Tag Archives: Electric vehicles

The government is investigating why Tesla drivers can play solitaire at the wheel

The National Highway Traffic Safety Administration (NHTSA) is officially looking into the “driver distraction potential” of Tesla’s “Passenger Play” system, which drivers say allows them to play games while on the road. 

A spokesperson for NHTSA told Popular Science Wednesday it has now opened a “Preliminary Evaluation” to “evaluate the scenarios” in which Tesla drivers can interact with the gaming offerings available on the dashboard screen. The vehicles included in this investigation are Tesla Models 3, S, X, and Y from years 2017 through 2022. The Associated Press, which first reported on the NHTSA evaluation, says this equates to about 580,000 cars. 

According to a report from the New York Times on December 7, three new games were added to Tesla’s dashboard screens in a virtual update this summer, including solitaire, a “jet fighter game,” and a “conquest strategy game.” While more than a dozen games were previously available while the car was in park, this update also made games accessible when the vehicle was in drive. Before launching, the games ask for confirmation that the player is a passenger, not the driver, The Verge found, but the driver could still tap the confirmation button to proceed. 

The Times report cited Vince Patton, a Tesla owner who filed a complaint to NHTSA after discovering the feature and had safety concerns, as well as videos on YouTube that show how the system works. NHTSA confirmed to Popular Science that it received one owner complaint about the games. In the report from the NHTSA’s Office of Defects Investigation, there are no recorded incidents of crashes or injuries related to the game system’s use.

“NHTSA based its decision on reports that Tesla’s gameplay functionality is visible from the driver’s seat and can be enabled while driving the vehicle,” the NHTSA spokesperson said to Popular Science in an emailed statement about the agency’s choice to formally look into the issue. Previously, NHTSA told the Times it was “discussing the feature with the manufacturer.”

This probe comes less than two weeks after NHTSA told CNBC it was in communication with Tesla over an Autopilot glitch and as the agency continues to investigate multiple serious accidents involving Teslas hitting emergency vehicles while in Autopilot mode. The NHTSA spokesperson said that, as a reminder, there are no commercially available vehicles today that can totally drive themselves.

“Every available vehicle requires the human driver to be in control at all times, and all State laws hold the human driver responsible for the operation of their vehicles,” the spokesperson added. 

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Ford Partners with CARB to Secure Green EV Charging

Charging is key to the transition to electric vehicles and while more chargers are one the way, Ford Motor Co. is launching a new program to ensure the juice needed to run an EV does not contribute to the emission of greenhouse gases. 

Ford debuts 2020 Escape PHEV
Ford’s program can be used by current owners of the Mustang Mach-E, E-Transit and Escape PHEV.

With help of one auto industry’s traditional foes, the California Air Resource Board, Ford is beginning what it describes as a “sustainable charging program,” which allows owners of plug-in electric vehicles in California to opt for only carbon-neutral charging at home.  

“Ford’s electric vehicle customers are beginning to realize all the possibilities associated with their vehicles and sustainable energy management,” said Matt Stover, director of charging and energy services, Ford Motor Co.

“By working with regulators, utilities and customers for home integration services, we’re enabling EV drivers to lower their carbon footprints, potentially save money and help protect the grid, all through their smartphones.” 

California-based owners of all current Ford all-electric and plug-in hybrid vehicles, including the Mustang Mach-E, the E-Transit and the Escape PHEV, plus the F-150 Lightning coming in 2022, are eligible for the program. 

Ford green charging California graphic

Only green energy wanted 

The idea is to only use electricity made with renewable sources rather than oil, gas or coal, reducing the carbon footprint of the energy used to power the vehicles.  

Carlos Tavares, Stellantis CEO, recently noted the ability of electric vehicles to limit emissions of greenhouse gases is blunted if the energy powering them comes from fossil fuels, such as oil. Other critics of EVs note EVs cannot deter climate change if they are dependent on electric grid powered by fossil fuels.  

Ford plans to participate in CARB’s “Low Carbon Fuel Standard,” which will offer customers a new way to help reduce greenhouse gas emissions that contribute to climate change by matching the use of electricity used to charge plug-in electric vehicles at home with 100% local renewable energy, the automaker said. 

CARB, which has control of air quality standards throughout California, has long warred with automakers about emissions. Significant health concerns, created by automotive-related air pollution in Southern California, have given CARB enormous influence over emission standards not only across California but also across the United States. 

