ELECTRIC VEHICLES

General Motors Deepens Partnership With Honda, Takes Stake in Nikola

September 8, 2020 by admin Leave a Comment

GM’s plans for the future show a company willing to take risks.

Nikola Corporation and General Motors Co. announced a strategic partnership that begins with the Nikola Badger and carries cost reductions through all of Nikola’s programs, including: Nikola Badger, Nikola Tre, Nikola One, Nikola Two and NZT. As part of the agreement, Nikola will utilize General Motors’ Ultium battery system and Hydrotec fuel cell technology, representing a key commercialization milestone for General Motors.

Within only five days, the General Motors Company changed the course of its business in ways probably not foreseen by most automotive experts.

On Sept. 3, General Motors and Honda announced that the companies signed a non-binding Memo of Understanding (MoU) whereby the two would work toward establishing a strategic alliance in North America. That alliance would explore the two automakers sharing vehicle platforms and propulsion systems in a variety of core segments.

Five days later, General Motors announced a strategic partnership with Nikola Corporation, parent of Nikola Truck Company, an emerging manufacturer of electrified vehicles. As part of the agreement, GM takes an 11-percent stake in Nikola.

GM and Honda Expand Their Relationship

GM’s MoU with Honda was especially surprising, given the latter’s long-running independent course. Even as Nissan partnered with Renault and Mitsubishi to forge an extensive alliance and Toyota took stakes in multiple small Japanese manufacturers, Honda seemed content to stay the course.

But we’ve seen a willingness on Honda’s part in recent years to soften its resistance to collaborating with other manufacturers. Indeed, Honda joined GM’s battery module initiative in 2018, then followed in April 2020 with an announcement that the two manufacturers would jointly build a pair of all-new electric vehicles for Honda. The EVs are based on GM’s highly flexible EV platform powered by proprietary Ultium batteries.

Models powered by Ultium batteries feature a range of 400 miles or longer and are designed for Level 2 and DC fast charging. The second-generation Chevrolet Bolt EV, due out in 2021 as a 2022 model will utilize the new platform and battery system. A Cadillac Lyriq SUV will follow as will models for Buick and GMC.

The Honda-GM accord is a proposal, based on a joint committee composed of senior executives from both companies. The two will hold co-development planning discussions immediately, followed by engineering work set to begin in early 2021. Under the terms of the proposal, the two automakers will collaborate on building a variety of vehicles with a shared platform, including internal combustion and electric models. None of the models will be developed to serve other markets.

The automakers say that the companies will realize extensive savings in cost, including research and development (R&D) and engineering, and collaborating on purchasing.

Making a Case for Electrification

GM’s agreement with Nikola goes well beyond taking a stake in this upstart automaker. For example, the company immediately gains a $2 billion equity stake in Nikola, named for Nikola Tesla. Further, GM will engineer, validate, homologate, and build the Nikola Badger in both its battery-electric and fuel cell electric guises. Badger production is expected to commence by the end of 2022.

As a result of the strategic partnership, Nikola estimates it will save $4 billion in battery and powertrain ghosts over 10 years and an additional $1 billion in engineering and validation costs. As for GM, the company expects to receive at least $4 billion of benefits between the shares’ equity value, Badger contract manufacturing, supply contracts covering batteries and fuel cells, and EV credits that stay in place over the contract’s term.

GM and Honda have cooperated on projects dating to the beginning of this century. Since 2013, the two automakers have stepped up their cooperation.

Looking Ahead

Although the GM-Honda agreement must yet be finalized and is non-binding, the prospect of further collaboration between the two automakers is an enticing proposition.

We have no idea what vehicles the two manufacturers might build together, although it seems possible GM might perhaps gain car models, while Honda could benefit from GM’s truck lines. This is, of course, speculation but the possibilities are intriguing and will remain one part of a wider conversation involving electrification, mobility, technology, and collaboration.

Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?

August 24, 2020 by Tim Johnston 1 Comment

The Cobalt Supply, the DRC and EV’s Demand for Lithium-Ion Batteries

While the supply and demand of cobalt have recently been down due to the staggered economy worldwide because of the COVID-19 pandemic, the global demand for cobalt is normalizing and, thus, increasing. Cobalt is an extremely important mineral for clean energy technologies, specifically, it is a critical component in lithium-ion battery cathodes for high energy and power applications.

Approximately 42 percent of global cobalt stock is used to produce lithium-ion batteries with the remaining 52 percent used for military and industrial purposes. Lithium-ion batteries are used in electric vehicles (EV), energy storage applications, smartphones, laptop computers, and many other types of consumer and household electronic devices. While the United States is the largest consumer of cobalt, it has not mined it since 1971 or refined it since 1985. Canada, which is ranked eighth worldwide in the production of cobalt, is the only viable source for the mineral in North America producing 3,000 metric tons in 2019.

Investors are currently focused on the EV sector of the automotive industry as seen in the activity of private investors and the stock market. Shares of EV companies are soaring in 2020. Shares of Tesla’s stock increased by more than one-third in July, and its $278 billion market cap is $104 billion larger than the market cap of Honda ($45 billion), BMW ($43 billion), General Motors ($38 billion), the Ford Motor Co. ($27 billion), and Fiat ($21 billion) combined. Additionally, Tesla’s market cap is $103 billion more than Toyota’s ($175 billion) despite Toyota having sold 10.7 million vehicles in 2019 compared to Tesla’s 370,000.

