Recalls Epidemic, Giga-Slowdown & New Rivian R1 - MOBILITY BRIEF_ 🗞️🚲🚗 - June 10th

💡 This Week In The Mobility World

🏭 Factories/Manufacturing Updates

• Stellantis is considering in-sourcing the development of some components currently provided by OES, Tavares told the press last week. “When suppliers are not racing at the same speed of our teams, our teams see a big benefit to in-source”, he told, pressurizing OES to keep their costs down.
• Meanwhile, Stellantis’ recall for the airbags from its now-defunct supplier Takata is growing heavier: from 500k to approx. 1.4M vehicles impacted as C4, DS4 and DS5 models may also be affected.
• Japanese legacy carmakers are also under fire as Toyota Motor Corporation publicly apologized for providing faulty data for pedestrian safety certifications on 3 current models, Mazda has been found to have provided falsified safety data for its certifications for over 150,000 vehicles produced since 2014, and Honda also manipulated data this time related to noise and gasoline consumption on over 3 million units. A national shame for a country obsessed with manufacturing quality and a testimony to the increasing pressure on the shoulders of legacy carmakers.
• Stellantis-TotalEnergies-Mercedes’ JV ACC - Automotive Cells Company pauses its gigafactory plans in both Termoli and Kaiserslautern, as it ponders switching the chemistry of these lines to LFP amidst a push for more affordable EVs. However, this move is for now mainly justified by a lack of demand.

• SVOLT Energy Technology (Europe) GmbH is mentioning the same reason for the cancelling of its 2nd gigafactory near Berlin, as it tunes down its European ambition after a cancelled supply deal for BMW.
• Volvo Cars is accelerating its EX30 and EX90 manufacturing transfer from China to Belgium to reduce its exposition to custom measures against Chinese-produced cars, and secure its EV-driven sales growth lately (+13% in May in Europe).
• NIO gets its 3rd Chinese plant plans approved, which would boost its annual capacity by 600k vehicles to 1M vehicles, on par with Tesla in China. Nio’s sub-brand Onvo should be the principal customer of the plant.
• First outputs for the Volkswagen MEB-based Ford Explorer EV at Ford’s Köln plant after 6-months delay to switch from NMC cells to CATL-provided LFP cells, echoing with ACC’s announcement early last week.

🤖 Tech Updates

• Chinese auto tech company ECARX , backed by GEELY , has extended its partnership with Chinese tech giant Tencent over “big data, cloud computing, AI, mapping and in-car entertainment” to enhance the former “smart cockpit” solutions.

• Mercedes-Benz AG will use autonomous driving solution from Chinese start-up Momenta in its future CLA for China from April 2025, a company Mercedes-Benz has been backing since 2017, participating alongside other carmakers like Toyota, GM or SAIC Motor.
• Amazon-backed AV start-up Zoox has been quiet for a long time, preparing silently for its ramp up ahead of its highly anticipated commercial launch. This time is coming, as Zoox, the last US player that keeps on building its own purpose built autonomous shuttle, is expanding soon its testing to Miami and Austin (the first expansion since 2021), prior to its first commercial launch planned in Las Vegas and San Francisco. But careful: Zoox may have been quiet, it has not been saved from safety issues as the company is currently under federal investigation from the NHTSA.

🔋 EV Updates

• BYD ’s Founder Wang Chuanfu says custom measures for foreign countries show they are “afraid of Chinese EVs”.
• Hertz forced to secure a $700M sale of secured debt after EV strategy meltdown.
• The Biden administration released a less strict vehicle emission rule, requiring a 2% annual increase in fuel economy for passenger cars from 2027-2031 and light trucks from 2029-2031. This will raise the average fuel economy to 50.4 miles per gallon by 2031, down from the initially proposed 55 miles per gallon by 2026. The auto industry approved the relaxed standards, while environmental groups noted improvements but preferred stricter measures. These standards aim to reduce gas prices and oil consumption, though the U.S. still trails in global fuel efficiency.
• The transport industry, a major polluter with inefficient practices, is embracing change thanks to company like Qargo , a Belgian startup, with a cloud-based transport management system (TMS). It helps companies streamline operations and reduce emissions. Their recent $14M funding round reflects a growing $19.1 billion market for modern logistics solutions.
• Volkswagen Group’s Elli brand introduced the Elli Charger 2, which offers cost-effective home charging by optimizing solar energy use and electricity prices, starting in summer 2024.
• Additionally, Elli is entering the industrial energy storage market, planning large-scale projects with up to 350 MW capacity, set to begin in Germany by 2025.

🧙 New Car Updates

• Rivian has updated its R1S and R1T models with significant engineering improvements to make production cheaper and faster, aligning with its profitability and sustainability goals. The new zonal E/E architecture saves wiring, and the in-house quad-motor drive unit debuts, boosting the vehicle range by 2.5% to 675 km. Software upgrades include a new UI, the Rivian Autonomy Platform Plus for future hands-free driving, and digital keys for iPhones, Apple Watches, and Google Pixel phones. The connectivity package, at $14.99/month, offers satellite image maps, an in-vehicle hotspot, and more. Despite these enhancements, the starting price remains at $69.9k. Rivian’s update strengthens the vehicles’ features and supports its path to profitability ahead of the Rivian R2 release in two years.

• London's iconic Routemaster bus is being replaced by the BYD BD11 electric bus, which can travel up to 643 km (400 miles) with a 532 kWh battery. The BD11, featuring BYD's "Blade" battery technology, will serve for 12 to 20 years and recharge up to 500 kW via pantograph. BYD aims to make it the default London bus. Despite higher costs, with each bus priced at around £400,000, electric buses are essential for decarbonizing London's fleet. Multiple versions will be available by 2025.

• CEO Elon Musk clarified on social media that Tesla will not release a refreshed Model Y crossover this year, countering recent rumors. Musk responded to a user expressing skepticism about the rumored refresh, reaffirming that any changes would be minor incremental improvements.
• According to a study from AAA Data, Tesla and Dacia owners are the most loyal to their car brand in France, Stellantis and BMW at the bottom of the ranking.

🏬 Marketing / Distribution Updates

• China Auto’s offensive in Europe isn’t only about carmakers: Chinese distribution group Harmony Auto Group is entering France with a bang, a flagship store for BYD on Paris’ Champs-Elysées, a perfect showcase ahead of the Olympic Games this summer.
• Renault opens it “Maison 5” experience store in Paris next Saturday: talks, masterclasses, showcases, expositions, kids workshops and last but not least: the R5. Rendez-vous au 66 Rue Saint-Dominique, Paris 7th.

💰 Investment/Financial/Legal Updates

• French ridehailing platform LeCab (ex-SNCF, now SnapCar owned) is acquiring Marcel (ex-Renault Group) to bolster its position on the corporate market.

See you next week and don't forget to share and subscribe to the newsletter!