Toyota isn’t quite ready to ramp up electric car production

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Toyota She says it still won’t really boost her production The first electric car in the mass market for a few more years, Faraday future He’s cutting salaries because the electric car start-up is up and running of criticismAnd the Mercedes Benz is the newest factory for Exit from the Russian market. All that and more in morning shift for Wednesday, October 26, 2022.

First gear: Toyota needs time to ramp up bZ4x production

Toyota is said to be considering making a big leap in bZ4X production, but not before 2025. It is said to be part of a broader strategic rethinking of the Japanese company.

The automaker is considering a decision to increase production of its first mass-market electric vehicle by six or 12 times its current monthly production. That number is now around 1,000 cars per month. But this does not happen overnight. This move will occur in 2025 if components (including semiconductors) can be secured in time. From Reuters:

The car is produced at Toyota Motor Corp’s Motomachi plant near its headquarters on a joint assembly line with gasoline and hybrid cars. Both current and potential production numbers include those of Subaru Corp. Solterra, which is manufactured on the same platform.

The three people, who spoke on condition of anonymity because the information was not public, said the increase would see Toyota ramp up production at another plant near its headquarters, the Takaoka plant.

[…]

The potential increase in production comes as the automaker has faced criticism for not moving faster to embrace fully electric cars and pushing hybrid technology instead. I fired a Reviewing its strategy for electric vehiclesReuters reported this week.

As part of this review — which could lead to a more robust roadmap for future electric vehicles based on technologies that promise to reduce cost and improve performance — it has also suspended development work on some of the 30 new EV models announced and planned last year. It will launch by 2030, Reuters reported.

Toyota recently resumed production of the bZ4X after it was held back by a few recalls. At the height of the planned production increase, Toyota will produce more than 190,000 electric vehicles per year.

Second gear: Faraday’s bleak future

It is said that Faraday Future will cut employee salaries by 25 percent starting next month. move is being carried out in an effort to save some cash (as it is nearing completion) while the company searches for fresh capital in order to finally launch the FF91.

In an email sent to employees last week, Faraday said the salary cuts are expected to last from November 1 through the end of the year. Earlier this month, the company also laid off a few dozen employees. From Bloomberg:

Faraday saw its cash reserves dwindle rapidly. He. She newly It stated it had $39 million in cash as of September 21, down from about $47 million at the end of August.

The company said in the emailed memo, seen by Bloomberg News, that employees will be given Restricted Stock Units, or RSUs, equal to the amount they will be deducted from their paychecks and due in December. Faraday also offered employees the option of a larger pay cut in exchange for more valuable RSUs, although he indicated that any awarded RSUs would be forfeited if the employee was terminated.

Faraday has delayed the launch of its first car until at least 2023. Things don’t seem too hot for the Los Angeles-based company right now, although in reality they never were.

Third gear: Mercedes-Benz leaves Russia

Add Mercedes-Benz to the growing list of automakers withdrawing from the Russian market. The company is said to be selling stakes in its industrial and financial services companies to a Russian investor: the auto dealer chain Avtodom. From Reuters:

Mercedes Chief Financial Officer Harald Wilhelm, while presenting third-quarter results, said that the transaction was not expected to result in any other significant implications when it comes to the group’s profitability and financial position beyond those reported in previous quarters.

He added that “the final completion of the deal is subject to the approval of the authority and the implementation of the contractually agreed terms.”

[…]

“The main priorities in agreeing the terms of the deal were to achieve maximum fulfillment of obligations to customers from Russia both in terms of after-sales and financial services, as well as to preserve employee jobs in the Russian divisions of the company,” said Natalia Koroleva, CEO of Mercedes-Benz Russia, In a statement.

Mercedes suspended manufacturing in Russia in early March.

Mercedes now joins Volkswagen, Toyota, Nissan and Renault in leaving Russia Market. Other companies such as Mazda and Kia are also considering exiting Country.

Fourth gear: $1 billion for buses

The US Environmental Protection Agency has announced that it will allocate nearly $1 billion to nearly 400 school districts across the country to purchase low- or low-emissions school buses.

The financing will result in the purchase of 2,463 buses. More than 95 percent of it will be electric, and a “very small number” will be powered by compressed natural gas. Another 100 buses will be propane-fueled. From Detroit news:

School districts have been selected to receive funding through the lottery system and 99% of the projects are in districts that serve low-income, rural, or Indigenous students. The EPA initially planned to allocate $500 million in the first round of funding, but the agency expanded it to nearly $1 billion after receiving “enormous demand” from the regions.

Michael Reagan, director of the Environmental Protection Agency, said millions of children ride the bus to and from school every day. “It’s an essential part of being a kid in America.”

“But we all know that conventional vehicles based on internal combustion engines emit toxic pollutants into the air,” he added. Thanks to this funding, “we are forever transforming school bus fleets across the United States.”

Currently, more than 90 percent of all diesel school buses in the United States operate. The outlet reported that the $1 billion allocation is part of a more than $5 billion plan for low-emission, low-emissions school buses despite the Infrastructure Investment and Jobs Act. Another billion will be available next year.

School districts that have applied for and received funding will place purchase orders with manufacturers, which will be paid for directly by the EPA, [Karl] Simon [director of the transportation and climate division of the EPA] He said. That should be over by April.

Fifth gear: Hyundai EV expansion begins in Georgia

Last Tuesday, Hyundai launched its $5.54 billion project to manufacture electric cars and batteries, which will make cars for Hyundai and Kia, The Genesis.

the factory – called metaplant – It is set up to build up to six different models and has Capable of producing up to 500,000 vehicles per year on 2,800 acres of land located approximately 30 miles northwest of Savannah, Georgia. From Car News:

“We are making the current investment to reach 300,000 vehicles in the first phase, then 500,000,” Munoz said at a media roundtable after the groundbreaking ceremony.

[…]

Munoz didn’t say which models the Metaplant would produce, but he did mention the new Hyundai EV with three rows A crossover called Ioniq 7 expected to be the first. Munoz also said Hyundai is still studying which models to release from the new factory.

The project will also see the construction of an adjacent battery factory that will be built through a joint venture with a battery supplier that Hyundai has not yet identified.

Munoz said a new supply chain will also be set up to support the electric car plant.

Because of this move, Hyundai should be back in a position to get buyers Federal tax credits for electric vehicles under President Biden’s Inflation Reduction Act.

Currently, Hyundai/Kia/Genesis EVs are not eligible for credit because they are imported from Korea, and this does not comply with the standards set forth in the IRA.

Reverse: bad!

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