Nissan announced that a midsize SUV EV priced at $40,000, the Ariya, will be released next year, and the price of its stock spiked more than 7 percent in one day. Rivian Automotive, a 10-year-old, electric pickup truck and commercial vehicle startup, backed heavily by Amazon and the Ford Motor Company, recently received $2.5 billion from private investors in its latest cash roundup, with substantial investment from the Soros Fund and Fidelity Investments. It has received $5.3 billion from investors in two rounds. The firm has plans to provide Amazon with 100,000 delivery vans in the next decade.

Obviously, the EV industry is picking up momentum during a key transition to global electrification. While it began with the production of luxury brands from companies such as Audi, Jaguar, and Tesla, the emergence of the market for everyday cars is the variable that has piqued the interest of investors to plug into this market.

Lithium-ion batteries that enable drivers to go further between charges and can be recharged up to 90 percent in 30 minutes have effectively removed major obstacles that kept EVs from going mainstream. The Wall Street Journal reported that the arrival of dozens of new EV models is expected to be in dealers’ showrooms in the next few years, including electric versions of popular vehicles such as the Jeep Wrangler, Toyota’s RAV4, and Ford’s F-150 pickup trucks along with an all-electric, SUV version of the Mustang. It has been reported that by 2022, consumers will have 78 plug-in hybrid and electric SUV options, an increase of more than 100 percent.

In reviewing the 2018 rates of production, the current level of supply for cobalt will need to increase by 460 percent to meet the rising demand for it by 2050, according to the World Bank. That would be an increase to 644,000 metric tons from the 2018’s output of 144,000 metric tons. A significant deficit in the availability of cobalt is forecasted by 2022 based on this projection when compared to today’s production level.

The rise in demand for cobalt is not the only problem regarding the coveted mineral, as there are social responsibility issues, too, regarding the working conditions of miners associated with the mining of cobalt from its number-one source, the Democratic Republic of Congo (DRC). For years this situation has been scrutinized by major corporations that rely on cobalt such as Apple and Tesla, watchdog groups that monitor human rights and working conditions such as Amnesty International, and governments worldwide that have sought to eliminate the harmful working conditions and illegal mining practices tied to producing cobalt.

The U.S. Department of Energy has been advocating to reduce the dependence on the world’s top supplier of cobalt, dating back to 2010. It is a serious issue as the DRC produces more than three times more cobalt than the remaining top nine sources globally. Russia, the second-largest supplier, produced 6,100 metric tons compared to the DRC’s 100,000 in 2019. The DRC accounts for about two-thirds of the world’s supply of cobalt and is by far the number-one supplier in metric tons worldwide.

However, the DRC also is under scrutiny for its labor practices and mining techniques. It is an ongoing situation with a well-documented history. More than 25 percent of its production is reported to have been sourced from artisanal and small-scale mining practices; these illicit actions include subjecting miners to adverse working conditions, such as sending them into mines without appropriate personal protective equipment, forcing them to work extensive hours, and exploiting child labor. Trespassing on the mines of legitimate mining companies and stealing their cobalt is a major issue as well.

In pursuit of an upgrade of standards overall, the Responsible Minerals Initiative and RCS Global Group have formed a strategic partnership to increase their efforts to strive for improvements in the production of the artisanal and small-scale mining of cobalt in the DRC. Their objective is to establish a “more transparent, robust, and digitized cobalt due diligence system.”

While this is a step in the right direction, the ultimate solution for the EV industry may be to find alternative solutions to meet its need for cobalt to power lithium-ion batteries. Cobalt is a necessary stabilizer in lithium-ion batteries, and the mineral is not something that can be artificially created or readily supplanted by another. While efforts are being made to produce a cobalt-free lithium-ion battery, it currently is nothing more than a work in progress.

The rising costs of cobalt coupled with its limited supply and the ever-increasing demand of the surging EV market make the recycling of lithium-ion batteries an excellent alternative for effective supply chain management. Unless a substitute for cobalt becomes available immediately, the recovery of the mineral from recycled lithium-ion batteries is going to be vital, especially for EV automakers in North America that must either comply with the stricter provisions of the new trade act, the USMCA, or pay costly tariffs, or for EV automakers worldwide seeking to reduce their dependence on the ever-volatile DRC.

Recycling lithium-ion batteries is the best two-fold solution currently available. It reduces the current reliance on the DRC and mitigates the worldwide shortage of cobalt reserves. Since cobalt is projected to be in short supply by 2022, the ability to recycle and recover the mineral is a must for the EV industry as well as for other commercial and industrial usage. Currently, most of the lithium-ion batteries in the market are thrown away, and this wastefulness is counterproductive. Eleven million tons of lithium batteries will be discarded by 2030, according to the World Economic Forum. An increase in recycling efforts would lower that amount significantly.

