White House

 

Bonus Policy Notes: Minerals Edition — “⛏️ President Biden and Australian PM Anthony Albanese said they’re enhancing bilateral cooperation on supply chains for minerals used in low-carbon energy, Ben writes. Why it matters: Access to raw and processed materials is becoming more geopolitically important as nations look to fight climate change and ease reliance on Chinese materials. What we’re watching: One specific part of the collaboration is the U.S. Export-Import Bank and Export Finance Australia are creating a ‘single point of entry for critical mineral supply chain projects involving Australian or U.S. interests,’ a White House summary states. Bloomberg has more. Go deeper: Biden-Albanese White House remarks transcript 🛑 A bipartisan group of nine senators is urging the White House not to strike a minerals trade deal with Indonesia, a major nickel producer and processor. Why it matters: The climate law tethers EV purchase subsidies to vehicles with battery materials sourced domestically, or from free-trade partners. Yes, but: The senators, in a new letter, cite concerns around Indonesian labor rights and China’s role in Indonesian mining and refining, to name two of several complaints.” [Axios, 10/26/23 (=)]

 

 

Congress

 

Senate

 

Senators Concerned Regarding Critical Minerals Trade Agreement — “U. S. Senator Kevin Cramer (R-ND), member of the Senate Environment and Public Works (EPW) Committee, co-led a bipartisan letter expressing several concerns regarding a potential critical mineral free trade agreement between the United States and Indonesia. The letter follows reports that the Biden administration is in negotiations with Indonesia on a limited free trade agreement for critical minerals, primarily nickel. Nickel is a key component of electric vehicles (EVs). To qualify for federal subsidies under Section 30D of tax code, it must be domestically sourced or through a free trade agreement. Such an agreement would undermine nickel development in the United States while incentivizing production in Indonesia, which operates under weak environmental and labor protections and substantial Chinese influence. This policy is being pursued despite no full accounting of the domestic sourcing opportunities, or sourcing opportunities from countries that have a free trade agreement with the United States.” [The Dakotan, 10/26/23 (=)]

 

 

Joint Office of Energy and Transportation (JOET)

 

This Is A Heavyweight Bout — “More than a dozen Democrats and independents urged the Transportation and Energy departments on Thursday to expand the purview of their Joint Office that oversees EV issues to include spurring the adoption of clean heavy-duty vehicles, in addition to light-duty passenger cars. ‘We cannot … afford to focus exclusively on light-duty vehicles, as heavy-duty vehicles disproportionately contribute to poor air quality in communities along roadways and near goods movement facilities, such as ports and warehouses,’ wrote the lawmakers, led by Sen. Alex Padilla (D-Calif.) and EPW Chair Tom Carper (D-Del.). Environmental and transportation groups including the League of Conservation Voters, the Sierra Club and CALSTART also backed the letter. The senators requested that the Joint Office use existing regulatory levers and funding streams from the Inflation Reduction Act and bipartisan infrastructure law to incentivize adoption of clean heavy-duty vehicles, issue guidance for utilities and regulators to meet charging needs, and develop a ‘national vision’ and workforce training program for zero-emission heavy-duty vehicle infrastructure.” [Politico, 10/27/23 (=)]

 

 

Vehicle Manufacturers

 

Ford Motor Co.

 

Ford Again Warns On EV Results, Withdraws 2023 Forecast — “Ford Motor (F.N) on Thursday withdrew its full-year results forecast due to ‘uncertainty’ over the pending ratification of its deal with the United Auto Workers (UAW) union, and warned of continued pressure on electric vehicles, sending shares of the company down more than 4% after-hours. The union and Ford on Wednesday reached a tentative agreement that included a 25% wage hike for 57,000 workers over 4-1/2 years, ending a strike at some of the automaker’s biggest factories. Ford expects the new contract will add $850 to $900 in labor cost per-vehicle, Chief Financial Officer John Lawler said in a briefing on Thursday. The concessions made by the company are significant, said CFRA research analyst Garrett Nelson in an investor note on Thursday. ‘They will weigh on margins and affect its competitiveness relative to Tesla and other non-union automakers.’ Ford’s increasing concern about cooling EV demand follows a decision by rival General Motors (GM.N) earlier this week to postpone a $4 billion electric truck plant in Michigan.” [Reuters, 10/26/23 (=)]

 

Ford Reports UAW Strike Has Cost It $1.3 Billion, Vows To Improve Quality Issues — “Ford Motor Co. announced Thursday that it has been hit with $1.3 billion in costs by the 2023 UAW strike that lasted 41 days and ended with a tentative agreement late Wednesday. The Dearborn automaker sustained $100 million in losses during the third quarter and the remainder in the fourth quarter, according to John Lawler, Ford chief financial officer. He said the company has been losing $400 million a week since the strike began Sept. 15. While he declined to assign a total dollar value to the negotiated UAW package, Lawler did estimate an $850 to $900 added cost per unit in labor costs. ‘The company will be profitable moving forward. there’s no doubt about that,’ Lawler said during a news media call. ‘This is an increase in costs for us. This is something we’re going to have to work on. We’re going to have to find efficiencies throughout the system ... to help mitigate the impacts of higher labor costs.’” [Detroit Free Press, 10/26/23 (=)]

 

Ford Details UAW Strike Impact, Further Slows Down EV Plans — “Ford Motor Co. on Thursday detailed the financial impacts of the 41-day United Auto Workers strike that was called off just hours before, and revealed a further slowdown in its electric-vehicle rollout due to market dynamics. The Dearborn automaker reported taking a $1.3 billion hit to its earnings as a result of the strike and withdrew its earnings guidance for the rest of the year, pending ratification of the tentative agreement on a new labor contract it reached with the union Wednesday night. Meanwhile, executives said they are pushing back some $12 billion in planned spending on the company’s EV strategy and delaying the launch of one of two joint-venture battery plants it’s building in Kentucky with South Korean battery manufacturer SK On. Overall, the company delivered what executives characterized as ‘mixed’ results for the July-September period, with results dragged down by the strike and nagging cost and quality issues.” [The Detroit News, 10/26/23 (=)]

 

Ford’s EV Losses Continue Piling Up In Q3 Amid Pricing Pressure, UAW Strike — “Ford’s third-quarter earnings, released Thursday, show growing EV losses as the automaker faces pricing pressure and slowing demand. Third-quarter earnings preview Ford sold 20,962 EVs in Q3, edging out Rival General Motors. The growth was thanks to rising Mustang Mach-E output. Although Mach-E sales were down 20% through the first half of the year, Ford said it was due to a revamp at its plant in Mexico, where the model is built. Mach-E sales rose 42.5% in the third quarter, with 14,842 units sold. The Mach-E set a new record with 5,872 models sold in September alone. Meanwhile, sales of Ford’s electric pickup fell 46% in the quarter. Ford told Electrek last month that ‘F-150 Lightning production is starting to ramp after a six-week shutdown to expand the Rouge Electric Vehicle Center with limited deliveries across July and August.’” [Electrek, 10/26/23 (=)]

 

Ford Says UAW Strike Cut $1.3bn From Operating Earnings — “Ford lost $1.3bn in operating earnings due to the United Auto Workers’ strike of nearly six weeks, the company said on Thursday, a day after striking a deal with the union. The company made 80,000 fewer cars and trucks than it otherwise would have churned out during the days workers were on strike, said Ford chief financial officer John Lawler. The lost earnings at the vehicle maker eclipse the damage at Detroit rival General Motors, which said on Tuesday the strike had cost it $800mn in earnings before interest and taxes. GM put the weekly cost at $200mn in operating earnings, while Ford priced the impact at $400mn. Stellantis, the group behind the Jeep and Chrysler brands, has not yet said how much the strike is setting it back. ‘The important for thing for us was to get an agreement and get back to work and get the factories running again,’ Lawler said.” [Financial Times, 10/26/23 (=)]

 

Ford Hits Pause On EV Battery Plant Backed By $9B Federal Loan — “Ford Motor Co. said on Thursday it would pump the brakes on a massive new electric vehicle battery plant in Kentucky that was part of a slate of projects set to be backed by a record-setting $9.2 billion federal loan. The decision to postpone development of the second battery plant Ford had planned for BlueOval SK Battery Park in Glendale, Ky., is part of a freeze on $12 billion in capital spending on electric vehicles, CFO John Lawler said on an earnings call Thursday. He cited softening EV demand and noted the company’s EV unit is set to lose $1.3 billion this year. ‘We are being judicious about our production and adjusting future capacity to better match market demand,’ Lawler said. Ford still plans to complete the first Kentucky battery plant with South Korean joint venture partner SK On, as well as another planned plant in Tennessee. The $9.2 billion conditional loan commitment from the Energy Department — the largest single offer ever from the Loan Programs Office — was set to support all three facilities. ‘BlueOval SK continues to work closely with the department to finalize potential funding,’ spokesperson T.R. Reid said in a statement.” [Politico, 10/26/23 (=)]

 

Ford Will Postpone About $12 Billion In EV Investment As Buyers Become More Cautious — “KEY POINTS Ford said customers in North America are unwilling to pay a premium for an EV. The company, in turn, is postponing about $12 billion in EV manufacturing investment. Ford’s Model e EV unit lost about $3.1 billion through three quarters this year.” [CNBC, 10/26/23 (=)]

 

Ford Hits The Brakes On $12 Billion In EV Spending Because EVs Are Too Expensive — “Ford is postponing $12 billion in EV factory building, including a planned battery factory in Kentucky. The reasons given were an unwillingness by customers to pay extra for its electric vehicles. You see, they’re too expensive, and now Ford’s massive transformation into an EV company is now going to take a lot longer than before. Ford’s EV business continues to lose money, around $1.3 billion this past quarter in adjusted earnings. So far this year, Ford has lost $3.1 billion on its EV spending and has said it’s going to lose a total of $4 billion for the year. The Kentucky plant, a ‘mega campus’ that builds lithium ion batteries for electric cars, would be put on hold The Kentucky plant, a ‘mega campus’ that builds lithium ion batteries for electric cars, will be put on hold. But its Blue Oval City project in Tennessee was still moving forward. Ford’s not alone in all this, of course. General Motors is pushing back production of its new slate of electric trucks and SUVs. Tesla CEO Elon Musk spent a large chuck of his last earnings call moaning about interest rates. It’s rough out there right now.” [The Verge, 10/26/23 (=)]

 

Ford Plans 'All New' Electric Vehicle At Louisville Assembly Plant — “Ford Motor Co. is planning to produce an ‘all new’ electric vehicle at Louisville Assembly Plant once the gas-powered Escape SUV reaches the end of its life cycle in 2025, according to a source familiar with the company’s plans. The addition of an EV at Louisville Assembly in 2026 is among the plant-by-plant ‘product commitments’ Ford made to the union in the tentative four-year labor contract that the parties reached Wednesday, the source said. The UAW-Ford contracts typically include company commitments to bring new products and upgrade plants. The union prizes those commitments because they provide job security. Spokespeople for Ford and the UAW did not respond to WDRB’s request for comment Thursday about the plan for Louisville Assembly, also known as LAP. Todd Dunn, president of UAW Local 862, the local that represents the 3,200 hourly workers at LAP, said Thursday he wasn’t aware of the specific product committed to the plant, but he said all of Ford’s North American plants will receive commitments through the contract.” [WDRB-TV, 10/26/23 (=)]

 

Geely

 

