Tom Cuthbert

Why Volkswagen Is Investing Up to $5 Billion in Rivian Volkswagen plans to invest up to $5 billion in Rivian to bolster its technology portfolio, providing much-needed cash for Rivian and gaining software development expertise in return. Rivian, which began delivering its debut electric pickup in 2021, has faced production and funding challenges, leading to delays in its planned Georgia assembly plant. The agreement includes an immediate $1 billion investment, followed by additional investments and loans totaling $4 billion through 2026. This collaboration aims to reduce vehicle production costs for both companies and utilize Rivian’s software and electric architecture in Volkswagen’s vehicles, with the first joint venture vehicles expected to launch in the late 2020s. Following the announcement, Rivian’s shares surged by approximately 40% in pre-market trading. https://lnkd.in/eYt9nXtd

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Toyota Motor Corporation's "Area 35" initiative is a flexible manufacturing strategy aimed at significantly increasing its electric vehicle (EV) production capacity to 3.5 million units by 2030. 𝑇ℎ𝑖𝑠 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ 𝑒𝑚𝑝ℎ𝑎𝑠𝑖𝑧𝑒𝑠 𝑓𝑙𝑒𝑥𝑖𝑏𝑖𝑙𝑖𝑡𝑦, 𝑎𝑙𝑙𝑜𝑤𝑖𝑛𝑔 𝑇𝑜𝑦𝑜𝑡𝑎 𝑡𝑜 𝑎𝑑𝑗𝑢𝑠𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑑𝑒𝑚𝑎𝑛𝑑, 𝑤ℎ𝑒𝑡ℎ𝑒𝑟 𝑓𝑜𝑟 𝐸𝑉𝑠 𝑜𝑟 𝑜𝑡ℎ𝑒𝑟 𝑣𝑒ℎ𝑖𝑐𝑙𝑒 𝑡𝑦𝑝𝑒𝑠. 𝐅𝐥𝐞𝐱𝐢𝐛𝐥𝐞 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠: Toyota plans to implement adaptable production lines capable of manufacturing various vehicle types, including EVs, hybrids, and internal combustion engine vehicles. This flexibility enables the company to respond swiftly to market shifts and consumer preferences. 𝐂𝐨𝐬𝐭 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲: By integrating flexible manufacturing processes, Toyota aims to reduce production costs. This strategy involves optimizing resource allocation and minimizing the need for separate production facilities for different vehicle types. 𝐒𝐜𝐚𝐥𝐚𝐛𝐥𝐞 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧: The initiative is designed to scale production volumes up or down efficiently, ensuring that Toyota can meet varying levels of demand without incurring unnecessary expenses. This initiative meets the criteria for a 𝐟̲𝐥̲𝐞̲𝐱̲𝐢̲𝐛̲𝐥̲𝐞̲ ̲𝐦̲𝐚̲𝐧̲𝐮̲𝐟̲𝐚̲𝐜̲𝐭̲𝐮̲𝐫̲𝐢̲𝐧̲𝐠̲ ̲𝐬̲𝐭̲𝐫̲𝐚̲𝐭̲𝐞̲𝐠̲𝐲̲*, which is a broader, overarching approach to manufacturing that emphasizes adaptability and responsiveness to changes in market demands, product specifications, or production requirements. It's a long-term, high-level strategy that guides how a company organizes its manufacturing processes and resources. This strategy reflects Toyota's commitment to maintaining its competitive edge in the evolving automotive industry by balancing innovation with operational efficiency. * Flexible manufacturing is primarily about how products are made, while 𝐚𝐠𝐢𝐥𝐞 𝐦𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 extends to why and for whom products are made, focusing on meeting market dynamics and customer expectations https://lnkd.in/d_bWwg8Y #Toyota #EVProduction #Area35 #SustainableMobility #FlexibleManufacturing #AutoInnovation #FutureCars

