Gaijin Automotive announced a recall of all plug-in hybrid Kuga models produced before June 26, following a number of vehicle fires, according to foreign media reports.
(Ford Kuga; photo credit: Ford's official website)
Before the recall is complete, Ford is asking Kuga owners to refrain from using the all-electric mode and from externally charging the battery. The company says the car can currently only be used in EV?Auto mode, which automatically switches power between the battery and engine. The plug-in Kuga has a pure electric range of 56 kilometers under WLTP conditions.
Ford said, "The recall is because we have identified a potential overheating problem with the vehicle's high-voltage power cell. In some cases, this could lead to a fire in the battery area." Foreign media reports say Ford has confirmed four incidents of fires in the plug-in Kuga. A recall notice posted on the European Union's consumer website indicates that damage to the charging module or connector could lead to a leak, which in turn could lead to a short circuit and overheating of the battery cells, which could cause a fire.
Ford said it designed a shield to protect the components in case the battery needs to vent hot gases to release pressure and heat. Ford said that only in very "rare" cases would the battery need to vent hot gases, and that the vehicle shield would be installed by the dealer.
The Kuga is based in Valencia, Spain, and Ford said 20,808 vehicles*** were affected by the recall. 20,065 Ford Kuga registrations were made in Europe in the first half of this year, according to JATO?Dynamics. The European Union introduced stricter CO2 reduction targets this year, and Ford prioritized sales of plug-in Kuga models in order to avoid fines for exceeding emission limits. (Source: Gaijin Auto? Nebula)
2, bound by French labor laws? Daimler in trouble for closing Smart plant
Gaijin Automotive reports that Daimler must find a buyer for its Hambach plant in France, which it wants to shut down, because closing the plant is virtually impossible under local French law, according to a foreign media report.
(Hambach plant in France; photo credit: Daimler)
This forces Daimler to be at a disadvantage in the deal, and does not have enough backbone to reach an agreement with a potential buyer such as Ineos on the best terms. Ineos has had several talks with Daimler about buying the plant to make its Land Rover Defender competitor. In addition to that, Ineos is said to have two alternative sites for the plant, which it had planned to locate in Bridgend, Wales, England, near the Ford engine plant that will be closed, or at the Nissan plant in Barcelona, Spain.
Daimler Chief Executive Ola?Kallenuis said in a July 23 earnings meeting, "In France, it is usually necessary to find a use for a plant after it has been closed. The last resort would be a shutdown, but that is not our goal." Under French labor law, Daimler had to try all other methods before it could shut down the plant. The French plant, which has been producing the Smart?ForTwo since it was established in 1997, currently employs 800 workers; another 800 are employed by local parts suppliers. Conlinsohn said he would try to keep as many workers employed as possible.
In the second quarter of this year, the plant suffered an asset impairment loss of about 500 million euros, the same amount it would have cost to refurbish the facility and build a new body shop. Luxury car sales are rising every year, and while Daimler is expanding production at Mercedes-Benz and other car companies, those companies still complain about capacity constraints. Also, Daimler first announced 1.4 billion euros in personnel cost cuts last November, but assembly-line jobs were not affected.
Conlinson decided to sell the Hambach plant in early July. At the same time it was the first sign that growth in global luxury car sales had stalled due to the epidemic. He added: "When we drafted this transformation plan last fall, we did not take into account the recession triggered by the epidemic. That's why we're reevaluating all of our spending including capacity and labor (and other fixed costs)."
Daimler has decided to use its joint venture with Zhejiang Geely Holding Group*** after 2022 to build future Smart models, while the Hambach plant was supposed to produce compact electric cars such as the Mercedes crossover EQB?
