Bankruptcy
EV startup Fisker is facing financial challenges, including a high cash burn rate, and may not have sufficient funds to continue operations over the next year.
The company is exploring additional funding opportunities, negotiating a potential partnership with an unnamed automaker, and implementing cost-cutting measures, including laying off 15% of its workforce.
Fisker's future remains uncertain, with the company emphasizing the need for additional equity or debt financing to maintain its planned investment levels in product development and operations.
Expanding
Enedym, a Canadian electric motor startup, plans to open a manufacturing facility in Hamilton, Ontario, Canada.
The company is working on a switched reluctance motor $ using software-controlled electromagnets instead of rare earth magnets, potentially reducing production costs by 30% to 50%.
Industry Directions
The automotive industry is investing heavily in silicon carbide semiconductors $ for electric vehicles. These chips can improve EV performance by offering faster battery charging and longer ranges.
Demand for silicon carbide chips will increase significantly, reaching $11B to $14B by 2030 compared to $2B today. Leading manufacturers like Wolfspeed and Coherent dominate the market, with various automakers and suppliers announcing significant investments and supply deals.
Labor
Unifor members initiated a strike $ at the Halifax Autoport on February 27, impacting the import hub used by BMW, Jaguar Land Rover, Mercedes-Benz, Porsche, Volkswagen, and Volvo to supply Canadian dealerships.
The strike, resulting from failed bargaining for a new collective agreement, could lead to delays as the facility processes 185k vehicles annually.
The majority of employees at the Mercedes-Benz facility in Vance, Alabama, support the UAW, marking a pivotal moment in the union's efforts to organize automotive plants in the Southeast.
Workers have voiced concerns over stagnant wages, replacing full-time positions with temporary ones, and implementing a two-tier pay system amidst record company profits.
The UAW's expansion into the Southeast's automotive sector could significantly influence the industry's labor dynamics.
This movement also challenges the long-standing anti-union stance in traditionally right-to-work states, highlighting a shift in workers' priorities towards greater labor representation.
Mergers, Ventures, Acquisitions
Apple's unexpected termination of its Titan EV project temporarily relieves automakers amid a slowing EV market. This move removes a significant potential competitor, particularly impactful given Apple's substantial financial resources. A successful Apple vehicle would have significantly impacted Tesla by creating a “status vehicle.” More importantly, it opens up opportunities for automakers to recruit skilled engineers.
NYTimes: Behind Apple's Doomed Car Project: False Starts and Wrong Turns
Opening
Aspen Aerogels, which produces encapsulated aerogel for EV batteries, has opened two new plants in Apodaca, Nuevo Leon, Mexico. The facilities will supply General Motors, Toyota, Audi, Scania, Stellantis, and Magna.
Germany's Schaeffler announced plans to invest $230M in constructing a factory in Dover, Ohio. The plant will manufacture EV components, including electric axles for light- and medium-duty EVs. Construction will begin mid-year, and the first phase of the 130k sq ft facility is expected to be completed by Q3-2025.
Addionics, an Israeli battery technology startup, announced plans to construct a $400M factory in the US to produce porous recycled copper anodes for EV batteries. The planned production would support nearly 90 GWh of battery capacity annually starting in 2027.
BMW Group Thailand announced plans to establish an EV battery factory in Rayong. Thailand will become the first Southeast Asian country to host a BMW production facility for EVs, with the goal of making Thailand a central hub for battery production exports.
General Motors has partnered with Piston Automotive, led by former Detroit Pistons guard Vinnie Johnson, to establish a vehicle parts factory $ at the basketball team's former Palace of Auburn Hills site. The project will support GM's nearby Orion Assembly factory.
Tata named Bridgwater in Somerset, UK, the location for its new $5B Agratas battery factory. The project expects to generate 4k jobs, with battery production to start in 2026.
Boston's ClearMotion, an advanced suspension startup backed by Nio Capital, has officially opened its production facility in Changshu, Jiangsu province, China. The 75k sq ft facility will produce ClearMotion1, an active suspension product designed for Nio's flagship sedan, the ET9.
Dayco officially opened its new belt manufacturing facility in San Luis Potosí, Mexico, and is set to begin operations in Q1-2024.
Production Decrease
Aston Martin announced a delay in the launch of its first EV to 2026, a year later than initially planned, citing lower-than-expected consumer demand at its price point. The UK automaker, leveraging technology from Lucid Group, intended to introduce four new electric cars starting in 2025.
Production Increase
Fiat plans to increase the production of its Panda minicar by 20% this year, aiming for an output of 175k units to meet the strong demand in Italy and Europe. This decision ensures that Panda production will continue in Pomigliano d'Arco, Italy, until at least 2027.
The extension is possible due to the expected approval of a less stringent Euro 7 emissions regulation by the EU Commission, allowing Fiat to maintain the current powertrain and emissions controls.
Regulation
President Biden has initiated steps to potentially restrict the entry of Chinese EVs and internet-connected cars into the US market, citing national security concerns.
This move includes a Commerce Department investigation into these security threats, which could lead to new regulations or restrictions on Chinese vehicles.
The action is part of Biden's broader strategy to protect the domestic auto industry and its transition to electric from low-cost Chinese competition.
Risk Analytics
General Motors' ambitious Ultium EV project has encountered significant setbacks.
Despite plans to have a range of Ultium-based EVs like the Chevrolet Silverado EV, Blazer EV, Equinox EV, Cadillac Lyriq, and GMC Hummer EV in high-volume sales, most of these models are either selling minimally or are not available.
The anticipated sales of 400k EVs by the end of 2023 were drastically missed, with actual Ultium EV sales totaling only 13.8k vehicles.
→ Issues with Ultium battery module assembly and software, including vehicle charging and a new infotainment system, are major factors behind the delays.
GM's struggles are not due to a lack of demand for EVs but rather an inability to produce enough Ultium vehicles to meet market needs.
Efforts are ongoing to resolve these issues, with 2024 seen as a critical year for GM's EV ambitions.
Well worth the entire read at InsideEVs: How GM's Ultium Electric Car Revolution Went Off The Rails
Shutdown
General Motors has restarted production at its Lansing Delta Township Assembly plant in Lansing, Michigan, after a temporary halt due to a part shortage $ last week.
The plant, which produces the Chevrolet Traverse and Buick Enclave, was idled on Friday but reopened on Monday as the supply chain issue was resolved.
The shutdown impacted approximately 2.3k employees on two production shifts, although GM has not disclosed specifics about the supply chain problem.
Subaru has resumed operations at three plants in Gunma Prefecture, Japan, following a shutdown due to a fatal workplace accident on February 13 at the Yajima plant.