Volvo Cars' Promise Of EV Boom Falls On Deaf Ears As Shares Drop 12% — “Shares of automaker Volvo Cars fell as much as 12% on Thursday as its chief executive’s promise of improved margins on battery electric vehicles (EVs) stood in stark contrast to warnings from peers. As the company reported third-quarter earnings, Chief Executive Jim Rowan told Reuters that he saw healthy demand for its cars, and was optimistic the margins would increase further in the fourth quarter. ‘I expect to see us increase our BEV margins as we go into the fourth quarter, and that is because prices of raw material are coming down,’ he said, adding that a strong order book had enabled the company to keep its premium pricing. The remarks ran counter to comments by luxury vehicle rival Mercedes-Benz, which warned of a ‘brutal’ EV market of heavy price cuts and supply chain issues, with margins on its BEVs, or battery electric vehicles, ending lower than expected. Other companies, such as General Motors, Ford, Tesla and Volkswagen had also warned that the demand for EVs was not developing as expected. Volvo’s BEV margins were 9% in the quarter, a sharp increase from the previous quarter’s figure of 3%.” [Autoblog, 10/26/23 (=)]

 

Volvo Cars CEO Strikes Cautious Tone On Solid-State Battery Technology — “KEY POINTS Volvo Cars CEO Jim Rowan struck an optimistic tone on the company’s EV future as it reported earnings, but shares fell. Rowan is bullish about the long-term potential of electric motors, but appears more cautious on solid-state battery technology. Solid-state batteries have been mooted as having a potentially transformative effect on electric vehicles.” [CNBC, 10/27/23 (=)]

 

Volvo Expects EV Momentum To Continue With Three New Electric Models Rolling Out — “Despite recent warnings from other automakers, Volvo expects EV momentum to ramp up with three new electric models launching. Volvo Cars released its third-quarter earnings Thursday, showing vehicle sales, revenue, and profit growth. Volvo’s retail sales have increased for 13 straight quarters despite many key auto markets slowing down. The growth comes amid Volvo’s rapid transition to an all-electric future. After Volvo was one of the first legacy automakers to commit to an all-EV future by 2030, the results are showing. The automaker’s pure EV sales share reached 13% in Q3, up 111% compared to last year. Volvo says, ‘This underlines how Volvo cars is well on its way to becoming one of the fastest transformers in the industry.’ Volvo expects the competitively priced EX30 electric SUV launch to strengthen its position further. The EX30 will be Volvo’s most affordable EV, starting at around $35,000.” [Electrek, 10/26/23 (=)]

 

Volvo To Boost Production Of Its Small And Speedy EX30 SUV Due To High Demand — “Volvo Cars is going to expand production capacity for its electric EX30 SUV, as it’s anticipated to be one of its best-selling models. The EX30 is going to be built in Volvo’s Ghent plant in Belgium from 2025. That expands production capacity beyond its plant in Zhangjiakou, China, where production of the EX30 started earlier this fall. The first EX30s are scheduled to reach customers later this year. The EX30 will be the third fully electric Volvo model to be produced at the Ghent plant, along with the XC40 and the C40. Volvo says that the decision to build the EX30 in Belgium as well as China boosts production capacity for the expected demand in Europe and for global export. It adds production flexibility for what the company expects to be one of its most popular models in coming years.” [Electrek, 10/26/23 (=)]

 

General Motor Corp.

 

GM’s Ultium Cells Spring Hill Plant Completion Delayed — “As GM Authority has been following for quite some time now, construction of the Ultium Cells Spring Hill plant in Tennessee was on track to begin operations by the end of the 2023 calendar year. Now, it appears as though the facility will be opening a few weeks later than originally anticipated. As General Motors outlined in its Q3 2023 earnings presentation, the Ultium Cells Spring Hill plant will open sometime early 2024 due to construction delays. For background, the Ultium Cells Warren plant has been churning out Ultium battery cells since September 2022, while the steel structure of the Ultium Cells Lansing plant was finished in March 2023. Photo of Ultium Cells Spring Hill plant. In other Ultium Cells Spring Hill news, the facility recently announced that it will bump up the starting wages for several positions. More specifically, Production Operators and Quality Inspectors will start at $20 per hour, while Crew Leads will see $22 per hour. Process Maintenance Technicians have increased to $27 – $35 per hour while Facility Maintenance Technicians can make $29 – $36 per hour, of which the exact figures will be based on the level of experience.” [GM Authority, 10/26/23 (=)]

 

GM’s Ultium Cells Plant In Tennessee Delayed Until 2024 — “General Motors, the maker of several battery-powered cars, will open its Ultium Cells plant in Spring Hill, Tennessee later than originally planned, the company said in its third-quarter earnings call earlier this week. When it was first announced in 2021, the factory was said to become operational at the end of 2023 after a $2.3 billion investment from both General Motors and LG Chem’s LG Energy Solution as part of their 50/50 joint venture called Ultium Cells LLC, but now the manufacturing facility will go online sometime early 2024 due to construction delays. ‘The Spring Hill plant will start early next year,’ said GM CEO Mary Barra. ‘There was a couple of weeks, it was supposed to originally start at the end of this year. There was a couple of weeks due to some construction delays but it now is on track, and it will ramp with all the benefit of the learnings,’ she added on the call.” [Inside EVs, 10/26/23 (=)]

 

GM Delays Opening Of Ultium Cell Plant In Tennessee — “General Motors has delayed the opening of its Ultium Cell production plant in Tennessee due to construction delays. The automaker noted in its Q3 Earnings Call earlier this week that it would push back the opening, which was scheduled to take place before the end of 2023. GM’s Ultium project will enable a new platform of EVs for the legacy automaker, bringing a software-based offensive to one of the United States’ best-selling car companies and a major player in the EV sector. Although GM and other Detroit automakers like Ford have not been able to keep pace with U.S. market share leader Tesla, the companies are on the fast track to developing competitive EVs under their own tutelage. Ultium is GM’s plan for EV development in the sector, and the company has been producing Ultium cells at another plant in Warren, Ohio. GM Authority noted that the automaker is also planning to bump up starting wages for production operators and quality inspectors at the Spring Hill plant.” [Teslarati, 10/26/23 (=)]

 

Honda Motor Corp.

 

GM And Honda Ditch Plan To Build Cheaper Electric Vehicles — “A little more than a year after announcing an ambitious plan to co-develop a lineup of affordable electric vehicles, General Motors and Honda are scrapping the deal — or at least just that one aspect of the deal. Announced in April 2022, the plan was to build a series of affordable EVs on GM’s flexible EV platform with its Ultium-branded battery packs. At the time, GM and Honda said they expected to begin production of ‘millions’ of these affordable EVs by 2027. ‘After studying this for a year, we decided that this would be difficult as a business, so at the moment, we are ending development of an affordable EV,’ Honda CEO Toshihiro Mibe said in the interview with Bloomberg, which was the first to report the news. ‘We are ending development of an affordable EV’ GM confirmed the development. ‘Last year, we began working on an affordable EV program for global markets, which was slated for introduction in 2027,’ GM spokesperson Sanaz Marbley said in an email. ‘After extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market.’” [The Verge, 10/26/23 (=)]

 

Honda Cancels Plans With GM For Affordable Electric SUVs — “Honda and General Motors will no longer co-develop a series of affordable compact SUVs, as reported to Bloomberg. Honda cited the current business environment, rising costs for the project, and challenges with getting adequate driving range. While this joint plan has been cancelled, Honda says the two companies will ‘search for a solution separately.’” [Car and Driver, 10/26/23 (=)]

 

Hyundai Motor Co.

 

Hyundai Stands By EV Plans Despite Delays From Ford And GM — “After achieving a record Q3 profit, Hyundai says it’s standing by its upcoming EV plans. The move comes despite several prominent automakers, including Ford and GM, recently delaying electric vehicle goals. Hyundai Motor, including Kia and Genesis brands, announced Q3 earnings results Thursday, showing strong profit growth. The South Korean automaker posted a record Q3 operating profit of $2.8 billion (KRW 3.82 trillion), up 146% from last year. Hyundai’s operating profit margin reached 9.3% compared to 4.1% last year. Meanwhile, net profits more than doubled to $2.4 billion (KRW 3.3 trillion). Revenue for the quarter was up 8.7% to around $30 billion (KRW 41 trillion). The growth was enough to push Hyundai past Samsung Electronics as Korea’s top earner, according to The Korean Economic Daily.” [Electrek, 10/26/23 (+)]

 

Ford Rival Hyundai Will Not Alter EV Strategy — “In the past few months, Ford decided to push back its plans to build 600k EVs annually by 2024 and two million by 2026 amid falling demand, which also prompted the automaker to temporarily reduce Ford F-150 Lightning production at the Rouge Electric Vehicle Center as well. Ford CEO Jim Farley cites pricing as one major cause of this faltering interest, as well as politics – a notion chairman Bill Ford echoed recently. However, Ford isn’t alone in that regard either, as its cross-town rival, General Motors, also recently scaled back its own EV production plans, but that seemingly won’t be the case with Hyundai, according to Reuters.” [Ford Authority, 10/26/23 (=)]

 

AP | Hyundai Rapidly Builds Its First U.S. EV Plant, Eyes 2025 Start — “The steel skeletons of buildings where Hyundai will stamp, weld, paint and assemble electric vehicles in Georgia span more than a half-mile on a sprawling site dotted with so many cranes, bulldozers and construction workers that it almost looks like they’re building a small city. A year has passed since Hyundai broke ground on the $7.6 billion vehicle and battery plant, the South Korean automaker’s first U.S. factory dedicated to producing EVs. Hyundai officials said more than 2,000 people are working each week on the rapidly progressing project west of Savannah, which the company calls its American ‘metaplant.’ ‘The site is advancing every day as we work diligently to complete this amazing project,’ Hyundai Motor Group Metaplant America CEO Oscar Kwon told reporters visiting the site Wednesday. ‘We are on track to start production in early 2025 — or, as my boss Jose Munoz likes to say, if not sooner.’ Munoz, Hyundai’s president and global chief operating officer, said last month that the company has accelerated construction to take advantage of federal incentives that reward domestic production of EVs. He said it’s possible the plant could open before the end of next year.” [E&E News, 10/27/23 (+)]

 

Mercedes-Benz Group AG

 

Mercedes Warns ‘Brutal’ Price War In Electric Vehicles Has Hurt Profits — “Mercedes-Benz’s profits have been hit by a ‘brutal’ price war in electric vehicles as demand lags behind in the face of a weaker economy. It forecast adjusted profit margins this year at the lower end of its previously guided 12 to 14 per cent range because of a ‘subdued’ economy, ‘intensified pricing competition’ and shortages of 48-volt batteries. The warning hit the German premium carmaker’s shares, which tumbled 5 per cent to €58.05 in Frankfurt by late morning. Chief financial officer Harald Wilhelm told analysts that while Mercedes had drawn a ‘red line’ in terms of how low it would go on price, he had seen rivals offering discounts of nearly a third. Others were pricing more costly electric vehicles at the same range as combustion engine models, he added. ‘I would say this is a pretty brutal space.’” [Financial Times, 10/26/23 (=)]

 

Stellantis NV

 

Stellantis Takes $1.6 Billion Stake In China’s Leapmotor, Forming JV To Sell Its EVs In Europe — “One year after filing for bankruptcy with its Jeep joint venture in China, Stellantis has found a new partner in EV startup Leapmotor to utilize its existing technology ecosystem as part of a $1.6 billion joint venture that will expand availability of the Chinese EVs in new markets in Europe, possibly beyond. Stellantis is a global automotive conglomerate looking to maintain its foothold in the market by electrifying several marques under its umbrella (much to the chagrin of CEO Carlos Tavares). The company is currently responsible for brands like Dodge, Fiat, Maserati, Jeep, and RAM, to name a few, selling vehicles in major auto markets like Europe and North America. Previously, Stellantis operated a Jeep joint venture in China with GAC Group that it inherited from Fiat Chrysler Automobiles (FCA) before its merger with Peugeot S.A. in early 2021 that birthed its current iteration. Last October, Stellantis announced it was terminating the JV with GAC, citing dwindling sales and, according to Tavares, a ‘broken trust’ with one of the top five automakers in China. GAC clapped back, citing a ‘lack of respect’ from the Stellantis chief, setting the stage for a bankruptcy filing, thus solidifying its expiry.” [Electrek, 10/26/23 (=)]

