Several executives from perpetual automotive startup Faraday Future have reportedly been subpoenaed by the U.S. Securities and Exchange Commission as part of an investigation into inaccurate statements made to investors. Though, considering the nameplate’s history, it would be impossible to assume which item the SEC will be focusing on thanks to FF’s exceptionally long history of industrial misgivings.
We’ve covered Faraday Future’s long and bizarre story from the early days of delivering half-baked, though otherwise impressive, concepts to its more recent status as an automaker in the ethereal sense. It’s promised the moon and only managed to deliver a handful of production husks that never surpassed the body-in-white phase and some “production-intent” prototypes of the FF91. Though the larger story is the SEC’s sudden interest in electric vehicle startups that went public via mergers with blank check firms, better known as special purpose acquisition companies (SPACs), over the last two years.
U.S. President Joe Biden is said to be considering utilizing wartime powers to spur domestic electric vehicle battery production. The administration reportedly wants to add the necessary raw materials to the Defense Production Act (DPA) penned at the start of the Korean War in 1950.
Originally designed to give the federal government more control of the U.S. economy (especially in regard to raw materials) throughout the Cold War, the law has also been leveraged by the Department of Defense to advance new technologies starting in the 1980s. In 2011, Barack Obama invoked the act to force telecommunications companies to provide detailed information to the Commerce Department’s Bureau of Industry and Security. Donald Trump would later invoke the DPA to identify an array of products deemed critical to national security as the trade war with China heated up, and then again to spearhead domestic production of materials and goods pertaining to the COVID-19 pandemic.
General Motors’ joint venture in Shanghai is reportedly having employees sleep on factory floors to remain operational during regional COVID-19 lockdowns. The facilities are operated collaborative by GM and state-owned Chinese partner SAIC Motor Corp, with government restrictions being in place until at least Friday. Due to the tens of million people affected, it’s one of the largest lockdowns instituted since the pandemic started.
Initially reported by Reuters, the situation was framed as GM finding a workaround to ongoing Chinese lockdowns while other companies simply stopped production. But that seems to be glossing over some of the relevant context, mainly that the plant is now loaded up with workers who are sleeping inside the factory and living in relative isolation to ensure the facility is compliant with China’s stringent zero-tolerance policy while still managing to remain competitive.
Following last week’s announcement where Toyota explained its need to scale back Japanese production by 20 percent this April, the automaker has outlined planned slowdowns for the foreseeable future. It’s citing all the usual problems. Countries are still employing various COVID-19 restrictions that are upending supply chains, semiconductor production for automobiles remains insufficient, and there’s a war in Eastern Europe that’s creating all-new troubles while exacerbating some of the more familiar ones. But scaling back output might not be the death sentence it sounds like.
With last year resulting in 10 million deliveries worldwide, Toyota actually managed to improve its sales against 2020’s year-over-year global production decline of 12 percent. And the last two years have also yielded enhanced profitability for the automaker, despite it having expressed repeated concerns about procuring enough components to keep popular models (like the RAV4) in stock. In 2021, Toyota saw $249.4 billion in revenue and even became the best-selling automaker in the United States, dethroning former top-dawg General Motors.
Volkswagen Group will be moving some of its European production out of the continent and into facilities located in China and the United States, citing the war in Ukraine as the largest contributing factor. Though if you’ve been following the company, it had already signaled a desire to raise its capacity in China ever since the region shifted into becoming its largest market.
In fact, Chief Executive Herbert Diess said during Tuesday’s press call that China will be taking precedence as the automaker reorganizes its manufacturing.
Tesla is receiving a lot of attention for having increased prices twice in one week. The Model 3, often presented as the company’s most-affordable option catering to the masses, now starts at $48,440 in the United States. Its crossover equivalent, the Model Y, now starts at a whopping $64,400 while larger products have surpassed the six-figure point of entry. Despite being the brand’s oldest model, the Model S saw increases over the summer (when it was just $90,000) and has since settled into $101,200 before you’ve even said the words Plaid or Full Self Driving. But the Model X remains even more expensive at $116,200.
