GM partnering up with Tesla, BYD pursuing its European launch, News from Micromobility Europe - MOBILITY BRIEF_ ??????? - June 9th

Good Friday everybody, it's time for your weekly Mobility Brief! ???

On the menu this week

?? Worth Your Attention

??GM Partners Up With Tesla On Superchargers: Is Tesla Now Trusted By Legacies?

Two little weeks after Ford’s deal, GM and Tesla are announcing the exact same agreement together: GM owners will have access to Tesla Superchargers in the US from next year, and GM will adopt the NACS, North America Charging Connector, in its new models from 2025. A swift change from General Motors, as the American automaker was recently pushing for the CCS standard, but a big win for Tesla who is finally succeeding at convincing legacies to use its technology. And that will be a challenge now for the CCS community, as CharIn, the underlying CCS association, was already getting annoyed after Ford’s deal. Seeing 2 of the 3 major legacies switch to NACS is far from being anecdotical, and we can ask ourselves if we’ll see other changes from the likes of Stellantis or any charging network.

No sign of any similar move on the other side of the Atlantic, as CCS is way more widespread and many more competing charging networks are existing. But the interest for a more compact connector such as NACS still exists. About the motivations behind Ford and GM decision to rally Tesla, let’s say it’s a deal that will satisfy both ends.

On Tesla side, the motivation is of course to take a slice of the huge IRA subsidies, as being an open network is a criterion for receiving these. It’s definitely what have motivated the Californian brand to open the design of its connector last November, and push for it becoming a public standard. And the latter is what have surely motivated both legacies to join them: if it’s getting open, it sure seems less like a honeypot from Tesla. But for Tesla, it’s also a way to get an additional revenue stream, the cherry on the top of the subsidies cake, while its two competitors can be satisfied to get access to a huge charging network, a market they’ve never really planned to tackle anyway.

Wall Street is obviously welcoming the news, as GM stock is rising by +3.82% after-hours and Tesla +4.73%. On Ford’s side, it’s +12% since the announcement, but you’ll have to factor in the Capital Market Day announcements too.

A wider question arises though: has Tesla hacked the door towards many more deals with legacies beyond charging? It’s no secret that Tesla has always been willing to license its ADAS technology, but hasn’t been successful so far, with Toyota/Daimler rejecting them many years ago after initially considering it. Answering a tweet about one of the latest statements from Mary Barra (GM CEO said we won’t see any profitable $30-40k EVs until the end of the decade), Elon Musk said Tesla would be “happy to license Autopilot/FSD or other Tesla technology” to legacies.

Not sure how can Autopilot/FSD could convince GM, having Cruise, or Ford, having BlueCruise, to take a licence from Tesla though.

?? A Zoom on Micromobility Europe 2023

It’s all buzzing in Amsterdam as Micromobility Europe is taking place until today, gathering all the major stakeholders of the industry for a two-day event mixing exhibition and conferences. Well, let’s seize the opportunity to share you some news about micromobility, with, as you’ll see, a focus on safety and urban integration:

→ Segway is doubling down on technological integrations, with a double partnership with both DroverAI and Luna Systems, who will propose their ARAS (micromobility’s ADAS for riders) technologies to be installed on Segway e-scooters directly from Segway factory. “It’s almost like we’re building a mini app store for our scooters” said Tony Ho , VP of Business Development at Segway, as reported by Techcrunch : Segway focuses on the hardware, and companies like DroverAI or Luna Systems focuses on software/AI. Win-win.

→ Yohanna Pinheiro from ZAG Daily introduces us to two innovative start-ups: Hilo EV, a premium e-scooter company focusing on safety and founded by an Aston Martin ex-CEO, and Yup, a start-up creating a “multi-modal and multi-brand parking solution with wireless charging”. Read their portraits!

???BYD Pursues Its European Launch in France

The Chinese tidal wave isn’t quite there yet, but don’t worry for it, it’s just getting ready. If every Chinese manufacturer who have launched in Europe have not met a guaranteed success (see the shy start for NIO or Ora and the low volumes from Aiways), two names are on everyone’s lips. SAIC, through MG, who is taking very interesting shares amongst the EV market, even taking opportunity of Renault’s supply problems on the Zoe to overtake the French manufacturer last month in Europe. But the bigger name is yet to come, it’s BYD.

