Tag Archives: U.S./North America

Chipmaker Chief Says Automakers Won’t Get Full Demand Met Until Q3

May 3, 2021 admin

Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co., said his company will begin sending chips to U.S. automakers by the end of June. (Photo credit: 60 Minutes)

Last week, Ford CEO Jim Farley confirmed what some already predicted: the semiconductor shortage is getting worse, not better and the second quarter will be the low point.

Ford and scores of other automakers have been robbing Peter to pay Paul when it comes to those precious semiconductor chips for months now. However, Ford and its Detroit rival, General Motors, are particularly hard hit, especially when it comes to its highly profitable trucks.

However, one of the protagonists in this ongoing techno-drama offered a ray of sunshine Sunday, then pulled the clouds back over it.

Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co. Ltd., one of the major suppliers of chips in the world, told CBS’ 60 Minutes the company was scrambling to squeeze out all it can from its existing production network.

Not the end, just the beginning

More importantly, it expects to begin producing enough chips to start sending some to automakers by the end of June. However, it will only be the “minimum requirement” needed by automakers. In short: the summer is still going to be bad.

President Joe Biden is pushing for funding to accelerate the production of semiconductors in the U.S. for this year.

“Today, we think we are two months ahead, that we can catch up the minimum requirement of our customers, before the end of June,” he told the television news magazine. However, he was clear that meant that chips would start to come, not end the shortage.

“There’s a time lag. In car chips particularly, the supply chain is long and complex. The supply takes about seven to eight months,” Liu added.

It’s reportedly about that time that Renesas Electronics Corp. expects to be back up to full production levels at its Japanese plant that was shut down for a month after a fire swept through the facility, forcing it to cease operations.

Renesas is another top supplier of chips to the auto industry. It recently completed its repairs and began limited production April 10. Shipments will begin sometime in the next two weeks. The facility produces chips for Ford, Toyota and others. It will not begin sending full shipments until basically the end of the second quarter.

Automakers, like Ford and GM, are still extending the amount of time assembly plants are shut down.

Waiting to rebound

In the meantime, automakers are simply waiting, hoping to get enough chips to churn out a few more vehicles. Ford is stockpiling nearly done pickup trucks so that it can finish production once its chip supply is replenished.

Last week, several automakers laid out their plans to idle several production facilities due to the shortage. Today, GM extended the shutdown at its Fairfax Assembly plant in Kansas and CAMI plant in Ingersoll, Ontario. Additionally it is slowing production at its Lansing Grand River site.

Ford earlier today revealed plans for production cuts at its assembly plants in Cologne and Saarlouis. German automaker Volkswagen officials supported the assertion made by Farley last week that second quarter production was going to be volatile.

“I think the situation will remain tense,” Ralf Brandstaetter, CEO of the Volkswagen brand and member of the carmaker’s management board, told German news agency dpa. The company’s lost about 100,000 vehicles due to the shortage, Automotive News reported.

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SEC Investigating VW Due to the “Voltswagen” Stunt

April 30, 2021 admin

The “Voltswagen” April Fool’s Day prank has led to an investigation by the SEC.

What started out as a “humorous” advertising and marketing ploy could land German automaker Volkswagen in serious trouble with the federal government.

The Securities and Exchange Commission (SEC) is apparently looking into VW’s “Voltswagen” marketing stunt to determine if it hurt company stock prices and may have broken any U.S. securities laws, according to German news outlet Der Spiegel.

The incident in question dates back to March 29. As a sort of early April Fool’s Day prank (and marketing ploy), VW “accidentally” released a rough draft of a press release declaring the company was going to change its name to “Voltswagen” as part of a larger effort to promote its ever-growing line-up of electric vehicles (EVs).

This action was picked up by the worldwide automotive press and on March 30 VW issued an official press release to several news outlets, including the Associated Press, confirming the leaked statement from the day before.

This action resulted in VW’s stock price going up. At one point it was 12.5% above its price before the whole incident.

SEC looking at jump in stock price

VW of America President Scott Keogh took responsibility for the poorly received April Fools’ prank that wasn’t on April 1.

This is what caught the attention of the SEC, taking what many considered a fairly unfunny publicity ruse to a possible federal offense.

After the April Fool’s stunt failed in the eyes of the media and the public, VW issued a press statement saying the releases were actually part of a larger tradition in which companies often issue prank statements.

This one just meant to also focus the world’s attention on VW’s growing EV portfolio.

But public statements that affect stock prices usually don’t get an “April Fools” immunity. An SEC investigation could result in charges against the company.

Several news organizations, including The New York Times and Reuters, have asked for a comment from VW. So far, the company has declined to issue one.

Just one of many VW legal scandals

This is not the first time VW has gotten into trouble for the way it conducts its business.

Oh those wacky Germans!! As quickly as it got here, VW took it away: Voltswagen is the company that never was.

In October 2015, as Volkswagen struggled to deal with its diesel emissions scandal, new data raised questions about whether the automaker properly reported death and injury claims to U.S. regulators during the past decade.

A study by the financial advisory firm Stout Risius Ross Inc., found that Volkswagen of America reported nine times fewer deaths and injuries than the average of the 11 largest automakers operating in the U.S. market. Significantly, VW reported less than half as many incidents as either Fiat Chrysler or Honda, both of which have been fined for underreporting their own death and injury data.