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#Battery Manufacturing Bottlenecks - Based on our analysis and work we've done with a few clients, PSF analyzed material inputs, subcomponents, and industrial processes involved in the battery manufacturing lifecycle. Our goal: identify key vulnerabilities and bottlenecks that could impact the U.S. industrial base. Here are some critical insights we have validated: Material Inputs: Lithium, nickel, cobalt, and graphite are heavily reliant on foreign supply sources and face critical shortages others. Subcomponent Production: Essential components like cathodes and anodes are predominantly produced in countries like China with limited suppliers in the U.S. or allied nations. This is especially an issue in national security focused supply chains. Recycling Challenges:  The U.S. lacks a mature battery recycling industry, leaving valuable minerals wasted in landfills. While these are not the only vulnerabilities in the battery supply chain, they represent key areas for potential investment to strengthen U.S. resilience and reduce reliance on foreign sources. There's a lot more to be said. Let me know if you have any other thoughts or would like to provide input. #emeringtech #batteries #electricvehicles #cleanenergy Eric Wachsman Charlie Stockton Ben Chiu Patricia Grospiron Mike Freeman Andrew Higier Ph.D.

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The BMW i3 REX was the first attempt to market an extended-range EV—a BEV with a generator—but it didn’t quite succeed. Can larger EREVs improve both GHG emissions and consumer acceptance while reducing dependence on DC fast charging? The answer may lie beyond technology alone. New policy tools that reflect real-world fleet performance can encourage OEMs to support frequent charging and earn credits when they do. Current tools, like utility factors and supply-side regulations, are not a sufficient starting point, but many OEMs are exploring promising new technologies, engines, and fuels that may show potential for deep GHG reductions with regular charging may not be a good starting point, but many OEMS are testing new technologies, engines and fuels that shows high potential. https://lnkd.in/gzrMpFBA

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UI regularly get asked ‘why do you have a hate-on for EVs’? I actually spent time during a lecture explaining my position. The fact is, I don’t have a ‘hate-on’… although I think they are sluggish in their handling and quality could be better, most EVs are crazy fast and a hoot to drive. We are nowhere near cost parity in Canada however that’s for another discussion. I do have a ‘hate-on’ with the EV rollout. It’s becoming apparent that the ‘Fields of Dreams’ approach to the sector will result in significant losses to the industry. Not to mention, Govt of Canada’s investment will take much longer to monetize, if at all. In the end, the bitter pill from this experience may likely further delay electrification. Why- no transition strategy! Where the risk averse folks at Honda and Toyota got it right again: ICE—> Hybrid—> future EV, gas guzzling pick up truck sales are keeping companies such as Ford and GM afloat… while VW is losing its most important consumer market; China, because of their wrong mix of product offerings. Note- China deployed a leep frog strategy and has basically skipped over the ICE industrialization phase, using a greenfield approach (and a lot of govt capital) to enter the mkt, flooding the market with capacity. Unfortunately I am seeing a repeat of 2009/10 all over again… capital sitting idle/stranded with brands forced to exit from the market… Lastly, I am tired of the silliness I see in industry when it comes to SCM. Most decisions are reactionary and with little thought, risk management or transition strategy . This is just the latest example. Anyhow, the linked video does a great job explaining the current state of affairs. Feel free to continue the dialogue. #supplychain

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EVs market growth slowdown is not because of inadequate electricity charging infrastructure as in this article, rather it is because EVs are unsafe as noted from the battery fire incidents that destroyed cars, charging stations, sometimes houses. The EV companies have not found any way so far to overcome the thermal runaway fires and their cunning tactic so far trying to signify it lowly by falsely comparing with ICE fire incidents is now well understood by general public. There won’t be any future for EVs until unless this thermal runaway fires on batteries is addressed

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Rivian and Volkswagen’s $5.8 billion joint venture exemplifies a strategic collaboration aimed at accelerating electric vehicle (EV) innovation. Rivian brings to the table its advanced EV architecture and software, developed through substantial investment, which supports efficient power management, advanced driver-assistance systems, and seamless over-the-air updates. Volkswagen contributes global reach and manufacturing prowess, enabling the new technology to scale quickly across international markets. This collaboration allows both companies to reduce development costs and leverage shared resources, a crucial advantage in the capital-intensive EV industry. For Volkswagen, the partnership is a pathway to expedite its EV goals without building all elements from scratch. By incorporating Rivian’s technology into its lineup, Volkswagen can enhance the appeal of its future models, including the new Scout brand in the U.S. market. Rivian, meanwhile, gains a broader market presence and a steady revenue stream, potentially offsetting its current financial challenges. However, there are risks. Rivian is offering a core asset that might dilute its competitive edge, while Volkswagen depends on an entity it cannot fully control for crucial technology. Despite these concerns, the alliance strategically positions both companies in the competitive EV landscape, combining innovative technology with extensive market reach to push the industry forward. #evpartnership #rivian #volkswagen #electricvehicles #innovation #jointventure #evtechnology #automotiveindustry #scalability #marketreach #sustainability #costreduction #riskanalysis

