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GM expects to supply self-driving automobiles to customers this decade

GM expects to offer self-driving vehicles to consumers this decade

GM unveiled the Cadillac Personal Autonomous Vehicle concept at CES 2021 in January.

Screenshot

DETROIT – Mary Barra, CEO of General Motors, expects the automaker to bring self-driving vehicles to consumers later this decade.

While autonomous vehicles for delivery and hail services are currently undergoing rigorous testing, manufacturing for retail customers is not a priority for automakers because the technology required for the systems is prohibitively expensive.

“I believe there is still a lot to be done later in the decade, but I believe we will have personal autonomous vehicles,” she told investors on Wednesday during the company’s earnings call for the first quarter.

It did not specifically state that GM would sell such vehicles directly to consumers. It could lease them or offer a subscription service to customers, as it did previously for Cadillac vehicles. A GM spokesman said the company had no further comment at this time.

Barra’s comments come after GM unveiled a personal autonomous vehicle concept car for its Cadillac brand in January. The vehicle was based on the Origin, an autonomous shuttle from the majority subsidiary Cruise.

GM is taking a two-pronged approach to such systems. Cruise leads the development of fully autonomous vehicles as the automaker expands its advanced Super Cruise system with driver assistance to 22 vehicles by 2023. Barra said the goal of Super Cruise is to enable hands-free calling in 95% of driving conditions.

“Both avenues are very important because the technology we are using for vehicles today, I believe, makes them safer and excites customers and gives us the opportunity to generate subscription income,” she said on Wednesday. “And then the ultimate work that we’re doing at Cruise, which is completely autonomous, really opens up more possibilities, and I think we can outline it today.”

Super Cruise currently enables hands-free calling on more than 200,000 miles of pre-mapped highways in the United States and Canada. Other systems, particularly Tesla’s autopilot, offer greater functionality but require the driver to “check in” by touching the steering wheel.

Key differences between Super Cruise and Autopilot include a driver-side infrared camera for monitoring attention and the pre-mapped roads that work with radar, sensors and cameras on board to drive the vehicle.

Commercializing autonomous vehicles has been far more difficult than many predicted a few years ago.

In 2018, GM announced plans to start hail drives in 2019 using self-driving vehicles with no manual controls such as steering wheels and pedals. These plans to conduct further testing have been indefinitely delayed.

In April 2019, Tesla CEO Elon Musk said the automaker would be shipping a car without a steering wheel within two years. However, the company has not updated these plans. Tesla didn’t respond to an email looking for a comment.

Tesla is currently testing a next generation of its system, marketed as a premium “self-drive” option for $ 10,000. Only some owners get access to the beta version of the self-driving system. Despite the name, Tesla has told California-based DMV that the system is not fully autonomous, according to correspondence between the company and the agency received by CNBC and other media outlets.

Last year, GM confirmed plans for a system called “Ultra Cruise” but has not released details of next-generation technology.

– CNBC’s Lora Kolodny contributed to this report.

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Indonesia’s Gojek needs all autos on its app to be electrical by 2030

Indonesia's Gojek wants all vehicles on its app to be electric by 2030

Indonesian ride hail app Gojek has announced plans to turn every car and motorcycle on its platform into an electric vehicle (EV) by 2030 in an ambitious tripartite sustainability strategy.

The company, dubbed the “Three Zeros” agenda, aims to achieve zero emissions, zero waste and no socio-economic barriers by the end of the decade, co-founder and co-CEO Kevin Aluwi told CNBC.

The 11-year-old company will invest in a number of EV pilot programs in Southeast Asia and introduce a “world’s first” in-app carbon offsetting feature. However, Aluwi said the plans would also require outside assistance.

“We will definitely use our money where our mouth is,” said Aluwi. “But it goes without saying that it is impossible for us to do this alone,” he continued, emphasizing the need for public and private collaboration to build the supporting infrastructure.

We will definitely put our money where our mouth is. But it goes without saying that it is impossible for us to drive this alone.

Kevin Aluwi

Co-founder and Co-CEO, Gojek

Gojek has already seen great interest from battery manufacturers, nickel suppliers and Indonesian authorities interested in supporting the transition to green energy in the world’s fourth largest country and the surrounding region, said Aluwi.

“Indonesia is one of the largest motorcycle haulage countries so there is a lot of interest from all types of parties and we see ourselves primarily as a facilitator to make this happen.”

The company also announced a number of social mobility initiatives, including the establishment of an employee-led council to advance corporate diversity, equality and inclusion programs and support the digitization of micro and small businesses. It also promised to only attend gender-specific panels for lecture events.

Aluwi said the plans would help Gojek remove some of the barriers to inclusivity that exist both within the company and in Indonesia as a whole.

