With gross sales dwindling in China and loads of complications again dwelling in Europe, the Volkswagen Group must squeeze out some wins within the U.S. market. Tomorrow, we’re lastly going to get at the least a preview of the way it intends to drag that off: electrical vehicles and SUVs from Scout Motors, the VW Group’s revival of an iconic American off-road model for a zero-emission future. And Scout Motors’ debut is occurring at an important time for America’s EV investments.
That kicks off this midweek version of Vital Supplies, our morning roundup of auto business and tech information. Make sure to additionally be part of us later this afternoon, as all eyes might be on Tesla for its Q3 earnings name. Within the meantime, we’re having a look at different U.S. EV manufacturing investments and a troubling new report about accidents at Rivian’s Illinois manufacturing unit. Let’s dig in.
30%: Scout Motors Ideas Debut Thursday
As you learn this, I will be headed all the way down to Nashville, the place Scout Motors might be unveiling its first electrical ideas—sure, ideas, plural. These are anticipated to be a truck and an SUV, and the shadowy teasers seen on this story are all we learn about what they seem like. (InsideEVs will function the dwell stream tomorrow afternoon as effectively, so be part of us then if you wish to observe alongside.)
Scout Motors is among the extra fascinating efforts within the EV house proper now. As we have lined earlier than, the VW Group has been profitable on this continent with manufacturers like Audi and Porsche, however much less so—or at the least, nowhere close to on the dimensions as in Europe or Latin America—with the primary Volkswagen model.
The conglomerate is making an attempt some novel issues right here: it is a by-Individuals, for-Individuals effort with a novel platform, an all-new $2 billion manufacturing unit in South Carolina anticipated to create 4,000 or extra everlasting jobs, and appears fairly distinctive within the VW Group panorama. As an illustration, it isn’t a lot a model like Audi or Porsche, however an entirely owned subsidiary the place Volkswagen is an investor. In principle, that ought to give it some insulation from the mothership and native route.
The timing of the launch is definitely… fascinating, I suppose I may say. We’re now lower than two weeks away from essentially the most contentious presidential election in fashionable American historical past, and one the place the 2 candidates diverge sharply on the query of incentives for EVs. Former President Donald Trump has vowed to revoke these if he is elected; how may that affect the Scout Motors effort, its tax incentives to go to South Carolina and even buying incentives for its eventual vehicles?
Then once more, it could simply be method too quickly to know. The Scout automobiles aren’t even anticipated to debut till 2027 or presumably 2028, and by way of EV coverage and expertise, which will as effectively be 300 years away. There have additionally been persistent rumblings that the manufacturing unit may make hybrid vehicles as effectively, although Scout Motors CEO Scott Keogh dismissed that concept once I spoke to him earlier this yr.
Both method, that is going to be a really fascinating debut to look at, and we hope you may be part of us in having a look.
60%: U.S. Working ‘As Quick As It Can’ For EV Manufacturing facility Conversions
GM Lansing Grand River Meeting
Nowadays, loads of individuals are sad concerning the concept of spending taxpayer {dollars} on electrical automobiles, whether or not they’re for EV buying or incentives aimed toward manufacturing them. However the fact is that if any nation with an actual auto business—the U.S., Japan, Germany, South Korea, whoever—needs to catch as much as China’s dominance within the electrical house, they gotta pay to play. (By the way in which, China might now try to double its EV exports to counter varied tariffs throughout the globe, in keeping with Bloomberg.)
Proper now, the U.S. is working to fast-track grants to transform current auto vegetation to make EVs, stories Reuters:
U.S. Power Secretary Jennifer Granholm stated on Tuesday the division is working “as quick as we are able to” to finalize $1.7 billion in grants to fund the conversion of vegetation to construct electrical automobiles and elements.
“We’re working as quick as we are able to to finalize as a lot as we are able to — to get the commitments in contract with all of those that have been chosen,” Granholm stated in an interview on the sidelines of a Reuters Subsequent convention. “We have now just a few months to make it possible for we’re doing that.”
These investments embody Basic Motors’ Lansing Grand River Meeting Plant, in addition to Stellantis’ shuttered Belvidere Meeting and its Indiana Transmission Plant in Kokomo. In doing so, the hope is that the U.S. might be supporting future American manufacturing jobs which can be ready for a extra electrical tomorrow.
