💭 Auto Drama, EV Dreams, and Fines Galore

October 21, 2024

TL;DR:

GM’s EV profits are just around the corner, assuming they can keep the political drama at bay. Meanwhile, Ford is cutting Mach-E prices but scrambling to replace faulty Supercharger adapters—oops! Over at VW, a hefty $7M fine proves that repossessing cars from financially struggling customers isn’t exactly a winning strategy. Stellantis? They’re shutting down a key testing facility because, apparently, innovation is expensive. But hey, at least they’re going big on electric trucks. And if you're into recycling, Mercedes is here to save the planet—one battery at a time.

This Digest

🔋 GM Bets Big on EV Profits

giphy

GM's push to turn a profit on electric vehicles (EVs) by the end of 2024 signals a significant shift in the EV market landscape. After navigating manufacturing delays and competitive pressures, GM is gearing up to compete with Tesla and Ford head-to-head. Here's the quick lowdown:

  • GM aims to phase out internal combustion engines (ICE) by 2035, sticking to its carbon-neutral goal by 2040.

  • Manufacturing setbacks in late 2023 delayed some EV models, but GM reports those issues have been resolved.

  • GM's EV models, like the Chevy Equinox, benefit from government tax incentives, bringing down costs to under $30,000.

  • Battery plants in Michigan and Indiana, costing billions, will help GM ramp up production, with $800M in federal subsidies cushioning the investment.

  • GM plans to use lithium iron phosphate (LFP) batteries in future models, offering a balance between cost and driving range (300+ miles expected for new models).

🏛️ GM's EV Revolution: Politics or Progress?

So... does the future of EVs really depend on who’s in the White House? Are we all doomed if the wrong person wins?

Relax—Mary Barra says GM’s EV revolution is full steam ahead, no matter who's in charge. Whether it’s Trump tossing subsidies or Harris pushing mandates, Barra’s betting that Americans will fall in love with EVs on their own. Fuel savings and fun acceleration don’t hurt either!

But what about those sweet, sweet tax incentives? Poof, gone?

Yeah, losing the EV tax credits would sting like a missed discount on Black Friday. But Barra’s confident that cheaper models like the Equinox and a growing charging network will keep EVs flying off lots—because, let’s face it, saving at the pump never goes out of style.

⚡ Ford's Mach-E Price Drop and Supercharger Mishap

giphy

Ford is aiming to make its Mustang Mach-E more accessible, all while grappling with an issue over its Tesla Supercharger adapters. While the price cut is welcome news, the adapter mishap is a bit of a head-scratcher. Highlights:

  • The 2025 Mustang Mach-E’s starting price drops by $3,500, with a new base price of $36,495.

  • A new Sport Appearance Package adds GT styling to the Premium trim, including Brembo brakes and sport pedals.

  • Ford has issued a recall on a batch of NACS adapters, urging affected customers to stop using them due to potential charging port damage.

  • Free replacement adapters will be shipped by late October, and Ford assures customers this is an isolated issue.

🚫 Ford’s Charging Adapter Recall: Hold the Plug!

Ford is telling some EV customers to stop using their Tesla Supercharger adapters due to potential damage to the charging ports. Affected customers will receive free replacements starting in late October. The recall impacts only a recent batch of Ford's North American Charging Standard (NACS) adapters.

⚖️ VW Financial Faces the Music

giphy

Volkswagen's UK financial services unit just got a wake-up call—courtesy of a £5.4 million ($7 million) fine from the Financial Conduct Authority (FCA). The fine is the result of unfair practices that impacted around 110,000 financially struggling customers between 2017 and 2023. And that’s not all—the company has to fork over an additional £21.5 million in compensation.

The FCA highlighted several key failures in Volkswagen's handling of customer hardships:

  • Failure to offer alternatives: VW Financial Services repossessed vehicles from vulnerable customers without adequately exploring other options, exacerbating already tough situations.

  • Poor communication: Automated, poorly formatted messages made an already frustrating process worse, leaving customers in the dark about their options.

  • Compensation efforts underway: Volkswagen Financial Services is in the process of compensating affected customers and issuing goodwill payments as part of their remediation plan.

The takeaway

Even auto giants need to tread carefully when dealing with customers in financial distress, or regulators—and hefty fines—will come knocking.

📉 Stellantis Cutting Costs, Closing Doors

giphy

In a move that's left employees and analysts scratching their heads, Stellantis is shuttering its Arizona testing facility. Is this another case of cutting costs at the expense of innovation?

What’s Stellantis thinking, shutting down their 4,000-acre proving grounds? Aren’t those kind of… important?

Ah, Stellantis—masters of the ol’ ‘cost-cutting shuffle.’ Turns out testing vehicles before they hit the market is, you know, expensive. But don’t worry—they’re moving to Toyota’s proving grounds. Guess when your financials are shaky, it's easier to borrow the neighbors’ toys.

Should we be worried?

If you're a Stellantis employee, probably. For everyone else, it's just another reminder that this company’s idea of a winning strategy might need some testing of its own.

But All Is Not Lost for Stellantis (Obviously)

giphy

While Stellantis may be closing some doors with its Arizona Proving Grounds, it's clear that the company is throwing the full weight of its resources into electrification and future-proofing. With over $406M invested in Michigan plants, Stellantis isn’t just idling around—they’re gearing up for a serious EV push with the Ram 1500 REV leading the charge.

Deets about Michigan:

  • $235.5M is earmarked for the Sterling Heights Assembly Plant, which will produce the electric Ram 1500 REV.

  • Stellantis is banking on electrification, with a €50 billion investment to hit 100% electric sales in Europe and 50% in the U.S. by 2030.

  • The Ram 1500 REV offers 663 horsepower, a towing capacity of 14,000 lbs., and vehicle-to-grid power capabilities.

  • With 500 miles of range on a single charge (thanks to a 229 kWh battery), the Ram 1500 REV is built to last through long hauls.

  • Stellantis’ broader strategy includes a range of powertrain options to cater to both EV and hybrid truck buyers.

🌍 BYD and Forvia Team Up in Turkey

giphy

Forvia has landed a deal to supply parts for BYD’s second European factory, located in Turkey. This partnership strengthens the growing influence of Chinese automakers in Europe. Forvia's existing collaboration with BYD in Hungary positions it well as BYD ramps up production in Turkey.

The new deal comes at a time when BYD is rapidly expanding in Europe, and Forvia’s ability to supply parts to two key factories signals its growing role in the EV supply chain. The Turkish factory is expected to be pivotal as BYD looks to scale up and compete with European giants like Volkswagen.

🌱 Mercedes-Benz’s Recycling Game Changer

Mercedes-Benz is taking sustainability seriously with the opening of a battery recycling plant in Germany. The new facility recycles 96% of battery materials using a less energy-intensive process.

This recycling plant isn't just about reclaiming raw materials like lithium and cobalt—it’s about closing the loop. Mercedes is making sure old EV batteries feed into new production, giving their green credentials a significant boost. With plans to scale up the plant, this could be a game-changer for the EV supply chain.

📽️ Full-Windshield Displays Are Coming

Heads-up displays just got a massive upgrade, and Hyundai is leading the charge. Along with Zeiss, they’re working on turning the entire windshield into a holographic display. Sci-fi is becoming reality, and soon, your dashboard might be history.

Hyundai’s concept allows the entire windshield to function as a display without blocking your view. It’ll show everything from speed to navigation, and maybe even a few episodes of your favorite show—though let’s hope the driver doesn't get too distracted.

Sign up now for more!

Reply

or to participate.