FORD EXPECTS 40% OF GLOBAL VEHICLE VOLUME TO BE FULLY ELECTRIC BY 2030
Ford Motor Co. F plans to boost spending on electric-vehicle development by billions of dollars beyond previous plans and expects 40% of its global sales to be fully electric by 2030, as Chief Executive Jim Farley bets bigger on plug-in cars. Ford will spend $30 billion by 2025 to expand its electric lineup, up from the $22 billion it forecast earlier in the year, it said Wednesday. That figure is a cumulative total that includes spending over the past few years, and includes capital earmarked for two future U.S. battery-cell factories with Korea's SK Innovation Co. The companies said last week they plan to form a joint venture.
Source: The Wall Street Journal
CORVETTE PRODUCTION HALTED, AGAIN
General Motors Co. confirmed Thursday it will halt production at its Chevrolet Corvette plant in Kentucky the week of May 24 for a temporary parts supply issue that's not related to the global semiconductor shortage. GM didn't provide specifics on the parts supply issue. "Our supply chain, manufacturing and engineering teams are working closely with our supply base to mitigate any further impact on production, and we expect the plant to resume normal operations on Tuesday, June 1," GM spokesman Dan Flores said in a statement to The Detroit News.
Source: The Detroit News
Car Makers to Get No Special Treatment in Chip Shortage, Commerce Secretary Says
Commerce Secretary Gina Raimondo said she is looking for ways to help automakers amid a global semiconductor shortage but won't give priority to them over other chip users, as the industry presses the Biden administration for assistance. Ms. Raimondo—who held meetings Thursday with about three dozen stakeholders, including executives from Ford Motor Co. and General Motors as well as technology companies and chip suppliers—said in an interview that there are no easy solutions to the problem that has caused a major American industry to halt assembly lines.
Source: The Wall Street Journal
Nissan, Suzuki Motor to Curtail Production in June Due to Chip Shortage – Sources
A global chip shortage is forcing Nissan Motor Co and Suzuki Motor Corp to temporarily halt production at some plants in June, sources with direct knowledge of the plans told Reuters on Friday. Nissan Motor Co will idle its factory in Kyushu, southern Japan, for three days on June 24, 25, and 28, while making production adjustments during the month at its Tochigi and Oppama plants in Japan, three sources said. Nissan will also temporarily halt production of some of its models at its Mexico plant, they said, declining to be identified because the plan is not public.
Microchip Crisis Takes Big Toll on Detroit 3
Some of the Detroit 3's most popular products are taking much of the hit from the global chip shortage that continues wreaking auto industry havoc. Of all the North American vehicle nameplates that have been affected by chip-related changes in scheduled production, the Detroit 3 have accounted for the top 10. Ford Motor Co. has absorbed the largest loss, with nearly 325,000 vehicles taken out of its North American production schedules so far, according to Tuesday, May 18, data from AutoForecast Solutions.
Source: Automotive News
U.S. Chip Funding Could Result in Seven to 10 New Factories – Officials
U.S. Commerce Secretary Gina Raimondo said on Monday a proposed $52 billion boost in U.S. government funding for semiconductor production and research could result in seven to 10 new U.S. factories. Raimondo said at an event outside a Micron Technology Inc chip factory that she anticipated the government funding would generate "$150 billion-plus" in investment in chip production and research - including contributions from state and federal governments and private-sector firms.
EVS COST LESS TO SERVICE – WRONG!
An expectation of consumers and a trepidation of auto dealership service departments is that the waves of electric vehicles hitting the market will need fewer repairs. “The cost of EV service is less than for gasoline-powered and hybrid vehicles, right?” Renee Stephens, data firm WePredict's vice president-automotive, says, citing conventional thinking. But she adds: “Wrong.” Her firm's aggregated repair data indicate EV parts and labor currently cost twice as much as other vehicles.
NISSAN RENAULT SA ALLIANCE NEWS
Nissan Motor Co will standardize and share electric-vehicle components with alliance partner Renault SA, the Japanese automaker's chief operating officer (COO) said, describing electrification as the partnership's new lynchpin. The Franco-Japanese alliance, which also includes junior member Mitsubishi Motors Corp, was strained in the aftermath of the arrest and ouster of former Chairman Carlos Ghosn. Since then, the coronavirus pandemic has provided an impetus to rebuild the collaboration, and the companies have looked to standardize parts and platforms to cut costs.
