Leveling the Playing Field (10/17/22)

Good morning and happy Monday. More great developments at EVDigest before we dive in:

Partnering with Lexicon Branding: we're beyond thrilled to be supported by Lexicon Branding, the name in naming. Over four decades, Lexicon has worked on more than 3,500 brand name and architecture projects across categories and 22 countries. Lexicon has developed some of the most iconic brand names and has done extensive work in the automotive and EV space. Here is just a small sample of names created by Lexicon:

EV Jobs Board: last week we launched our EV jobs board, featuring openings at Lucid, Rivian and Xos. Companies can now directly post job openings and target experienced EV talent.

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In today's newsletter:🎙️ Sponsor Feature: Lexicon Branding: developing brand names in a disruptive category⚡ The Headline: EU expects level playing field for its EVs in U.S. market🚨 Making News: GM energy and GMC Denali EV, Polestar 3, Nissan & Renault🇪🇺 Europe Electrified: NIO mass-market brand, BYD ATTO 5-star safety, ACC and Siemens🧧 China Report: MINI moves to China, Foxconn Model B, Zeekr 50k club, Model Y wins

🎙️ Sponsor Feature 🎙️

Lexicon Branding: Developing Brand Names in a Disruptive Category

Roughly 14,000(!) automotive trademarks were filed in 2022. Forecasts predict that global EV sales will hit an all-time high this year and automakers, EV startups and technology providers are unveiling hundreds of new products to meet growing demand.Emerging and existing brands in this industry need distinct, breakthrough names to generate interest and early market share. With more credentials in the mobility space than any other agency, Lexicon Branding is uniquely experienced to support automotive brands as they navigate an evolving industry.Creating distinctive names in a disruptive and evolving category is one of Lexicon’s specialties. Over the last 40 years, Lexicon has created some of the world’s most iconic automotive brands, including: Lucid Motors (winner of the prestigious 2022 MotorTrend Car of the Year award), Subaru’s Outback & Forester, Nissan’s Rogue, and Mercedes-Benz’s Metris. Lexicon’s experience extends beyond vehicles into automotive technology as well, including ClearMotion (formerly Levant Power), the world’s first ultra-active chassis system, and TruckLabs (formerly XStream Trucking), which develops green logistics technologies for trucking companies.With the automotive market ripe with opportunity, having a trusted, industry-leading agency on your side is a game-changer. Read more about how Lexicon is helping EV brands think about breakthrough naming. And if you’re in the category or interested in entering it, reach out to Lexicon’s automotive group (email [email protected]).

⚡ The Headline ⚡

EU Expects Level Playing Field for its EVs in U.S. Market

From Reuters: U.S. and European Union officials expect they can reach a deal that would grant EU companies, including EV manufacturers, the same status afforded to U.S. ones. The discussions have followed European Union complaints of discrimination against its producers by the Inflation Reduction Act.

While the EU allows tax breaks or subsidies for purchases of U.S. EVs, the Inflation Reduction Act makes that same support conditional on the EV, or parts of it, being made in the U.S.

When asked if the issues could be resolved, U.S. Trade Representative Katherine Tai said, "On the strength of the EU-U.S. relationship, I have every confidence we will work through this."

The EU has also been discussing possible options, including bringing a case to World Trade Organization, with South Korea and Japan. Both have similarly expressed frustration and outrage with the IRA. South Korea said it views the rules favoring U.S.-made EVs as a "betrayal".

🚨 Making News 🚨

New GM Energy unit to focus on energy storage and management services. GM is expanding beyond cars and taking on Tesla in the energy storage business. The new unit will provide services both to residential and commercial customers. GM Energy bundles the Ultium Charge 360 public charging service with two new units: Ultium Home and Ultium Commercial. Together, these will offer stationary storage batteries, solar panels and hydrogen fuel cells. GM sees a total addressable market of $120 billion to $150 billion.

GM teases GMC Sierra Denali EV ahead of October reveal. GMC gave a first look at the upcoming all-electric Sierra Denali, previewing the truck’s grill and exterior lighting sequence. The electric Sierra will be the third all-electric vehicle in GMC’s portfolio after the GMC Hummer EV Pickup and GMC Hummer SUV. The Sierra Denali is planed for early 2024 and will be built on the Ultium Platform. GMC will reveal the EV on October 20, 2022, at 5 p.m.

