Monthly Archives: March 2018

PSA on course for 2021 CO₂ targets, BMW would love to sell you an electric car… from 2020 onwards, Ford and Mahindra’s cooperation and a new lease of life for diesel… What else happened in the automotive and mobility sectors? Please enjoy our auto industry and mobility briefing for 19^th March to 25^th March. A PDF version can be found here.

Favourite stories of the past week…?

• Every Little Thing Is Gonna Be Alright — After several executives have admitted concern that it could be tough for them to meet 2021 European emissions legislation, Peugeot’s brand head said they’ll be just fine, even if diesel mix declines further. Not everyone is so happy, ACEA wants UK sales to be part of the 2021 EU emissions calculation even though the country won’t be a part of the group by then (second referendum notwithstanding) to make life easier. Weakening diesel demand has caused some OEMs to realise that they didn’t have much wiggle room in their gap closure plans and they don’t have much time to sort it out.
• I’m Not Ready — BMW’s CEO said that he doesn’t want people to buy electric cars in their current guise because he wants to wait for next generation products to lower the cost. There are two ways to look at this: firstly that customers might just want to have a say in whether and when electric cars become popular; but secondly, BMW is the latest in a line of OEMs (Nissan, GM and VW), who seem to be actively targeting acceptable margins on their second generation of BEVs in the very early 2020s.
• Cheap Thrills — Ford and Mahindra agreed to jointly develop cars for emerging markets. This follows on from a set of joint studies that kicked off in 2017. The statement was significant in that it specifically indicated the technology transfer was more from Mahindra to Ford than the other way around. Can Western OEMs approach joint projects with sufficient humility to capture the full savings potentially on offer?
• Breathe — Researchers think they have found a near-production ready diesel exhaust technology that can cure cold-start problems and drastically reduce particulate emissions. The good news is that it could overcome the objections of cities who hate the effect of diesel on air quality. The bad news is that it sounds even more expensive than SCR.

News is arranged by company and topic. Stories that apply to more than one company or topic are duplicated.

Find our archive here.

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News about the major automakers

BMW ^(history)

• Released the 2017 annual report and outlook for 2018, warning that it would have to make substantial investments in new technologies but still hoped to have profit before tax in line with 2017. (BMW)
• German authorities raided BMW offices looking for evidence of emissions cheating. (Autocar)
• BMW iVentures led an investment round in lidar maker Blackmore, with Toyota also participating. (Blackmore)
• The long-rumoured mobility asset pooling between BMW and Daimler could have a larger scope than previously anticipated and could include Daimler’s stake in ride hailing firm mytaxi. (Manager Magazin)
• May suspend production of petrol powered X5, X6, 6 Series and 7 Series vehicles in Europe from middle of 2018 into 2019 so the company can comply with RDE, hybrids are not affected. (Manager Magazin)
• Does not want to “scale up” with the (recently launched) fourth generation of BEVs and will wait for the fifth generation (due in around 2020) because it will deliver a “two digit” percentage cost reduction in costs. (Reuters)

Daimler ^(history)

• The China-specific Denza brand (a JV with BYD) launched the updated Denza 500 BEV with a claimed range of around 500 km. (Daimler)
• The long-rumoured mobility asset pooling between BMW and Daimler could have a larger scope than previously anticipated and could include Daimler’s stake in ride hailing firm mytaxi. (Manager Magazin)

Ford ^(history)

• Announced pricing for the FordPass SmartLink dongle that can be plugged into the ODB port of Ford vehicles from 2010 onwards, enabling a certain amount of connected services. It looks expensive — $16.99 per month for a minimum 24 month contract, plus installation. (Ford)
• Signed an MoU with Mahindra to develop a series of vehicles including a C-sized crossover and a small electric vehicle, aimed at emerging markets. The C-sized crossover will be based on a Mahindra platform; the partners will develop a connected vehicle platform; and the press release raised the possibility of Ford buying Mahindra powertrain to augment its existing offerings. (Ford)
• Led a $65 million funding round in 3D printing company Desktop Metal. (3D Printing Industry)
• Announced an online platform in the USA called Ready.Shop.Go that will create time-limited offers for consumers that include financing and trade-in. (Ford)
• Announced executive changes, including the departure of the recently-recruited chief brand officer. (Ford)

Geely (includes Volvo)

• Lotus CEO talking about parts sharing with Volvo, says that the new SUV will likely be from Volvo’s platform and that the company is looking at ways to make-up for engines being no bigger than I4.

Hyundai / Kia

• The head of Hyundai’s South Korean union expressed concern over the effect of electric cars on factory jobs, saying “electric cars are disasters. They are evil.”. (Economic Times of India)

Nissan (includes Mitsubishi)

• Aiming to sell 1 million electric cars per year by 2022, a mix of BEVs and hybrids. The company gave a bit more detail on its intended product portfolio saying that there will be 8 new BEVs by 2022, including a kei car and a C-sized crossover. There will also be an “electric car offensive” in China. (Nissan)
• Told US dealers that it was slowing production at a number of plants as it aims to reduce inventory to between 50 to 60 days. (Bloomberg)
• Opened a lithium ion battery recycling plant in Japan as a joint venture with Sumitomo. The plant will repurpose used car batteries and depending on the condition may re-use them in vehicles or put them into packs for industrial vehicle use or stationary storage. (Nissan)
• Started offering “refabricated” battery packs for the Nissan Leaf — using a combination of new and good condition used components. At the moment, the offer is for Japan only. Pricing for a 40 kWh packs is around $7,800, giving an effective per kWh price of $195. (Nissan)

PSA (includes Opel/Vauxhall) ^(history)

• Opel’s R&D centre in Rüsselsheim will become a centre of excellence for a variety of Groupe PSA technologies, including manual transmissions and seats. (PSA)
  • Implication: Although at the surface this is good news for Opel workers, replacing research that was formerly conducted for General Motors, a comparison of the “new” work to technical elements that are becoming either commoditised or obsolete might worry them.
• Signed a licensing agreement to manufacture automatic gearboxes in France designed by Aisin (the 6-speed EAT6) instead of importing them from Aisin’s factory in Japan. (PSA)
• Announced a series of changes for powertrain plants. The PSA-developed I3 gasoline engine will be produced in Opel’s Poland and Hungary factories and manual gearbox capacity will be added in Austria (Opel) and Metz. In addition, PSA confirmed the start of electric motor production at Trémery in 2019. (PSA)
• Peugeot’s head of brand said that the company will “absolutely hit our CO₂ targets for 2021”, despite the reduction in diesel sales and without needing all-electric vehicles (although hybrid electric vehicles will be sold). (Autocar)

Tesla ^(history)

• Shareholders approved CEO Elon Musk’s new pay scheme: he will receive no salary and only earn stock awards by growing the company’s business and market capitalisation. (CNBC)
• Reportedly held talks with AI vision company Cortica that could lead to an acquisition or partnership. (Reuters)
• Tesla says that its large battery installation in Australia is being underpaid for the grid stabilisation it provides because the current billing rules do not start counting power supplied until six seconds after the request is made (Tesla says it responds almost instantaneously). (Sydney Morning Herald)
  • Implication: Tesla’s complaint in this case is that grid stabilisation billing rules are written around fossil fuel power stations, this technicality (with real financial implications) could recur in other territories and indicates lobbying will be required to ensure that V2G charging schemes are fully competitive.