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I'm a fan on EV's. But I'm increadibly dissapointed in the engineering rigor and structure behind many of them them that leads to a lack of innovation. The automative manufacturers rely too heavily on their supply chain, do not do enough of the development in house, and it hinders development velocity leaving the customer with a lackluster product. Ooo nicer trim - color material, finish for the up sell? Piff. I worked in the automotive industry - first when I was designing a folding motorcycle in one of my startups, and second designing semi truck parts at Paccar. I have first hand perspective on how the industry operates and doesn't. I have a 2007 F350 I bought used, and was costing me about 1200$/mo to drive in fuel, not including other petrol based maintenance costs. So I bought a Chevy Bolt for ~30k. It was the very first vehicle I bought brand new for me. Net of everything with the purchase I was saving over 800$/mo. A huge win, and I've been able to allocate those funds back into my company. The bolt is such a fun car to drive, second only to my old RX8. But the frustrating thing? When I bought the car "they'll be software updates adding new features", proclaimed the salesman. Instead, there was a massive push on them for me to purchase Onstar (I didn't), and it's been over 7 months since I've seen any update. The automotive industry is missing out on a massive monitization opportunity. There's over 4.2million miles of roadway in the US which people spend millions of hours on everyday, in a vehicle. And yet, we're still listening to FM radio with commercials as the primary source of passive entertainment or connecting a phone and playing music through a streaming service. There's a massive lack of innovation, and that will change when automaters start inhousing more development.

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Rivian faces more layoffs, indicating another down cycle for the EV maker in the past 3 years. Too many hiring and firing cycles in short span. Despite having wonderful products and a great following, their potential in the Auto sector seems hindered by challenges in planning and execution. Reports from employees at the Normal, IL plant suggest an environment of organized chaos on the shop floor. What are your thoughts on this situation? Any advice for Rivian to streamline their processes and navigate through these turbulent times? #Rivian #EV #AutoSector #Challenges #Planning #Execution #Layoffs

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Steering wheel goes wild under its own power -- Unintended steering due to improper manufacturing calibration. (Ford / NHTSA Recall 24V-493) From the department of you don't need "self-driving" for your software to try to kill you. Piecing together the scant information in the recall report, it seems that a supplier manufacturer inverted wires used to set up steering wheel sensors, resulting in an "inverted polarity" in the sensor. In other words right and left were swapped on the sensor. This sensor was installed in steering power assist in 30K+ Ford Mustangs. So if you pull left, the sensor telling the power steering what you wanted to do thinks you meant to pull right, and the converse. Under some conditions, this means the steering wheel fights you. Or worse, because if the steering wheel pulls hard, you're likely to pull even harder the other way. "The steering wheel may begin oscillating without warning (alternating clockwise / counterclockwise) when the driver attempts to steer. The oscillation results from the electronic power steering gear providing unintended steering assist." I'm aware that a standard aircraft check is to make sure the control stick is wired to the control surfaces without reversed controls. First time I've heard of this happening for a production ground vehicle. NHTSA Recall report: https://lnkd.in/enM2BA6T https://lnkd.in/edEEshGJ

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Concerning results from the recent J.D. Power 2024 U.S. Vehicle Dependability Study (VDS) reveal the deteriorating dependability of vehicles. Frank Hanley, senior director of auto benchmarking at J.D. Power, highlights surprising findings, noting the increase in problems when comparing J.D. Power studies across 90 days and three years. In 2023, there was a 12% increase in issues from 90 days to three years of ownership, with a further rise to 17% in 2024. The five-percentage-point deterioration compared with 2023 underscores a worsening trend. Customers are experiencing more problems, on average, not only with new technology, but also with issues thought to be resolved long ago. Explore further into Frank Hanley’s article on WardsAuto:

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Amplify Cell Technologies will build enough batteries for 40,000+ electric trucks annually. If you don't think electric Class 8 Semi trucks and tractors are real, then you need to look very carefully at this new JV between 3 very traditional truck OEMs. Amplify Cell Technologies is the new joint venture between PACCAR, Daimler Truck North America and Accelera by Cummins which will produce 21GWh of LFP batteries annually from 2027. To give some sort of scale, if each truck has, on average, a 500 kWh battery, this would be enough for 42,000 trucks annually. In my mind, this average seems about right, as we'll see Class 4 and 5 delivery vans with around 200kWh batteries, while Class 8 long haul tractors will be 800kWh or more. Tesla has said they are aiming to build 50,000 Semis annually. Interestingly, Amplify will focus on LFP cells, which are significantly heavier, but are cheaper and last longer than NMC cells. In other words, they're happy to sacrifice payload for low cost and longevity, a very different path from what Tesla is taking with Semi. By manufacturing batteries at scale in North America we will very likely see the cost come down significantly. We know Tesla will likely charge $250,000 for their truck, and Chinese developed Windrose Technology will likely be the same, which will mean these guys need to be around that price point too. From my research, this price point for EV trucks will yield hundreds of thousands of dollars in savings for operators over the life of the truck, before incentives are included. Do you think this battery factory will be a great enabler for electric trucking? Let me know your thoughts in the comments below #automotive #batteries #climatechange #electricvehicles #innovation #sustainability #cleanenergy #renewableenergy More here https://lnkd.in/gQru_2EZ

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Quote: "Unfortunately, nobody knows whether either of these technologies — the partial automation available to consumers or the driverless vehicle fleets deployed on a more limited basis — are safe. Federal regulators have struggled to stay ahead of the risks that come with innovations. Commonsense guardrails are missing, and a lack of crash-reporting requirements have left researchers like [the author] without the robust data we need to evaluate the safety of these systems." (The author acknowledges the SGO, but rightly points out that Tesla data entries are redacted to the point of being essentially meaningless, and other data reporting requirements could be strengthened.) This piece argues for NHTSA to take action. I note that NHTSA has recently looked into Cruise, Waymo, and Zoox. That's a start -- but we need to see follow through. And I'll remind everyone once again that a NHTSA ANPRM from December 2020 on this very topic remains gathering dust with no response from NHTSA on the hundreds of public comments made. https://lnkd.in/eZdt4jcc

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Microvast announce a breakthrough in their solid state battery with a bipolar design. Toyota have been in production with a bipolar NiMh based pack since 2021 and are due to make a bipolar LFP based pack that will go into production in 2026. 🔋 Bipolar improves cost (~10% cheaper) 🔋 Reduces DCIR of the pack (large area connections between cells) 🔋 Improves volumetric and gravimetric energy density Looks like this is going to be a key page that has many sub-posts over the next few years. https://lnkd.in/eF9fNGCm #batteries #batteryresearch #research

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Before anyone gets triggered by seeing the words "Trump" and "EV" in the same sentence, understand this post has less to do with Trump and more to do with the wise opinion of Toyota North America's COO Jack Hollis. Their responsible approach to making significant positive environmental impact through providing zero emission vehicles, hybrids, and other options - instead of a one-size-fits-all solution - is a position I wish our regulatory bodies supported. For the last 4 years, both state and federal leadership have been so obsessed with electrification that it left very little room for other alternatives to providing the emission reducing transportation options we desperately need today. While there is indeed a solid use case for electrification (I just purchased my first EV for personal use as a daily driver), unrealistic regulations that favor a single carbon-reducing option over all others delays our ability to begin making a significant impact today. I agree with Toyota's approach - make affordable vehicles with a variety of options and replace EV mandates / subsidies that promote choice while contributing significantly to emission reduction. The goal of a zero emission society, despite best efforts, is still a long way off. So let's don't let perfection get in the way of progress - a consumer-driven market will bring more stability and healthy competition to the auto industry, steady employment for workers and dealers, and more options for American families. And most importantly, it will have a larger positive impact on the environment starting today. #sustainability #alternativefuels #electrification #options #emissionreduction #emissions #toyota