Polestar unveils the Polestar 3, the company’s first electric SUV. At a launch event in Copenhagen, Polestar CEO Thomas Ingenlath unveiled the company’s “performance SUV". The Polestar 3, priced at $85,300, has up to 300 miles of range and is equipped with LiDAR from Luminar. The vehicle will be built in China starting next year and in the U.S. at Vovlo’s South Carolina factory starting in mid-2024. Polestar also plans to expand its U.S. retail network by nearly half, to 40 stores by the end of 2023.

EV battery plants spark goldrush of competing state incentives. As states race to give money for new projects, officials say they have built in protections for taxpayers in case the projects go south. Congress set aside $350 billion in 2021 for states and municipalities, and the funding has coincided with the transformation of the auto industry. While there are limits to how Covid relief money can be spent, the aid has freed up cash reserves for incentives.

Nissan confirms it’s in talks over investment in Renault EV division. Nissan has been pressing Renault to sell part of its stake in the Japanese auto maker (currently 43%). In exchange, Nissan would invest in Renaults new EV division. Nissan has long been unhappy with the uneven relationship with Renault, which has a controlling stake in the much larger Japanese company. The alliance dates back more than two decades.

Canoo signs binding agreement with Zeeba to sell 3,000 EVs. The initial binding commitment is for 3,000 units through 2024. Zeeba, a relatively new fleet leasing provider, may purchase up to 5,450 EVs and add the Canoo Lifestyle Delivery Vehicles (LDV) and Lifestyle Vehicles (LV) to its long-term fleet leasing portfolio.

Mercedes and Microsoft partner on supply chain data platform. The MO360 Data Platform, connecting passenger car plants to Microsoft Cloud, aims to improve production efficiency at more than 30 Mercedes plants globally. Joerg Burzer, Mercedes head of Production and Supply Chain commented: “The ability to predict and prevent problems in production and logistics will become a key competitive advantage as we go all electric.”

Sony and Honda plan for first EV plant in North America. Following the announcement of Sony Honda Mobility back in June, the two companies have now said that they plan to produce their first EV in North America. Pre-orders will open up in the first half of 2025 and deliveries are planned for Spring 2026.

Ford battery partner SK On inks lithium deal with Australia’s Lake Resources. Leading battery maker SK On signed a deal that gives it a 10% ownership stake in Lake Resources and anticipates the delivery of battery-grade lithium as early as Q4 of 2024. SK On would receive 15,000 tons of lithium for the first two years and 25,000 tons of lithium from the third year. SK On operates a battery plant in Commerce, Georgia and is planning another at the same site in 2023. The company has teamed up with Ford through the BlueOval SK joint venture, which is building three plants in Tennessee and Kentucky, expected to start production in 2025.

As Nikola closes Romeo Power deal, founder Trevor Milton found guilty of fraud. Milton was found guilty on three of four counts of fraud relating to statements he made to drive up Nikola’s stock price. He faces up to 25 years in prison and is schedule for sentencing on January 27. Meanwhile, Nikola closed its acquisition of battery module maker Romeo Power through a second-step merger.

Volkswagen YTD EV sales up 25% over last year. Volkswagen Group sold 366,400 EVs between January and the end of September. BEV sales in China more than doubled over that period, up 139%. However, just 28,900 of those sales were in the U.S., up a meager 5.9% over last year. Volkswagen believes that the funds gained from it’s IPO of Porsche has made it “well-positioned” for the EV transition.

Porsche Macan EV delayed to 2024 due to software issue. Porsche confirmed the delay in its share prospectus after going public earlier this month: “The Group is currently developing, together with CARIAD and Audi, the E3 1.2 platform for deployment in the all-electric Macan BEV, which the Group plans to begin delivering in 2024. […] In part due to delays at CARIAD and the Group in developing the E3 1.2 platform, the Group has already had to delay the start of production (SOP) of the Macan BEV.”

Hyundai to break ground on new $5.5 billion plant this month. The Savannah, Georgia EV and battery “metaplant” plant is anticipated to start production in the first half of 2025 with an annual capacity of 300,000 units. Hyundai has committed $10 billion by 2025 “to foster future mobility in the U.S.”

Honda and LG Energy Solutions’ new EV batter plant planned for Ohio. The plant will cost $3.5 billion, with overall investment in the joint venture reaching $4.4 billion. Construction is expected to begin in 2023, with mass production of lithium-ion batteries planned for 2025. Honda said it will invest $700 million to retool several of its existing auto and powertrain plants for EV production. It expects to start production and sales of EVs in North America in 2026.

Ford says Lincoln dealers face $900,000 bill to sell EVs. The cost, primarily to cover the installation of chargers, is more than four times what Cadillac is asking its dealers to spend. This comes after Lincoln persuaded dozens of dealers to spend millions to build glass-walled standalone showrooms.