Toyota ^(history)

• Suspended autonomous car testing on public roads in the USA following Uber’s accident (even though no Toyota vehicle was involved). (Business Insider)
• Reportedly held talks with Uber about buying driverless technology for use in Toyota vehicles. (TechCrunch)
• BMW iVentures led an investment round in lidar maker Blackmore, with Toyota also participating. (Blackmore)

VW Group ^(history)

• VW will launch a five-seat version of its US market specific Atlas SUV, saying that the vehicle represented an investment of around $340 million. (VW)
• VW Group’s CEO said that the company’s top management team needed to become more feminine, younger and more international. (Handelsblatt)
• There was reportedly boardroom unrest with some board members believing that the discussion had been structured to reduce their oversight. Answering accusations that he and other executives were overpaid, VW’s CEO it was justified in part because he has “one foot in jail” because of responsibility for the company’s actions — a slightly odd statement given that the only person to face jail over the diesel scandal was a non-C suite executive. (Der Spiegel)
• Audi’s CEO wants the brand to sell 200,000 all-electric vehicles by 2021 and is reportedly contemplating actions as radical as only offering the next generation TT and A8 as BEVs. (Manager Magazin)
• Porsche employees will get a bonus of over near €9,600 due to the company’s record performance in 2017 (and a token of appreciation for reaching 70 years as a going concern. (Porsche)
• VW’s financial services division said that although profits were up, there is a potential residual value drop of 500 euros per vehicle on diesel-engined vehicles. (Handelsblatt)
• SEAT released its annual report an confirmed the brands modest electrification plans– one BEV (thought to be SEAT’s version of the e-Up city car) and a hybrid version of the Leon will appear in 2020. (SEAT)

Other

• Chinese / Italian start-up X Electrical Vehicles (XEV) says that its modular 3D printing line will be able to produce 500 vehicles per year. The company claims a development time for a new model of 4 months. (SCMP)
• Pininfarina is said to be planning a four-car all-electric line-up, bankrolled by owner Mahindra. (Autocar)
• A group of carmakers launched a website that will contain details of all US recalls. (Press Release)
• Researchers developing a next generation diesel exhaust technology called ACCT which overcomes low temperature issues with SCR said that it could be ready for production in two years. (Autocar)
• Chinese electric car start-up CHJ Automotive raised $473 million, total funding is $908 million. (Deal Street Asia)
• Pagani are reportedly working on an all-electric car that will launch in 2025. (Performance Drive)

News about other companies and trends

Economic / Political News

• European carmakers’ body ACEA asked for UK vehicle CO₂ figures to count towards 2021 fleet average targets even though the country will have left the EU and the transition period will have ended by then. (ACEA)
• ACEA issued a new position paper on car safety, arguing for priority to be given to active safety systems, those that rely on software and sensors to prevent accidents occurring. This is in part due to a desire to keep vehicles lighter by avoiding further components that help survive a crash. (ACEA)
• Average CO₂ of new cars sold in Spain rose in 2017 versus the prior year, the first time in a decade. (Europa Press)
• The US Environmental Protection Agency is drafting new standards that will lower fuel consumption standards in the early 2020s — since some states may keep the stricter limits, it might not make life that much easier for automakers. (Bloomberg)

Suppliers

• Autoliv announced the executive team that will lead it, and Veoneer, once the latter has been spun off. (Autoliv)
• Adient agreed a joint venture for automotive fabrics with Arvind Group. (Autocar)
• Dana is planning a secondary listing on the London stock exchange as part of its takeover plans for GKN. (Dana)

Dealers

• US dealer Group 1 gave a Q1 profit warning, citing weakening market conditions in the US and UK and a need to invest in used car sales. (Group 1)
• Data from the UK Finance and Leasing Association for January showed that although the number of vehicles financed was down, it fell by less than the overall market and the level of finance leases by value was strongly up — potentially due to better mix or pricing, but most likely because customers are borrowing more. (FLA)
• German online car sales broker Autohaus24 (owned by Sixt) says that demand for cash sales is so weak it will only offer financing and leasing deals. (Autohaus)

Ride-Hailing, Car Sharing & Rental ^(history)

• As rumoured, Uber and Grab agreed to merge their entire Southeast Asia operations. Grab will run the combined business, with Uber taking a 27.5% stake in Grab. (Press Release)
  • Implication: Uber is now part ride hailing firm and part ride hailing-focused VC, but it isn’t clear why that makes sense as a strategy. Perhaps Uber’s future lies in being more highly valued for its stakes in other companies than its core business (a la Yahoo)?
• The long-rumoured mobility asset pooling between BMW and Daimler could have a larger scope than previously anticipated and could include Daimler’s stake in ride hailing firm mytaxi. (Manager Magazin)

Driverless / Autonomy ^(history)

• Further details emerged of the Uber crash and various pundits and experts weighed in, including the Teamsters union. Waymo’s CEO said his company’s software “would be able to handle situations like that one” and Velodyne said that they would have expected their lidar to detect the pedestrian, but made clear that it is the responsibility of other systems to interpret the lidar data and make appropriate decisions. Police released a video of the incident which appears to show the vehicle failing to recognise the pedestrian crossing the street, even after they appear in the glare of the headlights — indicating either radar and lidar failing to detect their presence, or that the object identification software wrote the sensor data off as a false positive. (Twitter)
  • Implication: Journalists were keen to seek comments from the suppliers of hardware used by Uber in its self-driving vehicles, namely Volvo and Velodyne, after the accident. It remains to be seen whether there is a reputational risk, or possibly even involvement in lawsuits, in being a supplier to self-driving programs that experience crashes
• Apple have reportedly increased the size of their test fleet in California to 45 vehicles — second only to GM’s Cruise in the state. (TechCrunch)
• Toyota reportedly held talks with Uber about buying the latter’s driverless technology. (TechCrunch)
• BMW iVentures and Toyota participated in an $18 million investment in lidar maker Blackmore. (Blackmore)
• Gatwick airport in the UK will trial use of autonomous vehicles “airside”, saying that its fleet of 300 vehicles are stationary 90% of the time. (zdnet)
  • Implication: This sort of geofenced application, with controlled conditions and relatively light traffic, is perfect for autonomous vehicles to operate efficiently but with the risk and cost of occasional failures being minimised.

Electrification ^(history)

• Bollinger increased the largest battery pack it will offer to 120 kWh, providing 200 miles of range (Electrek)
• Tesla says that its large battery installation in Australia is being underpaid for the grid stabilisation it provides because the current billing rules do not start counting power supplied until six seconds after the request is made (Tesla says it responds almost instantaneously). (Sydney Morning Herald)
• Audi’s CEO wants the brand to sell 200,000 all-electric vehicles by 2021 and is reportedly contemplating actions as radical as only offering the next generation TT and A8 as BEVs. (Manager Magazin)
• Nissan started offering “refabricated” battery packs for the Nissan Leaf — using a combination of new and good condition used components. At the moment, the offer is for Japan only. Pricing for a 40 kWh packs is around $7,800, giving an effective per kWh price of $195. (Nissan)

Other

• Bicycle rental companies in Seattle including LimeBike and Spin had to issue warnings to customers after a number of bikes were found to have brake wires cut. (Geekwire)

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VW’s electric vehicle volume forecast, white label autonomous cars from Magna and Ford’s not-so-noteworthy product plans… What else happened in the automotive and mobility sectors? Please enjoy our auto industry and mobility briefing for 12^th March to 18^th March. A PDF version can be found here.