Recycling is a sustainable solution that reduces the environmental impact of lithium-ion batteries and maximizes the usage of cobalt. The U.K. consulting firm Creation Inn estimates that about 24 percent of cobalt will be recycled by 2025. In 2018, China’s largest EV manufacturer, BYD, began constructing a lithium-ion battery recycling plant in Shanghai. The U.S. Department of Energy (DOE) created its first lithium-ion battery recycling center in 2019. The DOE also launched the $5.5 million Battery Recycling Prize to encourage the development of innovative solutions to collect, store, and transport lithium-ion batteries to recycling centers.

Maximizing the recovery of cobalt and other critical materials through the recycling of lithium-ion batteries is contributing to supply chain diversification for EV manufacturers today and will continue to do so in the future. It is an effective solution that will enable a transparent and ethical supply chain management for the EV industry.

Photo supplied by Menno de Jong via Pixabay.

About Bollinger Motors, EV Startup

August 19, 2020 by admin 3 Comments

The Bollinger Motors B1 being put through winter testing and ABS calibration
in Michigan’s Upper Peninsula in February 2020.

The list of upstart automakers continues to expand thanks to vehicle electrification. Indeed, it is due to such advances in electric technology that’s led to several companies throwing their hats into the ring.

Tesla Motors is, of course, the pioneer here. In more recent years we’ve seen other companies such as Coda, the original Fisker, Detroit Electric, and Bright Automotive launch, then fail. But others are in the pipeline, with perhaps Rivian the best known of the current list of burgeoning EV startups.

Introducing Bollinger Motors

Bollinger Motors is another name to keep an eye on. Founded in 2015 by Robert Bollinger, a one-time industrial design student and later a grass-fed beef farmer according to The Detroit Bureau, Bollinger is headquartered near Detroit with plans to build trucks based on its Chass-E design.

That platform underpins Class 3 vehicles, which represents models with a gross vehicle weight range of 10,001 to 14,000 pounds. In other words, this class covers the top-end of light-duty pickup trucks and is just below the lower-end of medium-duty commercial trucks.

While Rivian and Tesla have orders or sales in place to deliver hundreds of thousands or even millions of electric vehicles, Bollinger Motors is decidedly small, with plans to build about 2,500 vehicles annually from the start. Two models are in the pipeline – the B1 sport utility truck and the B2 pickup truck. A B2 chassis cab variant and the Chass-E chassis are other designs that should follow. The B1 and B2 models are reservable with a $1,000 deposit; production should begin by the first half of 2021.

Unlike Tesla with its outlandish triangular design, Bollinger’s models have a much more traditional look. In fact, its square-edged canvas is very familiar, one that its founder says is reminiscent of the old International truck.

Bollinger B1

Bollinger describes its B1 sport utility truck as an all-electric, all-wheel drive, all-terrain vehicle. It represents a dual-motor system with motors on each axle. It comes with a two-speed high/lo range gearbox along with front and rear locking differentials. This truck has 15-inch ground clearance, 10 inches of suspension travel, a 5,201-payload capacity, and a 7,500-pound towing capacity. It has a 52-degree approach angle, a 30-degree breakover angle, and a 43-degree departure angle.

The B1 sits on a 118.8-inch wheelbase and is 171.5 inches long, 77.2 inches wide, and 72.7 inches tall. It comes with front and rear cargo capacity and seats four. On the performance front, the B1 develops 614 horsepower and 668 pound-feet of torque. Bollinger claims a 0-60 mph time of 4.5 seconds and a top speed of 100 mph. It has an estimated 200-mile range and is chargeable in about 75 minutes with Level 3 (DC Fast) charging.

The Bollinger Motors B2 pickup truck pulls up to 7,500 pounds.

Bollinger B2

As for the B2, most of the numbers are the same as the B1, although this model has a 139-inch wheelbase and is 207 inches long. The towing capacity is also the same, although the payload drops slightly to 5,001 pounds. Other features include a standard 6-foot bed and a front trunk (frunk) measuring 14 cubic feet (8.6 cubic feet in the B1).

Bollinger prices both models from $125,000, which is clearly outside of the range of what most consumers can afford. Likely, these vehicles will target top-tier customers, including perhaps those attracted to the Mercedes-Benz G-Class. For this price, the Bollinger models come with removable glass, windshield, doors, roof panels, and rear seats.

Standard features include air conditioning, Bluetooth, and up to 10 110-volt outlets. Heated seats are extra. Additional automotive specs are forthcoming.

In the News

Bollinger may not be getting as much attention as its rivals, but it is making news. In August 2020, the company moved its headquarters to a larger facility in Oak Park, Michigan, near Detroit. It serves as the primary base of the company’s operation, replacing the previous Ferndale location.

This EV maker is also expanding its staff as it expects to double its current team of 40 employees by year’s end. The company is self-financed but it is looking for outside financing through strategic partners.

Will Bollinger Motors succeed? Anything is possible, although its cash position is not known. Its high price point is an obvious deterrent as its unimpressive range, but its promise to build vehicles that will last a lifetime is interesting. What they need are investors – perhaps GM might jump in where it hesitated too long as Ford beat it out for a stake in Rivian.

