Europe’s largest automaker, Volkswagen, is delaying plans for a fourth EV battery factory for now. CEO Oliver Blume said the decision was based on market conditions in Europe.
Volkswagen pushes back fourth EV battery plant plans
The Volkswagen Group announced plans to open six gigafactories by the end of the decade. VW has already chosen three sites, including one in Salzgitter, Germany, another in Valencia, Spain, and the most recent in St. Thomas, Ontario.
Volkswagen initially planned for the third to be in Europe but chose North America to take advantage of IRA incentives.
The company has been searching for its fourth in Eastern Europe for over a year, considering sites in the Czech Republic, Hungary, Poland, and Slovakia.
Although the Czech Republic has been pulling for VW to establish a plant, officials said they could not wait any longer and would offer the site to others. The news comes after Blume met with Czech officials this week, according to Automotive News.
Blume explained that “there is for the time being no business rationale for deciding on further sites.” VW CEO said the decision was “based on market conditions, including the sluggish ramp up of the BEV market in Europe.”
(Source: Volkswagen PowerCo)
Volkswagen is already in the middle of building three facilities. Blume said the three plants have up to 200 GWh production capacity annually.
The news comes after the company’s CFO, Arno Antlitz, said EV orders were down 50% in Europe from 300,000 last year to 150,000.
(Source: Volkswagen)
Europe is Volkswagen’s biggest EV market, accounting for over 60% of global sales. Its second largest, China, is also at risk. Antlitz explained the automaker could lose market share in the region until new models with XPeng begin rolling out.
Electrek’s Take
Volkswagen delaying its fourth EV plant comes after several major automakers, including Ford, GM, and Toyota, pushed back their own plans.
Ford said it would push back its 600,000 EV run rate goal for another year while delaying around $12 billion in planned manufacturing investments.
GM is delaying production of the Equinox EV, Silverado RST EV, and GMC Sierra EV Denali. Both automakers revealed battery plant delays as well.
Toyota announced Wednesday it’s cutting its EV sales forecast for the fiscal year by nearly 40%. The Japanese automaker said the move was due to the “intensifying price war” in China.
Despite this, Toyota surprisingly invested an additional $8 billion into its North Carolina EV battery plant, bringing the total to roughly $13.9 billion.
Automakers investing now will see the benefits as EV adoption is only expected to continue climbing from here on out. Those delaying plans now will fall further behind as leaders like Tesla and BYD rapidly gain market share globally.
Volkswagen cited “sluggish” EV sales in Europe, but Tesla’s Model Y was the best-selling passenger vehicle (gas or electric) in September. This is the sixth time the EV has earned the title in nine months. How is that so?
Tesla is building EVs people want to buy, providing value to customers. Meanwhile, some buyers are not seeing the value in Volkswagen’s EVs. The automaker has struggled with software and other features, which has led to sluggish orders. That’s not to say Volkswagen EVs are bad. They are just lacking that Tesla-like appeal.
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Beginning with TEC Equipment in Fontana as the company’s only certified EV dealer in July 2021, Volvo Trucks’ BEV sales network has expanded quickly to 83 certified locations across 33 US states and four Canadian provinces, with four new dealer groups recently joining the program and another 13 rooftops currently in the certification pipeline. Those dealers have helped Volvo Trucks gain a leading position globally and maintain more than 30% market share in the North American electric truck segment over the past five years.
“Reaching this milestone is a testament to our customers’ commitment to sustainable transportation and our dealer network’s dedication to supporting them every step of the way,” explains Peter Voorhoeve, president, Volvo Trucks North America. “The path to zero emissions is shaped by market conditions, which are moving slowly. We remain committed to our vision to create a world we want to live in by using zero emissions solutions in combination with fuel efficient combustion engines with reduced climate impact. Solutions that will work for our clients where sustainability meets affordability.”
So far, those dealers have deployed over 700 battery electric semi trucks (out of 5,700 globally) that have logged more than 20 million zero-emission miles and eliminated an estimated 34,000 metric tons of CO2 – the equivalent of over 7,000 passenger cars.
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Electrek’s Take
Via Volvo Trucks.
