With gross sales dwindling in China and loads of complications again residence in Europe, the Volkswagen Group must squeeze out some wins within the U.S. market. Tomorrow, we’re lastly going to get a minimum of a preview of the way it intends to drag that off: electrical vans 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 going on at a vital time for America’s EV investments.
That kicks off this midweek version of Important Supplies, our morning roundup of auto trade and tech information. Make sure you additionally be part of us later this afternoon, as all eyes will likely be on Tesla for its Q3 earnings name. Within the meantime, we’re looking at different U.S. EV manufacturing investments and a troubling new report about accidents at Rivian’s Illinois manufacturing facility. 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 will likely 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 appear like. (InsideEVs will function the dwell stream tomorrow afternoon as properly, so be part of us then if you wish to comply with alongside.)
Scout Motors is without doubt one of the extra attention-grabbing efforts within the EV house proper now. As we have coated earlier than, the VW Group has been profitable on this continent with manufacturers like Audi and Porsche, however much less so—or a minimum of, 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 facility in South Carolina anticipated to create 4,000 or extra everlasting jobs, and appears reasonably distinctive within the VW Group panorama. For example, 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… attention-grabbing, I suppose I might say. We’re now lower than two weeks away from probably the most contentious presidential election in trendy 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 impression 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 means too quickly to know. The Scout autos aren’t even anticipated to debut till 2027 or probably 2028, and by way of EV coverage and expertise, that will as properly be 300 years away. There have additionally been persistent rumblings that the manufacturing facility might make hybrid vehicles as properly, although Scout Motors CEO Scott Keogh dismissed that concept after I spoke to him earlier this 12 months.
Both means, that is going to be a really attention-grabbing debut to look at, and we hope you may be part of us in looking.
60%: U.S. Working ‘As Quick As It Can’ For EV Manufacturing facility Conversions
GM Lansing Grand River Meeting
As of late, loads of individuals are sad in regards to the concept of spending taxpayer {dollars} on electrical autos, 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 trade—the U.S., Japan, Germany, South Korea, whoever—desires to catch as much as China’s dominance within the electrical house, they gotta pay to play. (By the best way, China might now attempt to double its EV exports to counter varied tariffs throughout the globe, in response to Bloomberg.)
Proper now, the U.S. is working to fast-track grants to transform current auto vegetation to make EVs, stories Reuters:
U.S. Vitality 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 autos and parts.
“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’ve got just a few months to be sure that we’re doing that.”
These investments embody Common 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. will likely be supporting future American manufacturing jobs which are ready for a extra electrical tomorrow.
Once more, the timing is attention-grabbing right here. No less than in that story, Granholm would not deal with it, however there appears to be a rush to get these items carried out earlier than Trump doubtlessly retakes the White Home. However these investments might properly be at stake right here:
Earlier this month, UAW President Shawn Fain stated tons of of hundreds of U.S. jobs have 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 autos. Trump says EV manufacturing threatens U.S. jobs.
Democrats have seized on Trump’s operating mate, U.S. Senator JD Vance of Ohio, declining to decide to sustaining the $500 million GM grant.
Your entire sector goes to be holding its breath over the subsequent two weeks.
90%: Rivian Manufacturing facility Faces Warmth Over Alleged Employee Accidents, Accidents
As automobile startups are usually, Rivian is in crunch mode proper now. It is making an attempt to get as many up to date 2025 R1 fashions on the highway as it could actually, all whereas it ramps up the extra reasonably priced R2 and R3 fashions so it could actually survive into the longer term.
However in response to new information obtained from Bloomberg, Rivian has additionally now racked up extra damage stories at its Regular, Illinois manufacturing facility than another 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 facility but has racked up extra US security violations initially deemed “severe” than another automaker for the reason that begin of final 12 months. 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 medical doctors final 12 months of vomiting bile with a “Rivian blue” hue after portray vehicles and not using a respirator.
The electrical-vehicle maker obtained preliminary citations for 16 severe 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., Common 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 severe citations. However in contrast to 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, tools and coaching required to maintain staff secure.
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 facility turned notorious for alleged security violations, fixed accidents, abuse from managers and even blatant racism and sexism—all of which, staff have stated, have been ignored within the identify of getting the vehicles made and on the highway as shortly as doable.
Rivian, a minimum of, 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 repeatedly overview manufacturing facility processes and suggest adjustments, and staff can convey considerations to supervisors or report them anonymously, a spokesperson stated in response to questions. Rivian says that its self-reported charge of work-related accidents and diseases this 12 months has been higher than the trade common for gentle truck producers in 2022, the most recent full-year snapshot out there. And OSHA itself says that since inspections started in late 2021, Rivian “has improved their security and well being crew and are very cooperative with the OSHA course of.”
Rivian says that as a part of settlements with the company, nearly the entire violations OSHA initially labeled as severe have been finally downgraded from that class or dismissed. “Preliminary citations shouldn’t be confused as last citations, and to recommend 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 may be, Scout Motors may be arriving on the proper time—and the corporate swears that with this new manufacturing facility in South Carolina, it is dedicated to enjoying the lengthy recreation. What do you need to see out of its debut this week?
Contact the writer: [email protected]