Delayed Rivian On Track to Deliver Electric Trucks and SUVs

August 1, 2020 by admin Leave a Comment

Electric vehicle manufacturer Rivian has yet to roll out a production-ready model, but the company remains on track to produce a truck and a utility vehicle. The Plymouth, Michigan-based automaker with a manufacturing plant in Normal, Illinois, was expected to introduce its first model by the end of this calendar year. Instead, delays related to the COVID-19 pandemic have pushed that timeframe to next summer with the arrival of its R1T electric truck followed two months later by its R1S electric SUV.

Billions Raised; Fleet Orders In

That Rivian is still moving forward with its plans demonstrates its resiliency as well as its strong financial backing. Founded in 2009, the company operated mostly behind the scenes until recently when it revealed prototypes of its upcoming vehicles. Further, Rivian has raised more than $5 billion in capital investments from companies such as Amazon, the Ford Motor Company, Cox Automotive, T. Rowe Price, and BlackRock. It remains a privately-held enterprise although it does count outsiders such as a Ford executive as a board member.

Amazon has ordered more than 100,000 vans, a third model apparently designed with this Internet delivery company in mind. Also, the Ford Motor Company is developing an electric truck based on the skateboard chassis underpinning Rivian vehicles. However, a second model, a Lincoln SUV, was canceled because of the pandemic.

Incidentally, the flexible Rivian platform includes electric motors, controls, batteries, and a suspension system. Likely, it will underpin other models for Rivian as well as for varying manufacturers who develop their own shell and interior. This means manufacturers will enjoy a vehicle with four independent electric motors sending up to 200 horsepower to each wheel. The company claims the platform’s torque management system allows for everything from high-speed cornering to low-speed rock crawling.

Poached Employees; Ordering Details

Rivian hasn’t been without controversy as Tesla alleges the company has poached employees who brought trade secrets with them. Rivian has 2,300 employees and Tesla claims 178 once worked for them. Moreover, the company identified four Tesla-turned-Rivian employees for taking confidential documents with them. Tesla filed suit against Rivian; the case is pending.

Customers may “pre-order” a Rivian truck or SUV by supplying the company with a $1,000 deposit. The deposit automatically places the customer on a waiting list, but it doesn’t obligate them to follow through on their purchase decision. Indeed, the deposit is fully refundable. That’s a typical practice for these kinds of ground-breaking models from upstart manufacturers.

Profile: RJ Scaringe

Rivian is headed by RJ Scaringe, a 37-year-old engineer from Florida. Scaringe has a doctorate in mechanical engineering from MIT’s Sloan Automotive Lab.

Since its inception, the company now known as Rivian has undergone several changes, including its name and mission. Once called Avera Motors, the company changed its name following a lawsuit from Hyundai, which claimed “Avera” sounded too much like “Azera,” the name of its large sedan. The new name pays homage to the Indian River in Brevard County, Florida, where Avera was located.

Its mission has changed too as the company originally sought to build a small commuter car similar in scope to the Toyota Prius. Its new plans were originally kept under wrap for several years before its skateboard architecture emerged. What we see coming is based entirely on the new vision.

As of this writing, Rivian has more than 2,300 people on its payroll in locations such as Canada, the United Kingdom, California, Michigan, and Illinois. Eventually, the company will begin hiring workers for its Normal facility, which it acquired from Mitsubishi Motors in 2018. State and local incentives to the tune of $249 million made that acquisition possible.

See Also — About the 2021 Lordstown Endurance

Logo copyright Rivian. All rights by the manufacturer reserved.

Up Next: Ford-Volkswagen Tie-up?

October 31, 2019 by admin 4 Comments

What a week it has been. More like a half-week, actually.

For it was within that abbreviated timeframe we officially heard that Fiat Chrysler and the PSA Groupe (Peugeot and Citroën) were talking merger. The news spilled out late Monday and by Wednesday the two automakers came to terms. Today, news of the planned merger was announced, setting in place what will become a near $50 billion entity, which currently produces 8.7 passenger vehicles annually.

Merger talk doesn’t take place in a vacuum. Indeed, soon after the FCA broke off talks with Renault to merge in June, rumors of PSA’s interest in FCA came out. All we’ve heard is what was reported this week. But talks have been going on for some time, carried under the cloak of secrecy.

We shouldn’t be surprised that the two automakers are connecting as the entire industry is ripe of consolidation. With the deal nearly certain to pass, it likely will trigger further consolidation with perhaps Ford and Volkswagen following. Yes, these two automakers seem like prime candidates for an alliance or outright merger. There are several reasons why, which we’ll explore here.

Volkswagen and Ford: The Next Tie-up?

1. The two companies forged a global alliance.

In January 2019, Ford and Volkswagen announced that the two companies were forging a global alliance, but without cross-ownership. Pickup trucks and commercial vans were the first vehicles mentioned where collaboration will take place.

2. An EV/AV alliance follows.

In July, Ford and Volkswagen announced that the two automakers would begin sharing electric vehicle (EV) and autonomous vehicle (AV) technology. VW is investing in Argo AI, which is Ford’s self-driving technology, while Ford will build at least one vehicle based on Volkswagen’s Modular Electric Toolkit (MEB) architecture for sale in Europe.

