With gross sales dwindling in China and loads of complications again dwelling in Europe, the Volkswagen Group must squeeze out some wins within the U.S. market. Tomorrow, we’re lastly going to get no less than a preview of the way it intends to tug that off: electrical vehicles and SUVs from Scout Motors, the VW Group’s revival of an iconic American off-road model for a zero-emission future. And Scout Motors’ debut is occurring at a vital time for America’s EV investments.
That kicks off this midweek version of Vital Supplies, our morning roundup of auto trade and tech information. Make sure you additionally be part of us later this afternoon, as all eyes shall be on Tesla for its Q3 earnings name. Within the meantime, we’re looking at different U.S. EV manufacturing investments and a troubling new report about accidents at Rivian’s Illinois manufacturing facility. Let’s dig in.
30%: Scout Motors Ideas Debut Thursday
As you learn this, I will be headed right down to Nashville, the place Scout Motors shall be unveiling its first electrical ideas—sure, ideas, plural. These are anticipated to be a truck and an SUV, and the shadowy teasers seen on this story are all we find out about what they seem like. (InsideEVs will function the dwell stream tomorrow afternoon as nicely, so be part of us then if you wish to observe alongside.)
Scout Motors is without doubt one of the extra attention-grabbing efforts within the EV house proper now. As we have lined earlier than, the VW Group has been profitable on this continent with manufacturers like Audi and Porsche, however much less so—or no less than, nowhere close to on the dimensions as in Europe or Latin America—with the principle Volkswagen model.
The conglomerate is attempting some novel issues right here: it is a by-People, for-People effort with a novel platform, an all-new $2 billion manufacturing facility in South Carolina anticipated to create 4,000 or extra everlasting jobs, and appears quite distinctive within the VW Group panorama. As an illustration, it is not a lot a model like Audi or Porsche, however an entirely owned subsidiary the place Volkswagen is an investor. In idea, that ought to give it some insulation from the mothership and native route.
The timing of the launch is definitely… attention-grabbing, I suppose I might say. We’re now lower than two weeks away from probably the most contentious presidential election in trendy American historical past, and one the place the 2 candidates diverge sharply on the query of incentives for EVs. Former President Donald Trump has vowed to revoke these if he is elected; how would possibly that impression the Scout Motors effort, its tax incentives to go to South Carolina and even buying incentives for its eventual vehicles?
Then once more, it could simply be means too quickly to know. The Scout automobiles aren’t even anticipated to debut till 2027 or presumably 2028, and by way of EV coverage and know-how, that will as nicely be 300 years away. There have additionally been persistent rumblings that the manufacturing facility might make hybrid vehicles as nicely, although Scout Motors CEO Scott Keogh dismissed that concept after I spoke to him earlier this 12 months.
Both means, that is going to be a really attention-grabbing debut to look at, and we hope you will be part of us in looking.
60%: U.S. Working ‘As Quick As It Can’ For EV Manufacturing unit Conversions
GM Lansing Grand River Meeting
Nowadays, loads of individuals are sad concerning the concept of spending taxpayer {dollars} on electrical automobiles, whether or not they’re for EV buying or incentives geared toward manufacturing them. However the fact is that if any nation with an actual auto trade—the U.S., Japan, Germany, South Korea, whoever—needs to catch as much as China’s dominance within the electrical house, they gotta pay to play. (By the best way, China could now attempt to double its EV exports to counter varied tariffs throughout the globe, in line with Bloomberg.)
Proper now, the U.S. is working to fast-track grants to transform current auto vegetation to make EVs, reviews Reuters:
U.S. Vitality Secretary Jennifer Granholm mentioned on Tuesday the division is working “as quick as we will” to finalize $1.7 billion in grants to fund the conversion of vegetation to construct electrical automobiles and elements.
“We’re working as quick as we will to finalize as a lot as we will — to get the commitments in contract with all of those that have been chosen,” Granholm mentioned in an interview on the sidelines of a Reuters Subsequent convention. “We now have a number of months to guarantee that we’re doing that.”
These investments embody Normal Motors’ Lansing Grand River Meeting Plant, in addition to Stellantis’ shuttered Belvidere Meeting and its Indiana Transmission Plant in Kokomo. In doing so, the hope is that the U.S. shall be supporting future American manufacturing jobs which might be ready for a extra electrical tomorrow.