Daimler said in 2008 that it planned to invest in the Hambach plant to build a compact electric car for Mercedes. The group confirmed that most of the tasks have been completed, including the creation of a body-building shop, a paint shop and modernization workshops. (Source: Gaijin Motors? Gu Jiaojiao)
3, expanding capacity in Africa? VW opens assembly plant in Ghana
Gaijin Automotive reports that Volkswagen plans to set up another new plant in the sub-Saharan region to expand its company's automotive production capacity in Africa, according to foreign media reports.
(Image source: VW)
Volkswagen said it has officially set up an assembly plant in Accra, Ghana*** and country in Africa. Previously, VW built car plants in South Africa*** and the country, Kenya, Nigeria and Rwanda respectively.
UniversalMotors, which became a VW licensed importer in 2005 and has since been contracted to build VW plants, has also been awarded the initial assembly contract for the Ghana project. The plant, located in the city of Accra, is expected to have a capacity of 5,000 vehicles per year; it will assemble (SKD) the Tiguan, Teramont, Passat, Polo, and Amarok using semi-bulk-die (SKD) assembly.
Nearly two years ago, after German Chancellor Angela Merkel's (D) decision, Volkswagen was awarded the contract for the initial assembly of the Tiguan and the Teramont, as well as the Polo. Angela Merkel, Volkswagen signed a memorandum of understanding with the Ghanaian government. Now Volkswagen is building a plant here to further promote cooperation between the two countries. Ghana is also reported to have made a move by announcing the launch of the Ghana Automotive Development Policy (GADP). Ghana becomes the first automotive company to be set up under the GADP, wholly owned by VW. The company will be responsible for SKD kit importation as well as full production of cars.Jeffrey?J.?Oppong?Peprah has been appointed CEO of Volkswagen Ghana.
Last year, in a bid to attract international firms such as the Volkswagen Group and Nissan to invest in factories in its territory, the Ghanaian government decided to offer tax incentives for up to 10 years to carmakers who set up factories there. Ghana's attraction to car companies follows in the footsteps of South Africa, which has already attracted companies including Volkswagen, Renault, Nissan and Toyota through tax incentives to invest and build factories within its borders.
Volkswagen said in a statement that the company realizes that while "the African automotive market is relatively small now, the sub-Saharan region is expected to be a growth point for the automotive market in the future."? (Source: Gaijin Automotive? Gu Jiaojiao)
4, after taking away nearly half of South Korea's subsidies? Tesla or kicked out of the electric car subsidy list
Gaijin Automotive According to foreign media reports, in the second quarter of this year, Tesla dominated the electric car market in South Korea. Currently, the South Korean government is considering re-adjusting its EV subsidy program to exclude higher-priced EVs from the subsidy targets, a move that may lead to Tesla cars losing their eligibility to enjoy the country's large subsidies.
The South Korean market did help Tesla sales in the midst of a global pandemic. In the second quarter of this year, Tesla*** delivered more than 4,000 Model?3s in South Korea; including a record-breaking June, when Tesla delivered 2,827 electric cars.The Model?3 became the second best-selling imported model in South Korea, even outpacing the BMW 5-Series and Audi A6, and trailing only the Mercedes-Benz E-Class. The company reportedly still has a backlog of orders for 4,000?to 5,000 Model 3s from South Korea.
(Model?3; Image credit: Tesla's website)
Tesla's strong demand in South Korea is partly due to its buyers being able to take advantage of higher subsidies for electric cars, which have significantly lowered the price of its EVs. In the first half of this year, the South Korean government handed out 209.2 billion won in subsidies for electric cars***, with Tesla models enjoying as much as 90 billion won, or about 43 percent of that, according to the Korea Automobile Manufacturers Association.
As a result, South Korean authorities are considering revising the EV subsidy rules to avoid the above situation from happening again. After discussions with cities, relevant experts and related associations, South Korea's Ministry of Environmental Protection will revise the current system for calculating EV subsidies by October. After the consultation, premium EV brands are expected to be excluded from the subsidy list.
