Finnish telecoms giant Nokia says a big cost-cutting program unveiled today will save it €700m ($799m) by the end of 2020 and result in substantial job cuts.
Alongside the cost reductions, Nokia is stepping up efforts in 5G mobile radio products and creating a new Enterprise business unit to bring together fast-growing activities under current chief strategy officer Kathrin Buvac.
“Our early progress in 5G is extremely strong, we continue to increase our investment in this critical technology, and our win rate for new deals suggests that we are in a very good competitive position,” Rajeev Suri, president and CEO, said in a statement.
Reporting a 27 percent drop in profits in its latest quarterly period ending September 30, from €668m a year ago to €487m in line with expectations, Nokia said cost savings will come from areas including significantly reduced central support functions, cross-company activities, R&D in legacy products, and real estate.
According to Nokia, these planned changes are expected to result in a net reduction of employees globally.
“Even if these actions are right for our business, we do not take them lightly given the expected impact on our employees,” Suri said.
SEE: IT pro’s guide to the evolution and impact of 5G technology (free PDF)
The company has already been cutting costs resulting from its 2016 €15.6bn merger with French networking giant Alcatel-Lucent. Cost reductions from that deal are due to amount to €1.2bn and be completed this year.
“With the successful Alcatel-Lucent integration and cost-saving program soon to be behind us, we are taking steps to accelerate the execution of our strategy and sharpen our customer focus,” Suri said.
Nokia’s third-quarter net sales came in at €5.5bn ($6.27bn), slightly above expectations.
More than half of Nokia’s profits still come from its patent holdings, a legacy of the company’s mobile-phone past. In that context, Nokia also today announced that its patent license deal with Samsung is being extended.
Previous and related coverage
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Your new Porsche Taycan just got easier to track
Porsche Taycan buyers will be able to stop pestering their dealer as they wait for their all-electric sedan to arrive, with the automaker adding a new way to track production of the luxury EV. The Taycan – which received several updates for the 2021 model year, not least a bump in estimated electric range – is the second model to be added to Porsche’s Track Your Dream service.
Launched back in May 2020, Track Your Dream is basically the equivalent of obsessively hitting refresh on a FedEx or UPS shipment, but for your new Porsche. It covers the vehicle from the point of order, through to manufacturing in Germany, and then as it arrives in the US.
In total, Porsche says, there are fourteen milestones that the system counts down. That includes the start and end of production, the Taycan being loaded onto a boat in Germany and then arriving at a US port, and then its arrival at the local dealership where it’ll be prepped for handover. The app and web interface also show more background detail on each step, to help clear up confusion and also tide you over while you wait for the keys.
Porsche launched the system last year, but only for one model: the 911. The full range of that car was added, whether you were going for the most affordable 911 Carrera at $99,200, to a flagship 911 Turbo S Cabriolet at $216,300. Now, the full Taycan line-up has been added too.
That includes the freshly-announced 2021 Taycan RWD, which does away with the all-wheel drive of the previously released models. It still has 402 horsepower in Launch Control mode, and can do 0-60 mph in 5.1 seconds. Range is yet to be confirmed, however, but it’s priced from $81,250 including destination.
The rest of the model year 2021 Taycan line-up, however, has seen a range boost. In the case of the 2021 Taycan 4S with Performance Battery Plus – currently the largest pack that Porsche offers – the new car is expected to hit 227 miles under EPA testing. That’s 24 miles more than the 2020 version of the EV.
Porsche delivered 4,414 Taycan to US buyers last year, with the automaker saying that around a quarter of those went to owners in California. That’s despite Taycan production being shut down for several weeks, after the pandemic forced Porsche to pause its factories.
Kia confirms talks for cooperation on electric cars with foreign firms
Not long ago, a rumor surfaced that Kia and Apple would be working together on an autonomous electric vehicle. Neither company confirmed they were working together on a car. However, Kia has confirmed that it is reviewing cooperation on self-driving electric vehicles with multiple foreign firms.
The Korean automaker did not confirm that it was working with Apple. Kia confirmed it was working with foreign firms on electric vehicles in a regulatory filing. Kia’s stock price increased nearly 20 percent since rumors of it working with Apple began. Kia’s parent company, Hyundai Motor Group, has reportedly decided Kia will be in charge of cooperation with Apple on electric vehicles.
The most recent report cited unnamed industry sources claiming to be familiar with the deal. While Kia hasn’t confirmed that it would be working with Apple, Hyundai Motor Company did confirm that it was in early talks with Apple after rumors first surfaced that discussions for electric cars and batteries were happening. That rumor pushed shares in Hyundai up nearly 25 percent, but there has been no confirmation by Apple.
This all comes after reports last month that Apple was moving forward with its own vehicle using its own breakthrough battery technology. That report claimed vehicle production could happen as early as 2024. Other reports have indicated that vehicle production could start much later than 2024.
Apple has been working on autonomous electric vehicle technology for a long time. It was believed that Apple had abandoned the project for a while, but it now seems those reports were incorrect. One question that remains is if Apple is providing autonomous and battery technologies to other automakers or if the vehicle will be an actual Apple product.
Dacia Bigster Concept is a bigger and more stylish Duster SUV
Most US buyers are not privy to Dacia, a Romanian car brand and Renault subsidiary, known for making affordable, reliable, and quirky vehicles like the Sandero and Duster SUV. Most recently, Renault unveiled the 5 concept electric vehicle to coincide with the brand’s ‘Renaulution’ business strategy, and it seems Dacia is along for the ride with its newest Bigster concept SUV.
“Dacia will stay Dacia, always offering a trustworthy, authentic, best value-for-money proposition to smart buyers,” said Denis Le Vot, CEO of Dacia and Lada brands.
Part of ‘Renaulution’ is a new Dacia-Lada business partnership to boost both brand’s competitiveness through shared engineering and manufacturing. “With the creation of the Dacia-Lada business unit, we’ll have everything we need to bring the brands to higher lands, with the Bigster Concept leading the way,” added Le Vot.
This new partnership will enable Dacia and Lada to scale down from eighteen body styles to eleven while moving from four to a single platform to reduce manufacturing and engineering costs without compromising rigidity and design. Dacia and Lada will use the Renault-Nissan Alliance’s all-new CMF-B modular platform, which debuted in the all-new Renault Clio in 2019.
It’s the same platform underneath Dacia’s Bigster Concept SUV, a 4.6-meter long family hauler that paves the brand’s entrant in the highly-competitive C-segment. “Dacia Bigster Concept epitomizes the evolution of the brand,” said Alejandro Mesonero-Romanos, Dacia Design director. “It proves that accessible is not opposed by any means to attractiveness. At Dacia, we believe so, and this car is proof.”
Viewed from the side, the Dacia Bigster resembles a hulked-up version of the Duster. The rear profile in particular, with its rising window line and powerful haunches, is reminiscent of the Mitsubishi Montero or Pajero Sport SUV (remember, Mitsubishi is also part of the Renault-Nissan Alliance). However, the concept has “no bells and whistles, no chrome trim or imitation aluminum,” said Dacia, and the protective exterior panels are crafted from raw, recycled plastic materials.
Powering the Dacia Bigster is a combination of alternative-energy or hybrid powertrains. We’re expecting Bigster to have the same Bi-Fuel (dual petrol and LPG engine) technology as the Sandero and Duster, but an all-electric model is a distinct possibility. Meanwhile, Dacia is set to unveil Europe’s most affordable electric car, the Spring, later this year.
Dacia Bigster Concept Gallery
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