Ford Sustainable Charging web page

Program uses a phone app to find green energy 

Under the program, owners of eligible plug-in electric vehicles connect to the program through the FordPass app. 

Once enrolled, the FordPass app automatically tracks the amount of electricity used while charging at home. Ford generates, or buys, an equivalent amount of California-sourced Renewable Energy Certificates, an EPA-recognized program that records the generation and usage of green energy. 

Ford then sends evidence of the matching amounts to CARB, ensuring that all home plug-in charging activity is matched with zero-carbon electricity. 

Ford is investing more than $30 billion in electric vehicles and batteries through 2025. The push supports the company’s longer-term goal of creating a sustainable American manufacturing ecosystem, and to accelerate its progress towards achieving carbon neutrality no later than 2050. Overall, Ford expects 40% to 50% of its global vehicle volume to be fully electric by 2030.

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Could Ford’s Electric Fleet Sales Be Slower Than Expected?

<img data-attachment-id=”1776894″ data-permalink=”https://www.thetruthaboutcars.com/2021/10/could-fords-electric-fleet-sales-be-slower-than-expected/rouge-electric-vehicle-center/” data-orig-file=”https://www.thetruthaboutcars.com/wp-content/uploads/2021/10/Ford-Rouge-Electric-Vehicle-Center_20.jpg” data-orig-size=”7922,5281″ data-comments-opened=”1″ data-image-meta=”{“aperture”:”18″,”credit”:””,”camera”:”NIKON D850″,”caption”:”One year after Ford confirmed construction of the Rouge Electric Vehicle Center in Dearborn, Mich., the first Ford F-150 Lightning pre-production units begin leaving the factory. Pre-production model shown. F-150 Lightning available starting spring 2022.”,”created_timestamp”:”1631073600″,”copyright”:””,”focal_length”:”52″,”iso”:”3200″,”shutter_speed”:”0.00625″,”title”:”Rouge Electric Vehicle Center”,”orientation”:”1″}” data-image-title=”Rouge Electric Vehicle Center” data-image-description=”

Ford Motor Co

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Despite most automakers proudly proclaiming their intention to shift toward EV-dominant portfolios, customers haven’t been sharing their enthusiasm. While there’s a subset of loyal early adopters that are eager to see electrification become the norm, the relative infancy of the technology and prevalent gaps in the charging infrastructure has kept them from becoming a majority. But manufacturers seem to think it’s just a matter of time and that they’ll be able to make up the difference through fleet sales.

Advertised with lower than average operating costs and juicy subsidies being offered throughout the developed world, automakers have convinced themselves that EVs will soon become the de facto rides for various entities needing to round out their stables. Meanwhile, we’re hearing inklings that Ford is seeing pushback from fleet customers over its s new F-150 Lightning pickup and E-Transit van. 

Blue Oval believes that its new vehicles, combined with an updated version of its fleet management suite prioritizing telematics and data accumulation, will result in a glut of customers interested in having more direct control over their commercial armadas. The fact that they’ll also be EVs is supposed to make them further appetizing, due to government incentives and the fact that they won’t require fueling.

“[The Lightning and E-Transit] are targeted at real people doing real work,” Ted Cannis, chief executive of Ford Pro, stated at Reuters’ recent Automotive Summit.

From Reuters:

But some of those potential fleet buyers are taking a “wait and see” attitude, partly from a lack of experience with electric vehicles and partly from a lack of clarity on government policy and regulations around EVs.

Those are not insurmountable obstacles over the longer term, according to Cannis, who told Reuters:

“In the U.S., we see 70 [percent] of the full-size bus and van industry going electric by 2030. That’s more than 300,000 vehicles annually. And we expect a third of the full-size pickup (market) to go all-electric by 2030, which is more than 800,000 vehicles annually.”

With electric work trucks and vans, Cannis said, fleet customers can save money on fuel, maintenance and repairs, “but there is still a fear of the unknown” about EVs among both employees and managers.