 

AP | Stellantis Plans To Invest $1.6B In Chinese EV-Maker Leapmotor — “Stellantis plans to invest about €1.5 billion, or about $1.6 billion, in Leapmotor, a Chinese electric vehicle manufacturer, the companies said late Wednesday. The European-based maker of Jeep and Ram and Leapmotor said in a joint statement that they have formed a strategic partnership and joint venture that aims to expand the Chinese EV-maker’s sales both inside and outside of China. Stellantis said it expects to benefit from Leapmotor’s ‘tech-first EV ecosystem’ in China to meet its own targets for shifting to electric vehicles. The investment will give Stellantis an approximately 20 percent stake in Leapmotor. The companies said the 51 percent Stellantis-led joint venture will have exclusive rights to export and sell Leapmotor’s vehicles outside China. Leapmotor has focused on the mid- to high-end of the EV market in China, selling 111,000 electric vehicles in 2022. So far it has introduced three EV models, the BEV T03, the SUV C11 and the C01 sedan.” [E&E News, 10/27/23 (=)]

 

Jeep, Dodge Maker Stellantis To Invest $1.6 Billion In Chinese EV Startup Leapmotor — “KEY POINTS Stellantis on Thursday said it will invest 1.5 billion euros ($1.58 billion) in Chinese electric vehicle startup Leapmotor. Stellantis is looking to boost its presence in China, where it is a small player, while Leapmotor has ambitions to expand aggressively into Europe. China, the world’s biggest electric vehicle market, is dominated by domestic company BYD, as well as U.S. automaker Tesla, while domestic startups like Xpeng and Nio are also generating intense competition.” [CNBC, 10/27/23 (=)]

 

Stellantis To Invest €1.5bn For 20% Stake In Chinese EV Maker Leapmotor — “Stellantis will invest €1.5bn to acquire about 20 per cent of Chinese electric vehicle start-up Leapmotor in a fresh attempt to crack China’s car market and capitalise on what it called a Chinese ‘offensive’ in other regions. Stellantis, which makes Jeep cars in the US and owns the Fiat and Citroën brands in Europe, will form a joint venture to sell Leapmotor’s electric vehicles outside China. The European carmaker will also take two seats on the board of the Hong Kong-listed company and appoint the joint venture’s chief executive. The investment marks a renewed bid by Stellantis to make inroads in China at a time of consolidation in the local market, after it unwound previous ventures in the country that proved disappointing.” [Financial Times, 10/26/23 (=)]

 

Stellantis Takes $1.6 Bln Leapmotor Stake To Revive China Fortunes — “Stellantis said on Thursday it is buying a 21% stake in EV maker Leapmotor in a $1.6 billion deal that will give it a fresh shot in China, the world’s biggest car market by sales, and the smaller Chinese carmaker a European foothold. Legacy international carmakers are playing catch-up in the shift to electric vehicles and the deal gives Stellantis (STLAM.MI) access to Leapmotor’s advanced technology. Meanwhile, a growing number of Chinese EV makers are launching lower-cost models across Europe. ‘The Chinese offensive is visible everywhere,’ Stellantis CEO Carlos Tavares told reporters. ‘With this deal we can benefit from it rather than being the victims of it.’ Stellantis, formed at the start of 2021 through the merger of France’s PSA with Fiat Chrysler (FCA), has struggled to sell cars in China and has sought a reset in the country, where it has a joint venture with Dongfeng Motor Group (0489.HK).” [Reuters, 10/26/23 (=)]

 

Stellantis Buys Piece Of Chinese EV Maker Leapmotor For $1.85 Billion — “Stellantis said Thursday it is spending $1.85 billion to buy about 20% of Chinese EV company Leapmotor in a new strategic global EV partnership. It creates Leapmotor International, a 51/49 Stellantis-led joint venture for markets outside China. According to Stellantis, it’s an industry-first global EV partnership between a leading automaker and a Chinese ‘pure-play NEV OEM.’ The partnership is designed to accelerate Leapmotor’s sales in China while leveraging Stellantis’ global operations to grow Leapmotor’s brands in Europe and other global markets. ‘As consolidation unfolds among the capable electric vehicles start-ups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China,’ said Stellantis CEO Carlos Tavares in a statement. ‘We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours.’” [UPI, 10/26/23 (=)]

 

A New Deal Shows How Chinese EVs Can Eventually Come To The U.S. — “Thursday, Stellantis (ticker: STLA) announced a $1.6 billion investment in Chinese EV maker Leapmotor (9863.Hong Kong) that could be the start of Chinese-made EVs coming to the U.S. The deal includes the formation of a joint venture for the ‘export and sale, as well as manufacturing, of Leapmotor products outside greater China.’ Stellantis will own 51% of the venture. That could mean Chinese BEVs from Leapmotor become available at Jeep dealerships in the U.S. Stellantis didn’t immediately respond to a request for comment about export locations. There aren’t any Chinese EVs sold in the U.S. today. The closest geographically U.S. car buyers can get to a BEV from a new Asian auto maker is VinFast Auto (VFS) vehicle made in Vietnam. Polestar Automotive (PSNY) manufactures its EVs in China. But it has its roots in Swedish auto maker Volvo. Kia (000270.Korea), Hyundai Motor (005380.Korea), Mazda (7261.Japan), Nissan (7201.Japan), and Toyota Motor (TM), of course, all sell battery electric vehicles, or BEVs, in the U.S. They are also established auto maker and sell gasoline-powered vehicles too. Chinese EVs are available in Europe. Safety regulations in China and Europe match more closely than safety regulations between China and the U.S. That’s one reason Chinese auto makers export to Europe before trying to penetrate the U.S. market.” [Barron’s, 10/26/23 (=)]

 

Jeep Maker Stellantis Bets On A Chinese EV Startup, But Is It The Right One? — “Buying into a Chinese automaker sounds like a great answer to the challenge of making cheaper electric vehicles. If only it were easier to pick winners. Chrysler owner Stellantis STLA -2.17%decrease; red down pointing triangle said Thursday that it was spending the equivalent of about $1.6 billion to buy a roughly 20% stake in Zhejiang Leapmotor Technology 9863 -1.98%decrease; red down pointing triangle. It will get two board seats and become Leapmotor’s exclusive export partner via a Europe-based joint venture in which Stellantis will own 51%. The deal will draw comparisons with Volkswagen’s $700 million investment in Xpeng, another Chinese EV maker, in July. Both can be interpreted as admissions that Western car manufacturers need Chinese EV technology, just as Chinese ones once needed Western gasoline-engine tech. But whereas Volkswagen and Xpeng are cooperating on developing VW-badged vehicles for the Chinese market, Stellantis and Leapmotor are teaming up to sell Leapmotor models outside of China. VW is worried about its falling share of the Chinese market, which it led until earlier this year. Stellantis, which had all but left China after falling out with a previous JV partner, is worried about its market share elsewhere.” [The Wall Street Journal, 10/26/23 (~)]

 

How Stellantis’s Investment In Leapmotor Could Boost China’s EV Dominance — “Stellantis, the Netherlands-based Jeep and Chrysler maker, is making a big bet on China: It’s shelling out €1.5 billion ($1.6 billion) for a 21% stake in the Chinese electric vehicle maker Leapmotor. The move is borne of desperation: Stellantis, which was formed in 2021 through the merger of France’s PSA and Fiat Chrysler, has struggled to reverse declining sales in China amid fierce local competition. China accounts for just 1% of its revenue (pdf, p. 286); a decade ago, Fiat Chrysler made 5% of its sales there (pdf, p. 167). Last year, its Jeep joint venture in China filed for bankruptcy. In a statement, Stellantis said it hopes to ‘leverage Leapmotor’s tech-first EV ecosystem in China’ to support its electrification goals and ‘address a white space in our business model and benefit from Leapmotor’s competitiveness.’ The Stellantis-Leapmotor tie-up comes just months after German carmaker Volkswagen made a $700 million investment to buy a 5% stake in Chinese EV maker Xpeng. That deal was focused on helping Volkswagen develop EVs for the Chinese market.” [Quartz, 10/26/23 (=)]

 

Report: Dodge’s First EV May Be Available Without The E — “The Dodge Charger Daytona SRT Concept could be one of the most important electric vehicles (EVs) in the automotive industry’s near future. Dodge’s ‘electric muscle car,’ the Charger Daytona, could either prove that muscle car fans can be convinced to come along into the electric era or prove once and for all that they can’t. Or — the company could make a gas-powered variant as well as the all-electric model. That’s an option, according to a new report. The Drive reports, ‘The next-generation Dodge Charger will offer both a full-electric version and a gas version powered by the company’s 3.0-liter ‘Hurricane’ twin-turbo inline-6 engine.’ The outlet quotes ‘a source connected to a supplier with firsthand information of Dodge’s production plans.’ That’s a roundabout way of getting to the information, but The Drive has some compelling evidence for its claim — photos of a Charger Daytona monocoque under construction with a distinct transmission tunnel down the center. Electric cars lack traditional transmissions.” [Kelley Blue Book, 10/26/23 (=)]

 

Tesla Inc.

 

Tesla Continues To Be Adamantly Non-Union — “On Wednesday morning, the New York Times reported that the United Automobile Workers (UAW) union shut down production at General Motors’ (GM’s) largest US factory, ‘significantly stepping up pressure on the large US automakers as signs multiplied that the 6-week strike is taking a toll on profits.’ The strike in Arlington, Texas, is a lynchpin in the UAW strategy to target GM’s most profitable vehicles. Meanwhile, 200 miles away in Austin, Tesla’s Gigafactory continues to have a non-union workforce. Yes, some Tesla employees have attempted to unionize in the past, but they have seemingly never been close to doing so. Detroit automakers perceive non-union automakers like Tesla to be a real competitive threat — one that inhibits their ability to agree to striking workers’ calls for cost-of-living wages, bigger benefit packages, and enhanced workplace conditions.” [CleanTechnica, 10/26/23 (=)]

 

Tesla Slightly Increases Model Y Price – Breaking Trend — “Tesla has increased the price of its popular Model Y Long Range today – bucking a trend that has been worrying investors. Over the last year, the trend for Tesla has undoubtedly been price cuts. The automaker claims to be closely tracking orders and comparing them to its production capacity, and when there’s a discrepancy, it has primarily relied on price cuts to close the gap. CEO Elon Musk has put most of the blame for demand issues on interest rates, making monthly payments on car loans less affordable. It resulted in about a dozen price cuts through the last year across the company’s entire EV lineup – with the last price drop on Model 3 and Model Y coming just earlier this month. There have been a few small price increases, but they have been rare, and in between many price drops.” [Electrek, 10/27/23 (=)]

 

Tesla Model Y On Track To Become Europe’s Best-Selling Car In September — “The Tesla Model Y is on a roll when it comes to sales on the Old Continent, with preliminary data from Dataforce showing that the American midsize electric crossover is poised to become Europe’s best-selling car in September. According to Automotive News Europe, the German-made EV has been the most popular car in this part of the world for six out of the first nine months of the year, earning the first spot on the top 50 list of best-selling passenger vehicles between January and September. Last month, Dataforce’s preliminary numbers show that the Tesla-branded EV saw 26,370 sales in Europe, a decrease of about 8 percent compared to September 2022, while the next car on the list was the French Peugeot 208 city car, with 21,111 units sold. The Renault Clio was in third place with 19,731 sales, followed by the soon-to-be-retired ICE Volkswagen Golf with 19,317 units sold, while the Romanian-built Dacia Sandero closed the top 5 list with 18,587 cars sold.” [Inside EVs, 10/26/23 (=)]

 

Toyota Motor Corp.