Favourite stories of the past week…?

• Building Steam With A Grain Of Salt — VW showed their hand on electric vehicles, saying that the Zwickau plant will be set up to churn out 330,000 cars a year at a comparable price to a diesel model from 2020 onwards. How many people are still saying it’s a PR move that won’t lead to any cars on the road?
• Nothing’s Gonna Stop Us Now — Magna said it will invest in Lyft and the two will collaborate on a self-driving vehicle. I think that this might be the strategic move from Magna that I’ve been waiting for. If they can prove their ability to make a proficient almost-white label product without OEM help then Magna will be on everyone’s shopping and Christmas card list.
• Apparently Nothing — Ford presented some of its plans for new products in North America. The problem is, there wasn’t really very much in there that was either new, hadn’t already been leaked or wasn’t obvious. It really boiled down to two key things: a new rugged small SUV (not the Bronco, a soon-to-be-released rugged SUV) and a scaled-back commitment on BEVs (one less than in January).

News is arranged by company and topic. Stories that apply to more than one company or topic are duplicated.

Find our archive here.

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News about the major automakers

Daimler ^(history)

• Will invest, along with a joint venture partner, to expand facilities in Thailand to produce electrified vehicles and batteries. (Daimler)

Ford ^(history)

• Gave an in-depth new product presentation confirming it will make a small “rugged” SUV in addition to the Bronco. The company also plugged its bundled driver assistance suite called co-pilot360, measuring it against a carefully-selected set of not-best-in-class competition. The presentation included an array of examples to prove progress was being made in the battle for “fitness”, many of which predate the current management team. (Ford)
  • Implication: the presentation was long on words and short on new detail. Aside from the rugged small SUV, the company appears to have reduced its near-terms electric vehicle plans. In January Ford promised seven BEVs by 2022 . Without explanation, that number is now six. During the event, Ford also showed “several hundred” journalists a set of “never-before-seen” concepts (which one imagines includes the Bronco and rugged small SUV) on an off-the-record basis. (TechCrunch)
• Ford said that in a few years only 14% of vehicles sold by the brand in North America will be cars. (Ford)
• Issued a recall for around 1.4 million vehicles in North America to correct problems with steering wheel bolts, a further 6,000 vehicles for clutch problems. (Ford)
• UK unions called for Ford’s two engine plants, at Dagenham and Bridgend, to be “repurposed for new electric models or battery technology”. Ford dismissed the suggestion. (Auto Express)
  • Implication: With the technical competences of engine building sharing little with battery and electric component production (a claim backed up only by my years of shop floor precision machining experience), it is hard to see the industrial logic for carmakers. Unions have been slow to appreciate the looming jobs crisis for those making engines and transmissions — the time to call for action line this was several years ago.

Geely (includes Volvo)

• Volvo said that the Polestar 1, a plug-in hybrid sports car, would retail for over €130,000 — the brand would prefer for customers to rent it instead. (Electrek)

General Motors ^(history)

• Reportedly planning peer-to-peer short term rentals through Maven — although new to the US, GM had a scheme in Europe when Opel ran a service underpinned by Tamya called “Car Unity”. (Bloomberg)
• Is investing $100 million to update the factory that makes the Chevrolet Bolt, giving it the capability to produce the autonomous version starting in 2019. The investment will also create a sensor suite assembly line nearby. (GM)

Hyundai / Kia

• US regulators are reviewing Hyundai and Kia vehicles for a potential safety risk where airbags might fail to deploy in the event of a head-on collision to see if there is a systemic problem with the design. (Reuters)

Mazda

• Announced a collaboration with two Japanese companies, ELIIY Power and Uber Industries to develop lithium ion batteries as a replacement for lead acid starter motor products. If successful, the collaboration appears to have 48V systems in its sights. (Mazda)
  • Implication: It remains to be seen what competitive advantage this might bring Mazda. Although the lead acid technology is old, it has remained in use for 12 volt systems because, in no particular order, it is: cheap, reliable, recycling is cost neutral, apparently not in any danger of a capacity / commodity squeeze.

Nissan (includes Mitsubishi)

• The Renault Nissan Mitsubishi alliance announced a series of joint appointments to strengthen shared operational teams. Many of the announcements were matched pairs. As part of the move, cooperation with other OEMs, such as Daimler, was made an alliance responsibility rather than sitting with the individual companies. (Nissan)
• Aiming to produce cars with solid state batteries by 2030, with 2025 as an internal stretch objective. (Next Green Car)

PSA (includes Opel/Vauxhall) ^(history)

• Partnering with the Namibian government to create a local assembly plant with a capacity of 5,000 units per annum. Initial products will be the Peugeot 3008 and Opel Grandland X. (PSA)
• Faurecia said it had invested in Enogia, a maker of turbines that convert recovered heat into electricity. The product is currently aimed at commercial vehicles and heavy industrial applications. (Faurecia)
• The company’s Chinese joint venture is reportedly struggling from warring factions of Peugeot and Citroen representatives, a muddled portfolio and a series of ill-plannned office moves. (China Daily)

Renault ^(history)

• The Renault Nissan Mitsubishi alliance announced a series of joint appointments to strengthen shared operational teams. Many of the announcements were matched pairs. As part of the move, cooperation with other OEMs, such as Daimler, was made an alliance responsibility rather than sitting with the individual companies. (Nissan)

Tesla ^(history)

• Said it had improved Model S and Model X production efficiency and that 100,000 vehicles could be produced on a two shift pattern with minimal overtime, as opposed to a three shift pattern and lots of overtime before. It wasn’t really clear if this is new information since Tesla had previously told investors in 2015 that it could produce around 150,000 units per year (which would work out at 100,000 on two shifts), or it had just taken the company two years to fully ramp-up — bad news for Model 3 if so. (Reuters)
• Reportedly recently raised prices at supercharger stations by between 20% and 40%. The new charging costs are around $0.20 per kWh, which Tesla says is to recover the cost of electricity, making it difficult to explain how it will be able to give Tesla Semi owners electricity at a fixed price of $0.07 per kWh. (Electrek)
• Employees speaking off the record said that Model 3 production was plagued by awful quality that led to substantial rework before parts were suitable for vehicle fit. (CNBC)

Toyota ^(history)

• Toyota announced a 3.3% pay increase for workers in Japan. (Reuters)
• Completed a long-term sales agreement with Avis to sell and incremental 10,000 vehicles. Although sales to major daily rental companies are normally considered a bad thing for margin, Toyota talked up the benefit of the connectivity suite it would provide. (Toyota)

VW Group ^(history)

• Said that it would have 16 factories producing electric vehicles by 2022 and that the company had awarded €20 billion of contracts for batteries. From 2019 the company will launch a new electric vehicle “virtually every month”. (VW)
• Audi showed teaser images of the e-tron GT, Audi’s third all-electric car to be launched in 2020 (after e-tron SUV and sportback models). (Audi)
• Porsche said that it will make a total investment of €1 billion in the Mission E factory and will spend €6 billion on electromobility by 2022. (Porsche)
• The VW brand said it aims to break even in all regions by 2020 and that 9,350 people have signed early retirement contracts and that fleet CO₂ targets “remain a major challenge”. By the end of 2020, VW will only produce electric vehicles at its Zwickau plant, forecasting a production rate of up to 330,000 vehicles per year, re-iterating that the ID “will cost just as much as a comparable diesel model”. (VW)
• Lamborghini executives said that a move to hybrids might see the brand get rid of turbos and sell naturally aspirated engines that were closer to its DNA. (Autocar)
• VW and Audi dealers in Germany fear a cull in the rural network is coming after many dealers have been told that their contracts are unlikely to be renewed beyond 2023 and access to models is being restricted. (Autohaus)
• Idled production of the US model Passat for two weeks due to declining demand, some of the capacity will be switched to the Atlas SUV. (Times Free Press)
• VW’s inhouse sausage factory reported a (6)% decline in shipments for 2017 on a year over year basis compared with 2016, falling to 6.8 million currywursts. The plant’s 30 employees appeared unperturbed. (VW)
  • Implication: Mention capital discipline, I dare you.

