Drivers distrust AV, last-minute request on EU ICE ban and Cowboy updating its bike - MobilityBRIEF ??????? - March 10th
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A place for sharing highlights, analysis and market data for the ever changing mobility industry.
In the news this week
An intense week with a particular emphasize on the automotive industry as financial results keep being issued and strategies continue to be either updated (see Honda) or start to be delivered (see Mercedes-Benz) while some (Porsche and Ferrari) seem like they can’t let go of the past. And as cars and tech have never been that intertwined, it’s now the turn of the latter, especially the AV industry, to face a structuring crisis forcing them to refocus on reachable targets, lighten up or…disappear. This week perfectly embodies the situation, with new flowers growing from the ashes of Argo.AI, and new layoffs from either major players looking for efficiency after years after spending lavishly, or other players looking for their survival. All of this in a context of a growing distrust towards AVs amongst drivers, as the latest advancements in AI (eg. ChatGPT) mixed with the “autonowashing” from actors like Tesla (and it's latest FSD recall) may be raising doubts about the underlying risks of AI.
Improved prospects in the automotive industry, last-minute requests to the EU for the ICE ban and (self-)drive to survive: its our Mobility Brief of the week!
News of the week
???Micromobility & Transit
In this perpetual rodeo that is the city, you better be harnessed to overcome its tricks. Fortunately the Cowboy is in town and has an OTA update for its Cowboy 4 users, including a new feature called “Adaptive Power”, which adapts the motor’s power depending on the weather conditions and other parameters such as the steep of the road. Meanwhile, Techcrunch reports that the Belgian start-up has raised a bit less than €15M in a down round decreasing the company valuation by 44%.
More than just encouraging cycling use in Europe, the EU wants these bikes to be Made in Europe. Karima Delli , Chair of the of the Tourism and Transport Committee of the European Parliament, has expressed her wish for a strong European industry at Cycling Industries Europe 2023, as reported by Roman Meli?ka .
Also, kudos to Micromobility Industries , who published an extensive Global Incentives and Subsidies Tracker on their website. A great initiative to track them down and lift the last doubts for those willing to embrace micromobility. Go check it out.
???Automotive & Manufacturing
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Is…is it sunshine awaiting? No you don’t dream, after Stellantis and Renault Group, optimistic outlooks crossed the Rhine as Volkswagen Group shared it was expecting a +14% increase in car deliveries and sales reaching $352Bn for 2023, higher than analysts forecasts, as the German group is betting on an ease on the supply chain tensions.
Who are they kidding? A few days before European nations definitely ratify the ICE ban for 2035, Porsche and Ferrari have been pushing their respective governments to carve out synthetic fuels from the ban. Even though no technology should be ignored to decrease global emissions, considering synthetic fuels as a solution for past-2035 is kind of hard to swallow, in particular from luxury brands who were already benefitting from a regulatory relief. ??I would call it now almost pathetic?? said Polestar’s CEO Thomas Ingenlath.
Honda is refining its EV strategy, inspired by both Renault and Tesla, as the Japanese carmaker is planning to create a standalone EV division and is thinking about creating a Supercharger-like charging network. Until then, the ambitious EV project from Honda remains its Afeela joint-venture with Sony, planned for production in 2025.
But Sony won’t be the first tech player in the automotive industry. If the Apple car may only be a dream and the Xiaomi car is soon to be, Huawei is already in the automotive game since it partnered with car manufacturer Seres in 2021 to provide them with smart technologies in a new brand called AITO. Infotainment OS, connected services, ADAS and even sale in Huawei’s flagship stores are all part of the deal, while Seres handles the manufacturing and automotive engineering. But in a move to push forward the technological assets of the brand, the cars will now be branded Huawei. If Aito/Huawei is only sold in China, it is good to remind that Seres is now selling its cars in Europe under its own name, embedding some of Huawei technologies, and is supposed to launch its premium Seres 5 there as soon as…this month. Its European Marketing and Service HQ has by the way been inaugurated in Toulouse in november 2021.
Mercedes-Benz had other announcements up in their sleeves this month, with German manufacturer announcing the launch of Mercedes pay+ in partnership with Visa, enabling secure payments in-car for digital services, hardware upgrades and soon for refuel and other services. In a more physical world: Mercedes-Benz inaugurated the construction of its battery recycling factory in Kuppenheim, Germany. The factory is planned to dismantle batteries as soon as this year, with an hydro metallurgy pilot plant following a few months later.
???AV
Detroit want to be back at the core of automotive innovation, and if not through manufacturers, it’s gonna be through public infrastructure: the City confirmed in its State of the City event that its 14th Street will be the first public charging road (through induction technology), while Michigan Avenue will inaugurate an autonomous vehicles lane of up to 65 kms from downtown Detroit to Ann Arbor, that will be used by both Waymo and Cruise vehicles.
New spree of layoffs in an AV industry that’s never been as closed to new consolidations. After Alphabet’s Waymo letting go 8% of its staff last week, this time it’s Embark, US start-up designing AV software for trucks, that is cutting its workforce by 70% (!) in a move possibly anticipating a sale of the company or its assets. Cruise, on its side, is focusing on cutting costs but more in a technical fashion: less hardware components, more software optimizations, etc…
Fear is not exclusive to AV companies employees: Americans are more defiant as ever towards “self-driving cars” according to a new study from the AAA. From 55% last year, it’s now 68% of surveyed American drivers who claims to be “afraid” of them, the biggest increase since 2020.
On a more positive note: Daimler Truck’s AV subsidiary, Torc Robotics , has acquired Montreal-based start-up Algolux , specialized on AI computer vision software. Meanwhile, Chinese AV start-up iMotion, backed by Li Auto, is reportedly filing for IPO in Hong Kong and expects to raise $200M to $300M. Bloomberg reminds us that its local competitor WeRide is also working on a similar move.
And finally, another reminiscence of the defunct Argo.AI: a week after Ford announcing a new AV entity with former employees from the Ford-VW joint-venture, this time it’s both founders of the company, Bryan Salesky and Pete Rander, that are launching a new AV entity still in Pittsburgh. Argo AI’s ex-CTO, Brett Browning, is reportedly part of the new adventure.
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