 

Akio Toyoda Says Slowing EV Demand Proves He Was Right All Along — “Toyota has been one of the slower adopters of electric vehicles, as it’s watched the rest of the industry scramble to invest billions of dollars in them. Instead of jumping right into EVs, the automaker’s remained equally invested in hybrid and even hydrogen technologies, as it feels there are multiple ways to reduce overall emissions. And with EV sales slowing in 2023, demand shrinking, and interest rates potentially growing, other automakers are starting to understand what Toyota has been saying for years. ‘There are many ways to climb the mountain that is achieving carbon neutrality,’ former Toyota CEO, now chairman Akio Toyoda recently told reporters at the Japan Mobility Show, as quoted by the Wall Street Journal. Electric cars are already more expensive than their gasoline or hybrid counterparts. Combine higher costs with range and charging obstacles, all in the face of a looming global recession, and customers have lost some interest in pure electric vehicles.” [The Drive, 10/26/23 (=)]

 

Volkswagen Group

 

Volkswagen EV Deliveries Increase By 45% Since January 2023 — “Volkswagen recently published its third quarter sales volumes and revenues and reported that its electric vehicle (EV) deliveries have increased by 45% from January to September 2023. VW delivered 531,500 EVs in the first nine months of the year, making up 7.9% of deliveries. In the third quarter, 9.0% of Volkswagen’s deliveries were electric vehicles. The German automaker aims to have electric vehicles make up 8% to 10% of total deliveries yearly. ‘From January to September, Europe remained the main BEV growth driver, with an increase of 61 percent to 341,100 vehicles. In the U.S., BEV deliveries rose by 74 percent to 50,300 units, and in China, they exceeded the previous year’s level with an increase of 4 percent to 117,100 units,’ reported Volkswagen.” [Teslarati, 10/26/23 (+)]

 

Volkswagen Says EV Orders Are Down 50% In Europe — “After releasing its results for the first nine months of the year, Volkswagen’s CFO said EV orders are down 50% in Europe. VW’s order intake fell short, attributed to a slowdown in the overall market. The Volkswagen Group announced Thursday that EV deliveries increased by 45% YOY, reaching 531,500 in the first nine months of the year. VW’s EV sales share stood at 9% in the third quarter for a total of 7.9% through September. The company said it remains on track to hit its (previously lowered) annual target of 8-10%. Europe was Volkswagen’s biggest EV market, accounting for over 341,000 electric models (+61%) sold through September. China, the automaker’s biggest market in terms of profits, was next with 117,100 models sold (+4%). EV deliveries in the US rose 74% to 50,300.” [Electrek, 10/26/23 (-)]

 

 

Fleet Operators

 

Hertz Corp.

 

Hertz Has 35,000 Teslas In Its Fleet, Not Close To 100,000 Planned — And Why — “The story of Hertz planning to buy 100,000 Teslas is one of the standout electric car stories of the past few years. It was even a notable one in the context of Tesla’s meteoric stock rise, as the stock [NASDAQ:TSLA] surpassed a market cap of $1 trillion for the first time the day after the Hertz announcement in October 2021. (It’s current market cap is just under $645 billion.) But the big deal — the big point — was that electric vehicles were going mainstream. Unfortunately, some hurdles were around the corner. There’s a lot of ‘slow down the EV revolution’ hype in the U.S. right now. Part of that may be due to automakers discovering their expectations for EV sales growth were higher than realistic. Part of that may be automakers trying to stir unhelpful, misleading, anti-EV nonsense into the discussion — as they’ve been doing for years, or even decades. Part of that may be an attempt to find a scapegoat in a tough auto industry climate. Part of that may be related to the fact that so many people (nearly 7% of those financing a car) are 60+ days behind on their payments — the most in about three decades! Part of the issue may simply be poor EV education.” [CleanTechnica, 10/26/23 (=)]

 

Tesla Price Cuts Hinder Hertz Earnings As It Misses Profit Estimates — “Tesla’s price cuts throughout the third quarter provided challenges for rental company Hertz (NASDAQ: HTZ), who adopted the electric automaker’s vehicles in 2021 for its fleet. The swings in pricing hindered Hertz’s Q3 earnings report, as it missed profit estimates. Hertz said it would slow down EV adoption while it learns to manage costs, CEO Stephen Scherr said on Thursday, according to Bloomberg. Tesla and Hertz signed a massive deal for 100,000 vehicles in 2021, marking the start of a major partnership and an overall shift in the landscape of the rental sector in the U.S. Hertz has roughly 35,000 Teslas in its EVs, which has climbed to 50,000 total vehicles, or 11 percent of its total fleet. Tesla, on the other hand, has been cutting prices to enable more affordability for buyers, attempting to get some vehicles as close to or even below the $30,000 price point after government and state incentives.” [Teslarati, 10/26/23 (=)]

 

 

Big Oil & Utilities

 

BP plc

 

Reuters | Tesla Gets $100 Mln US Ultra-Fast Charger Order From BP EV Charging Unit — “BP’s electric vehicle charger unit is ordering $100 million worth of Tesla ultra-fast chargers for rollout in the United States, the first deployment of Tesla’s chargers on an independent network, the companies said on Thursday. The purchase is part of BP Pulse’s plans to invest up to $1 billion in charging stations across the U.S. by 2030 and it offers EV market leader Tesla a new revenue stream. ‘Selling our fast-charging hardware is a new step for us, and one we’re looking to expand,’ Tesla’s senior director for charging infrastructure Rebecca Tinucci said in a statement. BP said the Tesla chargers will be rolled out as early as 2024 at BP brands including Travel Centers of America and Amoco, plus at third-party locations via partnerships with companies like rental car company Hertz - which has its own agreement to buy Teslas for its fleet. The first charges will be installed in Houston, Phoenix, Los Angeles, Chicago and Washington, BP said. ‘(This) is a major step forward in our ambitions for high speed, open access charging infrastructure in the U.S.,’ BP Pulse global CEO Richard Bartlett said.” [Yahoo! Finance, 10/26/23 (=)]

 

Bp Inks $100M Deal To Boost EV Charging Network — “Electric vehicle (EV) charging stations are coming to more convenience stores across bp’s network. In a new deal, bp’s EV charging business, bp pulse, will acquire ultra-fast charging hardware units from Tesla for $100 million. The investment will facilitate the expansion of the bp pulse public network across the United States, while also enabling support for EV fleet customers by deploying chargers at their private depots. This marks the first time the hardware for Tesla’s chargers will be purchased for an independent EV charging network, according to bp.” [Convenience Store News, 10/26/23 (=)]

 

BP Buys $100M Of Tesla Chargers For U.S. Cities — “In the latest venture by an oil major into electric vehicles, British petroleum firm BP said Thursday it will spend $100 million to buy Tesla charging stations and install them in major American cities. This is the first time Tesla has sold its charging stations to another company, rather than adding them to its own network. The chargers will be branded BP Pulse, the name of the charging venture the oil company began five years ago. The news comes as Tesla settles in as the dominant presence in EV charging. This year, leading automakers including General Motors, Ford, Hyundai, Honda, Toyota and others have adopted Tesla’s charging standard, which previously only served Teslas. ‘Selling our fast-charging hardware is a new step for us, and one we’re looking to expand in support of our mission to accelerate the world’s transition to sustainable energy,’ said Rebecca Tinucci, Tesla’s director of charging infrastructure, in a statement supplied by BP. The charging units — the fast ones that Tesla calls Superchargers and that deliver up to 250 kilowatts — will appear both at gas stations and at new urban charging hubs that BP is establishing with car rental company Hertz. BP said the first locations will go online starting next year in Chicago, Houston, Los Angeles, Phoenix and Washington, D.C.” [E&E News, 10/27/23 (=)]

 

Tesla Is Selling $100 Million Worth Of Superchargers To BP In First Of Its Kind Deal — “BP announced in a press release: ‘Today bp (NYSE: bp) announced a deal in which bp pulse, bp’s EV charging business, will acquire ultra-fast charging hardware units from Tesla (NASDAQ: TSLA) for $100 million. The investment will facilitate the expansion of the bp pulse public network across the US, while also enabling support for EV fleet customers by deploying chargers at their private depots. The introduction of Tesla’s chargers to the bp pulse network is the first time the hardware will be purchased for an independent EV charging network.’ The deal will involve Tesla supplying its Supercharger hardware with Magic Dock, which supports CCS vehicles on top of Tesla vehicles. The rollout will start next year at a bunch of different BP locations: ‘The roll-out is planned to begin in 2024 and locations will include key sites across the bp family of brands, including TravelCenters of America, Thorntons, ampm; and Amoco, as well as at bp pulse’s large-scale Gigahub™ charging sites in major metropolitan areas and at third-party locations, such as Hertz locations, as part of previously announced collaborations. The first installation sites have been identified in Houston, Phoenix, Los Angeles, Chicago; and Washington D.C.’” [Electrek, 10/26/23 (=)]

 

BP Expands EV Network With Tesla Chargers — “Charging Network Expansion: BP plans to embed Tesla’s chargers within the bp pulse network by 2024, encompassing BP, Amoco, ampm; Thorntons-branded sites, and more. Diverse Deployment: The charging units will be strategically placed in major cities like Houston, Phoenix, and Los Angeles, with third-party venues like Hertz being part of the plan. Enhanced Fleet Solutions: The fusion of bp pulse’s Omega software and Tesla’s reliable chargers will offer comprehensive EV fleet charging solutions. Charger Features: Tesla’s ultra-fast chargers, with an output of 250 kW, will be equipped with the ‘Magic Dock’, compatible with NACS and CCS connectors, facilitating varied EV models to use the infrastructure. The Plug and Charge protocol will be supported, automating payment processes.” [The EV Report, 10/26/23 (=)]

 

BP To Pay $100 Million For Tesla Ultra-Fast Charging Hardware — “BP Plc BP, +0.70% BP, -0.52% announced Thursday a deal in which it will pay Tesla Inc. TSLA, -1.89% $100 million for ultra-fast charging hardware units. The deal will help BP Pulse, the U.K.-based oil giant’s electric vehicle charging network, expand its U.S. network. BP noted that the deal marks the first time the Tesla charging hardware will be bought for an independent EV charging network. The rollout of the new hardware is expected to begin in 2024. Tesla’s stock slipped 0.8% in premarket trading toward a five-month low and BP’s U.S.-listed shares shed 1.1%, while futures ES00, -0.26% for the S&P 500 SPX, -1.43% lost 0.3%.” [MarketWatch, 10/26/23 (=)]

 

BP To Purchase $100 Million In Tesla Superchargers — “As most major automakers prepare to incorporate Tesla’s charging ports into their vehicles, BP announced Thursday that it will purchase $100 million of the company’s ultra-fast chargers for its independent EV charging network. What You Need To Know The oil and gas company, bp, will purchase $100 million Tesla ultra-fast chargers for its growng bp pulse EV charging network bp pulse plans to invest $1 billion in U.S. EV charging by 2030, $500 million of which will be invested within the next three years The bp pulse Tesla chargers will be available at bp, Amoco, ampm, Thorntons and TravelCenters of America Houston, Phoenix, Los Angeles, Chicago and Washington, D.C. will be the first cities” [Spectrum News NY 1, 10/26/23 (=)]

 