On Aug. 10, South Korea's Ministry of Environmental Protection and 11 automakers, including Hyundai and Kia, held a meeting to discuss the issue. (Source: Gaijin Auto? Zhanya'e)
5, Rivian dismisses Tesla lawsuit countering Tesla's malicious defamation
Gaixian Automotive has asked a judge to dismiss a lawsuit filed by Tesla against it, claiming that Tesla doesn't have sufficient evidence to allege that it has poached corners and stolen trade secrets, and that, instead, it's defaming the company's reputation and jeopardizing its recruiting efforts.
In July, Tesla filed a lawsuit against Rivian?and four former employees, accusing them of poaching and stealing trade secrets. In particular, Tesla alleged that Rivian instructed an employee who had recently left Tesla on the type of confidential information needed. In response, Rivian said in documents filed Aug. 10 in California Superior Court that the company has strict policies and hiring procedures in place to ensure that it does not obtain confidential information from other companies when new employees come on board. In addition, the alleged trade secrets in the Tesla lawsuit do not exist in any of the company's systems.
(R1T; photo credit: Rivian's official website)
Rivian's main argument is that Tesla did not state enough facts to support its lawsuit, which, according to Rivian, is more about speculation than citing facts. "The court should not find the speculation spread in Tesla's lawsuit to be factual."
Rivian not only dismissed Tesla's lawsuit, but even pushed back more forcefully, with an attorney representing Rivian claiming that Tesla filed the lawsuit not to defend legitimate intellectual property rights, but rather to use inappropriate and malicious tactics to slow down Rivian's momentum and try to damage the brand's reputation and image. The attorney also claims that Tesla is using the lawsuit to scare off its employees so they don't and won't dare leave. California's strong public **** policy supporting employee mobility limits the use of non-compete contracts, and Tesla's lawsuit seeks to penalize four former employees who left the company to join the Rivian team.
Also, Tesla's motives have been called into question as Tesla filed the lawsuit at a time when Rivian announced it had raised $2.5 billion in a funding round led by T.?Rowe?Price?Associates?Inc. (Source: Gaijin Automotive? Zhanya'e)
6, LG Chem's Polish battery plant expansion faces EU probe
Gaixian Automotive reported in the foreign press, after Poland announced plans to provide 95 million euros (about $112 million) in aid to LG Chem to help the company expand its Polish electric vehicle battery plant. The European Union state aid regulator announced that it has opened an investigation into the Polish plan, and EU officials suspect that Poland's move may not be in line with EU regulations.
(Image source: LG Chem official website)
In 2017, LG Chem said it would invest more than €1 billion to boost capacity at its Polish plant. Subsequently, Poland announced that it would provide the company with €95 million in aid, for which it sought approval from the European Commission. The EU competition regulator has raised a number of questions about the support Poland is providing to LG Chem, in particular whether the country is providing incentives for the expansion of LG Chem's plants and whether the level of its aid is likely to exceed what is permissible.
EU antitrust chief Margrethe?Vestager said EU state aid rules enable member states to promote economic growth in poorer regions, but the EU needs to ensure that aid is spent where it is really needed to attract private investment and avoid the party receiving the aid gaining an unfair advantage over competitors at the expense of taxpayers.
According to the European Investment Bank, which is backing the project, the investment will allow LG Chem's Polish plant to boost its annual production capacity to about 65 gigawatt-hours, making the Polish plant one of the world's largest lithium-cell producers. The plant, located in Wroclaw, Poland, will add more than 1,800 new jobs, bringing the total number of full-time employees at the plant to more than 6,000 by the end of 2022.
LG Chem is a major supplier of batteries for electric vehicles, and its customers include automakers such as GM, Ford, Renault, Volvo, Audi, Volkswagen and Daimler. In addition, Hyundai Motor, South Korea's largest automaker, and its sister company Kia Motors are also LG Chem customers. (Source: Gaijin Auto? Nebula)
7, GM CFO announces departure
Gaijin Automotive According to foreign media reports, GM CFO Dhivya?Suryadevara will leave the company and move to become the CFO of Stripe, a San Francisco-based online payment processing business that has become one of the world's most valuable tech startups. Suryadevara played a key role in GM's sale of Opel, its acquisition of Cruise?Automation and its 2018 restructuring plan.
