GM, Samsung announce $3.5 billion plan to build Indiana EV battery plant
America’s largest automaker, General Motors, and Samsung SDI announced that they have finalized a $3.5 billion deal on Wednesday, Aug. 28, to build an electric vehicle battery plant in New Carlisle, Indiana. Among the products that will be at the plant beginning in 2027 are prismatic cells. As EV technology evolves, experts note that this technology may become more prevalent in the industry.
Currently, GM uses Ultium batteries in its electric vehicles. However, prismatic cells offer better performance because they have greater energy than Ultium batteries, which leads to better performance.
The prismatic cells are also reportedly safer because they operate at “lower voltages” and have “higher thermal stability.” Additionally, they’re considered more durable because they require fewer connections, which means less cleaning and welding is needed.
The new factory will reportedly create more than 1,600 jobs and be on a 680-acre site. GM and Samsung SDI will reportedly not have to pay taxes for 10 years in exchange for paying for several infrastructure projects in the community, which total $4.5 million.
The deal between GM and Samsung SDI comes at a time when some rival automakers are pulling back their investments into EVs. While EV sales are still growing, they’re not growing as fast as earlier predictions suggested.
New EV facilities are expected to pop up in the near future. They are spurred on by the Biden administration’s tax incentives.
Ford said it plans to up its production capacity at its three battery plants and Stellantis announced plans to build a new battery factory in Indiana. BMW has also said it expects to open a plant in South Carolina.
Texas sues General Motors, says it illegally collected and sold driver data
Texas Attorney General Ken Paxton is suing one of the nation’s largest automakers after he claimed it was illegally collecting and selling drivers’ data. Paxton is accusing General Motors of selling that data to insurance companies without drivers’ consent or knowledge.
GM is the first car manufacturer to be hit with a lawsuit after the Texas Office of the Attorney General opened an investigation into several manufacturers in June.
The lawsuit alleges GM installed technology in more than 14 million vehicles, allowing the company to compile “driving scores.” The scores assess nearly 2 million Texas drivers on their “bad” habits. These include speeding, braking too fast, steering too sharply into turns, not using seatbelts and driving late at night.
Paxton said insurers could then use the data when deciding whether to raise premiums, cancel policies or deny coverage.
The attorney general claims the technology was installed on most GM vehicles starting with the 2015 model year.
GM was already facing data privacy concerns after The New York Times reported in March the company shared drivers’ data with data brokers. These brokers then gave that information to insurance companies.
The Texas lawsuit calls for the deletion of improperly collected data, compensation for drivers, civil fines, and other remedies for violations of the Texas Deceptive Trade Practices Act.
Biden admin slates $1.7B for automakers transitioning to EV production
The Biden administration announced a $1.7 billion federal assistance package aimed at helping automakers retool their factories to produce electric vehicles (EVs). The funding, unveiled by the Department of Energy, targets 11 auto factories that have either shut down or were at risk of closure without government intervention.
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” U.S. Secretary of Energy Jennifer Granholm said in a statement. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive — and does it in the communities and with the workforce that have supported the auto industry for generations.”
The recipients of this funding include major automakers such as General Motors (GM), Hyundai, Fiat Chrysler and Volvo, among others. However, the funds will not be awarded until negotiations with these companies are successfully completed. Once finalized, the administration expects the plan to create nearly 3,000 new jobs and help retain approximately 15,000 workers across the 11 facilities.
GM is set to receive the largest portion of the funds, with an expected $500 million allocated to convert a Michigan plant from producing internal combustion engine vehicles to electric vehicles. This significant investment underscores the administration’s commitment to accelerating the transition to EVs.
Since President Joe Biden took office, there has been $177 billion invested in private sector EV manufacturing. This new wave of grants aims to complement those investments and is part of the administration’s broader push to promote electric vehicle adoption.