Bp (BP) Orders $100M Of Tesla (TSLA) Chargers  “Today bp (NYSE: bp) announced a deal in which bp pulse, bp’s EV charging business, will acquire ultra-fast charging hardware units from Tesla (NASDAQ: TSLA) for $100 million. The investment will facilitate the expansion of the bp pulse public network across the US, while also enabling support for EV fleet customers by deploying chargers at their private depots. The introduction of Tesla’s chargers to the bp pulse network is the first time the hardware will be purchased for an independent EV charging network. The roll-out is planned to begin in 2024 and locations will include key sites across the bp family of brands, including TravelCenters of America, Thorntons, ampm; and Amoco, as well as at bp pulse’s large-scale Gigahub™ charging sites in major metropolitan areas and at third-party locations, such as Hertz locations, as part of previously announced collaborations. The first installation sites have been identified in Houston, Phoenix, Los Angeles, Chicago; and Washington D.C.” [StreetInsider.com, 10/26/23 (=)]

 

Tesla’s First Big Supercharger Deal Is A $100 Million Sale To BP — “BP is buying $100 million of Supercharger hardware from Tesla, making it the first company to purchase DC fast-charging equipment from the automaker for use in a third-party charging network. The sale is going to the oil and gas conglomerate’s EV charging business known as BP Pulse, which plans to invest up to $1 billion in building a nationwide charging network by 2030, including $500 million over the next two to three years. Tesla’s equipment can charge at up to 250kW and features a Magic Dock connector to connect using the standardized North American Charging Standard (NACS) plug from Tesla or a CCS Combo attachment that supports most other EVs. The press release doesn’t mention whether the deal covers Tesla’s updated V4 Superchargers, which are only just starting to roll out in the US. BP Pulse plans to start installing the new chargers next year at businesses under the BP family of brands, like TravelCenters of America, Thorntons, Ampm, Amoco, its upcoming ‘Giga hub’ charging sites, and third-party locations like Hertz rental car sites. The first deployment locations on the list will include Houston, Phoenix, Los Angeles, Chicago, and Washington, DC.” [The Verge, 10/26/23 (+)]

 

 

United Auto Workers (UAW) Strike

 

UAW National Council Set To Vote On Ford Tentative Agreement On Sunday — “The tenative deal between the United Auto Workers union and Ford will take crucial steps toward becoming final this weekend. The union and the automaker struck a deal on Wednesday after 40 days on strike. General Motors and Stellantis are still at the negotiating table. Related: What benefits are in the ‘historic’ UAW tentative agreement with Ford? The proposed deal would give workers a 25% boost in pay over the life of the contract, plus cost-of-living adjustments and much more. Union leaders say this is the best wage increase and deal they’ve had in over 20 years. Now, Ford workers and union leaders are taking the next steps in the ratification process. According to the UAW, the agreement is just the first of five steps that will be taking place over the next several days.” [WXYZ-TV, 10/26/23 (=)]

 

UAW Members On Picket Lines After Ford Deal Still Waiting To Learn More About Agreement — “Robert Carmichael stood on a UAW picket line in Pontiac on Thursday afternoon, but he wasn’t there for his strike shift. That would have been the night before at his home plant, Ford’s Michigan Assembly in Wayne, but with Ford and the United Auto Workers union reaching a deal on a tentative agreement, his strike shift was called off. Instead of staying home, however, Carmichael, 43, was outside a GM parts distribution facility. Robert Carmichael, 43, of Detroit, left, works at the Ford Wayne Assembly Plant but wanted to support his girlfriend, Maranda Barker, 38, who works at GM’s Pontiac Redistribution Center on Thursday, Oct. 26, 2023. ‘I’m here to support my girlfriend. We are a union household,’ said Carmichael, a tire specialist at his plant, referencing Maranda Barker, 38, whose job involves picking parts and shipping them. The couple live in Detroit and have been together for three years, and on this warm October afternoon they were standing together on the picket line. Like many other workers at the Detroit Three, Carmichael and Barker were waiting for more details about the tentative agreement with Ford, which union officials said includes a 25% wage increase over the life of the contract.” [Detroit Free Press, 10/26/23 (=)]

 

UAW Tentative Agreement With Ford Gives Striking GM, Stellantis Workers In Illinois Hope — “UAW workers at GM and Stellantis facilities in Illinois, like the Stellantis parts distribution center, have been on strike for five weeks now and are ready for a deal of their own. They said they may still be fighting but the tentative agreement with Ford gives them some hope. ‘Who wants to be the last one out there on the island by themselves, go right ahead. So if I’m Stellantis, I’m jumping aboard saying hey let’s do this now,’ said Trey Durant, striking UAW member. Durant and his fellow UAW members in Naperville said they’re cautiously optimistic after the news about the Ford deal. ‘I think the consensus for all my brothers and sisters from Ford General Motors and Chrysler/Stellantis, that the 25 percent was a win,’ Durant said.” [WLS-TV, 10/26/23 (=)]

 

Local UAW Members React To Union’s Tentative Agreement With Ford — “The United Auto Workers union announced Wednesday that it had reached a tentative agreement with Ford for a new four-year contract. The union has been calling on local units to strike since Sept. 15. On Sept. 15, union leadership called on three units to go on strike immediately, one of those three was Local 12 in Toledo. The tentative agreement between the UAW and Ford would raise the general wage by 25% while increasing the starting wage by roughly 68% according to UAW Vice President Chuck Browning. ‘The 25% we want more, they have made good money in the past year and it’s time to pay,’ Eric Anderson, another striker in Toledo said. UAW Local 12 members work at the Toledo Assembly Complex (Stellantis) and are hopeful the tentative deal with Ford will get Stellantis to offer something similar. ‘It seemed to be a good deal, so I hope they can implement that at our plant,’ striking Toledo Assembly Complex worker Armond Wright III said.” [WTVG-TV, 10/27/23 (=)]

 

Ford Workers To Return To Work As UAW Turns To GM, Stellantis — “Ford (F.N) autoworkers were set to begin heading back to work after the United Auto Workers (UAW) union reached a tentative labor deal with the company late Wednesday. Ford was the first of Detroit’s Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September, a deal that will likely set a pattern for reaching deals with General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI). The UAW met on Thursday morning with GM and was to meet with Stellantis later in the day. Sources briefed on the matter say GM and the UAW are fairly close on economic issues. The Ford agreement, which still must be ratified by union members, includes a 25% wage hike over the life of the 4-1/2-year contract, a boost in retirement contributions, and the elimination of lower-pay tiers for workers in certain parts operations at Ford. It also reduces the time to get to top pay from eight to three years, and the UAW won the right to strike over plant closures.” [Reuters, 10/26/23 (=)]

 

‘We Won Things Nobody Thought Possible’: UAW Reaches Tentative Deal With Ford — “The United Auto Workers said on Wednesday night that the union has a potential deal with Ford Motor Co. to end the strike against the automaker after 41 days on strike against the Detroit Three — which also includes General Motors and Stellantis. The agreement includes a 25% wage increase over 4.5 years, starting with an initial pay hike of 11%. UAW members will have to ratify the deal. ‘The gains in the deal are valued at more than four times the gains from the 2019 contract,’ the union said in a statement. In a video address by UAW President Shawn Fain and UAW Vice President Chuck Browning, the union leaders gave some details of the agreement, while outlining next steps in the ratification process.” [Alaska Beacon, 10/26/23 (=)]

 

Back To Work — “Thousands of Ford employees returned to work Thursday after a six week strike — and are set to vote on a proposal that would increase their wages by about 25 percent. The UAW said workers would head back to the assembly line during the ratification process, and the production of lucrative SUVs and trucks at Ford’s Kentucky Truck facility (the largest Ford facility on strike) is likely to resume quickly. The tentative agreement with Ford provides a roadmap for negotiations with GM and Stellantis, which remained in talks with the UAW on Thursday. Ellen Hughes-Cromwick, an economist on Third Way’s Climate and Energy program and previously the chief economist for Ford Motor Co. for over 18 years, said she expects GM and Stellantis ‘to follow the pattern rather rapidly.’ ‘It’s not in their interest to be on strike at this point now that the Ford plants, particularly the pickup truck and SUV plants, are coming back online,’ Hughes-Cromwick said. Rank-and-file workers will need to ratify the agreement (which isn’t always a given), but as Tanya, Olivia Olander and Nick Niedzwiadek reported Wednesday night, reaching a deal with autoworkers will make the White House breathe easier as President Joe Biden’s reelection campaign begins to ramp up in earnest.” [Politico, 10/27/23 (=)]

 

One Down, Two To Go: Autoworkers Get A Tentative Deal With Ford — “Forty days after the United Auto Workers went on strike against Detroit’s Big Three automakers, the union has reached a tentative agreement with one of the companies in question: Ford. It means deals with General Motors and Stellantis may soon be on the horizon, too. On Wednesday, the UAW announced that its negotiators had made a tentative deal with Ford on a new four-year contract for members. In a video, UAW president Shawn Fain and international vice president Chuck Browning laid out some of the details of the agreement and what comes next. ‘For months we’ve said that record profits mean record contracts. And UAW family, our stand-up strike has delivered,’ Fain said in the video. The ‘stand-up strike’ is the union’s strategy of having different plants and workers go on strike at different times. The idea is to increase leverage and keep the companies guessing about what would be next. The union began striking, starting with three plants across Ford, GM, and Stellantis, on September 15.” [Vox, 10/26/23 (=)]

 

UAW Strike At GM, Stellantis Continues As Ford Strike Ends — “The United Auto Workers union strike at Ford Motor Company was brought to an end Wednesday when both sides reached a tentative contract agreement, but the auto strike at the rest of the Big Three was still active. Striking autoworkers were told to return to work at Ford facilities while a tentative agreement reached Wednesday, Oct. 25 was in the process of being ratified. More than 16,000 UAW autoworkers were set start working again at Ford’s Michigan Assembly Plant, Kentucky Truck Plant, and Chicago Assembly Plant. But the UAW only reached a deal with Ford on Wednesday amid its nationwide strike against Detroit’s Big Three automakers, meaning the strike would continue at General Motors and Stellantis until those companies also reached a deal with the union. It wasn’t immediately clear Thursday just how soon that could happen, though both sides have expressed their eagerness for the strike to end for good.” [WDIV-TV, 10/26/23 (=)]

 

The UAW-Ford Deal: What’s In The Contract, Who Won And What It Means For GM And Stellantis — “If approved, the deal would raise workers’ wages by 25% over the life of the 4½-year contract, boosting the top pay to $40 an hour. Currently, assembly line workers max out at about $32 an hour. Members would receive 11% of that increase upon ratification. The new contract would also shorten the time it takes for production workers to hit that top pay level, reducing it to three years from eight under the agreement that expired in September. Ford members are also expected to receive cost-of-living adjustments to protect wages against inflation, a benefit that was suspended in 2009. Temporary workers will see significant raises of more than 150% over the life of the contract. While union officials didn’t disclose an exact figure Wednesday, Ford had previously offered these workers a wage of about $21 an hour, a jump from the around $17 earned originally. UAW-represented retirees would also enjoy improved benefits if the deal is ratified, including more for pensions and 401(k)s. As UAW workers fight for job security amid the industry’s shift to electric vehicles, the union also secured a key victory at Ford: the right to strike over plant closures. This is the first time in UAW history it has had such a right, union leaders said Wednesday. The UAW plans to release the full details of the contract publicly Sunday.” [The Wall Street Journal, 10/26/23 (=)]

 