(?Dhivya?Suryadevara; photo credit: Autonews?)
GM revealed in a regulatory filing that Suryadevara had submitted his resignation on Aug. 6, and that GM North America CFO John Stapleton?would temporarily take over as GM CFO starting Aug. 15,? until GM finds an official successor.
August 11, GM CEO Mary?Barra said in a statement, "Suryadevara has been a transformational leader in her role as the company's CFO. She has helped the company strengthen its balance sheet, improve its cost structure, focus on generating cash flow, and make the right investments for the company's future. We wish her continued success in the future."
Suryadevara, 41, grew up in India and moved to the U.S. at age 22 to attend Harvard University. Since 2004, she has held several positions in GM's finance office and at GM Asset Management in New York.
In September 2018, Suryadevara became GM's first female CFO.
Only two months after Suryadevara became CFO, GM announced a massive restructuring plan. That included cutting the number of salaried employees in North America by 15 percent and ending production at five North American plants. GM recently said the plan, which is still ongoing, will cut $6 billion in expenses by the end of 2020.
In 2019, Suryadevara began working on both corporate strategy and growth, and her new responsibilities included making GM leaner and more nimble during the restructuring process. However, that task was complicated by a 40-day UAW worker strike in the fall of 2019 and a new coronavirus outbreak that began earlier this year.
To weather the outbreak crisis, GM drew down $16 billion from its existing line of credit in March of this year, doubling its cash reserves. It also suspended its quarterly common stock dividend and stock buybacks, and Suryadevara said last month that GM would be able to repay its $16 billion loan by the end of this year if the economy continues to recover.
She also recently laid out a streamlining plan that includes reducing the number of configurations on models and ****enjoying more parts across brands and within segments to lower the company's long-term costs.
Suryadevara's resignation follows the resignation last month of Barry?Engle, president of GM North America, who was replaced by former Cadillac president Steve?Carlisle. (Source: Gaylord Motors? Nebula)
8, Tesla announces stock one-for-five split plan? Shares soared after hours
Gaijin Auto reported that Tesla plans a 1:5 split of its stock, a move aimed at lowering the price of its stock and allowing individual investors to buy its shares more easily after becoming the world's highest market capitalization automaker, according to foreign media reports. On the news, Tesla shares jumped 8.4 percent to $1,490 on Aug. 11 in after-hours trading on the Nasdaq.
(Cybertruck; Image credit: Tesla's website)
On Aug. 11, Tesla said all shareholders of record as of Aug. 21, 2020, will each receive a dividend of an additional four shares of common stock.Beginning Aug. 31, the transaction will be made in accordance with the stock split adjustments.
The split plan capitalizes on the recent surge in Tesla's stock price, which is currently valued at $256 billion, more than the combined market capitalization of Ford and Toyota. Tesla shares have peaked at $1,643 in recent weeks, making many investors bullish on the electric-car industry, yet such a high share price is out of reach for many small investors.
Wade Bush analyst Dan Ives, who has a "hold" rating on Tesla, said, "I think it's a smart move at a time when investor interest in Tesla stock and the electric-car industry as a whole continues to rise. " Apple made a similar move before Tesla, and Ives thinks other tech giants are likely to follow suit in the future.
Tesla has long been a favorite of day traders and other retail investors, who have fueled its shares to record highs. Last month, nearly 40,000 Robinhood account holders had increased their holdings of Tesla stock in a four-hour period. Tesla's success has also given other electric car makers a run for their money from investors, even those that haven't actually started making cars yet.