Back in September 2015, the EPA accused the German maker of using a so-called “defeat devices,” software designed to fool government emissions tests, on a variety of luxury models from the Audi and Porsche brands. The feds charged VW took steps to cover up excess emissions on 482,000 vehicles sold in the U.S. during a 7-year period.

The end result was VW paying billions of dollars in fines to various governments around the world. The company also faced numerous consumer lawsuits that further cost the company money.

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As Americans Take to the Road Again, Gasoline Could Be in Short Supply This Summer

April 28, 2021 admin

Motorists could be seeing signs like this across the U.S. as companies struggle to find tanker drivers.

First came the shortages of masks and hand sanitizer, then tissues and toilet paper. Scarcity became reality during the COVID-19 pandemic. But now, as widespread vaccination frees up millions of Americans to take long-delayed summer vacations, a new shortage is cropping up: a lack of gasoline.

There’s plenty of petroleum at the nation’s refineries, in fact. The real issue is a shortage of drivers to get it to the pump.

Ironically, many tank truck drivers were let go when the pandemic first struck and millions of Americans went into lockdown. Now, up to 25% of U.S. tankers are sitting idle with no one to put behind the wheel.

Pandemic’s petro-rollercoaster

U.S. roadways went eerily silent as much of the country was idled at this time last year. In major metropolitan areas like New York, Los Angeles and Chicago, traffic fell by as much as 80%, according to tracking service Tom Tom. There was such a glut of petroleum that oil tankers often sat at sea, waiting to empty their loads.

The potential gas shortages are not an issue of overall supply as refineries are operating without issue.

That sent gas prices tumbling, some U.S. service stations charging less than a dollar a gallon in spring 2020. Demand has been rising since then and the typical U.S. motorist is paying $2.88 a gallon for regular unleaded today, according to AAA.

But there’s growing concern that prices could surge even more sharply, especially if the country starts to experience gasoline shortages should there not be enough drivers found to get fuel to where it’s needed.

“Trucking’s driver shortage already exceeds 50,000 drivers,” the National Tank Truck Carriers (NTTC), an industry trade group, reported on its website. And that’s only part of the problem, it adds. “The trucking industry’s workforce shortage is not confined to drivers alone. Trucking companies also require dispatchers and back office staff. Trained mechanics are also in short supply. Tank truck operations face further critical shortages of registered inspectors and design-certified engineers who can inspect and repair cargo tank truck trailers.”

Driver shortage grows worse

In recent years, there’s been a growing shortage of truck drivers, in general. The work is demanding, the pay often marginal, especially for those operating their own rigs.

This could be an increasingly less familiar sight as demand for gasoline increases this summer.

Complicating matters, not everyone licensed to haul an 18-wheeler can operate a tank truck. Beyond the basic commercial license, a driver needs to get additional certification considering the dangerous loads they’ll be hauling.

Then, early last year, a new federal registry debuted. It identified drivers who have had issues with alcohol or drugs. As many as 60,000 of them are no longer available as a result.

Tanker fleet operators struggled with the lack of business last year and are now trying to cope with the driver shortage. When lockdown began and demand for gas plunged, “We were even hauling boxes for Amazon just to keep our drivers busy,” Holly McCormick, vice president in charge of driver recruitment and retention at Oklahoma tanker company, told CNN. “A lot of drivers didn’t want to do the safety protocols. We’re also working with an aging work force. Many said ‘I might as well take it as a cue to retire.’”

Even in normal times, driver turnover can run 50% annually. It hit 70% during the depths of the COVID crisis, Brad Fulton, director of research and analytics at Stay Metrics, told the network.

Spot shortages

Traffic levels are on the rise, especially as more Americans receive vaccinations and look to travel again on vacation.

Schools that train new drivers simply can’t keep up, according to industry insiders. And there are additional roadblocks in the licensing process, argues the NTTC which, in a report on the shortage, said steps are essential for “speeding and easing the CDL (commercial driver’s) licensing process.”

There have already been reports of spot shortages hitting vacation centers like Florida and Arizona during the recent spring break, according to the Oil Price Information Service.

Experts say these could become more widespread during the summer months as more Americans start to travel again — especially with the CDC revising outdoor mask guidelines for those who’ve been fully vaccinated.

The real concern is that even a brief shortage at a handful of stations could cause the same sort of panic that occurred last year when supplies of toilet paper fell short, shoppers lining up at groceries and big box outlets like Costco, snapping up every roll they could find.

If everyone suddenly decides they need a full tank of gas at all times it could strain supplies. It also could lead to long lines of cars waiting to fuel up — bringing back echoes of the gas shortages America faced in the 1970 oil shocks. Except, this time, there’s a plentiful supply of both petroleum, but a shortage of the trucks needed to get fuel where it’s needed.

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Fiat Joins Electric Van Fray with New E-Ducato

April 22, 2021 admin

Fiat is getting into the electric van market with the new E-Ducato, and partnering with global logistics giant DHL.

It’s not just the light duty arena seeing a substantive increase in battery-electric offerings as the crowded commercial van market just got another competitor: the Fiat E-Ducato.

Stellantis, Fiat’s parent company, told the world it would move quickly to become competitive in the electric vehicle market once the merger of Fiat Chrysler Automobiles and Group PSA was complete. The deal was done at the end of 2020, and they’re making good on that promise.