Tentative Agreement With Ford Is A Big Win For UAW, Experts Say — “United Auto Workers President Shawn Fain declared ‘a major victory’ this week when union members reached a tentative agreement with Ford Motor that lifts most employees’ pay past $40 an hour. The tentative deal is indeed a huge win for autoworkers, organized labor experts told CBS MoneyWatch. The latest offer, announced Wednesday, includes a 25% wage increase across a four-and-a-half-year contract with restored cost-of-living adjustments and the elimination of a two-tiered wage system at two of Ford’s plants. The proposed deal also shrinks the timeframe for when new employees are eligible to start earning top wages. Those specifics still need approval from the UAW’s national council and its general membership. ‘This is tentative and there are more steps to take, but I see this as a good win for the employees and definitely for Shawn Fain and his team,’ said Lynne Vincent, a business management professor at Syracuse University, who studies the psychological impacts of strikes.” [CBS News, 10/26/23 (=)]

 

Ford's Tentative Agreement With UAW: Details Of Deal, Contract Offer — “Ford Motor Co. and the UAW have a tentative agreement that both have called a record deal that makes history. UAW President Shawn Fain gave a preview of what’s in it Wednesday night on social media but plans to hold meetings with local union leaders and their members who will review it in detail. Any potential deal between the union and the automaker is subject to review by local union leaders from around the country elected by the members, called the UAW National Ford Council, who will travel to Detroit prior to a ratification vote. The UAW said the meeting would happen on Sunday, and they would vote on whether to send the tentative agreement to members. A ratification vote is required by Ford members, who were called off the strike line on Wednesday. The UAW said Ford workers would return to work while the agreement goes through the ratification process. After expanded strikes against Stellantis on Monday and General Motors on Tuesday, Ford faced the possibility of seeing another factory shut down this week. Instead, negotiators found consensus and closure.” [Detroit Free Press, 10/26/23 (=)]

 

GM, Stellantis Meet With UAW, Seeking Deal ‘As Soon As Possible’ — “The heat is on top bargainers at General Motors and Stellantis to get a tentative agreement with the United Auto Workers after crosstown rival Ford Motor Co. settled on a tentative deal late Wednesday. On Thursday morning, three sources familiar with negotiations said GM leaders were meeting with UAW President Shawn Fain at the main bargaining table to hammer out a tentative agreement with the union. The UAW was to meet in the afternoon with Stellantis, according to sources. Those familiar with the talks tell the Detroit Free Press that the parties are closing in on agreements with the UAW, but the specifics on outstanding issues were not immediately available. When asked whether Stellantis would comment on where talks stand, spokeswoman Jodi Tinson referred to a statement released Wednesday following news that Ford had a tentative agreement: ‘We remain committed to working toward a tentative agreement that gets everyone back to work as soon as possible.’” [Detroit Free Press, 10/26/23 (=)]

 

Here's What The UAW Deal With Ford Means For General Motors And Stellantis — “Tens of thousands of Ford employees will soon return to work as part of a tentative agreement that ends one section of a work stoppage mounted by the United Auto Workers against the Big 3 U.S. carmakers. The deal focuses attention on nearly 100,000 union members still without a contract at the other two -- General Motors and Stellantis, the parent company of Jeep and Chrysler. That ongoing walkout could end within days, labor experts told ABC News, pointing to a likely acknowledgement among the union and carmakers that the Ford contract would set the terms for the outstanding agreements. Eager to avoid further damage to output and revenue, the companies will likely seek a resolution as they watch Ford return to full capacity, the experts added. ‘I would be totally flabbergasted if GM and Stellantis don’t sign an agreement very, very similar to that reached at Ford, and I think that will occur within the next week,’ Harry Katz, a professor of collective bargaining at Cornell University who has closely followed the negotiations, told ABC News.” [ABC News, 10/26/23 (=)]

 

AP | Ford Cut A Deal With UAW. It Could Set Tone For GM, Stellantis Talks. — “The United Auto Workers union said Wednesday it has reached a tentative contract agreement with Ford that could be a breakthrough toward ending the nearly six-week-old strikes against Detroit automakers. The four-year deal, which still has to be approved by 57,000 union members at the company, could bring a close to the union’s series of strikes at targeted factories run by Ford, General Motors, and Jeep maker Stellantis. The Ford deal could set the pattern for agreements with the other two automakers, where workers will remain on strike. The UAW called on all workers at Ford to return to their jobs and said that will put pressure on GM and Stellantis to bargain. Announcements on how to do that will come later. ‘We told Ford to pony up, and they did,’ President Shawn Fain said in a video address to members. ‘We won things no one thought possible.’” [The Christian Science Monitor, 10/26/23 (=)]

 

AP | GM, Stellantis In Talks With United Auto Workers To Reach Deals That Mirror Ford's — “General Motors and Jeep maker Stellantis are meeting with United Auto Workers bargainers Thursday to see if they can reach a contract agreement that mirrors a deal signed with crosstown rival Ford. Nearly 17,000 striking workers at Ford left the picket lines when the agreement was announced Wednesday night and will return to work shortly. About 57,000 Ford workers still have to vote on the tentative pact. GM and Stellantis will have to follow the pattern set by Ford or it’s likely that UAW President Shawn Fain will add factories to its partial strikes that began on Sept. 15, said Art Wheaton, director of labor studies at Cornell University. ‘Fain does not strike me as someone who is going to be willing to concede anything to the other two automakers to break the pattern,’ Wheaton said.” [CBS News, 10/26/23 (=)]

 

After UAW's Tentative Deal With Ford, All Eyes Are On General Motors And Stellantis — “After more than six weeks of walkouts, picketing, and fractured negotiations, the United Automobile Workers (UAW) and Ford Motor Company have reached a tentative agreement on a new labor contract. The deal, announced yesterday (Oct. 25) includes a roughly 25% pay increase over four years, with an immediate 11% wage hike upon ratification. Moreover, it reinstates major benefits lost during the Great Recession, including cost-of-living allowances, and improves retirement plans. There’s also a historic right to strike over plant closures included in the terms—a first for the union. ‘We made history,’ Shawn Fain, the union president, said in a Facebook livestream. ‘We told Ford to pony up, and they did.’ The accord will be put forth at a meeting in Detroit on Sunday, and if the council approves, the contract terms will be put to a vote with the company’s 57,000 union workers. Striking Ford workers will go back to work while the tentative agreement awaits ratification.” [Quartz, 10/26/23 (=)]

 

GM, Stellantis Work To Reach UAW Contract Deals — “General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI). were in intensive talks on Thursday with the United Auto Workers in an effort to end a six-week-old strike a day after Ford Motor (F.N) reached a tentative contract deal. Ford on Wednesday was the first of Detroit’s Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September, a deal that will likely set a pattern for reaching deals with GM and Stellantis. The UAW was meeting with both GM and Stellantis on Thursday and both were working to reach agreement, sources said. Sources briefed on the matter say GM and the UAW are fairly close on economic issues. GM CEO Mary Barra and UAW President Shawn Fain took part in talks on Thursday and people briefed on the discussions think a deal could be reached as early as later in the evening but cautioned that nothing was final.” [Reuters, 10/26/23 (=)]

 

Details Of The Tentative UAW-Ford Agreement That Would End 41-Day Strike — “The United Auto Workers announced a tentative labor agreement with Ford Motor Co. late Wednesday, and now the proposed contract faces a membership vote. UAW President Shawn Fain and UAW Vice President Chuck Browning, who led negotiations with Ford during the union’s strike against the Detroit Three automakers, posted a 10-minute video online at 8:27 p.m. to make the news official. ‘The Stand Up Strike is working,’ Fain said in the video, referring to the union’s strategy of targeting all three Detroit automakers for strikes simultaneously, which had never been done. By closing down additional plants at Stellantis and GM this week, ‘Ford knew what was coming for them Wednesday if we didn’t get a deal. That was checkmate.’ Top UAW officials told local union leaders Wednesday evening by phone, prior to the public announcement, that the union had a potential deal with Ford to end the strike against the automaker.” [USA Today, 10/26/23 (=)]

 

UAW Demands May Jeopardize Detroit And Korea's $28b Battery Plants — “The United Auto Workers (UAW) strikes that started more than a month ago have been a major disruption for Detroit’s Big Three automakers. Logistics issues and costs aside – GM revealed on its Q3 2023 earnings call this week that every week of strikes costs it $200 million – the strikes also risk hurting Detroit Three’s agreements with major South Korean battery makers. LG Energy Solution, SK On and Samsung SDI have set up joint ventures with GM, Ford and Stellantis to build several battery cell plants in the U.S., and their combined investment is estimated at around $28 billion. The thing is those eight plants – four for General Motors, two for Ford, and two for Stellantis – are major hurdles in contract negotiations between Detroit carmakers and the UAW, which seeks to unionize the 19,600 people the battery joint ventures plan to hire at the new plants.” [Inside EVs, 10/26/23 (=)]

 

Ford’s U.A.W. Deal Will Raise Costs While Easing Labor Strife — “When autoworkers went on strike in September, executives of the large U.S. automakers warned that union demands could significantly undermine their ability to compete in a fast-changing industry. The chief executive of Ford Motor said that the company might have to scrap its investment in electric vehicles. The future doesn’t look quite that bleak now that Ford and the United Automobile Workers union have reached a tentative agreement that is likely to serve as a template for deals the union eventually reaches with General Motors and Stellantis, the maker of Ram, Jeep and Chrysler. Ford’s costs will rise under the terms of the new contract, which includes a 25 percent raise over four and a half years, improved retirement benefits and other provisions. The extra expense will weigh on profit and could hamper Ford’s ability to invest in new technology, John Lawler, the company’s chief financial officer, said Thursday.” [The New York Times, 10/26/23 (=)]

 

Why US Autoworkers Strike Drags On As Costs Mount — “With Detroit’s carmakers and the union representing their labor force at odds over a new contract, autoworkers began targeted walkouts in mid-September and expanded them over the following weeks. The United Auto Workers’ fiery new president, Shawn Fain, argues that the automakers have had it too good at labor’s expense in recent years. In negotiations for a four-year contract with the three largest US legacy carmakers, he’s demanding pay raises and the return of benefits conceded in the years before and after the 2009 recession. He also wants to ensure good wages and benefits for workers making electric vehicles.” [Bloomberg, 10/26/23 (=)]

 

Union Workers Score Big Pay Gains As Labour Action Sweeps US — “The United Auto Workers’ 57,000 members at Ford wrested a hefty pay rise from the US carmaker this week following a strike that squeezed its production and profitability. Management agreed to a 25 pay rise over four years, including an immediate bump of 11 per cent, an offer far more generous than its initial bargaining position. ‘We told Ford to pony up and they did,’ said UAW president Shawn Fain. ‘We won things nobody thought was possible.’ The UAW’s victory at Ford is part of a trend towards higher wage growth among unionised workers in the US over the past year. Employers from airlines to freight railroads have agreed to new contracts with headline-grabbing pay increases. The gains come amid a resurgence of labour action in the wake of the pandemic. Year-on-year wage growth for union members reached 4.6 per cent in the second quarter, according to the Bureau of Labor Statistics, catching up with higher pay rises that non-union workers had enjoyed since 2021.” [Financial Times, 10/26/23 (=)]

 

UAW Chief Shawn Fain Disrupts Detroit's Labor Tradition — “Bible-quoting, tough-talking Shawn Fain on Wednesday scored his first big victory against the Detroit Three through a tentative labor deal with Ford. But the jury is out on whether his aggressive bargaining tactics have soured worker relations with the automakers for a long time. Six weeks into escalating strikes and heated rhetoric, the United Auto Workers (UAW) president extracted a record 25% wage hike for some 57,000 Ford Motor (F.N) workers in a tentative deal. Fain, representing nearly 150,000 auto workers in one of the biggest labor strikes in decades, upended tradition by taking simultaneous action against all three automakers - a bolder, riskier path than his predecessors. The strike started as the clock hit midnight on Sept. 15, and followed Fain’s decision to open negotiations with Ford, General Motors (GM.N) and Stellantis (STLAM.MI) at once, eschewing public niceties involving choreographed handshakes that famously kicked off previous negotiating efforts.” [Reuters, 10/26/23 (=)]

