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 least a preview of the way it intends to tug 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 going on at an important time for America’s EV investments.
That kicks off this midweek version of Important 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 seem like. (InsideEVs will characteristic the dwell stream tomorrow afternoon as properly, so be part of us then if you wish to comply with alongside.)
Scout Motors is likely one of the extra attention-grabbing efforts within the EV area 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 principle Volkswagen model.
The conglomerate is attempting 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 example, it is not a lot a model like Audi or Porsche, however a completely owned subsidiary the place Volkswagen is an investor. In concept, that ought to give it some insulation from the mothership and native route.
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 may that affect the Scout Motors effort, its tax incentives to go to South Carolina and even buying incentives for its eventual automobiles?
Then once more, it might simply be manner too quickly to know. The Scout autos aren’t even anticipated to debut till 2027 or presumably 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 unit might make hybrid automobiles as properly, although Scout Motors CEO Scott Keogh dismissed that concept after I spoke to him earlier this yr.
Both manner, 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 unit Conversions
GM Lansing Grand River Meeting
Lately, 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 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—needs to catch as much as China’s dominance within the electrical area, they gotta pay to play. (By the way in which, China might now attempt to double its EV exports to counter numerous tariffs throughout the globe, in accordance with Bloomberg.)
Proper now, the U.S. is working to fast-track grants to transform present auto crops to make EVs, studies Reuters:
U.S. Vitality Secretary Jennifer Granholm mentioned on Tuesday the division is working “as quick as we will” to finalize $1.7 billion in grants to fund the conversion of crops 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 mentioned in an interview on the sidelines of a Reuters Subsequent convention. “We now have just a few months to ensure 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 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. A minimum of in that story, Granholm would not deal with it, however there appears to be a rush to get these items completed 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 mentioned tons of of hundreds of U.S. jobs had been at stake if Republican presidential candidate Donald Trump received 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 working 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 subsequent two weeks.
90%: Rivian Manufacturing unit Faces Warmth Over Alleged Employee Accidents, Accidents
As automotive startups are typically, Rivian is in crunch mode proper now. It is attempting to get as many up to date 2025 R1 fashions on the highway as it might probably, all whereas it ramps up the extra inexpensive R2 and R3 fashions so it might probably survive into the long run.
However in accordance with new knowledge obtained from Bloomberg, Rivian has additionally now racked up extra damage studies at its Regular, Illinois manufacturing unit 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 unit but has racked up extra US security violations initially deemed “severe” than another 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 studies. One former worker interviewed by Bloomberg Information mentioned she complained to docs final yr of vomiting bile with a “Rivian blue” hue after portray vehicles and not using a respirator.
The electrical-vehicle maker acquired 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 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 severe citations. However not like Rivian, Tesla additionally bought 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, staff have mentioned, had been ignored within the identify of getting the automobiles made and on the highway as rapidly as attainable.
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 often assessment manufacturing unit processes and advocate modifications, and workers can carry considerations to supervisors or report them anonymously, a spokesperson mentioned in response to questions. Rivian says that its self-reported charge of work-related accidents and diseases this yr has been higher than the business common for mild 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 crew 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 severe had been in the end 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 mentioned.
100%: How Can Scout Motors Be Profitable?
Scout Electrical SUV Rendering
Like I mentioned, 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?
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