Worse yet, those who can afford such vehicles won’t even be able to get them in a timely fashion. Despite weathering COVID restrictions rather well vs legacy automakers, supply chain issues seem to have caught up with the EV manufacturer. Wait times on order vehicles are now several months long. Some customers are being told that they’ll likely have to wait until 2023, specifically those hoping to score a Model X.
Earlier this week, we covered Toyota stressing over the feasibility of its current production plans. Automakers around the world are presently trying to suss out how to maintain solid profitability with diminished output, with Japan’s largest manufacturer suggesting the present state of the world might force it to do likewise.
While we assumed the resulting decisions would take a couple of weeks for Toyota to finalize, as it considered its many options, the company announced on Friday that it would need to cut domestic production by 20 percent for the month of April. The automaker framed this as part of its preexisting “recovery plan” necessary to account for supply chain issues that never seem to end, saying that diminished output would gradually normalize in Japan over the spring.
Toyota Motor Corp. is reconsidering its existing production strategy, citing ongoing global issues that are hindering its ability to manufacture vehicles at a normal pace.
Like most other automakers, Toyota has endured COVID restrictions, supply chains bottlenecks, component shortages, at least one cyberattack, and some new obstacles stemming from Russia’s invasion of Ukraine. These issues have already encouraged General Motors to pursue lower output as it focuses on selling on higher-margin vehicles. Though it’s hardly the only automaker signaling diminished production for 2022. Even the National Automobile Dealers Association is assuming 2022 will be another year of extra-tight inventories and wild markups. It’s something the industry was already doing, with Toyota becoming the next company opting to rejigger its targets to account for hard times.
Lordstown Motors has gone from the savior of Ohio to just another blowhard electric vehicle startup. Last year, it became the focus of investment research firm Hindenburg Research and an incredibly damning report that accused the company of fraudulent behavior. The paper cited thousands of non-binding, no-deposit orders and was proven right a few months later when the startup announced it didn’t actually have enough money to commence commercial production. By June, Lordstown was under investigation and losing top-ranking executive with nothing to show for itself other than a factory it purchased from General Motors at a discount where it installed a pointless solar panel array. The company said it would be selling the plant to Foxconn Technology Group (Hon Hai Technology Group) in October, along with $50 million in stock, with the plan being to make the Taiwanese firm a contract assembler for the Lordstown Endurance pickup.
It’s going to need that money too because GM is severing ties with the startup and has confirmed it offloaded its remaining stock over the holidays. While the Detroit-based automaker only held about $7.5 million worth of shares, it still represented about 5 percent of Lordstown and continued support of a business that looked to be foundering.
Volkswagen Group is apparently in talks with Porsche Automobil Holding SE about a potential initial public offering (IPO) for the Porsche luxury/sports brand. According to a statement from VW, the duo has already negotiated the agreed-upon frameworks and is in final discussions as to when they want to move forward.
Weeks of rumor preceded corporate confirmation, making it seem like the proposed deal was already a shoo-in. But any final decisions will still need to be approved by the management and supervisory boards — something Volkswagen Group said has yet to happen.
The National Highway Traffic Safety Administration (NHTSA) has announced it is investigating 416,000 Tesla vehicles after receiving 354 individual complaints of unexpected braking.
America’s largest purveyor of all-electric vehicles was forced to cancel its push of version 10.3 of its Full Self-Driving (FSD) beta software last fall after receiving reports that it was creating problems for some users. Drivers were complaining that the update had created instances of phantom braking after the vehicle issued false collision warnings. However, things only seemed to get worse as complaints to the NHTSA grew more frequent after bumping FSD back to an earlier version.