Perhaps by 2030, the necessary infrastructure will be in place to facilitate widespread EV adoption and they’ll have reached financial parity with internal combustion vehicles. But electrics currently require more advanced planning to get the most out of their powertrains and you have to pay more for them upfront to save money over time. Some of the fleet managers we’ve spoken to said they’ve had difficulties figuring out how to make EVs work for their businesses. Concerns have also been expressed about their lackluster resale values, the potential for charging downtime, and how much money would need to be spent to replace a battery system. Though the latter issue isn’t likely to come up considering how short most fleet cycles happen to be.

On the other hand, managers were almost universally interested in the government incentives being promoted by the Biden administration and wondered if the changing regulatory landscape might make soon make EVs a necessary addition to their garages. Governor Gavin Newsom has repeatedly said that California will gradually phase out internal combustion vehicles and may even begin prohibiting diesel trucks from utilizing certain roadways in a bid to reduce pollution. Many other states are politically aligned with California and are likely to follow its lead. These are considerations business owners are preoccupied with. But there’s no concrete legislation at play to make any of the above a guarantee and the free market (or what’s left of it) isn’t quite ready to place EVs on a pedestal.

Cannis seems undaunted, however. He’s claiming that everyone who has driven the all-electric F-Series believes it to be the most exciting full-sized pickup Ford has produced, pointing to the 150,000 preorders as evidence.

It’s actually more than the automaker can realistically manufacture. In August, Blue Oval doubled its production target to 80,000 Lightings annually as a way to meet demand. But that capacity isn’t supposed to be achieved until 2024 and the model launches in 2022. Frankly, with the pickup obviously exceeding projections before anyone has had an opportunity to really shake one down (Ford has allowed a few high-profile influencers and Joe Biden to drive the prototype), it’s strange that the head of Ford’s commercial fleet division would even bother to mention that the company has been getting pushback from customers.

Our guess is that certain types of businesses just don’t see EVs as feasible right now. We noticed receptiveness varied heavily based upon what kind of work fleet managers needed vehicles to do. Localized fleets focused on precise routes with predictable downtimes are ideal for electrification. But long-haulers taking varied routes have less use for EVs and far fewer options to realistically choose from.

The U.S. government has also faced difficulties meeting the Biden administration’s ambitious goal to electrify the entire federal fleet. For starters, many government rides (particularly those used by the USPS) boast some of the longest lifespans of any fleet vehicles you’re likely to encounter. That adds meaningful financial risks if they select the wrong product just to spur on EV adoption.

The current federal fleet encompasses about 657,000 vehicles in total. However, agencies had only purchased about 500 zero-emissions vehicles through August of 2021, and data from the General Services Administration (GSA) currently cites EVs as comprising less than 1 percent of the whole. The transition has progressed slowly, with officials citing supply issues and difficulties choosing the right vehicles for various departments as the biggest obstacles.

“The opportunities are clear, but first we need to acknowledge that we are starting from a low baseline,” White House national climate adviser Gina McCarthy said during June’s GSA FedFleet Conference. “I want to thank the thousands of fleet management professionals leading this charge and demonstrating our leadership and commitment to winning the future. The many agencies that will work together to achieve our goals exemplify the whole-of-government approach to tackling the climate crisis.”

With the sheer amount of marketing materials out there promoting electrification and encouraging businesses to establish EV-focused fleets, it’s often difficult to get a genuine sense of how things are actually progressing. Ford says the Lightning is already exceeding expectations. But the head of Ford Pro said customers were expressing hesitancy. The federal government is dead set on replacing combustion vehicles with EVs. But it has failed to put more than 500 units onto the road. Manufacturers are promoting electric cars at every turn. But pure electrics still make up a minuscule share of what’s actually being sold to customers.

It hasn’t done much to assuage my skepticism going into 2022. But 2030 should provide plug-ins with sufficient time to continue maturing. Considering how much better EVs have gotten over the last decade, future EVs should be capable of handling new challenges and giving internal combustion cars a run for their money. Or they could fail to see the necessary infrastructure and technology develop and end up like autonomous driving — another unfulfilled industrial promise.

[Images: Ford Motor Co.]