3. Ford cuts back on cars.

The Ford Motor Company still produces cars, but the U.S. market will soon offer only the Mustang, pickup trucks, and lots of utility vehicles. With a VW tie-up, Ford might find it affordable and sensible to sell small cars again in the U.S., especially as the merged entity shaves costs. In any case, if the market suddenly shifts to cars again, Ford will have the platforms in place to build what’s needed.

4. The Rivian factor.

We already know that Ford owns a slice of Rivian, the upstart electric vehicle maker. Rivian will begin producing an SUV and pickup truck by the end of 2020. Ford will have access to Rivian’s skateboard electric vehicle architecture, which is certain to produce at least one model for the Ford brand. Volkswagen wants a pickup too and might utilize Rivian besides tapping the Ford Ranger for its own purpose.

5. Big is better.

When it comes to building passenger vehicles, the bigger you are, the better. Or at least that is the thinking in this industry. Yes, “economies of scale” and “synergies” are realized through smart collaboration. But there is another factor, bragging rights, which the new company led by Volkswagen would claim as sales would top an estimated 14 million units annually, putting the new automaker well in front of the pack.

What About GM?

With FCA and PSA hooking up and Ford and Volkswagen presenting a strong argument for consolidation, what about GM? At one time we might have seen GM go it alone or acquire another automaker, but that’s not going to happen.

Fresh on the heels of a costly labor agreement with the UAW, GM is ripe for the picking. We don’t see Toyota or Hyundai/Kia interested nor is it likely Honda with its independent streak planning to do likewise. There’s a chance GM might find a place in the Renault-Nissan alliance, but we think a Chinese suitor is just as likely.

In any case, the industry is changing and most likely will see additional mergers, acquisitions, and alliances in the months ahead. FCA and PSA triggered the tsunami. Now we’ll witness how other automakers avoid getting consumed by the waves of change.

Michelin, GM Collaborate on Airless Tires

June 5, 2019 by admin 2 Comments

In the near future, checking tire pressure may become a thing of the past thanks to innovative technology. Specifically, tire manufacturer Michelin and the General Motors Company (GM) are collaborating on updated tire technology that will eliminate the risk of flat tires and blowouts in passenger vehicles equipped with Uptis (Unique Puncture-Proof Tire System) tires. The new tires may appear as soon as 2024 on the Chevrolet Bolt EV.

A Chevrolet Bolt EV equipped with Michelin Uptis tires.

Movin’On Summit Announcement

The two manufacturers jointly announced the engineering and technology breakthrough at the Movin’On Summit for sustainable mobility in Montreal on Tuesday. Later this year, the automaker will begin real-world testing and verification of the Uptis Prototype on a Michigan test group of Chevrolet Bolt EVs. The Bolt is GM’s electric vehicle, introduced in 2017 and sporting a 238-mile electric range.

“General Motors is excited about the possibilities that Uptis presents, and we are thrilled to collaborate with Michelin on this breakthrough technology,” said Steve Kiefer, senior vice president, Global Purchasing and Supply Chain, General Motors. “Uptis is an ideal fit for propelling the automotive industry into the future and a great example of how our customers benefit when we collaborate and innovate with our supplier partners.”

Scrappage Reduction; No Replacement Tires

Flats and blowouts are no longer an issue in vehicles equipped with Uptis tires. As a result, the Michelin tires offer a significant tie-in to GM’s goal of reducing the number of raw tires used and resultant waste, which is also related to the automaker’s goal of eventually reaching zero crashes, zero emissions, and zero congestion.

In particular, the new tires will reduce the number of punctured or damaged tires that must be scrapped ahead of the end of their life cycle. Indeed, Michelin estimates that approximately 20 percent of tires are scrapped annually due to punctures or irregular wear.

Further, it also reduces the use of raw materials as the new technology eliminates the need for spare tires. Replacement tires would also not be needed early on in the life cycle.

Michelin’s Uptis tires are designed to eliminate punctures leading to blowouts.

Say Farewell to Blowouts

The Uptis tires are engineered to last longer as they also eliminate irregular wear and tear caused by improper inflation. Related car accidents caused by flats and blowouts will make driving safer for all.

Michelin says its innovative tires are composed of composite rubber and a “proprietary innovative high-strength resin with embedded fiberglass.” These tires are set within an aluminum wheel assembly.

Autonomous and Electric Vehicles

The company says its tires are specially designed for new forms of mobility, including autonomous and electric vehicles. Moreover, Uptis represents a key component of the tire manufacturer’s VISION concept, which comprises four pillars of innovation: airless, connected, 3D-printed and 100% sustainable (renewable and bio-sourced) tires.

As for the Moving’On Summit, this year’s event is the third annual meeting of sustainability. Since its inception, the summit has been backed by Michelin, which also conceived it.

This year’s summit focuses on five themes of significance:

1. Decarbonization and air quality.

2. Multimodal urban transit and society.

3. Innovative technologies.

4. Goods transportation and multimodality.

5. Circular economy.

The summit welcomes thought leaders from around the world who engage in working sessions, group discussions, and presentations. It also includes “brain dates” whereby participants are paired for 30-minute discussions to share one-to-one ideas based on common interests.