 

Op-Ed: The UAW Is Declaring Victory But Ford Won Too — According to Liam Denning, “It looks like Shawn Fain got enough and Ford Motor Co. held off enough. Wednesday evening’s announcement of a tentative agreement between the United Auto Workers and one of the Big Three should mean strikes will end soon. Ford’s striking UAW members return to work Thursday, ahead of votes to seal the deal, as a way to put pressure on General Motors Co. and Stellantis NV to quickly sign up, too. They have every reason to; GM, especially, with its stock languishing at levels last seen in the pandemic summer of 2020.” [Bloomberg Law, 10/26/23 (+)]

 

Op-Ed: Transition To EVs Is A Win For Our Climate — Let’s Make It A Win For US Workers — “A global transition to electric transportation is underway, and momentum is growing. Traditional and new auto manufacturers are bringing more and more models to market. Even in California, where a tradition of stringent regulation has pushed the industry to innovate over the past 50 years, automakers are selling EVs at levels well above sales requirements. This momentum is spreading across the country, with US EV sales now over 9% and climbing. When a change as big as this is underway, it’s important to understand what impact it can have on employment and to take steps to ensure that workers benefit from the transition and aren’t left behind. But what is the outlook for jobs in an electric transportation future? Can the EV transition support good, family- and community-supporting jobs and support a strong US economy? The fundamentals show there’s reason to be optimistic.” [CleanTechnica, 10/26/23 (+)]

 

 

Electric Vehicles

 

Batteries & Charging

 

How Are EV Batteries (Actually) Recycled? — “Electric vehicle (EV) battery recycling is crucial to a sustainable, electrified transportation system. A substantial portion of key minerals for electrifying could come from recycled batteries by 2050, dramatically reducing the need for new mining. But how those batteries are recycled can make a big difference—we must use recycling processes with high mineral recovery rates and lower environmental impact. In this blog post, I’ll explain different ways to recycle batteries and why getting it right is essential. The three types of recycling, summarized here, are discussed later in greater depth, including the pre-processing that must occur before recycling. This technology can be confusing and complex, so I have included a terms section for the italicized words at the end of this piece.” [CleanTechnica, 10/26/23 (=)]

 

The Center Square | Study: Cost Of ‘Fueling’ An Electric Vehicle Is Equivalent To $17.33 Per Gallon — “The complete costs of ‘fueling’ an electric vehicle for 10 years are $17.33 per equivalent gallon of gasoline, a new analysis from the Texas Public Policy Foundation says. The study authors say the $1.21 cost-per-gallon equivalent of charging a car cited by EV advocates excludes the real costs born by taxpayers for subsidies, utility ratepayers for energy investments, and non-electric vehicle owners for mandate-and-environmental-credit-driven higher vehicle costs, which they say total $48,698 per EV. Those costs must be included when comparing fueling costs of EVs and traditional gas-powered vehicles, TPPF maintains. ‘The market would be driving towards hybrids if not for this market manipulation from the federal government. We’d be reducing emissions and improving fuel economy at the same time on a much greater scale,’ study author Jason Isaac told The Center Square in an interview. He then cited Toyota estimates that the batteries from one EV can power 90 hybrids and reduce emissions 37 times more than that one EV.” [KPVI-TV, 10/26/23 (-)]

 

EV Sales & Transition

 

Bad Vibes Are Rippling Through The EV Market — “Auto execs and analysts are getting less bullish on the pace of electric vehicle demand growth — and fretting more about tough economics of competing in the market, Ben writes. Why it matters: Automakers have made expensive bets on an electric future, and the tech is a weapon against carbon emissions, too. 🗞️ Driving the news: Ford said Thursday it’s slowing the pace of EV and battery manufacturing investments amid lower-than-expected demand. The company isn’t changing the total spending target but will ‘push out’ about $12 billion of those investments, CFO John Lawler told reporters. 🏃🏽‍♀️ Catch up fast: Among the growing bad vibes... General Motors this week scrapped its target to produce a cumulative 400,000 EVs from 2022 through the first half of 2024. CEO Mary Barra told analysts GM is ‘taking immediate steps to enhance the profitability of our EV portfolio and adjust to slowing near-term growth.’ Tesla CEO Elon Musk told analysts last week that he’s worried about the effects of interest rates.” [Axios, 10/27/23 (=)]

 

Bonus: What They're Saying About The EV Market — “The U.S. EV market is ‘definitely seeing’ slowing demand, iSeeCars.com executive analyst Karl Brauer said via email, Ben writes. 🖼️ The big picture: He cites general economic concerns and interest rates that affect large purchases overall. EV-specific factors include higher average costs than gas-powered models and many consumers’ lack of familiarity with the tech. ‘I see EV sales plateauing and even falling over the next 6 months,’ Brauer predicts. 😬 Threat level: ‘Investors have been too optimistic about EV demand growth . . . slowing demand growth is coming sooner than expected, especially in the high-end EV market,’ Lee Hang-koo of Korea Automotive Technology Institute tells the Financial Times.” [Axios, 10/27/23 (=)]

 

Auto Execs Are Coming Clean: EVs Aren't Working — “With signs of growing inventory and slowing sales, auto industry executives admitted this week that their ambitious electric vehicle plans are in jeopardy, at least in the near term. Several C-Suite leaders at some of the biggest carmakers voiced fresh unease about the electric car market’s growth as concerns over the viability of these vehicles put their multi-billion-dollar electrification strategies at risk. Among those hand-wringing is GM’s Mary Barra, historically one of the automotive industry’s most bullish CEOs on the future of electric vehicles. GM has been an early-mover in the electric car market, selling the Chevrolet Bolt for seven years and making bold claims about a fully electric future for the company long before its competitors got on board. But this week on GM’s third-quarter earnings call, Barra and GM struck a more sober tone. The company announced with its quarterly results that it’s abandoning its targets to build 100,000 EVs in the second half of this year and another 400,000 by the first six months of 2024. GM doesn’t know when it will hit those targets. ‘As we get further into the transformation to EV, it’s a bit bumpy,’ she said. While GM’s about-face was somewhat of a surprise to investors, the Detroit car company is not alone in this new view of the EV future. Even Tesla’s Elon Musk warned on a recent earnings call that economic concerns would lead to waning vehicle demand, even for the long-time EV market leader.” [Business Insider, 10/26/23 (=)]

 

Forget The UAW Strike, The Real Crisis May Be A Lack Of Demand For EVs — “One year ago, most car dealers could sell an electric vehicle within a few weeks. Today, data shows those vehicles linger longer than a month, gathering dust on dealership lots, despite lower transaction prices, a federal tax credit available on many and attractive leasing options. The slowdown in consumer demand for EVs has not gone unnoticed by General Motors. CEO Mary Barra said Tuesday that GM would withdraw its target of making 400,000 EVs for 2022 through June 2024. GM still plans to end 2025 with 1 million units of North American EV capacity, but Barra said if the demand is not there for 1 million EVs, GM will not build them. ‘As we get further into the transition to EVs, it gets a bit bumpy, which is not unexpected,’ Barra told analysts during a third-quarter conference call Tuesday, emphasizing GM remains committed to its goal of an all-electric lineup by 2035. ‘GM will be agile to make sure the portfolio is in the right segments ... and we have the right entrants that people want to buy.’” [Detroit Free Press, 10/27/23 (=)]

 

Taxpayers Bankroll Electric Vehicles Even As Fewer People Buy Them — “American automakers are delaying or abandoning their promises of electric vehicle (E.V.) production, citing cooling market demand. Unfortunately, government subsidies and mandates are unlikely to go away as easily. Earlier this week, The Wall Street Journal reported that General Motors (G.M.), the United States’ top-selling automaker, had walked back its E.V. production ambitions. CEO Mary Barra told investors in February 2022 that the company planned to manufacture, sell, and deliver 400,000 E.V.s in North America by the end of this year. In October 2022, Barra delayed the deadline by as much as six months, citing difficulty sourcing raw materials. Now G.M. is abandoning that plan altogether amid cooling demand. Last week, the automaker announced that it was delaying E.V. production at its factory in Orion Township, near Detroit. In July, Ford similarly announced that it expected to hit its goal of producing 600,000 E.V.s per year in 2024—not in 2023, as it had previously predicted.” [Reason, 10/26/23 (=)]

 

Can America’s South-East Unseat Detroit As ‘Motown’ Of The EV Age? — “The battle for America’s automotive future is now under way in places like a cotton farm in the small South Carolina town of Florence, where, every day, yellow and red excavators are digging up enough dirt and stone to bury an entire football field under 5ft of earth. Last December, Envision AESC, a Japanese manufacturer, announced it would invest $810mn to assemble lithium-ion battery cells in Florence, a railroad hub that was once dominated by the state’s agriculture industry. The batteries will be used in BMW’s electric vehicle plant, 160 miles up the road in Spartanburg. ‘We’re taking fields and turning them into manufacturing,’ says Gregg Robinson, head of Florence County’s Economic Development Partnership. A shiny silver shovel from the plant’s groundbreaking ceremony stands like a trophy in his office. ‘This is a generational change.’ Projects like the one in Florence now dot the US’s south-east, which has increasingly become the region of choice for foreign auto and battery manufacturers looking to establish a foothold in the fast-growing American electric vehicle market.” [Financial Times, 10/26/23 (=)]

 

The Gulf South Looks To ‘Charge Up’ Its Economy With Electric Vehicles — “Electric vehicles and the South might seem like a strange pairing, but some advocates in Alabama have a pitch beyond saving your wallet and planet: Buy one for the sake of the state’s economy. That message was on full display at a recent EV car show in Birmingham. A sign leaning against an orange 2019 Smart car read ‘Charge up Alabama’s economy.’ Another propped against Ford’s new all-electric Mustang Mach-E proclaimed ‘EVs = job fuel.’ While Mississippi and Louisiana have some of the lowest EV adoption rates in the country — with Alabama not far behind — foreign automakers from Toyota to Mercedes have been filling the South with factories for decades, lured in by the lack of unions and abundance of state incentives. With the global transition to EVs, the Biden Administration is pushing to get those cars built in America — most likely in the South. Georgia has already convinced Hyundai to open an EV plant in the state with a $1.8 billion incentives package.” [WWNO-Radio, 10/26/23 (=)]

 

Electric Travel Trailers Are Coming To The Great Outdoors — “When Tesla launched the Model X in 2015, the world’s first electric SUV rolled on to a stage towing an Airstream travel trailer. In what seems like unintentional foreshadowing, the $30 billion US recreational vehicle market is now getting the Tesla treatment. A pair of California startups staffed by alumni of the electric car company have developed the first self-propelled, battery-and-solar-powered travel trailers. The vehicles are set to hit the market in late 2024. Following the Tesla playbook, San Francisco’s Lightship and Silicon Valley-based Pebble aim to not just electrify a century-old icon of the American road; the companies are attempting to reinvent it for the EV age. ‘We’re using technology to automate the hardest part of RVing, bringing this iPhone-like experience to the RV,’ says Bingrui Yang, Pebble’s CEO and an Apple veteran. The Bay Area would seem an unlikely birthplace of the RV revolution. Finding somewhere to park a Model X, let alone a 30-foot-long travel trailer, is hard enough. And the closest many locals get to RVing is renting a rig for a few days during the annual August exodus to Burning Man. Yet this may just be the time and place for electric trailer tech to blossom, given the confluence of the pandemic-triggered desire to escape to nature and growth of remote work along with the boom in EVs and efforts to build resilience to climate-driven power disruptions.” [E&E News, 10/27/23 (+)]