Other

• Eicher Motors said it was closing its truckmaking joint venture with US group Polaris after sales failed to meet expectations. (Deal Street Asia)
• Scuderia Cameron Glickenhaus will use a Nissan-sourced V6 engine in its SCG0004S car, of which it hopes to sell 250 examples per year. (Autocar)
• Aston Martin’s CEO said that the company has “more than two” mid-engined cars in development (the Valkyrie supercar and a Ferrari 488 rival have already been confirmed). (Autocar)
• McLaren executives said that although the company was planning for around 50% of sales to be hybrid by 2022, there are no plans for an all-electric car “in the immediate future”. (Bloomberg)

News about other companies and trends

Economic / Political News

• European passenger car sales in February reached 1,125,397 units, up 4.3% on a year over year basis. (ACEA)

Suppliers

• Magna invested $200 million in Lyft and the two parties will develop self-driving vehicles for use on Lyft’s network. Importantly, the deal appears to give Magna access to Lyft’s data, a privilege which previous investors, such as GM and JLR seem to have failed to secure. (Magna)
  • Implication: If the project is a success then this could finally be Magna’s chance to sell their own vehicle, having previously largely wholesale engineered projects for others (e.g. BMW X1)
• Schaeffer opened new offices in Silicon Valley to capture the start-up spirit. (Schaeffler)

Dealers

• UK start-up Drover, which offers vehicle ownership on a monthly basis, raised £5.5 million. (TechCrunch)
• UK used car website VCARS has been acquired by the AA. (Automotive Management)

Ride-Hailing, Car Sharing & Rental ^(history)

• Lyft appears to be testing the price sensitivity of its customers by offering package subscription deals for 30 rides per month with prices varying between $199 and $300 for identical products. (Engadget)
• Lyft said that it reached $1 billion of revenue in 2017 and is serving 10 million rides per week. (TechCrunch)
• After selling its stake in DriveNow to BMW, Sixt is planning its own short term car rental service, which it will bundle with more traditional car rental and taxi products. (Manager Magazin)
• Zūm, a US ride hailing service aimed at children, raised a further $19 million. (Press Release)

Driverless / Autonomy ^(history)

• Magna invested $200 million in Lyft and the two parties will develop self-driving vehicles for use on Lyft’s network. Importantly, the deal appears to give Magna access to Lyft’s data, a privilege which previous investors, such as GM and JLR seem to have failed to secure. (Magna)
• A test car owned by Uber had a fatal collision with a pedestrian whilst in automatic mode. (The Guardian)

Electrification ^(history)

• Rimac announced a joint venture with China’s Camel Group (one of Rimac’s investors) to build an electric vehicle components factory in Hubei province, China. Rimac will take a 40% stake in the business. (China Daily)
• EVelozcity founder Stefan Krause said the company has around $1 billion in investments and commitments. The company has grown to include 100 staff and wants 300 by year end 2018. (Forbes)
  • Implication: EVeolozcity becomes the latest company with an all-electric, three car line-up and a claimed $1 billion in funding, a list that is getting almost too long to remember. Investors may want to watch the seminal 2000 motion picture Bring It On and pay particular attention to Sparky Polastri’s spirit fingers routine and the aftermath of the team’s display at regionals to see how this one ends.
• Nissan aims to produce cars with solid state batteries by 2030, with 2025 as a stretch objective. (Next Green Car)

Connectivity

• Cylus emerged from stealth mode as a cyber security company dedicated to railways, looking at signalling networks and fleets of rolling stock
  • Implication: Although at present the focus is on cyber security for communication into the vehicle, the challenges in railway networks appear strongly correlated with those facing fleets of self-driving vehicles as it becomes necessary to monitor for erratic behaviour in the fleet, beyond protecting the communication with individual cars. It’s all very well making sure my car is secure but what if it relies on information from another vehicle that has been compromised and is sending rogue signals?
• Link Motion and Irdeto created a vehicle cyber security product based on the latter’s security software and the former’s connected car platform. (Telematics News)

Other

• Bicycle sharing network Ofo raised $866 million, after a mammoth $700 million round last year. (TechCrunch)
• Kitty Hawk said its flying car was close to certification in New Zealand. According to the company, the vehicle is inspired by the DeLorean from Back to the Future. Anyone who looks at the pictures may disagree. (Kitty Hawk)

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Autonomous technology as a commodity, industrial assets that keep on going and marginal gains in electric vehicles… What else happened in the automotive and mobility sectors? Please enjoy our auto industry and mobility briefing for 5^th March to 11^th March. A PDF version can be found here.

Favourite stories of the past week…?

• Easy As ABC — Aston Martin is planning to offer the Lagonda with cutting edge autonomous technology in 2021. But, hold on a minute… the company doesn’t have any research presence to speak of in this area. The obvious implication is that Aston Martin believes it will be able to buy the technology easily from others and integrate it into their vehicles, which begs the question: if they are correct then why are so many others engaged in a multi-billion-dollar arms race?
• Who Wants To Live Forever? — Truckmaker Navistar says it will put more emphasis on its brand of renewed products (including buses), citing cost conscious industrial customers. But auto executives have been busy telling everyone that shared robo taxis don’t mean a decline in sales because the companies that own them will simply throw them away as often as retail customers do. What’s the basis for their confidence?
• Especially For You — Goodyear has been touting its latest tyre, purpose built for electric vehicles. Whilst this might not be a breakthrough in its own right, it highlights that electric vehicles are still operating with an array of ancillaries shaped around the needs of ICE-powered vehicles, rather than tailored to them. Although the focus of EV development is on the battery technology and cost, there are plenty of gains to be made amongst other componentry. For example, although no one seems to be looking at it in any detail, Ad Punctum has been told that different connector cables bring wildly different charging rates…

News is arranged by company and topic. Stories that apply to more than one company or topic are duplicated.

Find our archive here.