“We’re very, very far from where we need to be if I can be brutally honest with ourselves. But I think our commitments are the first step in correcting that,” he said. “Indonesia is a very diverse and complex country when it comes to these issues.”

An Indonesian driver from the Gojek hail service and his passenger commute in Jakarta on March 5, 2021.

NurPhoto | Getty Images

The plans were announced on Friday in the company’s first sustainability report, which outlines the company’s environmental, social and government goals (ESG). The goals are to be announced and reviewed annually.

“It’s no longer about whether companies should report their sustainability impact,” said Allinettes Adigue, head of ASEAN at the Global Reporting Initiative, which benchmarks corporate and government ESG commitments, in the report’s press release .

“The issue now is whether the reports reported by companies are accurate, relevant and clearly communicate their economic, environmental and social impact,” he added.

The announcement follows news that Gojek will merge with Indonesian e-commerce company Tokopedia to form the multifunctional GoTo app.

An IPO is definitely an area, an activity, a milestone that we know is on the agenda at some point.

Kevin Aluwi

Co-founder and Co-CEO, Gojek

Under the combined company, the country’s two most valuable startups will reportedly aim for a valuation of up to $ 40 billion if they compete in the public markets against Southeast Asian hail giant Grab.

“An IPO is definitely an area, an activity, a milestone that we know will be on the agenda at some point,” said Aluwi, although it would not be limited in time.

Last month, SoftBank-Backed Grab announced that through a SPAC merger with Altimeter Growth Corp. will go public. The company is valued at $ 39.6 billion – the largest blank check merger to date.

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Kia Remembers 380,000 Autos Over Fireplace Danger

Kia Recalls 380,000 Vehicles Over Fire Risk

In the area of ​​consumer alerts, the National Highway Traffic Safety Administration advisory service responded to a blinking dashboard light through a recall of nearly 380,000 Kia vehicles.

“Until these recalled vehicles are repaired,” said the consultant, “the safest place to park them is outside and outside of homes and other structures.”

Korean automaker Kia issued a recall on Tuesday for Sportage compact sport utility vehicles from 2017-2021 and Cadenza sedans from the same period, amid concerns that electronic components could short out and cause fires in the engine compartment of certain models.

The affected vehicles are models that are not equipped with an “intelligent cruise control”, said the National Highway Traffic Safety Administration, a unit of the US Department of Transportation, in its consumer report on Tuesday.

“The circuit in the hydraulic electronic control unit can short out,” said the agency. This short circuit “could cause a fire in the engine compartment.”

On its website, Kia describes the Sportage with a starting price of around US $ 24,000 as a “coupe-like profile and sporty stance”. The Cadenza, a full-size sedan, is “a step toward luxury,” says Kia on its website, with startup costs of around $ 38,000.

Affected car owners can take their vehicles to a Kia dealer to fix the problem. In affected Sportage vehicles, dealers can replace certain fuses in the electrical junction box and update the hydraulic electronic control unit software, the agency said. A new fuse set with a 25 A fuse can be installed in affected Cadenza vehicles, which can replace a set with a 40 A fuse.

In addition to the warning lights, drivers of affected vehicles can see a “burning / melting smell” or “smoke from the engine compartment”, the authorities said in a safety recall report.

The recall comes after the Road Safety Agency opened an investigation into engine fires involving certain vehicles owned by Kia and another automaker, Hyundai, The Associated Press reported. A message left with a Kia representative asking for comment was not immediately returned Tuesday evening.

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VW expects half of U.S. gross sales to be electrical automobiles by 2030

VW expects half of U.S. sales to be electric vehicles by 2030

Volkswagen ID Buzz vehicle.

Aeva

Volkswagen is accelerating its plans for fully electric vehicles in order to become “the world’s most coveted brand for sustainable mobility,” a title that probably already belongs to Tesla.

The German automaker said Friday morning that more than 70% of its Volkswagen brand’s European sales will be electric vehicles by 2030, compared to an earlier target of 35%. In the United States and China, half of all sales are expected to come from electric vehicles by then.

“We are accelerating the pace,” said Ralf Brandstaetter, who runs the Volkswagen brand, in a statement. “In the coming years we will change Volkswagen like never before.” The company also owns Audi, Lamborghini, Porsche, and several other luxury brands. However, Friday’s announcement applies to VW brand vehicles, including Passat and Jetta.

Volkswagen plans to spend around 16 billion euros on investments in future trends such as “electromobility, hybridization and digitization” by 2025. The automaker also plans to make autonomous driving functions generally available by 2030.

Volkswagen is the youngest automaker to accelerate or announce a switch from vehicles with conventional internal combustion engines to fully electric motors. Volvo announced earlier this week that it would not start offering electric vehicles until the end of the decade, while General Motors announced it would become an all-electric automaker by 2035. Stellantis, the product of the merger between Fiat Chrysler and PSA Groupe, plans to have fully electric or hybrid versions of all vehicles in Europe by 2025.