WALL STREET HAS HIGH EXPECTATIONS FOR FORD'S INVESTOR DAY
Wall Street has high expectations for Ford Motor's first investor day under CEO Jim Farley on Wednesday. The company's stock price has roughly doubled since Farley took control of the company Oct. 1. That includes a 12.6% increase last week after the debut of the company's new electric F-150 Lightning pickup truck. Investors will be watching the highly anticipated investor event to see if Farley can keep up the momentum. He has promised to provide details his management team's direction for the automaker. Source: CNBC
Ford Motor Co will announce on Wednesday that it is developing two dedicated all-electric vehicle platforms, one for full-size trucks and SUVs, the other for cars and smaller SUVs, as part of a strategy to catch General Motors Co, Volkswagen AG and Tesla Inc in the global electrification race, sources familiar with Ford's plans said. The all-EV platforms are part of an ambitious multi-year, multi-billion-dollar plan the No. 2 U.S. automaker will outline to investors at its Capital Markets Day in an online event.
WILL ELECTRIC TRUCKS SAVE THE PLANET?
Critics of the Electric Vehicle movement point to the recently introduced GMC Hummer SUT Pick Up and SUV as not doing the earth any favours. They're right.
Hummers have never been light, but I didn't expect a 9,000lb curb weight! That is double the weight of the average mid-size SUV! Worse, it is just a toy, and can't possibly do anything well, apart from a misguided attempt to boost somebody's ego. It is too big for the city, and too heavy to take off road - you would need a twin-rotor Chinook helicopter to rescue it when it sinks into the mud... consumption will likely be in the 50kWh per 100km range, which means charging it on a journey will be a major chore.
I understand it is a 'halo' product, and can only hope that it will get more people thinking about an EV truck who otherwise wouldn't.
Happily, there are many more sensible Electric trucks coming to market, including the Ford F150 and Silverado from GM which promise to be more useful/affordable.
Source: Soleil EV Weekly Gazette
VOLKSWAGEN RECEIVES OFFER FOR LAMBORGHINI
Volkswagen has received a 7.5 billion euro ($9.2 billion) offer for Lamborghini, British weekly magazine Autocar reported on Tuesday, though VW's Audi said the supercar brand was not for sale. The non-binding offer sets out terms for the purchase of Automobili Lamborghini by Switzerland's Quantum Group AG, which has formed a consortium with London-based investment firm Centricus Asset Management, Autocar reported. The report, citing offer documents, also said that the consortium would include job assurances for existing Lamborghini employees for up to five years and the creation of 850 new jobs.
Later in the day Volkswagen issued a statement that said “This is not the subject of any discussion within the Group. No, Lamborghini is not for sale”.
HYUNDAI TO SLASH COMBUSTION ENGINE LINE-UP, INVEST IN EVS – SOURCES
Hyundai Motor Group will slash the number of combustion engine models in its line-up to free up resources to invest in electric vehicles (EVs), two people close to the South Korean automaker told Reuters. The move will result in a 50% reduction in models powered by fossil fuels, one of the people said, adding the strategy was approved by top management in March. The automaker added that it aims to gradually expand battery EV offerings in keymarkets such as the United States, Europe and China with a goal for full electrification by 2040.
U.S. SENATE PANEL ADVANCES EV TAX CREDIT OF UP TO $12,500
The U.S. Senate Finance Committee advanced legislation on Wednesday that would boost electric vehicle tax credits to as much as $12,500 for EVs that are assembled by union workers in the United States. The bill would limit tax credits to vehicles with a retail price below $80,000 to qualify for the tax credits. The current maximum tax credit is $7,500 with no maximum price and currently phases out for individual automakers once they hit 200,000 total EVs sold. Both General Motors and Tesla have hit the cap and currently do not qualify for the $7,500 tax credit.
FORD VS. GM: WHY TWO TRADERS PREFER FORD AS IT DOUBLES DOWN ON EVS
Ford or General Motors? Investors may once again be asking themselves that question after Ford's announcement Wednesday that it plans to boost its electric vehicle investments to $30 billion and target 40% EV sales by 2030. Earlier this year, GM said it hoped to go all-electric by 2035. Its stock is underperforming Ford's so far this month, quarter and year. Two traders told CNBC on Wednesday that they were sticking with the leader.
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