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News about the major automakers

BMW ^(history)

• Confirmed that it will build the iVision Dynamics concept vehicle, badging it as the i4. (BMW)
• Reported full year 2017 Financial results — automotive revenue of 88.6 billion was up 2.5% versus 2016 whilst automotive EBIT was €9.9 billion, up 5.3%. (BMW)
• Interested in creating motorcycle sharing schemes in city centres but is currently mulling over how to ensure that customers could share adequately-fitting helmets. (Bloomberg)

Daimler ^(history)

• Purchased a 3.93% stake in Beijing Electric Vehicle (BJEV), a subsidiary of Chinese partner BAIC. (Daimler)
• Trialling a new flexible leasing scheme named Mercedes Me Flexperience. Users pay a flat rate covering all costs except fuel for up to 36,000 per year. Through the offering, they can change cars 11 times throughout the year and arrange a swap with their existing vehicle via a smartphone app. (Daimler)
• Expects that electric vehicle batteries will have far higher concentrations of nickel to reduce dependence on cobalt. Executives talked about nickel:manganes:cobalt mix moving from 6:2:2 to 9:0.5:0.5. (Reuters)
• S-Class Maybach models will get headlights that project images onto the ground in front of the vehicle and can selectively light up objects (e.g. casting light on a pedestrian’s body but not shining light into their eyes). (Engadget)
  • Implication: is the future of aggressive driving to use technologically advanced lighting to draw a “pull over” symbol on the road ahead of the car in front, rather than simply flashing headlights in their rear view mirror?
• Unveiled a range of plug in hybrid models that use diesel powertrains. (Daimler)
  • Implication: For most carmakers, plug-in hybrids are synonymous with petrol engines. The reason for this is quite straightforward: a diesel plug-in is in many ways a worst-of-all-worlds solution: the diesel engine still requires expensive aftertreatment even though it spends much of the time turned off. In addition, there isn’t clear evidence that drivers long for diesel when a petrol hybrid is on offer (witness Toyota’s relative diesel and hybrid mix). Perhaps some scandal will befall petrol hybrids and this will prove an amazing hedge, or perhaps in a world of overstretched capital, this is a powertrain option too far.

FCA ^(history)

• Looking to separate Magneti Marelli via a listing that will give all shares to existing FCA stock holders, rather than raising money. (Reuters)
• According to further rumours surrounding Geely / FCA talks in summer 2017, FCA (via its largest shareholder) was open to splitting Alfa Romeo and Maserati away from the rest of the group. (Jalopnik)
• CEO Marchionne said that the company was open to offers but was waiting until the market “recognizes the value of what has been accomplished” in the expectation that the company’s value will rise. (Detroit News)
• Rating agency Moody’s raised FCA’s rating from Ba3 to Ba2 with a stable outlook. (FCA)
• A supplier strike caused production stoppages at the Windsor assembly plant. (Detroit Free Press)

Ferrari

• CEO Marchionne confirmed that the company would launch a V8 hybrid model in 2019. (Auto Express)

Ford ^(history)

• Ford’s European head said that the company would not have to make a “fundamental shift” in its line-up in order to meet 2021 CO₂ targets but would “fine tune the volume by powertrain by vehicle”. (Reuters)

General Motors ^(history)

• Will increase Bolt production capacity, but didn’t provide any targets, leading to speculation about whether or not the announcement was significant. (GM)

Honda ^(history)

• Honda’s UK chief said he expects electric vehicle pricing will start to converge with combustion engine levels in 2 to 3 years. (Autocar)
• Chinese JV Dongfeng Honda has halted production of some models as it argues with customers and officials about whether there are any fundamental design and reliability problems with 1.5 litre petrol engines. (China Daily)

Hyundai / Kia

• Reportedly asked South Korean unions to cooperate in reducing worker benefits; the request was rebuffed. (Yonhap)

Nissan (includes Mitsubishi)

• Following press speculation that it might buy the Renault stake owned by the French state, Nissan said it was not looking to change the relative ownership balance. (Reuters)
• Selling new Leaf in Europe at a rate of one every 12 minutes — equivalent to around 45,000 units per year. (Nissan)

PSA (includes Opel/Vauxhall) ^(history)

• Will launch a motorcycle sharing service in selected Spanish cities. (Europa Press)
• Investing €14 million in the Charleville foundry, leading to an additional 50 jobs at the site. (Usine Nouvelle)
• Executives said at the unveiling of the 508 sedan that PSA expects sales of 35,000 to 40,000 units per year and diesel mix of about 70% to 80% (sounds high but down from 90% today). (France Info)
• Published the latest results of its real-world emissions testing partnership with 3^rd party Bureau Veritas. (PSA)

Renault ^(history)

• Showed a concept robo taxi called EZ-GO at the Geneva show. The vehicle features novel closures, including a roof that can open, in order to facilitate entry and exit. The vehicle also relegated the Renault badge to a barely noticeable design feature on the rear 3/4 and a near transparent diamond on the vehicle windscreen. (Renault)
• Collaborating with Alibaba to create an online sales channel in China on Alibaba’s Tmall site. (Bloomberg)
• Recruiting 130 employees for its French logistics centres. (Usine Nouvelle)

Tata (includes JLR)

• Tata Motors CEO said that company would have completely overhauled its product line by 2023-24, with new products based on one of two platforms — ALFA (3.7 – 4.3m) and OMEGA (>4.3m). (Economic Times of India)
• Stopped production at the Solihull plant to help the local water utility maintain supply after cold weather burst pipes in the area. (Reuters)
• Jaguar said it wanted to improve relationships with its UK dealers and change the dialogue from “parent-child” to “adult-adult”. JLR’s UK diesel mix is around 80% and executives said that “consumers need to know that, for many of them, diesel remains the right option”. (Automotive Manager)
• Said the 2-door, 4 seat, version of the Range Rover will be limited to 999 examples. (Land Rover)

Tesla ^(history)

• Took a week of downtime on the Model 3 line in late February to install new equipment. (Bloomberg)

Toyota ^(history)

• Expects 2018 European hybrid mix to be above 47% and confirmed a new version of the Supra. (Toyota)
• Unveiled the Lexus UX, a small crossover and Range Rover Evoque rival. (Lexus)

VW Group ^(history)

• Porsche unveiled the Mission E Cross Turismo concept, following on from previous executive statements about the possibility of an expanded line-up based on Mission E. (Porsche)
• Said it will manufacture ID Vizzion by 2022 “at the latest” as the top model in the ID portfolio. (VW on YouTube)
• Has reportedly decided to make the truck business, containing Scania and MAN, into a separate unit that can be listed as an independent entity on the stock market. (Manager Magazin)
• Showed newest version of Sedric from MOIA and a MOIA-branded vehicle that looked suspiciously like an electric VW e-Crafter van. No prizes for guessing which is likely to make production first. (VW)