Once more, the timing is fascinating right here. No less than in that story, Granholm would not tackle it, however there appears to be a rush to get these things accomplished earlier than Trump doubtlessly retakes the White Home. However these investments may effectively be at stake right here:
Earlier this month, UAW President Shawn Fain stated tons of of 1000’s of U.S. jobs had been at stake if Republican presidential candidate Donald Trump gained the Nov. 5 election and made good on his menace to repeal investments in electrical automobiles. Trump says EV manufacturing threatens U.S. jobs.
Democrats have seized on Trump’s working mate, U.S. Senator JD Vance of Ohio, declining to decide to sustaining the $500 million GM grant.
Your complete sector goes to be holding its breath over the following two weeks.
90%: Rivian Manufacturing facility Faces Warmth Over Alleged Employee Accidents, Accidents
As automobile startups are typically, Rivian is in crunch mode proper now. It is making an attempt to get as many up to date 2025 R1 fashions on the street as it might probably, all whereas it ramps up the extra reasonably priced R2 and R3 fashions so it might probably survive into the long run.
However in keeping with new information obtained from Bloomberg, Rivian has additionally now racked up extra harm stories at its Regular, Illinois manufacturing unit than every other automaker:
A cracked cranium. A foot fracture. A again laceration so extreme it required surgical procedure. An amputated finger.
These are among the many accidents suffered by staff at Rivian Automotive Inc., which has just one manufacturing unit but has racked up extra US security violations initially deemed “critical” than every other automaker for the reason that begin of final yr. And there are incidents alleged by staff on the plant in Regular, Illinois, that haven’t made it into authorities stories. One former worker interviewed by Bloomberg Information stated she complained to docs final yr of vomiting bile with a “Rivian blue” hue after portray vehicles with out a respirator.
The electrical-vehicle maker obtained preliminary citations for 16 critical violations prior to now 21 months from the US Occupational Security and Well being Administration. Toyota Motor Corp., Honda Motor Co., Volvo AB, Nissan Motor Co., Basic Motors Co. and Ford Motor Co. every obtained not more than 10. Volkswagen AG, BMW AG and Subaru Corp. noticed none.
Fellow EV maker Tesla Inc. and Chrysler maker Stellantis NV, each with a lot bigger workforces than Rivian, additionally obtained fewer preliminary critical citations. However not like Rivian, Tesla additionally bought three “repeat” violations, which carry heavier penalties, and Stellantis obtained two.
[…] However authorities findings and interviews with present and previous staff at Rivian paint an image of a money-losing firm that struggled to place in place the procedures, gear and coaching required to maintain staff protected.
The allegations do have echoes of Tesla’s “Manufacturing Hell” period, when it was struggling to ramp up the Mannequin 3. Again then, its Fremont, California manufacturing unit grew to become notorious for alleged security violations, fixed accidents, abuse from managers and even blatant racism and sexism—all of which, staff have stated, had been ignored within the identify of getting the vehicles made and on the street as shortly as potential.
Rivian, at the least, says it is taking this head-on and disputed a few of the story’s claims. This is the corporate’s response:
Rivian says it’s dedicated to employee security. Committees frequently evaluate manufacturing unit processes and suggest modifications, and staff can carry considerations to supervisors or report them anonymously, a spokesperson stated in response to questions. Rivian says that its self-reported fee of work-related accidents and diseases this yr has been higher than the business common for gentle truck producers in 2022, the most recent full-year snapshot obtainable. And OSHA itself says that since inspections started in late 2021, Rivian “has improved their security and well being group and are very cooperative with the OSHA course of.”
Rivian says that as a part of settlements with the company, virtually all the violations OSHA initially labeled as critical had been finally downgraded from that class or dismissed. “Preliminary citations shouldn’t be confused as last citations, and to counsel in any other case is extremely deceptive,” a Rivian spokesperson stated.
100%: How Can Scout Motors Be Profitable?
Scout Electrical SUV Rendering
Like I stated, 2027 or 2028 really feel like eons from now. However given how uneven the EV market could be, Scout Motors could be arriving on the proper time—and the corporate swears that with this new manufacturing unit in South Carolina, it is dedicated to taking part in the lengthy recreation. What do you need to see out of its debut this week?
Contact the writer: [email protected]
