VW’s Emden plant (one of 4 EV plants in Germany) has temporarily scaled back its EV production by 2 weeks. This 2-week scale-back is in the lead-up to the extended four-week summer holiday period, for all VW EV workers. This will impact the production of the ID4 SUV and (the early production) ID7 saloon. Furthermore, 300 out of the current 1500 temporary workers will not have their contracts renewed in August 2023. This decision stems from demand for EVs up to 30% below the originally planned production prediction(s). Subsequently, the ID7 saloon, which was pencilled in to start production in July, has been delayed to later this year. VW predicts that demand will pick up towards the end of the year.
Aston Martin and Lucid have struck a deal, whereby Lucid has a 3.7% stake in Aston Martin, in return, Aston has access to Lucid’s technology. Smaller OEMs, such as Aston, have found it challenging to transition to EVs, due to supply chain constraints and lack of technology nous, however, partnerships like this are a way to mitigate these challenges. Aston has set itself the lofty target of being fully electric by 2030 and by 2026 all of its new models will include an electrified version.
Stellantis is preparing to launch Free2move, which is a new business unit focusing on EV charging. The unit will sell energy storage and charging equipment alongside an app offering route planning. Stellantis believes this will help it differentiate itself from its peers as the charging network is fragmented in the USA. Interestingly, the company has not stated if will adopt Tesla NACS charge points.
BYD has launched its Dolphin EV in Australia, the cheapest EV on the Australian market. The Dolphin is priced at $38,890 (plus on-road costs, which is $100 less than the next cheapest model by MG4. This is a clear strategy by BYD to eat up Tesla’s global market share. This is teeing up to be a big year for BYD, as it continues its global expansion. Q2 results will indicate if this expansion has come at margin erosion.
Hyundai held its 2023 Electrification and Future Mobility Goals CEO Investor Day, in which it reinforced its commitment to EVs. The key takeaways were that the company intends to boost its annual EV sales goal to 2m units by 2030, The company stated that in order to do so, it will expand its EV production, by not only building new EV factories but also repurposing and utilising existing ICE factories. This will help the company reduce costs and time, to deliver its EVs. There was also a focus on strengthening its overall value chain for batteries, which means that it is looking at ways to stabilise its procurement of battery materials and design capabilities.
Blue Oval SK, a JV between Ford and SK On, has received a $9.2bn conditional loan, from The US Department of Energy (DOE) Loan Program Office, to build 3 EV battery factories (1 in Tennessee and 2 in Kentucky). This is yet another progressive step by the USA, as this will generate a total output of 20 GWh of batteries each year to power future Ford and Lincoln EVs. Based on this, the DOE predicts that 455 million gallons of gasoline per year for the lifetime of the vehicles powered by these batteries will be displaced.
Deals
Ruqi Mobility, a Chinese ride-sharing platform, has raised $117.2m, in a Series B round, led by Guangzhou Automobile Industry Group. This capital will be used to ramp up the commercialisation of its robotaxi.
BorgWarner, who supplies original equipment to OEMs, has agreed to acquire the Electric Hybrid Systems business segment of Eldor for €75m. The acquisition will complement BorgWarner’s capabilities in engineering compact and efficient 400V and 800V onboard chargers. BorgWarner has provided guidance by stating that it expects Eldor’s EHS business will generate €25m of revenue for FY2023 and predicts by 2027, it will contribute €250 million to revenues.
Tesla has plans to acquire Wiferion, a German-based wireless charging systems company. Tesla is reportedly interested in Wiferion’s R&D team and capabilities.