Pony raises €23M, US bans Chinese tech in AVs & Mercedes L3 system goes up to 95kmh

?? Pony's bold approach pays off with a €23M funding round.

?? Mercedes-Benz steps it up with its Level 3 system, now reaching speeds of up to 95 km/h.

???????? The US-China battle continues: the United States bans the use of Chinese tech in autonomous vehicles.

?? Also, Carlos Tavares driving a Nissan, the R5 making a cameo in "Emily in Paris"...

?? And, of course, all the other news of the week: EVs, tech updates, EV infrastructure developments, latest investments, partnerships, and more.

?? This Week In The Mobility World

???Appointments (& resignations)

• Motional's CEO Karl Iagnemma has recently stepped down from his position. Laura Major, the company's CTO, has been appointed as interim CEO. It remains uncertain whether Major will permanently assume this role!

• ? of the cast at Ford’s skunkwork program are ex-Tesla, Rivian and Apple . Can’t wait to see what they’re cooking.

?? Micromobility Updates

• French (but not Parisian!) shared micromobility start-up Pony raised €23M from the likes of ADEME Investment (French agency for ecological transition) and La Poste Venture in its Series B, enabling to fund its development and fleet investment, but also rewarding its unconventional approach in the industry with its world-unique longtail shared bike or its “adopt a pony” initiative enabling people to fund a bike or scooter and earn part of its revenues. Hats off!
• Yesterday, the B'twin Village hosted a fun and informative event in Lille (France) focused on sustainable transportation. Visitors had the opportunity to try out various eco-friendly vehicles, learn about green mobility initiatives, and enjoy family-friendly activities.

?? Factory Updates

• GM announced plans to lay off 1,695 workers at its Fairfax assembly plant in Kansas. The company cited the pause in production of the Cadillac XTA after January 2025 as the primary reason for the job cuts. In addition to the factory layoffs, GM also announced job cuts for over 1k salaried employees in its software and service units worldwide.
• Northvolt is actually laying off 25% of their Swedish workforce (~1,600 ppl) and pausing the expansion of their main factory in a new update to their strategic rehauling.
• It was expected: Italy is scraping its funding to Stellantis’ battery factory after the group failed its ACC joint-venture paused its factory projects in both Italy and Germany. However, ACC is planning to start talks again in 2025, hinting at a restart for the ambitions of the French battery maker.
• Meanwhile, Renault talks about “survival” as it will start its collective bargaining by the end of the year. Praising the lightning-fast pace of Chinese engineers, Renault puts direct pressure on its own engineering teams as it launches its "Speed of Lightness" program, aiming to cut vehicle development time to under two years. Meanwhile, jobs at the Alpine F1 engine plant in Viry-Chatillon remain at risk, as last week's meeting between Luca de Meo and employee representatives ended without any agreement or announcement.
• More rumors swirl around Volkswagen’s factories, only to be denied in the same week: reports suggested up to 30,000 jobs at risk in Germany, which VW swiftly refuted , while in China, the Nanjing plant was rumored to be on the brink of closure—also denied , though VW acknowledged the need for adjustments at the site. Meanwhile, the Audi factory in Brussels was briefly the subject of speculation about a potential takeover by Nio, a rumor quickly shut down by Nio’s CEO.

???Tech Updates

• The US Commerce Department is proposing a ban on Chinese software and hardware in connected and autonomous vehicles due to national security concerns. This follows growing anxieties about data collection by Chinese companies and potential manipulation of connected car systems. The ban targets both import and sale of vehicles with key communication or automated driving systems from China. The ban on software would take effect in 2027, and the hardware ban between 2029-2030. A new hurdle for Chinese companies and a new chapter in the US-China trade fight.
• Mercedes-Benz is upgrading its automated driving system, DRIVE PILOT (L3), to operate at speeds up to 95kmph on German highways under specific conditions. Existing cars with the system will be upgraded OTA for free from the current 60kmph limit. Sales of the upgraded system may begin in 2025 after certification by German authorities.
• Waymo is exploring a potential partnership with Hyundai to produce its next-generation self-driving vehicles. The move comes in response to new trade policies that could increase the cost of importing vehicles from China, which would interfere with Waymo’s deal with Zeekr. Hyundai's Ioniq 5 is a potential candidate for the production line, but no final decisions have been made yet.
• The IIHS found that people using partial automation driving systems are more likely to get distracted , despite their attention being required by the system, and calls for better safeguards. But who’s surprised to see such systems being misused?