Lastly, the conference includes opportunities for participants to take a seat on zero-emission electric buses and test drive such vehicles as the Toyota Mirai, BMW I8 Roadster, and the BMW IS3 REX.

See Also — Tire Sidewall Code Deciphering 101

Photos coyright GM Company.

EV Shocker! Ford, Not GM Invests in Rivian

April 24, 2019 by admin

RJ Scaringe and Bill Ford

RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announced a $500 million Ford investment in Rivian. Through a strategic partnership, Ford will develop an all-new, next-generation battery electric vehicle for Ford’s growing EV portfolio using Rivian’s skateboard platform.

Upstart Rivian, a future manufacturer of electric vehicles, announced today a $500 million minority investment by the Ford Motor Company. Ford’s backing follows a $700 million investment by Amazon. Together, the two companies give Rivian the confidence and support it needs to launch their new products.

The Ford investment is stunning as it follows on the heels of a rumored stake sought by GM, but later canceled. Ford kept its negotiation with Rivian under wraps, which made today’s announcement all the more stunning.

A Board Seat and a Skateboard Platform

Ford’s stake will not only give it a voice in how Rivian is run — Executive Vice President and President of Global Operations Joe Hinrichs will join Rivian’s board of directors — the company will also receive access to Rivian’s proprietary skateboard platform.

That platform is already designed to uphold an SUV and pickup truck, two models that’ll underpin this emerging automaker. The first of the two is expected late next year. Other models may follow.

Some have speculated the skateboard platform will underpin an electric F-150, but that doesn’t seem at all likely. Notably, Ford is developing its own electrified truck based on its existing platform. Instead, we’re likely to see an all-new model, a dedicated electric vehicle for either the Ford or Lincoln brands. Perhaps both.

If the model is a Ford, an SUV is a logical approach. If Lincoln is selected, it might see a pickup truck, but we’re thinking an SUV designed to compete with the Tesla Model X or perhaps the upcoming Model Y, a small crossover is a more sensible approach.

Ford and Volkswagen

Ford’s Rivian connection won’t have any bearing on its burgeoning relationship with Volkswagen. Indeed, Ford CEO Jim Hackette told Automotive News today that “…the Rivian investment “does not interfere” with any potential deal with VW. ” The two automakers are collaborating on a few products, including a shared EV platform.

The Rivian stake is in addition to Ford’s $11 billion monetary contribution to its own electric vehicle quest. Ford has two electric models in the planning stages, including a Mustang-inspired crossover. The other model is the electrified F-150.

Rivian Independence

Neither Amazon nor Ford will have a controlling interest in Rivian, which will remain an independent company. Rivian already has the backing of two global investment firms: Saudi Arabia’s Abdul Latif Jameel Ltd. and Japan’s Sumitomo Corp.

As for GM, the news that Ford took its place in backing Rivian must be sending shockwaves through the Renaissance Center. To its credit, GM is ahead of Ford in all things electric, but having its chief rival jump in is not something the company’s executives can easily dismiss.

Photo courtesy of the Ford Motor Company.

Rivian Automotive Draws Interest From GM, Amazon

February 13, 2019 by admin

They were the darling of the 2018 Los Angeles Auto Show. Rivian Automotive, an upstart electric-vehicle company based in Michigan with a plant in Illinois, may soon bring a pair of electric vehicles to the market. The automaker showcased a pickup truck and an SUV in L.A. and may soon have the backing of a pair of very different industry giants as it moves toward production.

Amazon, GM May Invest in Rivian

News reports this week indicate that both GM and Amazon are looking at taking stakes in the fledgling automaker. GM sells more passenger vehicles in America than any other company. Amazon is the leader in online sales and has its hands in a variety of businesses. Separately, the two companies would benefit from a Rivian stake. Together, their funding would provide the backing to ensure this Tesla-fighter gets off to a great start.

The Rivian investment would value the company somewhere between $1 billion and $2 billion dollars, even without having built a single vehicle.

See Also — About Lucid Motors

The company launched in 2009 and was essentially developing under the radar, while mostly everyone’s attention was on Tesla Motors and other industry happenings.

At the L.A. show, Rivian showcased the R1T truck and the R1S SUV with both riding on the same skateboard platform. Powering each model is a quad-motor system with each motor adjoined to a wheel. Three battery size options — 105 kWh, 135 kWh, and 180 kWh — will launch the line, with a range of 240, 310, and 410 miles, respectively.

GM and Electric Vehicles

GM’s interest in the company may seem curious, given its position in the market, especially with its fleet of pickup trucks. GM builds more pickup trucks than its rival Ford, although the latter claims the best-selling model in the Ford F-150.

GM has the ability and desire to electrify its trucks, but purchasing a stake in Rivian would go far in fulfilling its own electrification needs without additional investment. Depending on how a deal is set up, Rivian’s sales totals could become GM’s. This would also go far in enabling GM to meet federal fuel-efficiency guidelines without disruption to its core operation.