US funds study on deep sea mining for EVs, automakers split on their support
The U.S. government is exploring the potential of deep sea mining to provide rare earth elements crucial for future transportation technologies like electric vehicle batteries. Congress has approved funding to investigate the feasibility of extracting these minerals from the ocean floor. That could reduce America’s reliance on foreign suppliers like China, which currently dominates the global rare earth market.
Lawmakers are in discussions with representatives from the deep sea mining industry to understand how these elements could be processed domestically. However, this initiative faces opposition from environmentalists and some automakers due to potential ecological risks.
Greenpeace has raised concerns that deep sea mining could lead to ocean pollution and harm marine life. Prominent car manufacturers — including BMW, Volvo and Volkswagen — have expressed their opposition to using these ocean-derived resources. Instead, they are advocating for a moratorium on such exploration efforts.
💥Today, @GM board members vote against a proposal, requesting a report on the company’s use of deep-sea mined minerals. Does GM have a hidden division w/ ties to UAP & connections to Lockheed Martin's DSM operations? Is LM's move to divest from DSM related to UAP legal concerns? https://t.co/rT15Wiqjoc
General Motors (GM) opted to take a different approach. The company’s shareholders recently voted against a proposal that would have required GM to disclose its use of deep sea minerals. Tesla is also expected to address this topic during its upcoming shareholders’ meeting on June 13.
Proponents within the deep sea mining industry say that the potential environmental consequences of obtaining these materials from the ocean floor has been exaggerated. Some argue that whether the resources are extracted from land or sea, some level of impact is inevitable. They suggest that the relatively secluded depths of the ocean, which have minimal marine life and are far from human populations, could be a less disruptive option.
Humanitarian aid begins entering Gaza via US-built pier
The first shipment of humanitarian aid made its way across the United States’ newly built pier in Gaza, and at least four people are killed after severe storms hit the Houston area. These stories and more highlight The Morning Rundown for Friday, May 17, 2024.
Humanitarian aid begins entering Gaza via US-built pier
The initial aid shipment includes food bars for 11,000 individuals, therapeutic foods for over 7,000 malnourished children and hygiene kits for 30,000 people, aimed at assisting the 2.2 million residents of Gaza.
Also on Friday, Israel presented its defense at the United Nations’ International Court of Justice in the Netherlands, requesting the dismissal of South Africa’s plea for a cease-fire and the withdrawal of Israeli forces from Gaza. South Africa has leveled accusations of genocide against Israel for its actions against Hamas, which Israel has dismissed as unfounded and an insult to the gravity of genocide charges.
This marks the third hearing at the World Court since South Africa initiated its case in December.
French police shoot and kill suspect in synagogue fire
French police fatally shot a man Friday morning who was suspected of setting a synagogue on fire in Rouen, about 80 miles northwest of Paris. The man, armed with a knife and an iron bar, attacked officers responding to the synagogue blaze. An officer fired at the assailant, resulting in his death. The fire was subsequently brought under control.
While the motive of the suspect remains unknown, the incident occurs amidst an increase in antisemitic incidents in France since the beginning of the conflict between Israel and Hamas.
Severe storms in Houston kill four, knock out power for nearly 800,000 homes
Severe storms hit Houston on Thursday, May 16, resulting in at least four deaths, shattered windows in tall buildings and power outages affecting around 800,000 homes, leaving much of the city dark.
Houston’s fire chief attributed two deaths to fallen trees. Many residents are still without power this morning.
Mayor John Whitmire has advised citizens to stay inside and refrain from traveling due to dangerous conditions, as continuous rain causes flooding and strong winds damage the downtown area.
Whitmire said that city departments and first responders are actively addressing the situation, including removing live wires that blocked major roads Friday, May 17.
The Houston Independent School District has shut down all 274 of its schools for the day.
As the city begins to recover, crews are working to remove fallen power lines and debris. The National Weather Service has issued flood warnings for parts of southern Texas and expects additional heavy rainfall.