 

Op-Ed: Why Electric Vehicles Remain A Hard Sell In The U.S. —According to Valerie Hudson, “Toyota has announced that the company is close to being able to mass-produce a solid-state battery for electric vehicles. If successful, these new batteries would offer almost double the current range with a 75% reduction in charge time. This promises to be a very important breakthrough, as the current lithium ion batteries for EVs are not fit for purpose. And a breakthrough is needed, both for manufacturers and proponents of electric vehicles. The recent push for better functioning EVs is due to a high-level consensus on climate change: More developed countries around the world are setting mandates for the sale of EVs in order to reduce pollution, heat and reliance on the oil industry. In 2021, the Biden administration first put forward the goal that 50% of all new cars sold in 2030 would be EVs. In early 2023, the EPA proposed a more stringent limit on new car emissions, about which The New York Times asserted, ‘That limit would be so strict that it would force carmakers to ensure that two-thirds of the vehicles they sold were all-electric by 2032.’ California, for its part, will ban the sale of new internal combustion engine cars in the state from 2035 on, and at least eight other states have followed suit. Several carmakers, including Chevrolet, Chrysler and Honda, plan to go all-electric over the next decade.” [Deseret News, 10/26/23 (+)]

 

 

States & Local

 

California

 

Newsom Expands Work With China On ZEVs, Clean Energy, GHG Trading — “During his controversial trip to China this week, California Gov. Gavin Newsom (D) expanded agreements to work with multiple Chinese agencies and subnational governments on a range of climate policy areas, including zero-emission vehicles (ZEVs), clean and reliable energy, carbon trading markets, adaptation, and biodiversity, according to administration officials. ‘Divorce is not an option. The only way we can solve the climate crisis is to continue our long-standing cooperation with China. As two of the world’s largest economies, the work we do together is felt in countless communities on both sides of the Pacific,’ Newsom said in an Oct. 25 press release, after meeting with Chinese President Xi Jinping and top Chinese government officials. ‘Despite major differences, we share our humanity -- our desire to feel protected, connected and respected is universal -- and that humanity is what should drive us to work together to stop the greatest existential threat our planet has ever known,’ he added. ‘Addressing climate change can be the bridge we’ve been missing. I made it clear to Chinese leaders that California will remain a stable, strong, and reliable partner, particularly on low-carbon, green growth.’ Some U.S. and global human rights and other groups, as well as some U.S. lawmakers, have argued that Newsom meeting with Xi and other Chinese leaders is inappropriate at a time when U.S-China relations are highly strained.” [Inside EPA, 10/26/23 (=)]

 

California To Distribute $40.5 Million To Build EV Fast Chargers — “California is set to distribute $40.5 million to build 270 EV fast chargers at 26 sites along highways. Governor Gavin Newsom announced Thursday that California will receive more than $380 million to develop 6,600 miles of EV corridors which includes four chargers every 50 miles. In a press release, Governor Newsom said, ‘This is a direct result of President Biden’s infrastructure law. We’re using this money to deliver for Californians, building EV chargers throughout the state as we continue getting more clean cars onto our roads.’ The press release went on to say, ‘This complements the more than $10 billion in state funding for zero-emission cars, trucks, buses, and infrastructure through California’s Climate Commitment. And, it follows the Governor’s announcement that California surpassed both its zero-emission truck and vehicle sales goals two years ahead of schedule.’” [KEYT-TV, 10/26/23 (=)]

 

Michigan

 

Michigan Senate Votes To Create 'Economic Transition Office' Focused On Shift To EVs — “The Michigan Senate voted Thursday to create a new office within state government focused on helping workers deal with the economic repercussions of the shift to electric vehicles. The bill, sponsored by Sen. Sam Singh, D-East Lansing, would establish the ‘Community and Worker Economic Transition Office’ and would task the office with developing a plan to ‘leverage additional resources to invest’ in communities and workers in ‘transition-impacted industries.’ The proposal, which comes amid a national political battle over the future of the auto industry, described ‘transition-impacted industries’ as ‘fossil fuel energy workers,’ ‘internal combustion engine vehicle workers’ and ‘workers in the building and construction trades.’ The bill passed in a party-line vote of 20-18 Thursday with Democrats in support and Republicans in opposition. Democrats argued the office was necessary to plan for the state’s future amid significant changes in its most prominent industry, the manufacturing of cars and trucks. However, Republicans said the measure represented ‘central planning’ and demonstrated the move to electric vehicles would cause job losses.” [The Detroit News, 10/26/23 (+)]

 

North Carolina

 

‘North Carolina Had Everything To Offer’ For Electric Battery Materials Plant That Will Create 500 Jobs — “North Carolina’s booming electric vehicle sector is getting even bigger. An India-based company, Epsilon Advanced Materials, is going to build a $650 million manufacturing plant for EV battery materials near Wilmington, having struck an economic incentives deal with the state of North Carolina. Production target is 50,000 tons per annum of graphite anode. (A graphite anode is an electrode made of graphite that is used in a mercury cell in order to produce chlorine by electrolysis, according to Corrosionimpedia.com.) The plant will ‘produce enough to power 1.1 million EV sedans a year,’ the company said. ‘Producing graphite anodes which make up about 25% of a EV battery cell,’ noted Vikram Handa, Epsilon Advanced Materials managing director. ‘I think a really good, high-quality sustainably made graphite anode is what the market is looking for.” [WRAL-TV, 10/26/23 (=)]

 

Virginia

 

Dominion’s Electric Vehicle Charging Infrastructure Program Has Zero Sign-Ups — “It’s been about a year since Dominion Energy began offering its Virginia customers discounts on installing infrastructure to charge electric vehicles and no one has signed up to take advantage of them, according to a recent bi-annual report filed with electric utility regulators. Despite a lack of participation, Dominion sees the program, known as the Charging Tariffs, as a way to help Virginia’s transition to electric vehicles (EVs) by making the ability to charge them more accessible to business and low-income communities. ‘As the demand for EVs grows, the Company’s customers have sought guidance and advisory support from the Company for charging infrastructure and installation,’ wrote Sarah Bennet, an attorney representing Dominion, in the utility’s application for the program in 2021. ‘The Charging Tariffs will allow the Company to provide customers with such near-term turnkey solutions.’ The program works in two ways. One way consists of Dominion covering the costs of charging infrastructure installation for three different types of participants.” [Virginia Mercury, 10/27/23 (=)]

 

 

International

 

Asia

 

Analysis: Global EV Battery Supply Chain Puzzles Over China Graphite Curbs — “Beijing’s move to restrict graphite exports will have a disproportionate impact on foreign makers of electric vehicle battery components who have not yet shifted to using as much synthetic material as Chinese counterparts, industry insiders and experts said. China’s latest limit on critical mineral exports, which Beijing said is not targeted at a specific sector, has fuelled uncertainty in the global EV supply chain since it was announced last Friday. Some Chinese manufacturers, including those with operations overseas, said they expect limited impact from the rules as most EV batteries they make use a grade of synthetic material that is unaffected by the curbs. China dominates the global EV battery supply chain including production of graphite - the single largest component. Graphite companies in the country process both the natural material mined domestically and overseas, as well as synthetic forms.” [Reuters, 10/27/23 (=)]

 

Europe

 

EU Carmakers Chase Chinese In Small EV Race — “European carmakers are getting ready to burst into the small EV segment that is now led by Chinese rivals — but it won’t be an easy fight. An anti-subsidy probe into Chinese EVs, recently opened by the European Commission, could result in tariffs that narrow the price difference. But industry analysts say Chinese manufacturers’ advantages go beyond subsidies: Years-long investments in the battery supply chain have given them a big advantage over European carmakers on, which is all-important for buyers of small cars. The mere possibility that the European Union will put up import barriers could provoke retaliation from Beijing, which would hit German carmakers particularly hard. As such, many in the European industry oppose any protectionist measures. ‘To start a probe is not the best way to tackle those questions,’ Stellantis CEO Carlos Tavares told a press conference on Thursday. Stellantis owns a dozen European and American car brands, including France’s Citroën and Peugeot. The fight centers on the ‘B segment,’ the second-cheapest category in the industry classification that runs from A (‘mini’) to F (‘luxury’), plus special categories for SUVs and sports cars. B segment cars include the likes of a Skoda Fabia, Volkswagen Polo and Citroën C3.” [Politico, 10/27/23 (=)]

 

China And U.S. Battering EU’s Green Tech Sector, Industry Warns — “Some of Europe’s largest renewable energy and clean tech groups are warning that the Continent will fall behind China and the U.S. in key industries like solar power, electric vehicles and hydrogen unless it takes swift, dramatic action. The problem, they say: Beijing and Washington are heavily subsidizing these strategically important sectors while Europe’s investment climate regresses. In a letter sent to European Commission President Ursula von der Leyen and other EU leaders ahead of Thursday’s European Council summit, eight trade bodies cautioned that ‘China has established a growing footprint across most clean tech sectors, while the US has taken a decisive step forward with its Inflation Reduction Act.’ The Inflation Reduction Act, a bill the U.S. passed last year, will provide clean energy subsidies worth more than $400 billion. The U.S. added to that total with the CHIPS Act. Meanwhile, China has its own ambitions to corner key markets like electric vehicles, promoting the EU launch a probe into whether Beijing’s subsidies amount to unfair business practices. ‘All this is happening while Europe’s investment situation has worsened since Russia’s invasion of Ukraine with high energy prices, inflation, and growing supply risks,’ the letter adds.” [Politico, 10/26/23 (=)]

 

 

Research, Analysis & Opinion

 

A Complicated Web: How The US Regulates Fuel Economy For Cars And Trucks — “Trying to explain how the U.S. government regulates motor vehicles is no easy matter: There are scores of standards involving recalls, mandatory testing and equipment, crash reporting and more. How the federal government regulates fuel economy − how many miles per gallon of gas a manufacturer’s new cars and light-duty trucks are expected to get − and how that impacts greenhouse gas emissions that cause climate change is every bit as complicated, if not more so. That’s because, over the years, a series of laws passed by Congress, as well as lawsuits and actions taken by states (especially California) have moved in various and not-always-complimentary directions, just as automakers and environmentalists have sparred over what is technologically feasible or economically practical. In recent years, different presidential administrations have brought their own agendas, for or against tougher standards, to bear. It’s a significant problem, though, given that about 30% of greenhouse gas emissions come from transportation sources, and the vast majority of that comes from cars and trucks.” [Detroit Free Press, 10/27/23 (=)]

 

Op-Ed: Political Obstruction Is Climate Destruction — According to John Imes, “Now, the state Legislature is considering a dangerous new bill, Assembly Joint Resolution 6 (AJR6), which would amend the state constitution to give the Legislature itself control of federal funds. AJR6 could put a stranglehold on IRA funding to Wisconsin, including grants, loans, and business development incentives. Wisconsin could potentially lose critical funding to expand local clean energy technology, manufacturing of renewable energy, batteries, smart grids, electric vehicles and related components. Losing this funding would be a disaster both for our local climate and for Wisconsin’s economy. It’s a big reason why the Clean Economy Coalition of Wisconsin, a nonpartisan group of climate, energy, environmental justice and conservation organizations, businesses and allies opposes AJR6. The clock is ticking. Every day our representatives play games in the statehouse and in Congress, we are another day closer to catastrophe. So far in 2023, the U.S. has seen an unprecedented 24 confirmed weather disaster events, resulting in hundreds of deaths and more than $1 billion in damages. That is triple the average number of weather disasters recorded from 1980 to 2022.” [Wisconsin Examiner, 10/27/23 (+)]

 

 

 

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For any other questions or comments, please contact Mitch Dunn

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