Volkswagen’s EV production woes in Germany continue. Volkswagen announced it’s pausing EV production at its German plant due to a lack of electric motors.
Volkswagen halts EV production at German plant
After halting EV production at its Dresden site last month, Volkswagen is pausing output of several electric motels at another plant in Germany.
Volkswagen is pausing EV production at its Zwickau plant for roughly three weeks. The reason? A lack of electric motors. A VW spokesperson toldReuters, “The production of e-drives at the Volkswagen Group Components site in Kassel is currently only possible to a limited extent.”
The halt in manufacturing will impact VW Group electric models, including the Audi Q4 e-tron (and Sportback) and the Volkswagen ID.4 and ID.5 models.
According to the source, the electric VW ID.3 and Cupra Born are not affected by the shortage.
Zwickau is Volkswagen’s largest EV production site in Europe. The automaker announced a nearly $1.3B investment in 2018 to transform the plant to build electric models.
However, higher interest rates and fewer subsidies are leading to diminishing demand for the VW brand. Volkswagen cut around 300 employees from its Dresden plant at the end of October, citing slowing orders.
The news comes after VW already planned to shut down a production line at Zwickau over the holidays due to low demand.
Although electric car deliveries rose 45% in the first nine months of the year, the company’s CFO, Arno Antilitz, said EV orders in Europe were down to 150,000. That’s 50% fewer than last year’s total of 300,000.
VW’s EV sales share reached 9% in the third quarter, putting it on track to hit its goal of 8%-10% in 2023.
Electrek’s Take
Although many headlines are pushing slowing EV demand due to automakers like Volkswagen, Ford, and GM delaying production and EV targets, that’s not exactly the case.
Higher interest rates, combined with Tesla’s drastic price cuts this year, are making it tough for competitors to keep up.
Tesla’s Model Y remained the best-selling car (gas or electric) in September on its way to becoming the top-selling vehicle globally this year.
Tesla had a head start and is using it to its advantage with higher volumes. By driving down prices, the EV leader is making it challenging for rivals to compete.
Meanwhile, Europe accounted for 61% of VW electric models sold through September. In second was China, the company’s largest market for profits. Although deliveries were up slightly (+4%) in China, Antilitz said VW could lose market share until new EV models with XPeng roll out.
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GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.
GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.
As far as these latest orders go, the breakdown is:
seven to Los Banos Unified School District in Los Banos, California
two for the Hood River County School District in Hood River, Oregon
two for the Casa Grande Elementary School District in Casa Grande, Arizona
Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.
“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”
GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.
Electrek’s Take
Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”
All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.
While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.
It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.
The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.
“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”
The company has raised $200 million since its inception in 2021.
There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.
The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.
“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”
In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”