Once more, the timing is attention-grabbing right here. A minimum of in that story, Granholm does not tackle it, however there appears to be a rush to get these items accomplished earlier than Trump doubtlessly retakes the White Home. However these investments might nicely be at stake right here:
Earlier this month, UAW President Shawn Fain mentioned tons of of 1000’s of U.S. jobs had been at stake if Republican presidential candidate Donald Trump received the Nov. 5 election and made good on his menace to repeal investments in electrical automobiles. Trump says EV manufacturing threatens U.S. jobs.
Democrats have seized on Trump’s operating mate, U.S. Senator JD Vance of Ohio, declining to decide to sustaining the $500 million GM grant.
All the sector goes to be holding its breath over the following two weeks.
90%: Rivian Manufacturing unit Faces Warmth Over Alleged Employee Accidents, Accidents
As automobile startups are usually, Rivian is in crunch mode proper now. It is attempting to get as many up to date 2025 R1 fashions on the street as it may possibly, all whereas it ramps up the extra inexpensive R2 and R3 fashions so it may possibly survive into the longer term.
However in line with new knowledge obtained from Bloomberg, Rivian has additionally now racked up extra damage reviews at its Regular, Illinois manufacturing facility than some other automaker:
A cracked cranium. A foot fracture. A again laceration so extreme it required surgical procedure. An amputated finger.
These are among the many accidents suffered by employees at Rivian Automotive Inc., which has just one manufacturing facility but has racked up extra US security violations initially deemed “severe” than some other automaker because the begin of final 12 months. And there are incidents alleged by employees on the plant in Regular, Illinois, that haven’t made it into authorities reviews. One former worker interviewed by Bloomberg Information mentioned she complained to docs final 12 months of vomiting bile with a “Rivian blue” hue after portray vehicles with out a respirator.
The electrical-vehicle maker acquired preliminary citations for 16 severe violations up to now 21 months from the US Occupational Security and Well being Administration. Toyota Motor Corp., Honda Motor Co., Volvo AB, Nissan Motor Co., Normal Motors Co. and Ford Motor Co. every acquired not more than 10. Volkswagen AG, BMW AG and Subaru Corp. noticed none.
Fellow EV maker Tesla Inc. and Chrysler maker Stellantis NV, each with a lot bigger workforces than Rivian, additionally acquired fewer preliminary severe citations. However in contrast to Rivian, Tesla additionally acquired three “repeat” violations, which carry heavier penalties, and Stellantis acquired two.
[…] However authorities findings and interviews with present and previous workers at Rivian paint an image of a money-losing firm that struggled to place in place the procedures, gear and coaching required to maintain workers protected.
The allegations do have echoes of Tesla’s “Manufacturing Hell” period, when it was struggling to ramp up the Mannequin 3. Again then, its Fremont, California manufacturing facility turned notorious for alleged security violations, fixed accidents, abuse from managers and even blatant racism and sexism—all of which, employees have mentioned, had been ignored within the identify of getting the vehicles made and on the street as rapidly as doable.
Rivian, no less than, says it is taking this head-on and disputed a number of the story’s claims. This is the corporate’s response:
Rivian says it’s dedicated to employee security. Committees repeatedly evaluation manufacturing facility processes and advocate adjustments, and workers can convey issues to supervisors or report them anonymously, a spokesperson mentioned in response to questions. Rivian says that its self-reported fee of work-related accidents and diseases this 12 months has been higher than the trade common for gentle truck producers in 2022, the most recent full-year snapshot obtainable. And OSHA itself says that since inspections started in late 2021, Rivian “has improved their security and well being group and are very cooperative with the OSHA course of.”
Rivian says that as a part of settlements with the company, virtually the entire violations OSHA initially labeled as severe had been finally downgraded from that class or dismissed. “Preliminary citations shouldn’t be confused as last citations, and to recommend in any other case is extremely deceptive,” a Rivian spokesperson mentioned.
100%: How Can Scout Motors Be Profitable?
Scout Electrical SUV Rendering
Like I mentioned, 2027 or 2028 really feel like eons from now. However given how uneven the EV market might be, Scout Motors may be arriving on the proper time—and the corporate swears that with this new manufacturing facility in South Carolina, it is dedicated to taking part in the lengthy recreation. What do you need to see out of its debut this week?
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