While such goals may seem a long way off, traditionally it takes automakers five to seven years to develop and bring a new vehicle to market. Electric vehicles are expected to shorten this time frame as they require fewer components than traditional gas-powered cars and have some of the same parts that can be used to build them.

The announcements follow investor optimism in EV startups as well as a surge in Tesla shares over the past year that made the California-based company the world’s most valued automaker by market cap.

Government incentives and the tightening of CO2 emissions targets are causing automakers to release electric vehicles more than customers ask of them. According to IHS Markit, electric vehicles accounted for around 3.3% of the 76.5 million vehicles sold worldwide in 2020. The research firm predicts that electric vehicle sales will rise to 12.2 million in 2025, an annual growth of almost 52%.

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Ford says it would part out gasoline-powered automobiles in Europe.

Ford says it will phase out gasoline-powered vehicles in Europe.

Ford Motor was the youngest automaker to accelerate the transition to electric cars, and said on Wednesday that its European division will soon begin phasing out production gasoline-powered vehicles. The company will only offer electric and plug-in hybrid models until 2026.

The plan is part of an offer to achieve constant profits in Europe, where Ford has had problems for several years, and to meet increasingly stringent emissions standards in the European Union.

“We have successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020,” said Stuart Rowley, President of Ford of Europe, in a statement. “Now we are storming into a fully electric future.”

Ford and other automakers are moving faster with electric vehicles in Europe than in the US. Last year, the European Union began to impose fines on automakers for not complying with carbon dioxide emissions limits, forcing them to sell more electric cars.

Ford said it plans to spend $ 1 billion on the overhaul of its main European facility in Cologne to manufacture electric vehicles. The first new model is slated to go into production in 2023, Ford said.

All Ford of Europe vans and commercial vehicles will be electric or plug-in hybrids by 2024, and two years later the entire range of vehicles will be electric or plug-in hybrids.

Last month General Motors announced that it would only produce electric vehicles until 2035, but GM nearly pulled out of Europe after selling its Opel division to Frances Peugeot SA in 2017. Peugeot recently teamed up with Fiat Chrysler and is now known as Stellantis.

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Ford will not ‘cede the longer term to anybody’ on electrical automobiles: CEO Farley

Ford won't 'cede the future to anyone' on electric vehicles: CEO Farley

Ford Motor CEO Jim Farley on Friday touted the automaker’s strategy for electric vehicles and told CNBC that the company intends to compete strongly in the growing market.

Farley’s comments on “Squawk on the Street” came a day after Ford reported better-than-expected earnings in the fourth quarter. As part of that announcement, Ford said it would increase its electric vehicle investment to $ 22 billion by 2025, almost double what it had previously promised.

Ford’s shares rose 2.7% on Friday to around $ 11.70 apiece.

“We won’t leave the future to anyone,” Farley told CNBC’s Phil LeBeau. “Our electric strategy is very specific. We will invest in segments where we are the dominant player and we have economies of scale like the F-150, the transit van and our Mustang.”

As Ford provides new capital for the years to come, Farley said the company’s EV transition is now yielding results, pointing out that its all-electric Mustang Mach-E crossover has hit showrooms. He said he viewed the Mach-E as a “credible competitor” to Tesla’s compact SUV known as the Model Y.

Ford’s all-electric transit van is expected to arrive by the end of this year, Farley said, and the company’s work on a Michigan plant to build the electric version of its best-selling F-150 is ongoing. “This is the year. We’re not talking about aspirations,” said Farley, who took over the business on October 1.

The charging connection for the Ford E-Transit is located in the radiator grille of the vehicle.

ford

Wall Street’s focus on electric vehicles has increased. A number of players in space, including battery manufacturers and charging station companies, have gone public in the past few months. Ford’s Crosstown rival General Motors has also drawn street attention for its aggressive investments in electric vehicles. GM said last week it plans to cease production of all diesel and gasoline-powered cars, trucks and SUVs by 2035.

Before the announcement, Adam Jonas, an analyst at Morgan Stanley, told CNBC that GM, led by CEO Mary Barra, may be orchestrating “one of the most profound strategic turns not only in the auto industry, but also in the economy.” GM stocks are up more than 100% in the past six months, while Ford’s stocks are up more than 65% over the same stretch.

As the production and adoption of electric vehicles increases, some have raised concerns that there could be a battery shortage. Farley acknowledged that the company “needs to make sure when Ford ramp up EV manufacturing” [battery] Care so that we don’t end up in a situation where we are in chips. “Ford had to temporarily cut F-150 production to respond to an ongoing semiconductor shortage affecting the global automotive industry.

