On the Move, August 12-18, 2024

Battery fire sparks transparency push in EV market

A dramatic fire involving a parked Mercedes EV in South Korea has intensified concerns about battery safety, damaging 880 vehicles and leading to calls for greater transparency. Mercedes-Benz and BMW have disclosed their battery suppliers for the first time, a move likely to prompt others to follow. Despite lower fire risks compared to petrol and hybrid cars, fears persist due to the challenging nature of EV fires. South Korea is investigating the incident and plans to introduce stricter safety regulations, potentially reshaping the EV industry globally.

Royal Enfield to launch electric bike as costs fall

Royal Enfield , the world’s longest-running motorcycle brand, plans to launch its first electric bike by April 2025. Despite global challenges with EV motorcycle performance and battery limitations, Royal Enfield aims to produce a visually striking and competitive model. This move follows their investment in Stark Future SL and the unveiling of an electric prototype. The brand seeks growth through exports amidst increasing competition in India's midsize motorcycle market.

Biden’s manufacturing push hits delays

Forty percent of major US manufacturing projects under Biden’s Inflation Reduction Act (IRA) and Chips Act have faced delays or pauses, totalling $84bn in value. Companies cite market conditions, slowing demand, and policy uncertainty as primary causes. This challenges Biden's aim to boost domestic manufacturing and could impact political support among blue-collar voters. Major projects like Enel Group ’s $1bn solar panel factory and LG Energy Solution $2.3bn battery facility are on hold. The delays highlight difficulties in achieving milestones required for funding amid a competitive and uncertain economic environment.

Porsche-Pi?ch family seeks investment bargains as market falls

The Porsche-Pi?ch family, controlling Volkswagen, is capitalising on falling market valuations to expand their investment portfolio. Porsche SE, the family's investment vehicle, announced potential new investments amidst the attractive market conditions. They recently invested in Flix , a low-cost bus service, as part of a consortium. Despite challenges faced by VW, Porsche SE reported a net result of €2.1bn for the first half of the year, attributing a decline to VW's struggles. The family retains control over Volkswagen and Porsche, focusing on sustainable mobility and automotive start-ups.

Hesai to be removed from US blacklist in Pentagon reversal

The Pentagon has removed 禾赛科技 , a leading laser sensor maker, from its blacklist of Chinese military-affiliated companies, an embarrassing reversal following its January addition. Hesai's delisting was due to insufficient legal criteria for its inclusion, as confirmed by multiple sources. The 2021 legislation aimed at scrutinising Chinese firms for national security threats faced challenges in court, similar to 小米科技 's case in 2021. Despite the Pentagon's decision, Hesai’s reputation suffered, raising ongoing concerns about US-China tech collaborations. Critics argue the company’s ties to Chinese military remain contentious, forecasting potential future relistings.

Rivian halts Amazon EV van production due to parts shortage

Rivian has temporarily paused production of its electric delivery vans for 亚马逊 due to a parts shortage, adding to its ongoing supply chain challenges. The company, which manufactures all its vehicles in Illinois, did not disclose the specific components or suppliers involved. Despite the setback, Rivian expects to recover lost production and confirmed that the shortage does not impact its other vehicle models. Amazon, Rivian's largest investor, has ordered 100,000 of these vans to be delivered by 2030. Rivian's stock saw a slight dip following the announcement.