With gross sales dwindling in China and loads of complications again house in Europe, the Volkswagen Group must squeeze out some wins within the U.S. market. Tomorrow, we’re lastly going to get at the very 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 a vital time for America’s EV investments.
That kicks off this midweek version of Crucial Supplies, our morning roundup of auto business and tech information. You’ll want to additionally be part of us later this afternoon, as all eyes will probably 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 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 will probably 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 find out about what they appear like. (InsideEVs will function the reside stream tomorrow afternoon as properly, so be part of us then if you wish to observe alongside.)
Scout Motors is likely 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 at the very least, nowhere close to on the size 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-People, for-People 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 relatively 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 concept, that ought to give it some insulation from the mothership and native path.
The timing of the launch is actually… attention-grabbing, I suppose I might 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 would possibly that influence 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 approach too quickly to know. The Scout autos aren’t even anticipated to debut till 2027 or probably 2028, and when it comes to EV coverage and expertise, which will as properly be 300 years away. There have additionally been persistent rumblings that the manufacturing unit might make hybrid vehicles as properly, although Scout Motors CEO Scott Keogh dismissed that concept once I spoke to him earlier this yr.
Both approach, that is going to be a really attention-grabbing debut to observe, and we hope you will be part of us in looking.
60%: U.S. Working ‘As Quick As It Can’ For EV Manufacturing unit Conversions
GM Lansing Grand River Meeting
Nowadays, loads of individuals are sad in regards to the thought of spending taxpayer {dollars} on electrical autos, whether or not they’re for EV buying or incentives geared toward manufacturing them. However the reality is that if any nation with an actual auto business—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, based on Bloomberg.)
Proper now, the U.S. is working to fast-track grants to transform present auto vegetation to make EVs, reviews Reuters:
U.S. Power Secretary Jennifer Granholm stated on Tuesday the division is working “as quick as we will” to finalize $1.7 billion in grants to fund the conversion of vegetation to construct electrical autos and elements.
“We’re working as quick as we will to finalize as a lot as we will — 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 now have a number of months to be sure that we’re doing that.”
These investments embrace 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. will probably be supporting future American manufacturing jobs which might be ready for a extra electrical tomorrow.
Once more, the timing is attention-grabbing right here. At the least in that story, Granholm would not deal with it, however there appears to be a rush to get these items achieved earlier than Trump probably 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 1000’s of U.S. jobs had been at stake if Republican presidential candidate Donald Trump received the Nov. 5 election and made good on his risk 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.
All the sector goes to be holding its breath over the following two weeks.
90%: Rivian Manufacturing unit 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 may possibly, all whereas it ramps up the extra inexpensive R2 and R3 fashions so it may possibly survive into the long run.
However based on new information obtained from Bloomberg, Rivian has additionally now racked up extra damage reviews 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 employees 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 because the begin of final yr. And there are incidents alleged by employees on the plant in Regular, Illinois, that haven’t made it into authorities reviews. One former worker interviewed by Bloomberg Information stated she complained to medical doctors final yr of vomiting bile with a “Rivian blue” hue after portray cars with no respirator.
The electrical-vehicle maker acquired 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 acquired 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 acquired fewer preliminary critical citations. However not like Rivian, Tesla additionally acquired three “repeat” violations, which carry heavier penalties, and Stellantis acquired two.
[…] However authorities findings and interviews with present and previous workers at Rivian paint an image of a money-losing firm that struggled to place in place the procedures, tools and coaching required to maintain workers 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 unit turned notorious for alleged security violations, fixed accidents, abuse from managers and even blatant racism and sexism—all of which, employees have stated, had been ignored within the identify of getting the vehicles made and on the street as rapidly as attainable.
Rivian, at the very least, says it is taking this head-on and disputed among the story’s claims. Here is the corporate’s response:
Rivian says it’s dedicated to employee security. Committees frequently assessment manufacturing unit processes and suggest modifications, and workers can carry issues 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 newest full-year snapshot obtainable. And OSHA itself says that since inspections started in late 2021, Rivian “has improved their security and well being workforce and are very cooperative with the OSHA course of.”
Rivian says that as a part of settlements with the company, nearly all the violations OSHA initially labeled as critical had been in the end downgraded from that class or dismissed. “Preliminary citations shouldn’t be confused as remaining 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 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 sport. What do you need to see out of its debut this week?
Contact the writer: [email protected]