Trump to attend son’s graduation today; Cohen to return to stand Monday
The criminal trial of fomer President Donald Trump in New York will not see any developments Friday, May 17, as the former president is attending his son Barron’s high school graduation. The judge has permitted a recess for Trump to be present at the ceremony at Oxbridge Academy in West Palm Beach, Florida.
In Thursday’s five-hour session, Trump’s lawyer accused Cohen of lying to the jury, specifically about a phone call Cohen claimed to have had with Trump in 2016. The lawyer suggested that Cohen actually spoke to Trump’s bodyguard regarding a prank call incident.
Cohen maintains his account is truthful.
Looking ahead, prosecutors may conclude their case on Monday, May 20, after which the defense will proceed. It remains uncertain whether Trump’s legal team will summon any witnesses, including Trump himself, to testify.
General Motors, LG reach settlement with Chevy Bolt owners over batteries
GM introduced the Chevy Bolt in 2015, featuring batteries supplied by LG. In 2021, GM recalled the vehicles due to fire risks associated with the batteries. Production of the Chevy Bolt ceased last year as GM transitioned to developing new electric vehicles.
McDonald’s introducing Grandma McFlurry as company looks to improve sales
McDonald’s is introducing a new menu item, the Grandma McFlurry, in an effort to attract customers amid concerns about recent price increases. This limited edition dessert features syrup, vanilla ice cream and candy pieces, reminiscent of treats one might find in a grandmother’s purse.
The release highlights the current cultural impact of grandmothers, nodding to the “grandma-core” trend on social media where users embrace styles and activities typically linked to grandmothers.
Additionally, McDonald’s plans to launch a $5 value meal aimed at boosting restaurant traffic, following reports earlier in the week.
GM to end production of the Chevrolet Malibu after 60 years to make more EVs
General Motors (GM) has made an announcement regarding its Chevrolet lineup, marking the end of an era for one of its long-standing models. After a six-decade run and being driven by over 10 million individuals, GM has declared that production of the Chevrolet Malibu will come to a halt.
The decision to retire the Malibu is part of GM’s shift toward electric vehicles (EVs). The company cited the need to modify its plant to accommodate the increased production of EVs as one of the driving reasons it will no longer offer its iconic sedan.
“To facilitate the installation of tooling and other plant modifications, after nine-generations and over 10 million global sales, GM will end production of the Chevrolet Malibu in November 2024,” GM spokesperson Kevin Kelly said in a statement.
Instead, GM will be investing $390 million to upgrade facilities at its Fairfax Assembly Plant in Kansas so the company can roll out a new model of its Chevrolet Bolt — a smaller electric car, scheduled for release in 2025.
Apart from the Corvette, the Malibu was the last remaining traditional vehicle from Chevrolet available in the United States. In 2023, the car was purchased over 130,000 times, but that total reflected a nearly 10% drop-off compared to the prior year.
Not sold on fully electric vehicles? Some drivers are opting for a hybrid instead.
In 2023, the automotive industry reached a new milestone as electric vehicle (EV) sales hit record highs. However, through the start of 2024, hybrid vehicles are being purchased at a rate which surpasses that of their fully electric counterparts.
While EVs experienced a 13% increase in sales growth at the beginning of 2024, hybrids have nearly quadrupled that figure. Recent data from automotive inventory and information provider Edmunds indicates that hybrids are leaving dealership lots three times faster than EVs and twice as fast as traditional gas-powered cars.
Industry experts and automakers attribute this surge in hybrid sales to what they term a “halo effect” from EVs. That is referring to a wave of EV-curious consumers who, rather than committing to full electric vehicles, are opting for hybrids. This is because hybrids do not come with the same EV-related concerns such as battery range limitations and charger availability.
The affordability factor also favors hybrids in the current market landscape. In the past few years, the price gap between hybrids and gas-powered vehicles has narrowed substantially.
In 2007, hybrids were priced over 40% higher than traditional gas-powered cars. Now, that difference has decreased to just 9%. Compared to electric vehicles, hybrids are almost 50% cheaper on average, even before factoring in additional costs associated with EV ownership like home charger installation, maintenance fees and resale value uncertainty.