Amazon’s In-House Fleet

Amazon’s involvement may seem surprising, but like other tech giants, including Apple and Google, the company is diversifying into many different fields. Further, Amazon has its own fleet of delivery vehicles, which may one day include electric models.

Owning a stake in Rivian would smooth that transition. It would also send a warning shot across the industry bow that Amazon is here to play (behind Alexa, of course). This might also signal stronger cooperation between tech and automotive giants, with perhaps the former investing heavily in the latter to further electrification and roll-out autonomous vehicles. We may see a new disruption that won’t necessarily sink established players but transform them.

See Also — About EV Maker Evian

Rivian Automotive: Digging Deeper

So, why isn’t Rivian considered vaporware by industry critics? For a number of reasons, beginning with its founder, Robert “RJ” Scaringe. Scaringe is a graduate of the Massachusetts Institute of Technology, where he achieved a doctorate in mechanical engineering.

In 2009, he formed Mainstream Motors, which was later renamed Avera Automotive. The company had originally set out to build a fuel-efficient gas-powered car but eventually transitioned to electric vehicles with an eye also on vehicle autonomy. Along the way, the company adopted its present name, won several rounds of funding, hired staff, and acquired the former Mitsubishi manufacturing plant in Normal, Illinois, for a song.

Since the L.A. Auto Show, analysts have looked closely at Rivian and most like what they see. Many compare Rivan with Tesla, but not at the CEO level, at least not in terms of bombastic behavior. While Musk has been making outlandish statements for years, including one that has led to an SEC investigation, Scaringe has quietly been building his business, conducting few interviews (including this one with Forbes), and readying his vehicles for production starting in 2020. And that’s with or without funds from GM or Amazon.

See Also — Hold Fast: VinFast Does Paris

Photos copyright Rivian Automotive.

It’s a Wrap: 2018 in Review

January 1, 2019 by admin

Happy New Year to you and yours! The ending of one year and the start of another should give us pause, allowing us to reflect on what once was as well as assess our lives as we look forward.

As an automotive journalist, I like to keep tabs on my progression, especially as the industry continues to change and I adapt to it. On a personal note, I’ve seen writing clients go and new ones arrive. But that’s common in a landscape that’s never static.

What hasn’t changed is this website itself, with Auto Trends Magazine launching in April 2008 and, aside from a short-term shut down due to hacking in 2016, we’re still at it. That’s quite a noteworthy accomplishment as not a few sites fold after a few years or are sold off to an internet publishing house.

A big part of what this site is about is the car reviews you’ll find, typically on a weekly basis. For 2018, 62 vehicles were offered by manufacturers for my review, which is more than one per week. That said, there were a few weeks, including a span of two months, when no cars were available. Thus, we alternated between famine and feast for about half the year.

As you might guess, crossovers led the pack, representing 29 of the models tested. At one point a string of 11 consecutive utility vehicles was presented, which gave this writer a nice cross-section of the market, ranging from the Nissan Kicks to the Land Rover Range Rover Velar.

Of the 29, the most interesting one was the 2018 Jeep Wrangler (JL). This model successfully maintains Jeep ruggedness and off-road prowess, therefore it is no surprise to me that it is so popular. Personally, I’m looking forward to the release this spring of the Jeep Gladiator pickup truck, which is based on the Wrangler platform.

Five of the 62 vehicles were pickup trucks, which kind of surprises me that there weren’t more. Of the five, three were Silverados, underscoring Chevrolet’s interest in getting its pickup truck out there. The Nissan Titan and Ford F-150 Raptor rounded out the truck reviews, the latter representing the most powerful model of its kind.

This past year also included an uncommon body style among my reviews, when not one, but three wagons were presented. I got to drive the Buick Regal TourX, Jaguar XF Sportbrake, and the Volvo V60, and was impressed by all three. If you haven’t considered a wagon before, each model offers a nice combination of car riding and utility, although it is doubtful that any one of them will change the market. By the way, the lone minivan tested was the Chrysler Pacifica Hybrid, which is a laudable vehicle in terms of passenger space and fuel efficiency.

Manufacturers may be shifting to crossovers, but 24 car models were still presented, plus the three wagons. Among the near two dozen models were a handful of hybrids, including the Hyundai Ioniq and Toyota Avalon Hybrid. One model was my very first electric vehicle, the Nissan Leaf. That model gave me a tremendous insight into life with an EV. Specifically, that an owner has to adjust the way he drives, let alone plan charge times carefully, are big concerns. I’m still not convinced we’re ready for a wholesale shift to all things electric. Hybrids yes, pure electric vehicles no.

I’m often asked, “what is your favorite car?” Although I don’t have a number one, I do very much appreciate the Jaguar F-Type. Happily, a “400 Sport” model found its way to me early in the year, a special single-year model with an extra boost in horsepower. I also got to test the Ford Mustang GT and the Kia Stinger GT, the latter offering a performance side we hadn’t seen before from this Korean manufacturer.

Several new models were among the 62, including all three wagons, as well as the Kia Stinger and the Genesis G70. The Hyundai Kona and Veloster Turbo; Toyota Camry, CH-R and Corolla Hatchback; Volvo XC40 and V60; Nissan Kicks; and Subaru Ascent were either all-new or reflected a key redesign.