The new E-Ducato steps into a very crowded field facing competition like the Mercedes e-Sprinter, Rivan’s new all-electric delivery van, GM’s BrightDrop offering and the king of the segment, Ford and its E-Transit model.

But it’s not just the big names looking to make inroads in the segment, Fiat’s competing with fringe players like Silicon Valley’s Canoo, Ohio’s Workhorse Group and the even smaller Arrival, which uses “microfactories,” ditching the traditional assembly line approach vehicle manufacturing.

The newest player

Fiat’s new E-Ducato starts at about $50,500, which puts it on par with most of its competition.

Ever-intensifying competition aside, the new E-Ducato is available right here — if here is Europe — and right now. It’s assembled at Fiat’s Atessa, Italy plant, although the electric powertrain will be install at the Mirafiori facility in Turin. No word on if or when a ProMaster version comes to the U.S., although the company did say other variants would follow.

Fiat says it’s comparable to a diesel in its performance levels. The motor puts out 122 horsepower and 206 pound-feet of torque, which should be plenty to get around town. Additionally, it can add another 62 miles of range in less than 30 minutes, Stellantis officials noted.

The E-Ducato offers two different battery options — 47 kWh and 79 kWh, best-in-class for installed electrical capacity. It offers four types of charging modes, although only three are available now. With a 47-kWh battery, it travels up to 145 miles. With a 79-kWh battery, it enjoys a range of about 230 miles.

“For the E-Ducato, we started from the idea of creating not only a ‘green’ vehicle, but also a complete mobility solution, characterized by versatility, reliability, efficiency and sustainability (at both an environmental and an economic level),” said Eric Laforge, head of the Fiat Professional brand, who’s leading charge into large electric vans.

Amazon and Rivian are expanding the use of the EV maker’s electric delivery van.

“In short, a working tool to build up your business while respecting the precepts of ecology, a model ready for every mission, uncompromisingly aiming to be the benchmark in the market and to be equipped with the same capabilities as vehicles with internal combustion engines. Its 400 configurations mean it can meet the needs of all professional operators, from freight fleets and construction companies to artisans and municipal service providers.”

Following a familiar path

Like many of the other competitors in the segment, Fiat’s got a real-world partner: DHL. The global delivery giant signed on to help build a better van five years ago, but the relationship intensified when the E-Ducato hit the drawing board.

Unsurprisingly, it will purchase E-Ducatos as part its commitment to electrify most of its last-mile delivery vehicles by 2030, and 60% of its overall fleet electrified. “This means I’m looking for something like 14,000 vehicles we’re gonna buy,” said Alberto Nobis, CEO of DHL Express Europe during the press conference. “We had an opportunity to build this vehicle to our specifications.”

A pre-production version of the BrightDrop EV600 van being tested by FedEx.

It’s unclear if Nobis was committing to buying 14,000 E-Ducatos or simply that many electrified vehicles. However, the partnership between DHL and Stellantis shows the importance of catering to the market.

Similarly Rivan worked with Amazon, which is also a major investor in the company, to create the electric vans it’s currently testing in several cities across the U.S.

Arrival and Workhorse are both working with UPS, GM is partnering with FedEx on its BrightDrop vehicles. Ford and Daimler haven’t announced formal partnerships yet, but they are the two largest players in the segment so getting input likely isn’t a problem.

The new E-Ducato starts at just under $50,500, which puts in the same league as the aforementioned E-Transit which starts at about $45,000.

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Magna Tells Investors Sales Expected to Jump More Than $11B by 2023

April 15, 2021 admin

Magna CEO Swamy Kotagiri told investors sales would rise by at least $11 billion in the next few years.

Magna International, one of the world’s largest automotive suppliers expects global sales to hit as much as $45.5 billion in 2023, officials told investors this week.

The company said it expects sales to grow to a range of $43 billion to $45.5 billion in 2023, up from $32.6 billion in 2020. Officials expect global light-vehicle production to grow 6% on average per year from 2020 through 2023, while the company’s annual sales will grow 10-12% on average, per year over that time frame, the annual report indicated.

Innovation leads the way

This growth is being led, in part, by several new products developed by Magna. One of those are EV battery enclosures that contribute to the structure of the vehicle, protect high-voltage batteries and will debut on the new GMC Hummer EV and Ford F-150.

Another technology developed by Magna, Clearview, a combination of camera and mirror technology that provides an enhanced field of view. It will be available on multiple vehicle models for the global automotive market.

Freeform is a surface seating trim that improves seat comfort with contoured surfaces which has been sourced with two global automakers, Magna added.

Part of Magna’s growing business is the all-electric Fisker Ocean SUV, which it will build in Austria.

Strong balance sheet aids growth

Magna also said in February net income from the fourth quarter of 2020 increased 68% from a year earlier due in part to better-than-anticipated vehicle production.

“Our balance sheet remains strong,” said Magna CEO Swamy Kotagiri in a letter to shareholders in the annual report.

“Last year we invested approximately $600 million in areas of engineering aligned with megatrends, including electrification, autonomy and new mobility. We will continue our disciplined investment approach to drive growth and create long term shareholder value.