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Rivian has a newsroom article on their website dated October 2023 that announces their new #manufacturing plant for #electricvehicles is under construction in Rutledge, GA, about 40 minutes east on I-20 from Atlanta.   The plant was announced as having 400,000 units of capacity, which seems to be the number that everyone wants to promise, these days. https://lnkd.in/e_ZXna_R In early March, Rivian announced that it will pause construction of its $5B plant indefinitely. Forbes article from 7 March below. https://lnkd.in/e8JcE2UR Now, in the attached article from Electrek.co, Rivian says that they are still committed to building their electric vehicle plant in GA but that it is just delayed a bit.   While the fully electric automakers – Rivian, Lucid Motors, Tesla – lay off employees and scramble to limit costs, the legacy #automotiveindustry is more prepared to pivot when needed. They were prepared to go fully electric to satisfy US Environmental Protection Agency (EPA) regulations, but when the regulations changed to something less aggressive, the legacies curtailed fully-electric plans and shifted toward hybrids.   The replacement for Stellantis’ 700-HP, Hellcat-powered Ram TRX is the Six-Cylinder Ram RHO. The Dodge Challenger is going fully-electric. The Ford F-150 has gasoline, hybrid, and fully-electric versions. BMW Group has hybrid and fully-electric versions of just about all of their ICE models. Mercedes-Benz AG has a fully-electric model line running in parallel to their ICE / hybrid line.   You can’t put all of your eggs into one basket until there’s demand for that type of basket.   I’ve said it before, and I’ll say it again: If the infrastructure is ever built and the #technology ever supports it, the long-term will be fully-electric vehicles, but the mid-term future for the US is hybrid-electric vehicles with longer electric range. Most plug-in hybrids have under 50 miles of range. I expect to see that number climb to over 100, in the next few years. Having an ICE attached to your #batteries will limit range anxiety yet still accomplish the emissions goals that fully-electric vehicles provide for 80% of consumers’ driving needs. #automotive #transportation #sustainability #cars #alternativeenergy #innovation

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***Lucid Motors Secures Strategic $1.75B Capital Raise Despite Market Skepticism*** -According to CNBC, luxury EV maker Lucid Group has raised $1.75 billion through a public offering of 262.5 million shares despite facing temporary stock volatility. CEO Peter Rawlinson emphasizes this was a strategically timed decision, not a desperate move, extending the company's runway into 2026. From an automotive industry perspective, this capital raise is crucial for several reasons: -Strategic Timing: With $5.16B in total liquidity already available, Lucid is raising capital from a position of strength rather than necessity. This proactive approach is critical given the capital-intensive nature of the EV industry. -Critical Growth Initiatives: Expansion of Arizona manufacturing facility. Construction of Saudi Arabia plant. Launch of the new Gravity SUV. Development of next-gen powertrain. Expansion of retail/service network. -The messaging around this raise is particularly significant because: It demonstrates continued confidence from major investor PIF (Saudi Arabia's Public Investment Fund), which maintained its 59% ownership stake It provides a clear runway through 2026, coinciding with Lucid's planned midsize platform launch. It helps avoid future "going concern" issues that could damage investor confidence. Despite short-term market reaction (18% stock decline), this financing strengthens Lucid's position in the competitive EV landscape, especially as the company ramps up production of its Air sedan and prepares to launch the Gravity SUV by year-end. The company is targeting 9,000 vehicles for 2024 production. This balance of operational execution and strategic financial planning is critical in the capital-intensive EV sector, where having sufficient funding for growth initiatives can make the difference between success and failure. #automotivenews #manufacturingengineering #automotivemanufacturing #lucidmotors #automotivemanufacturing

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Waymo - my autonomous car experience in San Francisco has been stellar! It has far exceeded my expectations. Going by my 40+ years of safe driving record .. I am not shy to state it does better than me. - Perfectly dealt with all complex situations to date. Examples - pulled over when it heard an ambulance approaching from the rear. - multi-stop trip - trip pricing comes out same if not better than Uber - an Uber can cancel on you last minute at busy times - extending your wait based on the human driver’s needs/options. The Waymo always shows up! The only feedback I have provided is that the autonomous car, when appropriate needs to provide feedback to the external environment to build trust e.g. the pedestrian on a sidewalk looks to make eye contact with a driver. Provide the ‘I see you alert’ (visual, color, audio) to the pedestrian. #autonomy #autonomouscar #driverlesscar #intelligentfeedback #waymo

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