Other

• Aston Martin presented a concept for a new Lagonda, saying that the sub-brand will be all electric and come with “the latest advances in” autonomous technology. Production will start in 2021. CEO Andy Palmer has indicated in interviews that Lagonda sales expectations could be for several thousand units annually. (Aston Martin)
  • Implication: Aston Martin says it will have the latest autonomous technology despite having no research activities of any consequence in the field currently. This leads to one of several conclusions: (i) autonomous technologies will be freely available, and with hindsight that the current race to dominate will look like a colossal waste of effort; (ii) that autonomy will actually be really easy to master and so Aston Martin simply doesn’t need to try hard now, it can easily catch up later; or (iii) Aston Martin is going to find itself locked out of the technology required at any price and therefore unable to deliver on its promises.
• Pininfarina said it will make 12 track-only examples of the hydrogen powered H2 Speed concept car. (Autocar)
• McLaren unveiled the track-only Senna GTR supercar. Production will be limited to 75 examples — on top of the Senna road car production run that is limited to 500 examples. Surely a limited-production cabriolet / roadster version would be a ridiculous idea? (McLaren)
• McLaren said its next hypercar, the hybrid-powered three seat BP23, will be launched in 2020 (production limited to 106 examples — although who knows about track-only models?), and will have a top speed in excess of 243 mph. (McLaren)
• Navistar said it was relaunching its ReNEWed brand of remanufactured truck and bus products. (Navistar)
  • Implication: Navistar’s view that the remanufactured business line is growing seems at odds with the assertion of carmakers that shared robo taxis owned by fleets will lead to no drop in vehicle sales because the cars will simply be thrown away after 150,000 miles of service. Read Ad Punctum’s 2017 research paper on the impact of shared mobility on car sales here.
• Rimac unveiled the Concept Two, an EV with a claimed 1,900 hp output. (Engadget)
• BAIC’s chairman told reporters he believes the company will make a profit in 2019 on its own brand. (Bloomberg)

News about other companies and trends

Economic / Political News

• UK passenger car registrations in February totalled 80,805 units, down (2.8)% on a year over year basis. (SMMT)

Suppliers

• Dana said that it would take over the powertrain operations of GKN; a significant amount of the purchase will be in Dana’s shares so GKN will end up with a stake of 47.25%. (Dana)
• Denso said it will increases its stake in chipmaker Renesas from 0.5% to 5% saying it will accelerate development of in-vehicle systems. (Denso)
• Continental agreed a 60/40 joint venture with Chinese battery cell producer CITC to supply entire 48V systems to global markets. (Continental)
• Magna opened a new centre for composites in Esslingen, Germany. (Magna)
• Continental reported 2017 financial results. Revenue of €44 billion was up 8.5% versus 2016, EBIT of €4.6 billion was up 11.4%. (Continental)

Dealers

• Despite falling sales, UK dealers reported improved profitability in January, aided by used car sales. (Motor Trader)
• Online used car site Vroom is reportedly in trouble: the company is shrinking its footprint and laying off a large amount of staff. (TechCrunch)
• Malaysian online used car sales site Carsome raised $19 million to consolidate its ASEAN position. (Deal Street Asia)

Ride-Hailing, Car Sharing & Rental ^(history)

• SoftBank is reportedly looking to build an ownership stake of around 50% in Ola; some early investors may sell their shares in secondary markets. (Deal Street Asia)

Driverless / Autonomy ^(history)

• Uber has started using autonomous trucks in commercial service (with a safety driver behind the wheel). Human drivers take loads from pick-up to a transfer hub and then the automated truck drives a section of highway to another transfer hub (where a human-driven truck picks up the load once more). (TechCrunch)
• Waymo has started testing autonomous trucks in a third location: Atlanta. (Waymo)
• May Mobility’s CEO (BMW and Toyota are investors) said it was buying in many of the sub components for its electric autonomous vehicle and would beat Waymo and Cruise to market “with a successful product”. (Xconomy)
• HERE published a study into consumer attitudes around privacy, with a focus on location sharing. Bad news for proponents of the “personalised advertising will pay for everything” school of thought… it was the lowest rated reason for consumers to share data (page 34). (HERE)
• Uber is reportedly courting Waymo to provide an autonomous vehicle fleet for use on Uber’s network — similar to the intent of Waymo’s existing partnership with Lyft. (Engadget)

Electrification ^(history)

• China will start trial EV battery recycling programs in four locations. (Reuters)
• Goodyear said it has created a tyre specifically for electric vehicles. (Goodyear)
  • Implication: Although the development of the tyre isn’t ground-breaking, it reflects that there are plenty of parts of the vehicle that remain rooted in what ICE powered cars require rather than being optimised for EVs. As EV-specific components emerge in greater numbers, vehicle performance will be enhanced.
• Daimler expects that electric vehicle batteries will have far higher concentrations of nickel to reduce dependence on cobalt. Executives talked about nickel:manganes:cobalt mix moving from 6:2:2 to 9:0.5:0.5. (Reuters)
• The hydrogen fuelling consortium owned by Toyota, Nissan and Honda amongst others was legally established as H2 Mobility LLC. (Honda)
• The European Union published a report into areas of standardisation and improvements for vehicle batteries; particularly second life use and recycling. (EU)

Other

• US electric scooter sharing start-up Bird is reportedly raising $100 million just weeks after getting $15 million in funding and putting 1,000 scooters on the streets of Los Angeles. (Tech Crunch)
• Deloitte published consumer research showing increased acceptance for autonomous vehicles and growing interest in hybrid powertrains. (Deloitte)

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Car sharing without fleet operators, Audi A6 with 48V technology, OEMs react to EU CO₂ targets and Waymo driverless technology … What else happened in the automotive and mobility sectors? Please enjoy our auto industry and mobility briefing for 26^th February to 4^th March 2018. A PDF version can be found here.

Favourite stories of the past week…?

• I Want It All — Daimler has bought out Europcar’s stake in car sharing service Car2Go, following on from a similar move by BMW. But what happened to the thinking that car rental companies are indispensable partners in managing fleets? Daimler and BMW have had long enough to make up their mind and their vote seems to be that they are fine on their own. What implications does this have for Avis/Waymo?
• Weapon of Choice — Audi’s A6 won’t come with a plain old internal combustion engine — it’s 48V at the very least. Audi have clearly decided that the technology is affordable (for a large premium car) and were won over by the fuel economy savings. Will customers bat an eyelid? Or will some flee to other brands, demanding an un-electrified driving experience? Probably not.
• Love Don’t Live Here Anymore –– European carmaking lobby group ACEA attacked the EU’s plans for a CO₂ regime up to 2030, saying politicians should really think harder about all the honest workers making internal combustion engines who would be thrown out of work by electrification. The problem is, why aren’t the employers, the same companies that are members of ACEA, showing the same degree of concern in getting their business right? The group may well regret its angry tone…
• Harder Than You Think –– Waymo released a video of an autonomous car’s view of the world, with sensor generated graphics overlaid onto the surrounding traffic, it all looks very 2019. Look a bit more closely however and some of the challenges to successful implementation are clear: the cars can’t see very far up the road and; the lidar data resolution isn’t all that brilliant. This is all in perfect conditions (outside air temperature notwithstanding). It reinforces why early applications of autonomy are going to be confined to geographic areas that suit them (no troublesome low light conditions that make life difficult for cameras and no need to travel fast).

News is arranged by company and topic. Stories that apply to more than one company or topic are duplicated.