“As one of the world’s largest and most advanced technology suppliers in the mobility space, we continue to be an indispensable partner for established automakers and new entrants alike. While Magna’s current product portfolio is well positioned for the car of the future, we are continuing to expand our offerings, capabilities and evolving business models.”

New ventures

The annual report also noted that Magna had launched a new joint venture with South Korea-based LG Electronics that blends Magna’s strength in electric powertrain systems and automotive manufacturing with LG’s expertise in component development for e-motors and inverters, accelerating both companies’ growth in the electric powertrain market.

In addition, Magna is supplying electric carmaker Fisker with an EV platform, electrical/electronic architecture, vehicle engineering and manufacturing and the complete ADAS system for the Fisker Ocean SUV, demonstrating Magna’s unique systems level approach.

Magna’s facility in Graz, Austria already builds a variety of vehicles for established automakers.

“Additionally, we continued to win significant business throughout the year, despite pandemic constraints, driven by our leading technology,” the company noted. “These wins reflect our continued investments that drive innovative solutions for our customers. In fact, over 90% of our 2023 sales are already booked.”

New venture with Israeli company

Magna also entered into a new agreement with REE Automotive Ltd. Tel Aviv-based REE is a self-described electric mobility company, marketing Modular Electric Vehicles, or MEVs.

The collaboration will explore the combination of REE’s technology with Magna’s vehicle systems integration expertise and manufacturing capabilities, to develop MEVs for commercial customers to customize vehicles based on their specifications and branding, while accelerating time to market.

“We are thrilled to reach a collaboration agreement with Magna, which should help put us on the fast track to support a broad range of electric vehicles (EVs),” said Daniel Barel, REE Co-Founder and CEO, in a statement.

“We see a growing demand for highly modular EVs from leading tech companies and new electric mobility players who have set their sights on entering the EV realm and building a brand in automotive. REE and Magna working together under the ‘Powered by REE’ approach can help bring their vision to life.”

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Honda Looking to Get a Little More Rugged with Trailsport Moniker?

April 9, 2021 admin

The new Honda Ridgeline gets a more rugged exterior update for the 2021 model year. Could a Trailsport edition be coming soon?

Is Honda trying to make its trucks and SUVs appear to be tougher? Maybe.

The Japanese automaker’s secured a new name: Trailsport. When compared to RAV4, Passport and Pilot, Trailsport seems almost vicious by comparison. The automaker registered the name with the U.S. Patent and Trademark Office, and website Carbuzz tracked it down.

The application reads as follows: “The mark consists of a miscellaneous design set above the term TRAILSPORT with the letters ‘R’ and ‘S’ connected together all in a stylized font. This trademark registration is intended to cover the categories of land vehicles, namely, sport utility vehicles, automobiles, trucks, and structural parts for the foregoing.”

Getting a little tougher

There’s no clear indication if Honda intends to use it for new vehicle or, more likely, a special edition or trim package, such as the Honda Ridgeline Trailsport.

Subaru is offering up a beefed up version of the Outback called the Wilderness edition.

Regardless, the company’s been looking to add more capability to its trucks and utes, toughening up the look of aforementioned Ridgeline for the 2021 model year after the previous iteration was roundly criticized for its “soft” or non-traditional appearance.

In addition to the new look, it also got additional tweaks to keep the functionality the Ridgeline has touted both in terms of utility and performance, including the top standard payload capacity for a V6 all-wheel-drive truck.

The biggest change for 2021 is the truck’s overall exterior shape, which is altered by getting an entirely new front-end design. The new look is a bit more aggressive with a “power bulge” on the hood accented with a more squared-off front end and bigger, more upright grille. Most of its competitors have been upsizing the grilles on their trucks and looking for “tougher” monikers for their vehicles too.

Following a trend

Subaru just launched a new family of more rugged off-roaders with its new Wilderness edition offerings, starting

The new Pathfinder’s sporting a more rugged look for the 2022 model year.

with the new 2022 Outback Wilderness. The automaker described the ’22 Subaru Outback Wilderness as “the most rugged and capable” version of the crossover in its history.

Once little more than a gussied-up station wagon, the new Wilderness model adds features designed to give it serious off-road credibility, starting with an increase in its ride height, upgrades to the suspension, revisions to its all-wheel-drive system and a standard front skid plate. The automaker will expand the line-up to include Forester and Crosstrek in the near future.

With competition like the Jeep Wrangler Rubicon and Gladiator Mojave and the Ford Bronco harkening back to a rougher, tougher time and the increasing desire of owners to take these vehicles that look like SUVs out to do SUV-like things, it’s no surprise that other automakers are hustling to bolster their crossovers and urban-friendly utes.

Don’t forget Nissan

For the 2022 model year, Nissan’s finally given the Frontier midsize pickup a major makeover.

Nissan did the same with its 2022 Pathfinder and Frontier entries with one executive proclaiming the Pathfinder has “returned to its rugged roots,” for the new model year. While the Pathfinder got a more muscular look and a few small upgrades to improve its off-cement capability, it was the Frontier that got a big boost.

The new Frontier adopts a more solid and upright appearance with a bolder, less derivative front end. All versions of the truck get enhanced ground clearance and enhanced approach and departure angles, with a prominent front skid plate.