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Lucid Motors Becomes an Automaker

<img data-attachment-id=”1775086″ data-permalink=”https://www.thetruthaboutcars.com/2021/09/lucid-motors-becomes-an-automaker/lucid-air-pre-delivery-inspection/” data-orig-file=”http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-6.jpg” data-orig-size=”1600,1067″ data-comments-opened=”1″ data-image-meta=”{“aperture”:”0″,”credit”:””,”camera”:””,”caption”:””,”created_timestamp”:”0″,”copyright”:””,”focal_length”:”0″,”iso”:”0″,”shutter_speed”:”0″,”title”:””,”orientation”:”0″}” data-image-title=”lucid-air-pre-delivery-inspection” data-image-description=”

Lucid Motors

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Production of the 2022 Lucid Air started this week, adding another automaker to the North American roster. The manufacturer held an event on September 28th, inviting Arizona Governor Doug Ducey, relevant executives, big-time investors, select media outlets, and customers who dropped $170,000 to purchase the limited Dream Edition of the electric vehicle.

While often framed as a Tesla ripoff, Lucid Motors has been setting its sights so high that it hardly feels like a fair assessment. Because the Air is offering one of the most impressive all-electric spec sheets in the industry right now and should probably worry the competition.

“The proprietary EV technology that Lucid has developed will make it possible to travel more miles using less battery energy. For example, our Lucid Air Grand Touring has an official EPA rating of 516 miles of range with a 112-kWh battery pack, giving it an industry-leading efficiency of 4.6 miles per kWh. Our technology will allow for increasingly lighter, more efficient, and less expensive EVs, and today represents a major step in our journey to expand the accessibility of more sustainable transportation,” Peter Rawlinson, CEO and CTO of Lucid Group, said at the event. “I’m delighted that production cars endowed with this level of efficiency are currently driving off our factory line.”

With manufacturing duties split between the Advanced Manufacturing Plant (AMP-1) and nearby Lucid Powertrain Manufacturing (LPM-1), the company thinks it should be able to commence deliveries in October. However, that will be limited to the 520 all-wheel-drive Dream Edition cars people paid extra for. The Range variant offers 520 miles on a single charge while the Performance model is said to offer an operating area of 451 miles and enough horsepower to breeze through a quarter-mile in 9.9 seconds at 144 mph.

Next on the production docket will be the 800-hp Lucid Air Grand Touring ($139,000).

Lucid said it currently has around 13,000 reservation holders, though its survival will hinge on its sales performance after those deliveries are handled and it has to focus on base (which will be rear-drive only) and mid-trimmed cars. While the manufacturer has said those models won’t have the same charging capacities as cars boasting higher MSRPs, everything is supposed to yield a maximum range in excess of 400 miles and retain DC fast-charging capability. Customers will also get three full years of free access to Electrify America charging stations.

All in all, it’s sounding quite good for Lucid. But we’ll have to wait and see if it can maintain momentum and reach the same heights that Tesla has. Lucid Motors has made some bold assertions about the future and it could be undone if has to break a bunch of promises regarding the lesser trims or quality control becomes an issue. This is a brand-new automaker, after all.

But things are looking up for the time being and the company is even considering subsequent vehicles. AMP-1 is supposed to begin production of an all-electric SUV using much of the same technology that’s gone into the Air. Its launch has tentatively been scheduled for sometime in 2023.

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Lucid Motors

” data-medium-file=”http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-8.jpg” data-large-file=”http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-1.jpg” class=”aligncenter size-large wp-image-1775088″ src=”http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-1.jpg” alt width=”610″ height=”407″ srcset=”http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-1.jpg 610w, http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-7.jpg 75w, http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-8.jpg 450w, http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-9.jpg 768w, http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-10.jpg 120w, http://automotivezen.com/wp-content/uploads/2021/09/lucid-motors-becomes-an-automaker-11.jpg 1600w” sizes=”(max-width: 610px) 100vw, 610px”>

[Images: Lucid Motors]

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Daimler Getting Back Into Bed With Chrysler for Battery Biz

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Pixfly/Shutterstock

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Daimler is getting cozy with Chrysler again, or at least the American side of Stellantis, so they can tackle battery development and production. Those in the know will recall that Chrysler has been passed around more than a bottle of booze at a middle school party. But its long history of partnerships also kept it in business and resulted in some of its better products.

Before the Amero-French merger that resulted in Stellantis, Fiat Chrysler Automobiles was an Italian-American company with facilities dotted around North America. Prior to that, it was known as DaimlerChrysler – resulting in the LX Platform, Pentastar V6, and a wider variety of Jeep Wranglers. Now, Chrysler’s alienated German wife has shown up on the doorstep with a wad of cash and news that she’ll be investing it into the new battery business. 