In a report to investors, Credit Suisse analyst Dan Levy said the Tesla stock split will make it easier for retail investors and Tesla employees to buy its shares, noting that the higher share price "may be a barrier for retail investors. (Source: Gaylord Motors? Nebula)
9, Hyundai-Ampford self-driving joint venture to change its name, want to realize self-driving cabs in 2022
Gaixian automobile according to foreign media reports, by the Hyundai Automotive Group and Amperex (Aptiv, Delphi spin-offs) cooperation founded by the Hyundai-Amperex self-driving joint venture has a new name - -Motional. -Motional is derived from "motion" and "emotional", and the company's President and CEO Karl Iagnemma said that the company will be launched at the end of the year. Iagnemma said it will begin testing driverless systems in 2020 and support self-driving cabs and fleet operators by 2022. In addition, the Boston-based joint venture plans to hire up to 200 employees in Boston and Pittsburgh.
(Image source: Motional)
The joint venture was formed in March 2020, when Hyundai and Kia Motors said they would **** together $1.6 billion as well as $400 million in research and development resources with a view to catching up with rivals in autonomous driving. Self-driving technology company Ampofo also owns half of the company and the joint venture is valued at $4 billion.Karl?Iagnemma, who was previously CEO of self-driving startup NuTonomy, became president and CEO of the joint venture as a result of NuTonomy's acquisition by Delphi Technologies in 2017.Karl? Iagnemma also said the self-driving fleet operating in Las Vegas, Singapore and Seoul will soon be rebranded as Motional.
Iagnemma added that while the company name is new, the Motional team has been working on self-driving technology for a long time, from NuTonomy, Delphi, Ampoflo, and now Motional, with engineers launching the world's first self-driving cab pilot in Singapore and the first self-driving tours across the world. New York and San Francisco on a self-driving tour. In the past two years, Ampofo has partnered with Lyft to have self-driving cabs with safety drivers complete more than 100,000 trips in Las Vegas.
The new crown outbreak has thrown a wrench into many self-driving car programs, with self-driving tests in the U.S. as well as other countries suspended for months. Now, experts believe that ****enjoying self-driving cabs may be harder to deploy for hygiene-conscious consumers. The Uber and Lyft online taxi businesses in the US are also facing a meltdown, seemingly foreshadowing some of the difficulties self-driving developers will face in convincing passengers to take their cars.
Iagnemma, however, has a different take; an online survey conducted by Motional from July 17 to 21 found that 19 percent of respondents said they were more interested in self-driving cars because of the outbreak, and more than half (56 percent) thought self-driving cars could help solve travel challenges. In addition, a quarter (25%) of respondents said they were "very interested" in experiencing self-driving technology on a regular basis, and 62% believe self-driving cars are the way forward.
This contrasts with a poll conducted in February and March by SurveyUSA and the Partnership for Autonomous Vehicle Education (PAVE), which includes self-driving companies Waymo, Cruise, Argo?AI, the National Safety Council, the Anti-Drunk Driving Campaign, the National Association for the Prevention of Intoxication (NAPI), the American Institute of Technology (AIT), the American Institute of Technology (AIT), the American Institute of Technology (AIT), the American Institute of Technology, and the American Institute of Technology (AIT). Council, MothersAgainst?Drunk?Driving, and the National Federation of the Blind. In their survey, nearly half (50 percent) of respondents said they would "never take a self-driving cab or ****hedge car," while 21 percent said they weren't sure, and one in five thought self-driving cars could never be safe.
So Motional will be aiming for "incremental expansion" to assuage the public's skepticism about self-driving cars. In May, Motional also partnered with the nonprofit Delivering?with?Dignity to use self-driving cars to deliver meals to families in need in Las Vegas. When asked if self-driving deliveries would be commercially beneficial for Motional, Iagnemma said the use case was "interesting," though the company would need to adapt its existing technology. (Source: Gaijin Automotive? Yu Qiuyun)
This article comes from the authors of Automotive House Car, and does not represent the views of Automotive House's position.