For those who are serious about off-roading, there’s a new Pro-4X version featuring an electronic locking differential, Bilstein off-road shock absorbers and underbody skid plates. That could enhance Frontier’s appeal to those who might otherwise consider the Toyota Tacoma, for many the off-road benchmark of the segment. The Pro-4X is all-wheel drive but for those who want a 2WD model, the new Pro-X adds LED head, DRL and fog lights for a more rugged appearance.

Expect Tougher EPA Emissions Rules by July, Says Biden EPA Chief

April 7, 2021 admin

EPA Administrator Michael Regan said the agency will reveal tougher emissions standards by July.

Even before taking office in January, then President-elect Joe Biden faced heavy pressure to tighten federal tailpipe regulations, reversing cuts enacted by his predecessor, Donald Trump.

Michael Regan, the new EPA administrator, said this week updated emissions standards are coming and should be announced by July. While the nation’s environmental chief did not offer specific details, he also wouldn’t rule out the possibility that future mandates would lead to the phase out of vehicles using internal combustion engines, according to Bloomberg News.

“We need to go as far as we can to meet the demands of the day,” Regan told the news service. “The science indicates we have a short window in time to reverse the path that we’re on and mitigate against certain climate impacts.”

Trump rollback

The Trump administration CAFE rollback is facing a protracted legal battle.

Federal guidelines enacted during the Obama administration set a target for automakers to deliver an average 54 miles per gallon by the 2026 model year. The Trump administration implemented a rollback last year that has since been tied up in federal court. It also ended the waiver granted the State of California to set even tougher carbon emissions standards.

While a number of automakers backed the Trump move, others formed a coalition with the California Air Resources Board, or CARB, creating a compromise rule that many observers expect to serve as a model for what the Biden EPA ultimately announces. The administration is believed to be seeking some sort of compromise that could win support from both the environmental community and the auto industry — as did the original Obama-era guidelines.

For his part, Regan said he believes in “consensus building.”

Seeking compromise and consensus

“We are heavily engaged with the business community. We are heavily engaged with the labor community,” Regan said in his interview. “It’s a false option to choose between economic development and prosperity and environmental protection.”

President Joe Biden has been facing pressure to reduce emissions since he declared his intention to run for president. It’s ramped up since taking office.

California has long had the ability to set its own standards for traditionally defined automotive pollutants, such as carbon monoxide and oxides of nitrogen. These have typically been tougher than the federal standards. Under Obama, however, the state received a waiver allowing it to set carbon emissions mandates, as well. Carbon dioxide output is directly related to fuel consumption, so, the rule provided a back-door method for CARB to set stricter mileage targets.

And 13 other states adopted the tougher California rules, meaning higher fuel economy standards for about 40% of the U.S. population.

Outright ban on ICE vehicles under study

California took things a next step when, last year, Governor Gavin Newsom signed an executive order banning the sale of new vehicles using internal combustion engines after 2035. New Jersey followed with a similar order a few months later.

Pete Buttigieg, Biden’s new Transportation secretary, took a cautious position during confirmation hearings when asked about whether a similar federal ban could follow. For his part, EPA Chief Regan left that possibility open.

California Governor Gavin Newsome signs the order for a ban the sale of gas-powered cars by 2035 on the hood of a Mustang Mach-E.

“We’re taking a strong look at what the science is urging us to do. We’re looking at where technologies are,” Regan said. “We’re marrying our regulatory policy and what we have the statutory authority to do with where the science directs us and where the markets and technology are.”

Taking politics out of science

Regan, like Buttigieg and new Energy Secretary Jennifer Granholm, have collectively emphasized the need to set federal guidelines that are based on science, critics saying their Trump administration predecessors frequently focused on rulemaking-as-politics, or as a way to curry favor with their boss, President Trump.

Tailpipe emissions and fuel economy rules could be two of the highest-profile issues Regan will deal with during his time at the EPA. But the agency is “laser focused” on another transportation-related issue: the release of greenhouse gases, like methane from oil and natural gas wells and pipelines.

Those and other steps are believed critical for the U.S. to meet its global warming commitments as Biden brings the country back into the Paris Climate Agreement.

“EPA,” said Regan, “has a critical role to play in delivering on President Biden’s aggressive climate agenda to achieve a carbon-pollution-free power sector by 2035 and put the United States on path to a net-zero economy by 2050.”

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Bow. Wow! One-Bow Design Takes Mercedes EQS in an Entirely New Direction

March 27, 2021 admin

The new Mercedes-Benz EQS battery-electric sedan makes its formal debut April 15.

One thing’s for sure: there’ll be no mistaking the new Mercedes EQS sedan when it rolls down the street.

Think of the EQS as the all-electric alternative to the German automaker’s familiar S-Class flagship. But you clearly won’t confuse the two when it reaches showrooms in autumn. Some new battery-electric vehicles share the same design language as conventional, gas-powered products. With EQS, Mercedes goes off in an entirely new direction, one it’s been hinting at with concept vehicles like the 2019 Vision EQS.

The production model adopts what the automaker calls a “one-bow” design. It takes the look of the coupe-like Mercedes CLS to extremes. The result could have rolled off the set of a sci-fi film. But there are practical benefits in terms of range and interior roominess, as well.