There’s a gaggle of Mazda owners in Seattle, Washington, that have reportedly been stuck listening to National Public Radio (NPR) over the last few weeks. The manufacturer has addressed the problem, saying the local affiliate had broadcast images files with no extension causing an issue on some 2014-2017 Mazda vehicles with older HD radio software. This effectively bricked the infotainment system on some vehicles, locking them into listening to NPR and out of literally everything else.
It’s a little early in the year to say anything definitive about 2022 vehicle volumes, however, the automotive industry has been signaling that production numbers should begin to rise in the coming months. While that sentence should be cause for a sigh of relief, there are parts of the industry that might not feel as good about it as you probably do.
With supply chain problems having drastically limited vehicle production during the pandemic, many dealers opted to price their goods well above anything that could be considered normal. This worked out poorly for many of the smaller outfits as larger retailers enjoyed record-breaking profits in 2021. Some manufacturers also benefited financially, as the chip shortage allowed them to prioritize their highest-margin products. Unfortunately for them, 2022 is likely to bring affordable vehicles back into play and gradually pull pricing closer to something approaching normality.
Following the U.S. Supreme Court’s decision to block proposed OSHA regulations backed by the Biden administration, it was assumed that automakers would quickly begin weighing in on vaccine rules now that there would be no federal obligation. However, they’ve actually been keeping quiet on the matter, with Stellantis being the first manufacturer to walk back previous requirements.
While the automaker had previously been working up to companywide vaccine mandates, it pushed back its vaccine deadline for early January. This week, Stellantis confirmed that it will be abandoning the scheme entirely after suggesting that the existing compliance rates were sufficient. Though something tells me that executives have become aware of the swelling pushback against COVID restrictions and became concerned with the optics.
Ford will be idling Mustang production this week due to an insufficient supply of semiconductor chips. For all the talk the industry made about getting over supply chain hurdles in 2021, manufacturers continue citing insufficient access to microchips as the primary obstacle preventing them from enjoying more routine operations.
The automaker confirmed the move on Tuesday, explaining that Michigan’s Flat Rock Assembly will be down until sometime next week.
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- Thehyundaigarage Yes, Canadian market vehicles have had immobilizers mandated by transport Canada since around 2001.In the US market, some key start Toyotas and Nissans still don’t have immobilizers. The US doesn’t mandate immobilizers or daytime running lights, but they mandate TPMS, yet canada mandates both, but couldn’t care less about TPMS. You’d think we’d have universal standards in North America.
- Alan I think this vehicle is aimed more at the dedicated offroad traveller. It costs around the same a 300 Series, so its quite an investment. It would be a waste to own as a daily driver, unless you want to be seen in a 'wank' vehicle like many Wrangler and Can Hardly Davidson types.The diesel would be the choice for off roading as its quite torquey down low and would return far superior mileage than a petrol vehicle.I would think this is more reliable than the Land Rovers, BMW make good engines. https://www.drive.com.au/reviews/2023-ineos-grenadier-review/
- Lorenzo I'll go with Stellantis. Last into the folly, first to bail out. Their European business won't fly with the German market being squeezed on electricity. Anybody can see the loss of Russian natural gas and closing their nuclear plants means high cost electricity. They're now buying electrons from French nuclear plants, as are the British after shutting down their coal industry. As for the American market, the American grid isn't in great shape either, but the US has shale oil and natural gas. Stellantis has profits from ICE Ram trucks and Jeeps, and they won't give that up.
- Inside Looking Out Chinese will take over EV market and Tesla will become the richest and largest car company in the world. Forget about Japanese.
- Joe These guys are asking way to much.. 40% raise, Medical for retired workers, 4 day work week. - Go work a regular job like as an accountant, or Insurance agent and see what you get when you retire! Why do I have to put money in a 401K and these guys get a pension and medical for life. Cars are already to expensive! However at the same time GM is bragging that they are going to be making billions on subscription services in the coming years. If we could all stop being so greedy the world would be a better place