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News about the major automakers

BMW ^(history)

• Invested in May Mobility, a maker of autonomous buses, alongside Toyota. (Toyota)
• Will launch digital key technology in July that allows an owner to share a vehicle with five others using a smartphone app rather than having to share the physical key. (Europa Press)

Daimler ^(history)

• Invested in data analytics company Anagog. (Anagog)
• Announced a new factory in Beijing, China with existing JV partner BAIC. (Daimler)
• Announced a full takeover of Car2Go, buying Europcar’s 20% stake — and echoing BMW’s recent move to buy out Sixt from its car sharing service. (Daimler)
  • Implication: If rental companies are the future of fleet management for shared vehicles (witness the hysteria around Avis’s involvement with Waymo) then why are Daimler and BMW pushing out their partners? And why are the rental companies throwing in the towel?
• Demonstrated an internally-created cryptocurrency called Mobicoins. In Daimler’s concept, the coins were earned through eco-friendly driving — a loyalty card fit for the 21^st century? (Journal Auto)
• Unveiled the new CLS, featuring a V6 engine with 48V replacing a V8 engine in the prior model. Mercedes say that the change has reduced CO₂ by around 23% whilst preserving power. (Daimler)
• Daimler’s Financial Services division is working on a chatbot with a computer-generated image of a person to act as a concierge for future car purchases and other services. At present, a fair bit of development is still required (as Daimler’s demonstration video attests). (Daimler)

FCA ^(history)

• Announced it will review a separation of the Magneti Marelli electronics business in Q2 2018. (FCA)

Ford ^(history)

• Will create a test fleet of vehicles in Miami aimed primarily at delivery in partnership with Domino’s (a pizza chain) and Postmates (parcel delivery). (Miami)
• Told unions and local politicians that it will not manufacture a new 8 speed automatic transmission (dubbed 8F mid) in the Bordeaux, France factory, leaving the plant’s future in doubt. (Les Echos)
• Recalling around 2,100 Taurus cars to correct problems with the ignition key releasing too early. (Ford)

Geely (includes Volvo)

• Reportedly held talks with FCA about an investment before deciding on Daimler, a rumour which first emerged in August 2017 but was denied by the parties at the time. (Bloomberg)
• Raised money to pay for its Volvo Group stake through a 12 month and five year loan. (Reuters)
• A Reuters report explained how the Daimler stake was purchased without having to disclose the size of the holding until it was complete. (Reuters)
• Volvo became the latest OEM to launch an investment fund. The California-based team will be headed by existing personnel and Volvo did not disclose the budget. (Volvo)
• Volvo Cars’s CEO has not been proposed for re-election to the board of truckmaker Volvo Group because the other directors were annoyed about Geely’s stake in Daimler. (SCMP)

General Motors ^(history)

• Has reportedly received around 2,500 applicants for its redundancy package in South Korea and is looking to eventually cut 5,000 posts. The figure is significant because it is greater than the number of employees at the plant GM has already said it will close (about half of the staff there have applied — the rest could transfer). (Reuters)
• Researchers released a video of a Chevrolet Bolt battery pack teardown — they say the battery capacity is 57 kWh, not the 60 kWh stated by GM. (Green Car Reports)

Honda ^(history)C

• Announced the new CR-V, which will feature a hybrid engine rather than offer a diesel version. (Honda)

Hyundai / Kia

• Unveiled the Kona BEV, a small SUV. The car has a 64 kWh battery offering 470 km of range, a smaller 39.4 kWh is also available. (Hyundai)

Mazda

• Announced organisational changes which abolished the electrical and electronics department and created groups specialising in electrical vehicles and infotainment instead. (Mazda)

Nissan (includes Mitsubishi)

• Announced new initiatives for the Renault-Nissan-Mitsubishi alliance, including a deeper involvement for Mitsubishi. By 2022, the group expects to sell 9 million units from 4 common platforms (about 65% of sales) and for 75% of vehicles to use common powertrain. (Nissan)

PSA (includes Opel/Vauxhall) ^(history)

• Reported 2017 financial results. Revenue of €65 billion included Opel/Vauxhall for the first time, stripping this out gave a 9.9% increase in the automotive division. Automotive operating income was just under €2.8 billion, with Opel/Vauxhall registering a loss of €(179) million for the period of PSA ownership. (PSA)
• In the earnings call, CEO Tavares said that Opel’s wage cost as a % of turnover (PSA’s favoured measure) was 15.3%; and that the company would have a new strategic plan in 2020. (Seeking Alpha)
• Announced it will take an ownership stake in the vehicle plant owned by Malaysian group Naza Corporation and vehicles on the EMP2 platform will be built there for sales within ASEAN. (PSA)

Renault ^(history)

• CEO Carlos Ghosn said that a merger between Renault, Nissan and Mitsubishi was not an “objective… but something that should happen in a natural way”. (Journal Auto)
• Hiring 205 employees at Le Mans (Usine Nouvelle); 200 at Cléon (Usine Nouvelle) and 350 at Flins. (Usine Nouvelle)
• Announced new initiatives for the Renault-Nissan-Mitsubishi alliance, including a deeper involvement for Mitsubishi. By 2022, the group expects to sell 9 million units from 4 common platforms (about 65% of sales) and for 75% of vehicles to use common powertrain. (Nissan)

Tata (includes JLR)

• Jaguar unveiled the I-Pace with a Top Gear / Grand Tour style video and a drag race with a Tesla Model X (the Jag won but, given the stated 4.8 second 0-60 time, one wonders whether Ludicrous Mode was turned on). (Jaguar)

Tesla ^(history)

• Opening a research centre in Greece that is expected to house around 50 staff. (The Guardian)

Toyota ^(history)

• Will build the next generation Auris in its Burnaston, UK, plant. Toyota’s press release stressed the importance of zero tariffs and “frictionless” trade post-Brexit. (Toyota)
• Confirmed that it will no longer offer diesel powertrains in European passenger cars after the end of 2018 (mix fell below 10% in 2017), commercial vehicles will still have diesels. (Toyota)
• Invested in May Mobility, a maker of autonomous buses, alongside BMW iVentures. (Toyota)
• Said it was restructuring its autonomous driving efforts and spending an additional 300 billion yen (about $2.8 billion). The effort will be led by US-based Toyota Research Institute, Toyota affiliates Aisin and Denso will also have small stakes in the organisation (90% Toyota / 5% Denso / 5% Aisin). (Toyota)
• Launched a new 2.0 litre hybrid engine with accompanying CVT that Toyota says will reduce emissions by more than 18% and will be the mainstay of its portfolio, representing 80% of vehicles sold in major markets by 2023. (Toyota)

VW Group ^(history)

• Bentley “would like” their next car after the GT to have Level 4 autonomous capability. (Wired)
• Audi said that the new A6 will feature 48V hybridisation on all vehicles. The ICE-assistance will save fuel by allowing extended engine-off operation (while the vehicle is in motion rather than traditional stop/start). Audi claims a fuel economy benefit of around 10% for the technology (note: Magna says that on systems with greater capabilities than the Audi one, 18% is possible). (Audi)
• Porsche executives hinted at a flying car program. (Reuters)
• Will offer a digital key for VW customers, starting with the VW Passat in late 2018. The owner will be able to authorise up to 15 other people who can share the vehicle using a smartphone app — they can also decide whether to grant the ability to drive the vehicle or only to unlock the doors. (VW)
• Porsche wants all US dealerships to have 800V / 350 kW chargers. (Ars Technica)
  • Implication: If Porsche go through with the plan, this might lead to increased visits to the dealer site and an improved customer relationship. A welcome side effect of the cost involved and a potential offset to the lower maintenance revenues expected to accompany fully electric cars.