“We said we have to go further” than just packing batteries into a conventional looking product,” Steffen Kohl, Mercedes’ director of advanced exterior style, said during a media webinar. The EQS “carries the future of Mercedes-Benz,” he added, noting the “one-bow” language of the EQS will strongly influence other products to come from the new, all-electric Mercedes-EQ sub-brand.

Plenty of power and range

Robert Lesnik led the exterior design effort for Mercedes new EQS battery-electric sedan.

EQS rides on a skateboard-like platform, mimicking virtually all new battery-electric vehicles. Its batteries, motors and other key electrical components sit below the floorboards.

The automaker will reveal full powertrain details during a formal unveiling April 15. But EQS uses twin motors, one on each axle, drawing power from a 108 kilowatt-hour battery pack. That provides about 435 miles of range using the European WLTP test cycle. The EPA rating should come in somewhere about 350 miles, according to industry observers.

The layout moves the sedan’s wheels close to the vehicle’s corners. It also frees up space where a traditional gas or diesel engine would be mounted, providing significant flexibility to the Mercedes design team.

Shorter wheelbase, longer cabin

The cab-forward design features a short nose, the angled, one-piece aluminum clamshell hood rising aggressively to flow into a steeply raked windshield. Instead of a traditional, two- or three-box layout, the look is like that of a single bow line, explained Robert Lesnik, who led the exterior design effort.

The Mercedes-Benz Vision EQS concept provided a framework for the company’s new electric luxury sedan.

“EQS will be the world’s best production car ever in terms of aerodynamics,” with a drag coefficient of 0.20 significantly better than even the sleekest of today’s supercars, he explained.

The effect “looks optically lower than it is,” Lesnik added.

The front end features a new grille with “abstracted, three-dimensional star pattern(s),” according to Mercedes. It’s framed by slit-like headlamps flowing into the front quarter panels.

“When people ask why we need a grille anymore,” Lesnik explains that it is “not an air intake. It’s a face.”

“Coming from the future”

The side panels lack the normal creases found on conventional Mercedes models, though the greenhouse does pinch in towards the trunk, giving the EQS a sense of muscularity.

The new EQS features Mercedes’ newly introduced Hyperscreen technology.

Around back, the most distinctive feature is a light band connecting what Mercedes calls “curved, 3D helix” taillamps.

From nose to tail, the new EQS measures 5.2 meters, or 204.7 inches. That’s about 3.5 inches shorter than the U.S. version of the latest Mercedes S-Class. But the electric sedan has more room for four passengers, its cabin pushed forward into what would normally be the engine compartment.

As distinctive as the exterior might be, the interior takes things even further, said Peter Balko, who oversaw development of the cabin. “We wanted our interior to be modern,” he explained, “as if coming from the future.”

Buyers will have numerous options

Buyers have several key options to choose from. The showpiece layout uses the new hyperscreen concept first shown on the latest S-Class. It features a seamless digital cluster running the entire width of the instrument panel. The organically shaped glass blends three different displays, starting with the digital gauge cluster, the touchscreen infotainment screen and a separate display for the front passenger.

The gauge cluster on the new EQS is configurable based on the wants of the driver.

EQS offers a digital gauge cluster and a large, free-floating, Tesla-like infotainment screen for those seeking a more conventional look. The space in front of the passenger can be outfitted with an assortment of different woods and fabrics and even a version of the Star Pattern grille.

The EQS will “touch almost all of your senses,” said Kohl. Among other things, the product development team has come up with three distinctive, user-programmable “soundscapes.”

Sounding off

While battery cars aren’t entirely silent, they are significantly quieter than vehicles with conventional internal combustion engines. Motorists can enjoy the lack of noise or they can opt for one of the soundscapes, “depending upon the emotions of the moment,” said lead sound engineer Thomas Kuppers.

Silver Waves is meant to be soft and soothing;
Vivid Flux is “shimming and explosive,” a bit “techie but (with) warmth,” said Kuppers; and
Roaring Pulse is “pretty raw, with “the growl of thunder,” especially under aggressive driving.

“We haven’t finished yet,” Kuppers added, noting that, “There will be new soundscapes over the life of the vehicle that we will download through over-the-air updates.”

The new EQS will borrow from the conventional S-Class by also appealing to the sense of smell, Mercedes officials noted. The new BEV will have the ability to inject scents into the cabin, including some designed specifically for the new model.

GM Grows Board of Directors’ Diversity with New Whitman, Tatum

March 25, 2021 admin

Meg Whitman, a technology leader and former head of Hewlett Packard Enterprise, will join the General Motors Board of Directors.

What was already the most diverse board of directors in the automotive industry just go a little more so, General Motors Co. expanding its board, adding Meg Whitman and Mark Tatum to fill the spots.

The move grows GM’s board from 12 to 13 members. Adding Whitman, a former Republican gubernatorial candidate in California and CEO of Quibi Holdings LLC, a media startup, results in women filling seven of the posts on the board. It makes GM the only automaker where women comprise a majority of the board.

Tatum, who is of Asian and African-American heritage, is the National Basketball Association’s deputy commissioner and chief operating officer. Diversity within the company has been a priority for Chairman and CEO Mary Barra since her appointment in 2013.

Diversity is a strength

GM quickly pointed out that the diversity of the company’s newly expanded board isn’t just limited to gender or ethnic background.