“That will be due to each manufacturer making the commitment,” Farley said. “We have to make our own decisions about vertical integration. Our $ 22 billion [EV investment] doesn’t even include that. You could expect more news from us on this vertical integration. “

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Ford to spend $610 million to recall three million autos

Ford to spend $610 million to recall 3 million vehicles

A visitor walks past a Ford Escape Titanium at a car show last April.

Greg Baker | AFP | Getty Images

DETROIT – Ford Motor will recall 3 million older vehicles due to possible problems with their airbag inflators, costing the automaker an estimated $ 610 million.

The company confirmed the cost in a petition filed with the Securities and Exchange Commission Thursday after the closing bell. Ford stock fell into the red during after-business trading, down about 2%. The stock rose 6.2% on Thursday to $ 11.53 per share – its highest closing price since June 2018. Ford’s market capitalization is more than $ 45 billion.

In the filing, Ford said the expense will be treated as a special item as part of its earnings for the fourth quarter on February 4th. This means he has no impact on Ford’s adjusted earnings before interest and taxes or adjusted earnings per share – closely watched items from Wall Street.

The National Highway Traffic Safety Administration turned down a 2017 petition from Ford on Tuesday to avoid recalling the vehicles carrying the potentially dangerous airbags made by auto supplier Takata.

The affected vehicles range from model years 2006 to 2012. These include Ford Ranger (2007-2011), Fusion (2006-2012), Edge (2007-2010), Lincoln MKZ / Zephyr (2006-2012), MKX (2007-2010 )) and Mercury Milan (2006-2011) vehicles.

The recall will affect approximately 2.7 million vehicles in the U.S. and approximately 300,000 in Canada and other locations, the company said.

Takata airbag inflators have been a constant issue for automakers for years. The failure can cause airbag inflators to burst and potentially deadly metal objects to fly inside the vehicle. The problem has been linked to the deaths of at least 27 people worldwide and 18 in the US, according to Reuters. The more than 67 million inflators problem is the largest automobile recall in US history

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Nio and Tesla vie for dominance in China’s electrical automobiles market

Nio and Tesla vie for dominance in China's electric vehicles market

SINGAPORE – As domestic automakers in China attempt to position themselves against Tesla in the growing Chinese electric vehicle space, Nio is well positioned to capture a sizable slice of the market, an analyst told CNBC.

The Chinese electric car start-up released its first sedan, the et7, on Saturday with self-driving technology features that are said to outperform those of Tesla. An et7 with a 70-kilowatt-per-hour battery starts at 448,000 yuan ($ 69,000) before the subsidy.

“This is the symbol for Nio in the sedan category,” said Bill Russo, founder and CEO of Automobility Limited, on CNBC’s Street Signs Asia on Monday. He said the company has already established itself as a premium brand in the SUV category, where it sells faster than its peer group in China.

“Now they are moving into the sedan segment or the premium car segment,” Russo said, adding that the et7 will compete with Tesla’s imported Model S.

“Obviously the pricing that was announced on Nio Day is actually pretty competitive with the Model S,” he said, adding, “It’s a statement of claim, it’s a statement of where they hope their brand is and under position the Chinese company. ” They realize they are the premium (electric vehicle) company. “

Last year, Reuters reported that Tesla cut its Model S price in China by 3%.

Catch up with Tesla

China is already the world’s largest car market. In its quest to become a leader in electric vehicle technology, Beijing has supported the industry with subsidies, relaxed restrictions and the expansion of charging infrastructure.

Domestic electric vehicle manufacturers including Nio, Li Auto and Xpeng said deliveries rose sharply over the past year. Government data showed that January-November sales of all-electric vehicles rose 4.4% year over year, while total passenger car sales fell 7.6% over the same period. Even so, their delivery numbers lagged behind those of Tesla.

“Obviously everyone is trying to position themselves against Tesla. Tesla is certainly the market leader. It has a market capitalization that is so far ahead of everyone else,” said Russo. Tesla’s market value as of Monday is around $ 768.93 billion, while Nio has a market capitalization of around $ 98.63 billion.

Employees conduct checks on an inspection line during a media tour of Nio Inc.’s manufacturing facility in Hefei, Anhui Province, China on Friday, December 4, 2020.

Qilai Shen | Bloomberg | Getty Images

Nio “is trying to establish itself as the Chinese Tesla, which means that as a premium EV brand in China you have to compare yourself to access to the Chinese market, which will grow significantly over the next five years,” said Russo.

“These companies will grow with the market and I think Nio is well positioned to capture a lot of it,” he said, adding that the company still does not control the entire supply chain, relying on third party components like autonomous driving chipsets .

For its part, Tesla has stepped up its efforts in China, including further promotions on New Years Day. The company has a factory in the country that can produce 250,000 vehicles and has announced a new China-made vehicle, Model Y, priced at 339,900 yuan.

– CNBC’s Evelyn Cheng contributed to this report.