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 no less than 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 Crucial Supplies, our morning roundup of auto trade and tech information. Remember to additionally be part of us later this afternoon, as all eyes shall 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 shall 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 to be. (InsideEVs will characteristic the dwell stream tomorrow afternoon as nicely, so be part of us then if you wish to observe alongside.)
Scout Motors is among 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 no less than, nowhere close to on the size as in Europe or Latin America—with the principle Volkswagen model.
The conglomerate is attempting some novel issues right here: it is a by-People, for-People effort with a singular platform, an all-new $2 billion manufacturing facility in South Carolina anticipated to create 4,000 or extra everlasting jobs, and appears moderately distinctive within the VW Group panorama. As an 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 may say. We’re now lower than two weeks away from essentially 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 would possibly 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 might 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 nicely be 300 years away. There have additionally been persistent rumblings that the manufacturing facility may make hybrid vehicles as nicely, although Scout Motors CEO Scott Keogh dismissed that concept after 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
As of late, loads of persons are sad concerning the thought 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 area, they gotta pay to play. (By the way in which, China could now attempt to double its EV exports to counter varied tariffs throughout the globe, in accordance with Bloomberg.)
Proper now, the U.S. is working to fast-track grants to transform present auto vegetation to make EVs, studies Reuters:
U.S. Vitality Secretary Jennifer Granholm mentioned 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 mentioned in an interview on the sidelines of a Reuters Subsequent convention. “We’ve got a number of months to make it possible for we’re doing that.”
These investments embody Normal 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. shall be supporting future American manufacturing jobs which can be ready for a extra electrical tomorrow.
Once more, the timing is attention-grabbing right here. No less than in that story, Granholm would not tackle it, however there appears to be a rush to get these items finished earlier than Trump doubtlessly retakes the White Home. However these investments may nicely be at stake right here:
Earlier this month, UAW President Shawn Fain mentioned a whole lot 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 risk 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 following 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 street as it could possibly, all whereas it ramps up the extra inexpensive R2 and R3 fashions so it could possibly survive into the long run.
However in accordance with new information obtained from Bloomberg, Rivian has additionally now racked up extra damage studies at its Regular, Illinois manufacturing facility than some 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 facility but has racked up extra US security violations initially deemed “severe” than some 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 studies. One former worker interviewed by Bloomberg Information mentioned she complained to medical doctors final yr of vomiting bile with a “Rivian blue” hue after portray vehicles with no respirator.
The electrical-vehicle maker obtained preliminary citations for 16 severe violations previously 21 months from the US Occupational Security and Well being Administration. Toyota Motor Corp., Honda Motor Co., Volvo AB, Nissan Motor Co., Normal 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 not like Rivian, Tesla additionally received 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 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, employees have mentioned, have been ignored within the title of getting the vehicles made and on the street as rapidly as doable.
Rivian, no less than, says it is taking this head-on and disputed a number of the story’s claims. This is the corporate’s response:
Rivian says it’s dedicated to employee security. Committees repeatedly evaluate manufacturing facility processes and suggest modifications, and staff can carry issues 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 sicknesses this yr has been higher than the trade common for gentle truck producers in 2022, the newest full-year snapshot accessible. And OSHA itself says that since inspections started in late 2021, Rivian “has improved their security and well being staff and are very cooperative with the OSHA course of.”
Rivian says that as a part of settlements with the company, virtually the entire violations OSHA initially labeled as severe have been in the end downgraded from that class or dismissed. “Preliminary citations shouldn’t be confused as closing 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 might be, Scout Motors could be arriving on the proper time—and the corporate swears that with this new manufacturing facility 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]