Daimler has purchased a 33 percent stake of Automotive Cells Company (AAC), which was established and uncreatively named by Stellantis and TotalEnergies, in a bid to ensure Europe parent isn’t left behind in the electric revolution.

“Mercedes-Benz pursues a very ambitious transformation plan and this investment marks a strategic milestone on our path to CO2 neutrality. Together with ACC, we will develop and efficiently produce battery cells and modules in Europe – tailor-made to the specific Mercedes-Benz requirements,” Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG, explained. “This new partnership allows us to secure supply, to take advantage of economies of scale, and to provide our customers with superior battery technology. On top of that we can help to ensure that Europe remains at the heart of the auto industry – even in an electric era: With Mercedes-Benz as a new partner, ACC aims to more than double capacity at its European sites to support Europe’s industrial competitiveness in the design and manufacturing of battery cells.”

From Daimler:

The entire ACC project will require an investment volume of more than seven billion euros – in a combination of equity, debt and subsidies – to reach a capacity of at least 120 Gigawatt hours in Europe by the end of the decade. Mercedes-Benz will invest a mid-three-digit-million euros amount next year. In total, the investments are expected to remain below one billion Euros. The transaction is subject to customary closing conditions, including agreement on definitive documentation and regulatory approvals.

The German automaker would like to scale up the development and production of next-generation battery cells and modules so it can keep its promise of being an all-electric company by 2030. However, it said it needs a total battery production capacity of more than 200 Gigawatt hours by that time, requiring it to build at least eight facilities and engage in numerous partnerships.

Following Daimler’s formal investment, the company will have an even 33 percent equity stake in ACC – giving it two of the six Supervisory Board seats and equal footing with Total and Stellantis. It’s expected that hardware will begin manifesting within the next couple of years and be shared among the three companies. For now, Daimler will be providing its “technical and production know-how” to help spur development. But more direct involvement is anticipated when the automaker finishes its Drive Systems Campus finishes construction in 2023, with additional European facilities to be considered later.

[Image: Pixfly/Shutterstock]

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New EV and Hybrid Sales Remain Hot But Value Can be Found in Used Market

Sales of new electrified vehicle sales jumped more than 200% during the second quarter as gas prices remain high. 

2017 Toyota Prius Prime
The Toyota Prius Prime plug-in hybrid is one of the best deals on a used hybrid or EV for $20,000 or less.

With the prices of new vehicles rising across the board, potential EV or hybrid buyers looking for a deal need only wander over to the used car lot, says Kelley Blue Book. The website cobbled together what it views as some of its best deals on used electrified vehicles for less than $20K and $15K.

The average new vehicle sold for a little more than $42K in June and used vehicle prices topped $25,000 that month. Those numbers have been on the rise for all of 2021 and are unlikely to change anytime soon as the chip shortage is expected to continue through the end of the year.

So, if you want to save on gas and on the price of your EV or hybrid, “previously owned” is where its at, say the experts.

Finding a deal

“One of the most underrated deals is to buy a used hybrid, plug-in hybrid, or all-electric vehicle,” said Matt DeLorenzo, senior managing editor for Kelley Blue Book. “Alternative-power vehicles have been on the market for 20 years now, so these models are well-established and have proven reliability.

“There also are plenty of choices out there — an attractive option to consider, since currently there is a major shortage on new-car inventory across the board. Buyers of a used electrified vehicle certainly will save money at the pump, and some can even skip the gas station entirely.”

The 2018 Nissan Leaf can be had for less than $20K and offers a range of 151 miles.

Most of the best deals are on hybrids because they are far more prevalent than EVs, which until recently accounted less than 3% of all new vehicle sales. However, the vehicles making the lists are solid performers in terms of reliability and fuel economy.