I ended 2018 the way I started it: behind the wheel of the Subaru Forester utility vehicle. That model was followed by the Nissan Rogue, which kicks off my 2019 reviews.

As for traveling, 2018 began strongly, then faded fast. My last car-related excursion was in May, but I also took in more than a dozen locally based automotive events from Memorial Day to Labor Day, and beyond. My first scheduled trip for 2019 is the Chicago Auto Show in February, continuing a tradition started three years ago.

So, that’s a wrap on 2018. Here’s to a great 2019! As always, if you have questions about a new car or a relatively young used car, feel free to hit me up. Likely, you’re doing your research and by the time you reach out to me, you’re simply looking for confirmation or perhaps my thoughts on reliability, warranties, and other pertinent details.

7 Facts About the Volkswagen Beetle

October 22, 2018 by admin 3 Comments

You would be hard-pressed to find another vehicle with a model name as well known or as even as old as the Volkswagen Beetle. Years before it showed up on our shores, the Beetle design was established, the work of Ferdinand Porsche. In 2014, Volkswagen marked the 65th anniversary of the Beetle in America, with 5.5 million models sold stateside since it was first imported.

Fact No. 1: Volkswagen Type 1

The “Beetle” wasn’t the first name Volkswagen used for its “people’s car.”

Volkswagen Beetle It was originally known simply as “Type 1” or as “the Volkswagen,” with Germans affectionately calling it “Kafer” or “Beetle” even before it was sold abroad.

Years earlier, Adolf Hitler ordered its construction to provide low-cost transportation for the average German family.

A small number of models were built for Nazi party officials during the Second World War, with mass production started after the war ended.

Fact No. 2: It Floats

The original Volkswagen Beetle floats. At least it does for a few minutes. That car had a sealed steel bottom with nothing exposed beneath it.

Its body was airtight, leading to Volkswagen creating a television commercial demonstrating that the Beetle, indeed, floated. Volkswagen added a disclaimer at the end of the commercial stating, “The VW will definitely float, but it will not float indefinitely.”

See Also — History of the Volkswagen Bus

Fact No. 3: A Counter-Culture Favorite

In the 1960s as young people began to embrace a counter-culture lifestyle, the Beetle’s appeal surged. Its simple, even cute design were important factors as was its price: it cost less than $2,000.

It also got good gas mileage, but its earlier models were designed to travel no faster than about 62 to 65 mph.

Fact No. 4: The Original Stayed Around

The last of the first-generation Volkswagen Beetle were built in Germany in 1977, with production then shifted to Brazil and Mexico. The Brazilian factory continued to produce Beetles until 1986, but the Mexican factory produced them until 2003.

However, the Latin American models were never exported to the US, which was then served by the replacement Rabbit, known as the Volkswagen Golf elsewhere.

2007 Volkswagen New Beetle — The VW New Beetle is available in coupe and cabriolet configurations
(Credit: OSX, Public Domain Wikipedia).

Fact No. 5: Volkswagen New Beetle

Volkswagen revived the Beetle name in 1998, calling the model the “New Beetle” to distinguish it from the original.

It represented the second of three distinctive “Beetle” models ever built, but its relationship to the original was in name only.

The Volkswagen New Beetle drew its styling cues from the earlier design right down to the flower holder that sat on its dash. Although its rounded shape, front and rear fascia and overall demeanor paralleled the original model, the New Beetle sat on the same front-wheel-drive platform underpinning the VW Golf.

The New Beetle was built from 1997 to 2011.

Fact No. 6: New Is Old Again

If you replace the New Beetle with something new, should it be called the New New Beetle? Wisely, Volkswagen simply reverted to using “Beetle” for the most recent of the three distinctive models to bear the iconic model’s name.

Introduced to the US market for 2012, the current iteration shares its platform with the Volkswagen Jetta and is larger than both earlier Beetle models. Like the New Beetle, the current Beetle is front-engine and front-wheel drive, with more modern engine and transmission choices as well as the latest in-cabin technologies. It is also the first US-spec Beetle to offer a diesel engine.

Fact No. 7: Sales Leader

The current iteration of the Volkswagen Beetle falls under the two-door specialty coupe and convertible category.

Volkswagen I.D. Buzz Concept — Electric vehicles, such as this microbus, is the future of VW.

In 2013, Beetle sales topped 43,000 units in America alone, becoming one of the most popular models in Volkswagen’s 11-model-line family.

Sales, however, began to fall in ensuing years, and are now less than half what they were at their current-generation peak. That said, Volkswagen will discontinue Beetle production in 2019, some 80 years after the original model rolled out.

Volkswagen Transformation: From Beetle to Electric Vehicles

The VW Beetle will soon be history, but its place in global autodom will continue to live on. Today’s models are nothing like the original, except for its iconic good looks. Regardless, Volkswagen’s original model leaves as the brand makes its way in the 21st century, with even diesels now a thing of the past and electric vehicles soon to dominate.

See Also — Volkswagen Rabbit Reprise: Again!

VW I.D. Buzz Concept photo courtesy of Volkswagen of America.