???New Car Reveals

• Lotus has introduced a new electric sports car concept, Theory 1. This concept embodies Lotus' new “design principle”s, Digital, Natural, and Analogue, and showcases a futuristic interior called Lotuswear that adapts to the driver and passengers. Theory 1 boasts impressive performance, including nearly 1000hp, a top speed of 320kmph, and a 0-100kmph acceleration in less than 2.5 seconds. It also incorporates advanced technology such as self-driving capabilities, a steer-by-wire system, and an electric range of 400km. While Theory 1 is not intended for production, it serves as a platform for Lotus' R&D efforts as the company transitions to the electric age!

?? EV Updates

• New car registrations in the EU fell by 18.3% in August, driven by sharp declines in BEV and plug-in hybrid sales. While hybrid-electric vehicles saw growth, BEV registrations dropped by 43.9% to 92,627 units. Germany and France experienced particularly steep declines in BEV sales. Plug-in hybrid registrations also decreased by 22.3%.

• The US Department of Energy announced plans to invest over $3B in battery projects across 14 states. This funding will support the processing of critical minerals, the construction of battery and component factories, and battery recycling initiatives. These investments are part of the Biden administration's efforts to promote domestic manufacturing and advance its climate goals.
• Rivian is now offering its electric trucks and SUVs with a tri-motor configuration, providing a significant power boost over the dual-motor version. The new 850hp powertrain features Rivian's new in-house Enduro motors, with one in the front axle and two in the rear axle. This tri-motor setup is available in Rivian's newly redesigned Gen 2 models, which were initially launched with only a dual-motor option. Unfortunately, the Gen 2 production output has been slowed down due to supplier issues.
• Tesla has announced its return to the Paris Motor Show after a six-year absence. The electric vehicle giant will be showcasing its latest models at the 90th edition of the event.
• Also at Paris: the Xpeng P7+ may make its first appearance out of China next October, according to Eletric Vehicles.
• It’s rush hour at Stellantis’ Trnava plant as Citro?n is hurrying to deliver its 6k social leasing ?-C3 by the end of the month. But Thierry Koskas reassures on LinkedIn: the first ones left the plant early last week!
• Wonder why China was so eager to discuss EV tariffs with the EU last week? Well, that’s just because it feels like it has the upper hand with its tariffs revente on EU pork, dairy and brandy. Now, some EU countries impacted by those are now calling for an abandon of the EV tariffs.
• The first baby of the partnership between Hyundai and Iveco is born: the eMoovy has been introduced at the IAA (on the right in the photo), with a strong affiliation with Hyundai’s Staria, as part of a strong electric line-up from Iveco, where the new heavy-duty IVECO S-eWay Rigid made its premiere.

?? Marketing & Distribution Updates

• Renault continues its aggressive marketing campaign for the launch of the Renault 5, this time with an apparition in Netflix’ popular TV show “Emily in Paris”, where the R5 appears in a scene where it is the star of a commercial shoot in…Roma.

• Meanwhile, Carlos Tavares arrived in French TV automotive magazine “Turbo” in a…Nissan. Punk is not dead!

?? EV Infrastructure Updates

• It’s now live: General Motors’ EV customers can now charge at Tesla Superchargers. But they’ll need a $225 adapter to do so. Ouch.

???Investment/Financial/Legal Updates

• Mercedes-Benz has revised its 2024 profit forecast downward for the second time in less than two months due to declining sales in China. The luxury car segment, particularly in China, is experiencing persistently weak demand. This has led Mercedes to lower its outlook for both its car division and the group as a whole. Despite previous adjustments, the company now expects an operating margin between 7.5% and 8.5% for its car division in 2024, down from the previous range of 10% to 11%. This suggests a margin of just 6% for the second half of the year.
• European auto stocks are at record lows. Investors are hesitant to buy despite attractive valuations as analysts predict a 13.6% earnings drop in 2024. Competition from Chinese newcomers and rising costs are pressuring mass-market brands and weak demand in key EV markets has contributed to steep declines in European car sales!
• Meanwhile, Polestar is finally back in compliance with NASDAQ rules as it went above the minimum $1 bid price again for 10 consecutive days following the publication of its financial report and the news of its leadership change.

See you next Monday!