Best deals under $20,000

Kelley Blue Book’s 10 Best Used Hybrids and EVs Under $20,000 for 2021 include:

  1. 2017 Toyota Prius: Fuel Economy: 52 mpg combined and a range of 588 miles
  2. 2017 Toyota Camry Hybrid: Fuel Economy (LE): 40 mpg combined and a range of 680 miles
  3. 2016 Toyota RAV4 Hybrid: Fuel Economy: 32 mpg combined and a range of 474 miles
  4. 2013 Toyota Highlander Hybrid: Fuel Economy: 28 mpg combined and a range of 482 miles
  5. 2015 Honda Accord Hybrid: Fuel Economy: 47 mpg combined and a range of 602 miles
  6. 2015 Lexus ES 300h: Fuel Economy: 40 mpg combined and a range of 688 miles
  7. 2017 Chevrolet Bolt EV: Fuel Economy: 119 MPGe combined and a range of 238 miles
  8. 2018 Nissan Leaf: Fuel Economy: 112 MPGe combined and a range of 151 miles
  9. 2017 Chevrolet Volt: Fuel Economy — first 53 miles: 106 MPGe combined; next 367 miles: 42 mpg combined and a range of 420 miles
  10. 2019 Kia Niro Hybrid: Fuel Economy: 49 mpg combined for a range of 583 miles

The 2015 Toyota Camry Hybrid was named a best deal under $15K by KBB.com.

Best deals under $15K

Kelley Blue Book’s 10 Best Used Hybrids and EVs Under $15,000 for 2021, including: 

  1. 2015 Toyota Prius: Fuel Economy: 48 mpg combined and a range of 571 miles
  2. 2014 Toyota Camry Hybrid: Fuel Economy: 40 mpg combined and a range of 680 miles
  3. 2015 Honda Civic Hybrid: Fuel Economy: 44 mpg combined and a range of 581 miles
  4. 2015 Chevrolet Volt: Fuel Economy — first 38 miles: 98 MPGe combined; next 342 miles: 37 mpg combined and a range of 380 miles
  5. 2017 Nissan Leaf: Fuel Economy: 112 MPGe combined and a range of 107 miles
  6. 2014 Kia Optima Hybrid: Fuel Economy: 37 mpg combined and a range of 636 miles
  7. 2015 Hyundai Sonata Hybrid: Fuel Economy: 37 mpg combined and a range of 684 miles
  8. 2017 Toyota Prius C: Fuel Economy: 46 mpg combined and a range of 437 miles
  9. 2015 Ford Fusion: Fuel Economy: 41 mpg combined and a range of 554 miles
  10. 2016 Volkswagen Jetta Hybrid: Fuel Economy: 44 mpg combined and a range of 524 miles
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Will Tesla Expand in China, Or Head the Export Route?

Image: Tesla

What does the future hold for Tesla in China? Expansion, or exports?

That’s the question being asked by an Automotive News story today.

Earlier this year, the outlook for Tesla in China looked rosy. But net orders for cars have fallen by nearly half this quarter amid concerns about the company’s vehicle safety, along with how it collects and stores data, and at least one report suggests that the company could end up exporting cars produced in China to Europe.

Not long ago, analysts were predicting expansion for Tesla in China. One analyst mentioned that in addition to planned plants in Texas and Berlin, Tesla could build another factory in China.

China’s Passenger Car Association will release May’s sales data next week. Sales dropped more than 25 percent from March to April, with more than half of the over 25,000 cars produced in China being exported.

Tesla stock did rise a bit in Friday’s early trading after a slight fall on Thursday, though the stock is down 35 percent from its peak in January.

For reference, China is the second-biggest market for Tesla, following the U.S. It builds Model 3 and Model Y vehicles in Shanghai.

Like the analysts, we too are curious about what happens. Tesla appears to be at a crossroads in China — if expansion was in the cards, it would obviously be great news for Elon Musk and company. Not just because growth is generally good, but because China is obviously a huge market. The country’s EV market is arguably more competitive than here, thanks to the presence of both several startups and more traditional automakers like BYD that build EVs, with roughly 20 makes in play, but Tesla shipped a half-million units there in 2020.

Obviously, the company would prefer to sell Chinese-made Teslas in China instead of shipping them to other markets. But the company has been dealing with a series of headaches for quite some time now. Between concerns about reliability here in the States and the ability of Teslas equipped with autonomous-driving software to perform those functions in a safe manner, and concerns about data, Tesla has enough headaches to make Musk want to take some time off to host a comedy show. Oh, wait.

All this would seem to confirm earlier reports that we highlighted regarding canceled expansion plans at the Shanghai plant.

At the moment, it sure looks like contraction, rather than expansion, is the name of Tesla’s China game.