We’ve already portrayed them and their ambitious lineup in China (YangWang or Fang Cheng Bao, a brand announced this week that will tackle the Defender) in previous Briefs, and BYD already warned of its arrival in Europe during last year’s Paris Motor Show. But it’s indeed a work in progress, as BYD organized its launch event last Wednesday in southern France, and take inspiration from SAIC’s recipe to avoid any inconvenience for its European quest.

First, by selecting multiple dealerships instead of betting on online-selling with a brand still lacking in awareness. It’s certainly been one of MG’s keys to success: to rely on the extensive networks of dealerships in France and sign multiple contracts with them to secure a wide coverage of the country and bring confidence to customers through already known local intermediaries. Well, BYD applies the same method, as Le Journal de l’Automobile reports that 10 partners have been selected. 15 to 20 BYD dealerships are planned to open in France this year.

For pricing, BYD will rely on its self-confidence about its product quality, with a pinch of awareness regarding the French market. It won’t be low-cost, but it’s aiming at being the “bigger bang for the buck”. For example, the Atto 3 price will be aligned with the one of its French competitor, the Renault Megane E-Tech, but with more standard equipments. The Dolphin will be starting at €23k, lower than an e-208, but with the production location criterion planned to be introduced in France, this aggressive pricing may not last long (unless the long awaited European plant becomes reality). The battle will be long and fierce.

But as Les Echos reports , BYD is aware that the European market is very hard and picky, and they reassure everybody (or not, depending on who you are): it’s a long term bet.

?? What Else?

• After St. Louis, Cleveland, San Diego, Milwaukee, Columbus and Seattle its now Big Apple’s turn to sue Hyundai?and Kia for negligence and creating a public nuisance by selling vehicles that are too easy to steal. Want to know how? Go to TikTok.

???Factories Updates

• As per Cinco Dias, Tesla could build a new mega-plant in Spain . A possible blow for France as Elon Musk and Emmanuel Macron discussed local investments during the Choose France summit. Musk will be at Viva Technology next week in Paris, enough to keep hope alive for investments in our country?
• The first ZEEKR X rolled off the production line this week and deliveries are expecting to begin in the middle of the month. ZEEKR aims to deliver 40k units this year.
• GM plans to invest more than $1Bn in two Michigan plants and $500M for next-gen full-size SUV production at Arlington Assembly in Texas for production of next-generation ICE heavy-duty trucks and SUV, despite it commitment to exclusively offer?all-electric vehicles by 2035. GM is simply responding to market demand but let’s hope that it will reinvest the profits for EV development.
• We reported a month ago that Ford was facing production delay due to door-handle supply issue but this seems to be ancient history. Ford makes progress towards meeting its yearly production target of 150k units for the F-150 Lightning and is responding to the high demand from customers by allocating the largest production increase to the much-awaited XLT trim.
• Livista Energy Europe is set to become Europe's first lithium refiner to support the growing need for EV batteries. Technip will assist the Luxembourger it in setting up its first refinery, in Germany. A center of excellence will also be set up in Luxembourg.?
• After taking an equity stake in H2 Green Steel in 2021, Mercedes-Benz?is now entering a partnership with the Swedish start-up , to provide 50k tons of low-carbon dioxide steel for the Mercedes’s assembly plants in Europe and North America.

???EV Updates

• BloombergNEF’s new report on EV is out and?shows how road transport is shifting and the impact on oil markets, electricity demand, batteries, metals and materials, charging infrastructure and greenhouse gas emissions. In a nutshell: EV sales will surge, demand for road fuels will peak in 2027, battery factory spending is on track, lithium demand will increase 22 times by 2050. For more information, the executive summary is available for free .

• To bolster auto consumption, which plays a crucial role in driving economic growth, China has introduced a nationwide promotion that encompasses various activities such as organizing auto festivals in 100 cities and actively encouraging the adoption of new energy vehicles (NEVs) in rural areas.
• All bets down, the wheel is now turning: Nikola announced on Wednesday that it was adjourning its annual shareholder meeting and would reconvene it in July. The electric truck manufacturer needs time to mobilize its shareholders and secure their support for the proposed issue of additional shares, a necessary precondition for raising additional capital.
• The assembly of the Renault Zoe has been halted (once again) due to a shortage of semi-conductors. Tough blow as this model is the entry-level for Renault EV. In the meantime, the diamond brand announces the return of the 40 kWh Megane E-tech for €38k , removed from the catalog in March. The EV40 was not a great success, accounting for an average of only one in five sales. Just another marketing ploy?