VinFast recalls a third of all EVs to replace sensors. The Vietnam-based company is recalling 730 of its model VF e34 EVs, which are only available in the domestic market, to check and potentially replace the side crash sensor. The recall comes as Vinfast prepares to deliver its first batch of EVs to U.S. customers before the end of the year.

🇪🇺 Europe Electrified 🇪🇺

NIO to unveil new mass-market brand in Europe. NIO has just started rolling out its large premium EVs in Europe on a subscription model. It’s also planning to sell smaller, more mainstream EVs in the region in 2024, according to Lihong Qin, NIO’s President and Co-Founder. Qin made the comments to journalists at NIO’s European launch event in Berlin. Co-Founder William Li has said the company aims to be one of the world’s top five automakers by 2030.

NIO partners with LeasePlan to expand to four new markets in Europe. LeasePlan, one of Europe’s largest Car-as-a-Service companies, is expanding its strategic partnership with NIO to Germany, the Netherlands, Denmark and Sweden. It will initially offer NIO’s flagship ET7 and will later add the entire lineup, including the ET5 and EL7. The offer will be combined with NIO’s Battery-as-a-Service solution.

BYD’s ATTO 3 receives 5-star safety rating by Euro NCAP. The top rating came ahead of the model’s European market launch later this year in Norway, Sweden, Denmark, the Netherlands, Belgium, Luxembourg and Germany. The BYD ATTO 3 scored 91% on adult occupants, 89% on child occupants, 69% on vulnerable road users and 74% on safety assist due to its ADAS suite. Click the link to watch the official Euro NCAP crash videos.

Siemens to provide equipment for EV battery plants joint venture. The JV between Siemens, Stellantis, Mercedes and Total Energy, called Automotive Cells Company, plans to build three factories by 2030 worth $6.79 billion. Under the deal, Siemens will become ACC's preferred supplier for automation, digitalization and electrification technology.

🧧 China Report 🧧

BMW to move production of electric MINI from UK to China. BMW currently makes 40,000 electric MINIs at its Cowley plant on the outskirts of Oxford. It plans to end production there by the end of next year. BMW has a joint venture with Great Wall Motor, meaning the vehicles will likely be made in east China.

Foxconn to unveil Model B EV on October 18. Apple supplier Hon Hai Technology Group (known as Foxconn) will unveil the vehicle at Hon Hai Tech Day. The EV was designed with Pininfarina.

NIO EC7 coupe SUV spotted on a road test. The vehicle is suspected to be EC7, which could feature NIO's previously patented electric rear wing. The sighting, reported by local auto media outlet Xchuxing, comes with the next NIO day less than three months away.

NIO and ZF Group sign strategic cooperation agreement. The agreement, signed on October 11, will have the two companies work together in the development of steer-by-wire (SBW) products. This marks the first time ZF Group cooperates with a customer in the steer-by-wire business in the Asia Pacific region.

Geely Group’s premium Zeekr brand rolls 50,000th 001 off the production line. The milestone comes just one year after the company began delivery of its first production model. Zeekr operates a plant in the eastern city of Ningbo and is working to produce 10,000 vehicles a month. The company is said to be considering an IPO in either the U.S. or Hong Kong.

Huawei’s Yu Chengdong says AITO able to sell 20,000 EVs monthly. Yu, CEO of Huawei’s Intelligent Automotive Solution Business Unit, claimed that the brand possesses the capability to sell 20,000 vehicles monthly. Yu also said that he expects China’s intense auto market competition will result in no more than five major players.

Tesla Model Y tops China NEV sales list in September. Tesla beat out BYD’s Song and the famous Saic-GM-Wuling Hongguang MINI. The Model Y was also the best-selling SUV. BYD still took the overall sales crown, selling more than 200,000 vehicles in September alone.

BYD launches the ATTO 3 electric SUV in India. The event followed similar launches in Laos and Thailand just days earlier. BYD currently sells the E6 to fleet operators in India, but the ATTO 3 will become one of the first direct-to-consumer EVs sold in the country.

Dongfeng premium brand Voyah’s first sedan revealed in regulatory filings. The Voyah was included in a filing by the Ministry of Industry and Information Technology (MIIT) which included a catalog of models that will be allowed to be sold in China. Dongfeng Motor, China’s second-largest automotive state-owned enterprise, announced the Voyah and Voyah FREE brands in 2020 as its entrance to the EV market.