The recent surge in hybrid sales has prompted several automakers to reconsider their strategies regarding these vehicles. Nissan and Volkswagen are exploring the introduction of plug-in hybrids to the American market. General Motors — initially skeptical about the future of hybrids in its U.S. lineup — is now planning to roll out new models in North America. Ford is also gearing up to quadruple its hybrid sales over the next five years.
Despite the momentum gained by hybrids, electric vehicles are still anticipated to play a significant role in the future of transportation.
Projections suggest that EVs will surpass two-thirds of global car sales by the end of the decade. In the interim, however, consumers are turning to hybrids as a viable option to transition from conventional gasoline-powered cars amidst the ongoing shift towards electric mobility.
Safety survey raises serious concerns over automated driving features
A recent report has raised concerns about the safety and effectiveness of automated driving features in vehicles. Conducted by the Insurance Institute for Highway Safety (IIHS), the study examined 14 automated systems from various automakers, revealing significant shortcomings in their performance.
“Some drivers may feel that partial automation makes long drives easier, but there is little evidence it makes driving safer,” David Harkey, president of the IIHS said. “As many high-profile crashes have illustrated, it can introduce new risks when systems lack appropriate safeguards.”
Among the key findings, 11 of the systems evaluated received “poor” ratings, including Tesla’s Autopilot feature, while none attained the agency’s highest possible rating of “good.” Only one system developed by Lexus was deemed “acceptable” by the IIHS.
“We evaluated partial automation systems from BMW, Ford, General Motors, Genesis, Lexus, Mercedes-Benz, Nissan, Tesla, and Volvo,” Harkey said. “Most of them don’t include adequate measures to prevent misuse and keep drivers from losing focus on what’s happening on the road.”
One of the concerns highlighted in the report was the systems’ inability to effectively handle inattentive drivers. The study found that none of the automated systems adequately monitored for distracted drivers, with some even exacerbating the problem by making lane changes without driver input, further disengaging those behind the wheel.
The IIHS also pointed out other safety lapses, such as features working despite drivers not wearing seat belts and vehicles maintaining high speeds even when drivers were not paying attention for extended periods of over half a minute.
Some automakers disputed the findings in response to the report, insisting these features are safer than what has been claimed. Citing its own data, Ford said that its cars with automated features are 10 times less likely to swerve out of their lane.
However, the IIHS emphasized the importance of its rankings in informing consumers about potential hazards associated with automated driving features, especially considering the current lack of regulation by the National Highway Traffic Safety Administration.
“These results are worrying, considering how quickly vehicles with these partial automation systems are hitting our roadways,” Harkey said. “But there’s a silver lining if you look at the performance of the group as a whole. No single system did well across the board, but in each category, at least one system performed well. That means the fixes are readily available and, in some cases, may be accomplished with nothing more than a simple software update.”
The IIHS hopes that its testing will help educate the public about the safety limitations of each automaker’s version of this technology, aiming to promote greater awareness and informed decision-making among consumers.
EPA mulls EV transition delay amid pushback from lawmakers, automakers
A bipartisan rally in Ohio on Thursday, Feb. 22, highlighted growing opposition to the Environmental Protection Agency’s (EPA) proposed emissions standards. These regulations aim to mandate that two-thirds of new vehicles sold in the U.S. be electric by 2032. However, the rules have drawn criticism from lawmakers and autoworkers who argue that the timeline is overly ambitious.
“It’ll be devastating for working class people because it’s going to cost them their jobs, it’s going to mandate that they buy electric vehicles, which are much more expensive and a lot less reliable for the things that they need to do to live and work every day,” Ohio Lt. Gov. Jon Husted said. “You see that this is a bipartisan group of people who are saying no to the Biden administration’s EPA mandates that would mandate 67% of cars be electric by 2032, which means that industry has to start immediately changing.”
In addition to the demonstration in Ohio, over 130 members of Congress have penned a letter to President Joe Biden and EPA Director Michael Reagan, expressing concerns from both sides of the aisle about the feasibility of the emissions plan.
