s short and mid-term objectives, while positioning it for long-term growth, as outlined in a statement.

The news comes following the collapse of merger talks with Honda. Uchida stated in a press conference that the company’s board requested he step down. This was following internal and external questions over his role Nissan’s poor performance, as reported by the Financial Times.

Uchida had previously advocated for a deal with Honda, and was against a takeover by Taiwanese company Foxconn. However, several board members, and people close to the discussion, had increased pressure on the former CEO to step down in recent weeks.

Espinosa will be expected to swiftly execute a turnaround plan, including 9,000 job cuts and slashing 20% of production capacity.

Automotive production news

Ford is restructuring its debt-laden German arm, Ford-Werke, with €4.4 billion of new capital.

This move addresses a €5.8 billion debt obtained amid Europe’s challenging automotive market, stoked by high costs, weak demand, and Asian competition.

Vice chair of Ford Motor Company, John Lawler, said the carmaker will not pull out of its European business. He called on Brussels and Germany to do more to accelerate the transition to EVs. Additionally, Lawler highlighted a need lower costs to compete against Chinese rivals.

Furthermore, the company stated it would end a commitment which has been in place since 2006 to bear any losses its Ford-Werke subsidiary made, the Financial Times reported.

Porsche has announced that it will cut 4,000 jobs, according to The Times. This move to reduce its workforce by 10% is in response to declining sales.

The brand has promised investors a ‘comprehensive recalibration’ of the business after profits slumped. Porsche bosses also raised concerns about US trade tensions, and warned that this year’s earnings will be impacted by growing domestic competition in China.

Volkswagen (VW) Group software subsidiary Cariad wants to cut 1,600 jobs by the end of the year. This amounts to just over 27% of its total workforce. Automobilwoche reported that the cuts will be carried out through severance payments and early retirement programmes.

VW announced that its upcoming ID. Every1 will be built in Portugal. The hatchback, unveiled as the ID.1 prototype, is scheduled to begin production in 2027, according to DPA International. VW brand boss Thomas Schäfer highlighted that the plant in Portugal is one of the most cost-efficient in the company.

Tesla turbulence

Tesla CEO Elon Musk has stated he wants to double US production within two years. Posting on his online platform X, Musk sees this move as ‘support of the policies of President Donald Trump and confidence in the future of the United States.’

The company’s stock dropped by nearly half in three months, as reported by Reuters. Tesla’s market cap fell 45% from its $1.5 trillion peak on December 17, reversing gains linked to CEO Elon Musk’s support of Trump’s presidential campaign.

Tesla’s current valuation largely relies on projected robotaxi and robot development. However, these products are not yet in production. Reuters reports that Tesla’s EV business generates nearly all revenue, but represents less than a quarter of its stock market value. The company’s total worth exceeds the combined value of the next nine most valuable carmakers.

Autonomous driving developments

Nissan has completed what it claims to be the UK’s most rigorous autonomous driving research project, evolvAD. More than 16,000 autonomous miles were covered across the country’s roads, with no accidents reported.

The conclusion of evolvAD, which was partly funded by the UK government, marks the start of the next phase of autonomous driving deployment. This will assess the readiness of cities and regions across the UK for the future introduction of autonomous driving systems and services.

Meanwhile, ZF has received a Germany-wide Level 4 test permit from the KBA, to test autonomous driving. The permit covers urban and regional public transport areas. Roads with a maximum speed limit of more than 100kphare excluded from the permit, which is valid until the end of 2026 and can be extended until the end of 2028.

In an attempt to smooth the path for self-driving vehicles, Bridgestone and Michelin are testing advances in puncture-free tyres.

These versions are air-free, and can support a one-tonne vehicle driving at 60kph. The invention is being trialled on shuttle buses and tourist vehicles. The tyres could mean lower maintenance costs and reduced liability risk from autonomous driving accidents caused by punctures.