Diversity has been a theme during Mary Barra’s tenure as GM’s Chairman and CEO.

The company’s 12 independent directors have senior leadership and board experience in information technology, digital commerce, retail, higher education, investment management, international affairs, defense, transportation, cybersecurity, and pharmaceuticals, among others.

“Our diverse Board of Directors is a competitive advantage for GM as we work to deliver a better, safer and more sustainable world,” said GM Chairman and CEO Mary Barra. “Mark and Meg will bring unique experiences to the Board, especially in technology, brand building and customer experience that will help us drive value for shareholders and other GM stakeholders now and into the future.”

Diversity is a focus in the company’s executive ranks as well. Barra’s overseen a significant shift of women into higher level roles at the company during her tenure. Some of those include Dhivya Suryadevara as Chief Financial Officer, the first-ever woman to hold the job, and Alicia Bolder Davis as the Head of Global Manufacturing.

Others include Ann Cathcart Chaplin, corporate secretary and deputy general counsel; Margaret Curry, vice president, Tax and chief tax officer; Julia Steyn, head of urban mobility and Maven; Kimberly Brycz as senior vice president, Global Human Resources; and Pamela Fletcher, vice president, Global Electric Vehicle Programs. Both Boler Davis and Suryadevara left the company for other opportunities in the last 18 months.

Results are showing

Mark Tatum, deputy commissioner and chief operating officer of the National Basketball Association, will join the General Motors Board of Directors.

The push to diversify, at least by gender, is beginning to get noticed. GM was the top ranked company in the U.S. on the Gender Equality Global Report & Ranking for 2021. It was No. 5 globally, with a score of 71%, up from No. 11 and a score of 68% last year. GM was the only automaker in the Top 100.

Researchers noted GM achieved gender balance at the board level (at the time the report was issued, there were six women on GM’s board). Additionally, women represent 20% of the executive team, 32.2% of senior management and 21.8% of the workforce.

“They offer a living wage and flexible work arrangements to their employees. General Motors is the only company in the U.S. and globally that publishes a mean, unadjusted gender pay gap of less than 3% in all pay bands, and they have a strategy to close the gender pay gap. General Motors also publishes all eight of Equileap’s recommended policies that promote gender equality,” the report noted.

It is compiled by Equileap, a data research firm, which researched 3,702 companies based on 19 gender equality criteria, including gender balance from the board to the workforce, as well as the pay gap and policies relating to parental leave and sexual harassment. The average score for the Top 100 companies globally was 64 percent, an increase of 2 percentage points from last year.

Other automakers making moves

Alexandra Ford English has been nominated for the Ford Motor Co. board of directors.

GM’s top domestic rival, Ford Motor Co., currently has three women on its board of directors and nominated a fourth, Alexandra Ford English, daughter of current Executive Chairman Bill Ford Jr., who is virtually assured of election to the board later this year.

Ford English, 33, recently accepted another board position that elevated her profile. She took on the role as Ford Motor Co.’s representative to the Rivian board of directors. Ford Motor owns an equity stake in the EV maker. She’s held roles in corporate strategy at companies like Tory Burch and Gap Inc. as well as the automaker, which she joined in 2017.

The company’s global workforce is 28% female and 20% of its leadership comprises women. Some of it is top officers include Joy Falotico, president, The Lincoln Motor Co.; Lisa Drake, chief operating officer, North America; Suzy Deering, chief marketing officer; Dianne Craig, president, International Markets Group; Elena Ford, chief customer experience officer; Cathy O’Callaghan, vice president, Controller; and Kiersten Robinson, chief people and employee experiences officer.

Falotico, Drake and Deering have all moved into their roles in the last 12 months with the first two moving from other jobs within the company. Deering arrived at the automaker in January from eBay, where she was global chief marketing officer. She actually took over for Falotico, who now focuses solely on running Lincoln.

Lordstown Motors in Fight for its Life

March 17, 2021 admin

Lordstown Motors CEO Burns in truck Feb 2021

Lordstown Motors CEO Steve Burns attempted to assuage investor concerns by offering detailed insight about the truck and earnings.

Lordstown Motors officials went on the offensive Wednesday afternoon, aiming to dispel mounting doubts about the EV startup’s future in light of a damning research report questioning whether it has received any real orders – while suggesting its founder and CEO is a “con man.”

Lordstown is one of numerous manufacturers getting ready to launch battery-powered pickups. The company completed a SPAC merger last year generating $675 million in cash, money it is using to finish development of its new Endurance model. Lordstown officials claim they’ve received more than 100,000 non-binding production reservations from commercial fleet users. But that’s been thrown in doubt as a result of a report published last week by short-seller Hindenburg Research.

After issuing a terse response early this week declaring that work on the electric truck is “on track” for a September 2021 launch, Chairman and CEO Steve Burns acknowledged that the company is “cooperating” with an inquiry by the SEC. Lordstown also has launched its own internal investigation, Burns revealed, though he declined to comment directly on the Hindenberg study.

Burns talks sales numbers

Lordstown Motors is engaged in beta testing its production line with the first of 57 pre-production electric trucks to come soon.