???AV/ADAS Updates

• Segway has announced a partnership during Micromobility Europe with?Drover AI?and?Luna Systems , specialized in computer vision technology to detect and correct improper e-scooter riding, to integrate their technologies into its next-gen S90L e-scooters.
• Californian friends, fasten your seatbelt: Mercedes-Benz is the first automaker to get approval to sell partially autonomous vehicles (L3) in your state . A yes after a no as at the end of last month, the California assembly passed a bill prohibiting autonomous trucks (>4,5T) on state’s roads without drivers.
• Motional will launch its first fully driverless service for public passengers later this year in Las Vegas . The JV between Hyundai and Aptiv has been offering a pilot robotaxi service with IONIQ 5 on public roads in Las Vegas since 2018 but with safety operators in the front seat. Will Motional keep working with Uber as the latter concluded a partnership, end of May, with Waymo to use their robotaxis??

???New Car Reveals

• We talked about it last week, you've been waiting for it, here it comes: the Alpine A110R Le Mans. Available to order since yesterday for the modest sum of 140k€: don’t overthink it, just buy it, there’re only 100. Stay tuned, as the Alpine hypercar will be unveiled this week-end during the 24 Hours of Le Mans.

• Peugeot has just unveiled the first images of the interior of the next-gen 3008: a new steering wheel, a 21 inches “levitating screen”... The model is due to be unveiled at the Munich Motor Show in September, with market launch scheduled for early 2024.

• VinFast launched the VF 3 , a mini electric car model designed for the Vietnam market. Interesting because it stands out from the current range where the trend is (unfortunately) to go big.

• Volvo has unveiled a tiny EV: the EX30 , starting at $36k and made in China. The interior is minimalist but has everything to please: bra jobbat (or should we say 干得好?)!

???Investment/Financial Updates

• Stellantis and Belgian metal recycling specialist Galloo are to set up a company specializing in the recycling of end-of-life vehicles , in order to recover their parts. The new JV will offer its services to owners wishing to sell their vehicles for scrap, initially in France, Belgium and Luxembourg, then in the rest of Europe and to other manufacturers. The financial terms of the partnership were not made public.
• Renault Group?will join the CAC40 ESG index launched in 2021 and ranking the 40 companies within the CAC Large 60 Index that demonstrate the best Environmental, Social and Governance (ESG) practices.

?? Bookmark Of The Week

"Investigating how the public acceptance of autonomous vehicles evolve with the changes in the level of knowledge: A demographic analysis" - Kareem Othman , University of Toronto

Link to the study

An interesting research article that surprisingly links knowledge about autonomous vehicles with distrust about them, following a survey answered by 5000+ persons in the US in late 2022: a 1% gain in knowledge implies a “0.65% decrease in interest, 0.68% decrease in trust, $2466 decrease in willingness to pay for it, and a 0.56% increase in concerns about traveling in AVs”.

Finally a scientific argument to conclude that Tesla fanboys have insufficient knowledge in AVs?

?? What's on next week?

???Paris is gonna be the Tech Capital of the World for a week as VIVA Technology will kickstart on Wednesday! One of the biggest tech event worldwide, gathering 1000+ startups over the world during 4 days. If mobility is not the core topic of the year, it still has a special place in the event, with many interesting start-ups of the industry exhibiting over there: stay tuned next week, we’ll share our quick shortlist! Amongst speakers from the mobility: Luca de Meo (Renault Group), Romain Afflelou (Cosmo Connected), Adrien de Cheveigné (UCI), Patrick Huke (Porsche Ventures), Gürkan Karakas (Togg), Frédéric Mazzella (BlablaCar), etc… But one speaker will certainly steal the show: Elon Musk will be at Paris for VivaTech.

???Capital of the Tech and…the automotive tech? Earlier this week, it’s Automotive News who will hold its European congress also in Paris, and Luca de Meo will be ubiquitous this week as he’ll be the main speaker of the event, holding a keynote on Renault’s transformation. Other speakers from Stellantis, Ford, Hyundai, Smart, Toyota and many other companies are also expected during the event at the Automobile Club de France.

???From Wednesday to Friday, it’s gonna be the GreenTech Festival in Berlin, with conferences and exhibitions planned all along the week. Fisker, Man, Hyundai, Mubea U-Mobility and Skoda will exhibit there, and speakers from BMW, Shell, the Norwegian EV Association and Northvolt will take the mic to speak about sustainability, NEV transition and urban mobility.

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