[Image: Tesla]

Teutonic Tesla: Volkswagen Now Building ‘Gigafactories’

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VW Group

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As much as we’ve criticized American luxury brands for emulating the Germans, we’ve failed to do the same for Volkswagen Group’s pathetic attempts at copying Tesla. That changes with Monday’s announcement that VW will assemble six “gigafactories” in Europe by 2030. Shared on “Power Day” — the company’s bastardized version of Tesla’s Battery Day — the plan is supposed to result in a production capacity of 240 GWh annually when completed and help VW reduce battery costs while also securing access.

It’s not a half-bad plan for a company entirely devoted to electrification, which is probably why Tesla follows a similar model using nearly identical terminology. Though, considering the absolute mess Volkswagen seems to have made of its EV transmission thus far, some might find it difficult to blame the automaker for looking at the competition and breaking out the notepad.

Others will be less sympathetic while acknowledging this is probably VW’s best play if it’s serious about EVs. 

Volkswagen is only in this mess for getting caught circumventing emissions by illegal means, specifically software that flubbed the test results of diesel models. While we’re happy to suggest the brand was placed in a difficult situation by being the first automaker to get majorly busted for skirting the nearly impossible to adhere to rules regarding modern diesel emissions, it was still being exposed to the same scrutiny as other manufacturers. But it went the coverup route before confessing and has responded by transmogrifying itself into a beacon of greenness as penance for its eco-crimes. Volkswagen became a “mobility company” overnight in 2016 — born again, so to speak — despite its product lineup showing its status as a relatively traditional automaker, often forcing us to take it at its word.

VW has endeavored to keep up appearances while sprinting full tilt toward widespread electrification. But the fruit of its labor haven’t always panned out. The company has had a terrible time with battery suppliers and most of the EVs delivered thus far aren’t offering the kind of ranges that would make them compelling choices. Digitizing its products has also resulted in software issues that helped stymie the launches of numerous vehicles. In some cases, it even resulted in incomplete vehicles coming to market.

These are issues most automakers are confronting as they collectively attempt to redefine the purpose of the automotive industry, and we’re now way past the point where the adage “if it ain’t broke, don’t fix it” would be useful. By now, most manufacturers are totally committed to a future where vehicles are electric, connected, and monetizing your data as often as possible. Volkswagen just seems to have dove in the quickest, suffered the worst for it, and is now in a situation where it absolutely has to make things work.

Hence the new “gigafactories” — which don’t seem a bad solution, if you can ignore the Tesla comparisons.

From Volkswagen:

The Group is pushing ahead at full speed with the development of production capacities in Europe in order to meet the increasing demand for battery cells. “Together with partners, we want to have a total of six cell factories up and running in Europe by 2030 thus guaranteeing security of supply”, explains [Chairman of the Board of Management of Volkswagen Group Technology] Thomas Schmall. The new factories are expected to produce cells with a total energy value of 240 GWh per year by the time they are finally completed. Volkswagen is therefore actively contributing to meet the targets of the European Union’s Green Deal. The first two factories will operate in the Swedish city of Skellefteå and in Salzgitter. In response to increased demand, Volkswagen has decided to refocus the previous plan in relation to cell production and concentrate production of its premium cells in the Swedish gigafactory “Northvolt Ett” in Skellefteå in collaboration with Northvolt. The production of these cells is set to commence in 2023 and will be expanded gradually to an annual capacity of up to 40 GWh.

Those capacities are annual and are supposed to cut battery costs by up to 50 percent once all synergies are accounted for. But we think the big get here is VW having a direct line on an essential component it’s had serious problems procuring in even modest quantities. These also help bring the automaker closer to its goal of making energy management a viable source of revenue. This again harkens back to Tesla. In 2019, Tesla CEO Elon Musk claimed that energy storage would gradually become a larger aspect of the business. The following year, he said that Tesla Energy would likely grow to be at least as big as its automotive aspirations.

Meanwhile, Volkswagen has repeatedly announced its role in the planned expansion of the public fast-charging network. Its latest release also said cooperation has been agreed to in Europe with some of the regions the energy companies, including BP, Iberdrola, and Enel. VW is plotting a course of staggered investments. As we’re not fortune tellers, we cannot predict how successful this strategy will be. But it does show that the company isn’t interested in taking half measures. And emulating the parts of Tesla that appear to be working makes it derivate and cringe-inducing, not stupid.

[Image: Volkswagen Group]

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