That said, Burns did provide some insight into its sales expectations. With the first of a planned 57 beta-test vehicles now being readied, “We are able to obtain more substantial levels of commitment from our prospective customers,” he said, adding

“Under these arrangements the fleet management companies agreed to use reasonable effort to obtain purchase commitments from their clients.” But those commitments will be “conditional” until Lordstown actually puts trucks into production, Burns cautioned.

There’s still a problem with the math, 20,000 “conditional” orders significantly lower than the 100,000 non-binding reservations Lordstown previously quoted.

Company officials suggested that limited manpower means it will take time to firm things up. A clearer number will emerge “over the next 60 to 90 days,” said Lordstown President Rich Schmidt.

Nonetheless, the company is confident enough in its prospects, the Lordstown founder said, it is preparing to increase the Ohio factory’s capacity to 60,000 vehicles a year. And it is speeding up development of a second product program, an all-electric RV-style van set to reach production by the second half of 2022, said Schmidt.

A confident front

Burns said he believed his company was the only one to begin automated assembly this early in the process.

While Lordstown officials aimed to project confidence during a Wednesday afternoon earnings call with analysts and reporters, there is no question company officials need to be worried about the report issued by Hindenberg, said Sam Abuelsamid, principal automotive analyst with Guidehouse Insights.

“They’re absolutely facing the fight of their life, no doubt about it,” said Abuelsamid. “I’ve always been dubious about the number of orders they claim considering they’ve never built a product before. They’re going to have to provide real evidence of what they actually have … and they need to demonstrate an actual product.”

Lordstown was founded in 2018 by Steve Burns, a pioneer in the electric vehicle space who previously ran startups AMP and Workhorse. Its sole product is the Endurance, an all-electric pickup that it is primarily targeting at the commercial fleet market. The truck takes the unusual approach of using four motors, one mounted in each wheel hub. It is expected to produce 600 horsepower, deliver 250 miles of range and tow up to 6,000 pounds.

The nascent EV maker caught a lucky break two years ago when General Motors decided to sell it one of the three North American assembly plants it was planning to close. GM loaned the fledgling company $40 million to get the deal completed and eventually invested $75 million in the startup.

CEO Burns expressed enough confidence in his team that he upped the expected production levels to 60,000 units.

Even before rolling out a running prototype, Lordstown began touting advance reservations for Endurance, something that drew the interest of investors as the company prepared to enter a SPAC, or special purpose acquisition company, reverse merger last year. The deal not only got Lordstown listed on the Nasdaq exchange – trading as RIDE – but also generated about $675 million in new equity.

Hindenburg report casts doubt

But Hindenburg Research decided to address some of the questions that Abuelsamid and other industry observers had quietly been discussing among themselves. And the report it released last week went off like a bombshell. Where Lordstown stock surged to a high of $31.80 after its SPAC deal, it fell to as low as $9.80 after the report’s release, shares closing at $15.09 as the bell sounded Wednesday. The price dropped into the $14.40 range in after-hours trading.

“Lordstown is an electric vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities,” Hindenburg said, while referring to Lordstown founder and CEO Steve Burns as a “con man.”

It zeroed in on several supposedly large orders for the Endurance, including one supposedly for 14,000 of the trucks worth $735 million supposedly placed by E Squared Energy. But Hindenburg claims the firm is a two-man operation, based out of a “small apartment in Texas,” which has no vehicle fleet.

The company plans to enter one of its trucks in a Baja race in Mexico next month for additional real-world testing.

“Another 1,000-truck, $52.5 million order comes from a 2-person startup that operates out of a Regus virtual office with a mailing address at a UPS Store,” reported Hindenburg. “We spoke with the owner who acknowledged it won’t actually order any vehicles, instead describing the ‘pre-order’ as a mere marketing relationship.”

Hindenberg’s lengthy analysis was particular harsh on Burns. It cited unnamed current and former Lordstown employees who, among other things, likened Burns to P.T. Barnum, the legendary circus owner and huckster.

During the Wednesday afternoon call, however, Burns and other Lordstown officials went to great pains to provide all the minutiae industry analysts sought during the company’s earnings call.

What we learned

The new Endurance is set to begin production at the end of September officials reaffirmed during the company’s first-ever earnings call.

The key takeaways: Lordstown is completing development of the Endurance and moving ahead on its second product line. The company lost $38 million during the fourth quarter of 2020 and $101 million for the full year. Largely due to the SPAC deal, the startup ended 2020 with $630 million in cash. It expects to end 2021 with just $200 million in the bank due to the heavy spending associated with the Endurance launch and the van project.

Whether Wednesday’s call will put Lordstown on firm ground is uncertain. What’s clear is that Hindenburg has something of a track record knocking down incipient EV companies.

Last February, the research firm gained headlines targeting Phoenix-based Nikola Corp. Like Lordstown, Nikola focuses on the commercial market and used a SPAC deal to go public. Nikola then saw a big runup in its share price while also lining up a proposed alliance with General Motors.

Hindenburg revealed a number of false or misleading statements by Nikola and its founder and now former CEO Trevor Milton – later backed up by the company’s own, internal review. As a result, Nikola’s share price collapsed and the deal with GM was sharply pared back. Milton was subsequently forced to resign when additional information about inappropriate behavior involving minors was revealed.

Now it’s Lordstown’s time in the crosshairs. The company will have to demonstrate that that is real substance behind both its truck and its business plan if it expects to survive, said analyst Abuelsamid.

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