Other

• Aston Martin reported financial results for 2017. Revenue of £876 million was up 48% on 2016, pre-tax profit of £87 million reversed a prior year loss of £(163) million. (Aston Martin)
• Lister released images of their planned Storm II supercar. (Motor 1)
• NIO is said to be working on an IPO that would raise around $2 billion. (Economic Times of India)
• Subaru announced the appointment of a COO. (Subaru)
• The company working on an homage to the Lancia Stratos said that, this time, it’s totally going ahead. (Auto Blog)

News about other companies and trends

Economic / Political News

• Germany’s Federal Court ruled that, if certain conditions were met and “proportionality” was applied, it was legal for cities to ban diesel vehicles. Environmentalists rejoiced, the government promised a response. (The Guardian)
• The US imposed tariffs on imports of steel and aluminium. As the EU considered its response, President Trump said he would approve counter-retaliatory duties on EU-built cars if they dared to do anything. (Autocar)
• US Industry in February was 17.0 million units, a drop of about (3)% on a year-over-year basis. (Wards)
• German passenger car registrations in February of 261.749 units were up 7.4% on the prior year. (KBA)
• France also saw increased vehicle registrations — passenger cars up 4.3%, CVs up 3.6%. (CCFA)
• Spanish passenger car registrations increased 13% versus prior year, to 110,474 units. (Faconauto)
• Passenger car registrations in Italy for February fell (1.4)% year-over-year, to 181,734 units. (UNRAE)
• European trade body ACEA issued a statement attacking the EU’s planned CO₂ targets for 2025 and 2030. The plain-speaking style was something of a departure from the silkier narrative normally observed. ACEA drew attention to the “social implications” of a redundant manufacturing base for traditional transmissions and internal combustion engines. ACEA also said the EU’s proposals did “not sufficiently reward” PHEVs — an odd claim since the EU targets for 2030 are well within the reach of this technology. The “fact” that a near-zero share for electric vehicles in EU countries with lower incomes “says it all” seemed especially dubious; there are 12 years to go to 2030 and similar things could have been said about Norway 5 years ago. (ACEA)
  • Implication: ACEA mustered some very real concerns, especially around the restructuring challenge confronting OEMs and suppliers as vehicle production increasingly moves towards electrification (the share of electrified vehicles is smaller than market growth since the recession so this effect has not yet manifested in a real way). However, isn’t this somewhat undermined by the laissez-faire attitude of the OEMs themselves? ACEA’s argument mainly falls into the too hard / too scary category and appears tone deaf to societal change. In addition although it references the EU’s commitments under COP21 (a climate change agreement), it fails to acknowledge two lynchpins of the EU’s own case for setting more aggressive targets: (1) that car-by-car reductions are all very well but if fleet size is growing (which it is, fast) then individual targets need to be tougher and; (2) that the EU expects costs (and prices) to rise as a consequence — anathema to the OEMs.

Suppliers

• Dana said it is in talks with GKN about buying some of GKN’s business. (Dana)
• Plastic Omnium will buy Mahle’s one third stake in HBPO, Hella’s shareholding is unchanged. (Plastic Omnium)
• Bosch gave a presentation of its electromobility strategy. The company does not intend to manufacture its own battery cells, although it might revisit this decision when solid state technology matures — which Bosch sees as “the way forward… from the middle of the next decade”. Bosch’s presentation gave some clues to how BEV costs could fall dramatically, saying that solid state batteries could cut costs in half whilst doubling energy densities (meaning a cheaper, smaller, lower weight battery getting the same range as today) and that better thermal management could increase range by 20% (allowing further reductions in battery size). (Bosch)
• Magna held an investor day. The company remains bearish on EVs in the medium term, forecasting a share of 4%-5% by 2025 (in mid 2017 the CEO said 3% to 6%), however the company does see ICE-only share falling to 16% to 21% by 2030 — take out emerging markets and that doesn’t leave many being sold in Europe and North America. The company is now forecasting significant take-up of autonomous vehicles — 30% of sales having L4/5 capability by 2030. (Magna)
• Gestamp reported full year 2017 revenue of €8.2 billion and EBIT of €485 million. (Gestamp)

Dealers

• Chinese online (new and used) car broker Chehaoduo reportedly raised $818 million from a number of companies including Tencent. (Deal Street Asia)

Ride-Hailing, Car Sharing & Rental ^(history)

• Uber launched UberHealth, similar to its existing UberCentral offering that helps companies book journeys for their customers. The new service can be used for non-emergency trips to a from hospitals and clinics. (TechCrunch)
• Uber criticised a MIT report into the earnings potential for its drivers, saying the methodology underestimate pay by asking confusing questions. (Uber)
• Chinese firm Meituan is reportedly planning to launch ride hailing services in several major cities. (Technode)

Driverless / Autonomy ^(history)

• Aurora (partnering with VW, Hyundai and Byton) raised $90 million in a Series A round. (TechCrunch)
• ai said that it had been successfully trialling autonomous vehicles on the streets of Nansha and that it has agreed a partnership with Guangzhou Automotive Group. (Pony.ai)
• California will allow test autonomous vehicles that do not have safety drivers behind the wheel. (California DMV)
• Pix said it was running an event to create a self-driving car in five days using a team of 15 (Pix)
• Waymo said its fleet has now covered 5 million miles on public roads and celebrated by releasing a short video with real time information overlaid onto video a vehicle in motion. Although the video looks cool, note the limited range (the long range view from 1:40 is illustrative here) and resolution of the real time data versus some of the cleaned up images other companies have showed off in the past. Also note that the conditions are about as perfect as you can get for video. (Waymo)
  • Implication: Waymo is stepping up its campaign for public acceptance, at a cost of greater transparency. Although at present there is plenty for advocates to cheer, the hyperbole leaves room for critics too. For instance, Waymo trumpets the progress of “one of the most experienced drivers on the road”, ignoring the fact that this driver would have an abysmal safety record if they were an actual human and would have long ago lost its drivers licence.
• Toyota and BMW iVentures invested in May Mobility, a maker of autonomous buses. (Toyota)
• Toyota is restructuring its autonomous driving efforts and spending an additional 300 billion yen (about $2.8 billion). The effort will be led by US-based Toyota Research Institute. (Toyota)

Electrification ^(history)

• Mahindra and LG Chem will jointly develop batteries with the intent of creating a low cost, high energy density, chemistry that will aid market share growth for electric vehicles in India. (Mahindra)
• CHAdeMO are working on a 400 kW / 1,000V standard, for release soon. (Inside EVs)
• US rules saying that electric cars will have to make noise have been pushed back so that full compliance is not required until September 2020. (Engadget)
• Dyson is recruiting 300 engineers to add to its existing 400 person electric vehicle team. (BBC)
• Researchers released a video of a Chevrolet Bolt battery pack teardown — they say the battery capacity is 57 kWh, not the 60 kWh stated by GM. (Green Car Reports)

Connectivity

• Net4Things and UST will partner to develop connected vehicle applications, focused on Spanish and Portuguese speaking markets. (UST)
• Argus Cyber Security and Ericsson announced a partnership to work on cyber security for connected cars. (Argus)
• Mapbox launched an augmented reality map platform that can display information about locations on top of their image (e.g. using a heads-up display in a car). (Press Release)
• Amazon will make voice-controlled artificial assistant Alexa open source for automotive applications, provided that the vehicle runs automotive grade linux. (Bloomberg)

Other

Harley Davidson took a stake in electric bike maker Alta Motors and the two companies will collaborate on electric urban motorcyles, Harley Davidson is aiming to release its first all-electric product in 2019. (TechCrunch)

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