“We write to highlight the failures of this Administration’s hasty and costly transition to electric vehicles,” the group of lawmakers wrote. “This rule is contradictory to all conventional predictions about where the automobile industry is headed in the coming years, including this administration’s own Department of Energy.”
The congressional members contend that the proposed regulations are “unrealistic” and “absurd.” The letter argues this rule could have adverse effects on American families and businesses, while potentially increasing reliance on foreign markets, particularly China. The lawmakers also pointed to federal energy reports which predict that only one out of five new vehicles will be EVs by 2050.
Amid this pushback, reports indicate that the EPA is considering delaying the implementation of the emissions plan until after 2030 to allow automakers more time to comply. Under this revised timeline, regulations would ramp up sharply to achieve the goal of EVs comprising 67% of U.S. new car sales by 2032 and create roughly the same greenhouse gas reductions as the original proposal by 2055.
The initial plan, which would have begun impacting vehicles manufactured in 2027, prompted major automakers like Ford, Stellantis, and General Motors, along with the United Auto Workers union, to request a deadline extension.
However, environmental advocates argue that delaying the implementation of this intuitive comes with risks of its own.
Dan Becker, the director of the Safe Climate Transport Campaign at the Center for Biological Diversity, told The Washington Post that waiting until 2030 will result in “more pollution, more sick kids, more global warming, [and] more oil use.”
Organizations like the Sierra Club have urged the EPA to move forward with its original plan, emphasizing the detrimental effects of air pollution on public health.
These groups say that over 137 million Americans, more than one-third of the nation’s population, are currently exposed to harmful levels of air pollution, which stricter emissions standards could help alleviate in the short term.
“We need strong clean car standards to deliver vital relief that the most highly impacted communities demand and deserve,” the Sierra Club wrote. “The United States is the world’s second largest country emitter, and transportation is the largest portion (29%) of total US greenhouse gas emissions.”
A decision on what these regulations will ultimately look like has not been made yet. The EPA’s final ruling on emissions regulations is expected by March at the earliest.
2023 EV sales broke records, but experts are warning of slow growth in 2024
Electric vehicle (EV) sales in the United States reached unprecedented heights in 2023, but the figures still failed to meet some forecasts. Despite setting a new record, the total number of EV sales in 2023 fell short of expectations by as much as 800,000 units.
“We’re seeing record sales, they’re less than expected, and that’s simply because the auto manufacturers ignored the typical technology adoption cycle and assumed that EVs adoption would somehow be different than the way people generally adopt technology, and of course, they’re not,” Pat Ryan, CEO of AI car shopping app CoPilot, told Forbes.
Experts anticipate a slower growth trajectory for the EV market in 2024. While January EV sales figures were up from a year prior, they dropped by 14% when compared to December. Bloomberg forecasts a 32% year-over-year increase in EV sales in North America throughout this year, down from the previous year’s growth rate of 47%.
“There clearly is a stalling of some demand and buying patterns in the EV industry,” said Dan Ives, managing director at wealth management advisory firm Wedbush Securities. “This EV buying cycle will clearly be a tougher and longer evolution as it plays out in the market.”
As these reduced growth projections are being made, several key industry players have reassessed their EV strategies. General Motors has scaled back its EV production targets and delayed the rollout of its electric pickup trucks. Similarly, Ford has announced a reduced production of its F-150 Lightning by half and canceled or postponed $12 billion in upcoming EV investments.
Meanwhile, car rental service Hertz announced it will sell off one-third of its EV fleet, reversing course on a prior initiative to make a quarter of its vehicles electric by the end of 2024. Even Tesla, the leader in global EV sales, anticipates “notably lower” growth rates for vehicle sales in 2024.
While worldwide EV sales are still expected to surpass previous records in 2024, potentially exceeding 2023’s total by more than 2 million units, those in the EV industry seem to be proceeding with caution heading into this year.