I’m struggling to reconcile Volvo’s true net zero rhetoric and seemingly dedicated push towards progressive and sustainable business practices with the US branch’s recent attempts to weasel out of their deal with California and, more specifically, CARB. Volvo is a leader in this space, and they should also lead by example where it matters.
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ALSO, the electric bike spin-off from EV-maker Rivian, just dropped some welcome news: a more affordable version of the bike is coming. Officially called the TM-B, the new model will launch at $3,500, coming in a full $1,000 under the previously announced $4,500 TM-B Performance we saw last month.
While the Performance model leaned heavily into premium components and higher output, the new TM-B appears designed to bring the platform’s eye-catching design to a wider audience.
The TM-B includes much of the same design and basic feature set as the TM-B Performance, though the $1,000 lower price tag does come from the company filet-ing a few corners. The bike drops from the 10x assist of the Performance edition to just 5x assist (presumably meaning half the power, but it’s hard to say since e-bike companies generally don’t list power as a multiple of rider input). It also has a smaller battery, more basic coil spring shock instead of the nicer and lighter air shock, fewer ride modes, and doesn’t come with the same premium styling options.
The bike does retain ALSO’s interesting drive-by-wire solution though, which means that there isn’t a physical connection between the pedals and the bike. Instead, riders turn pedal cranks connected to a generator that converts pedaling energy into electrical energy to feed the rear wheel through a Gates carbon belt drive.
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Hydraulic disc brakes along with ABS-braking come standard on both models, and the cockpit includes a compact color display with app connectivity, offering basic ride metrics and configurable assist modes.
ALSO hasn’t committed to an exact delivery date, but reservations are now open.
Electrek’s Take
A $3,500 entry point is undeniably better news for fans of ALSO’s design language who weren’t ready to shell out $4,500. However, I still seem to be one of the few in the industry who are hesitant to believe there is a path to profitability here. Americans don’t buy $4,500 e-bikes, at least not in high volume, and they don’t really buy $3,500 e-bikes, either.
It’s not that the bike isn’t worth it – ALSO’s engineers should be commended for stuffing a crazy amount of tech and innovation into this bike. But it simply won’t matter when the bike doesn’t sell very many units and ALSO has to keep making payroll on its huge workforce comprised of many expensive engineers and other tech roles. It’s very close to the same playbook that we watched sink other tech-forward e-bike companies like VanMoof, which went bankrupt after it couldn’t keep up with servicing its expensive and proprietary e-bike tech while trying to float a massive workforce.
Frankly, I’m a bit confused. Most basic e-bike media seems to be going nuts over the thing, and I’m the only one pointing out that the king appears to be walking around naked.
Also, the timing here is… odd.
Good news usually gets announced on a Tuesday morning, not sent to us at 4:56 PM on a Friday, right as everyone logs off and heads into the weekend. The classic “Friday news dump” is where companies hide things they don’t want attention on – not where they brag about slicing $1,000 off the entry price of a new model. A head scratcher all around.
Either way, a lower-priced TM-B is objectively good news. The problem is, it might just be shouting into the wind.
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Founded in 1689, Husqvarna was a musket maker for the king of Sweden – but now, the company best known for quirky motorcycles and commercial riding mowers is becoming an innovator in the field of robotics, and its latest fleet of electric autonomous mowers are eager to get grazing.
Husqvarna’s autonomous lawnmowers made history earlier this year at the AIG Women’s Open, when they became the first autonomous groundskeeping solution to see duty during a UK Major golf week.
“At the AIG Women’s Open, the Husqvarna portfolio is helping us deliver this goal through improved resource management, regular lightweight mowing and reduced carbon usage,” explains Royal Porthcawl’s Course Manager, Ian Kinley, who has championed the use of robotic technology at the course. “With the AIG Women’s Open set to be the largest-ever women’s sporting event in Wales, we know there’s tremendous pressure to produce playing surfaces that are worthy of such a high-profile event.”
Events like the AIG Women’s Open are proving that the little robot Huskies can get the job done quietly, sustainably, and with significantly less operator input. As such, you’d think everyone at Husqvarna would be excited about them.
You’d be wrong. The company’s franchise dealers have been hesitant to push them forward, effectively putting the parent company in the position of going B2C, or going home.
“Dealers live and breathe the previous technology,” said Yvette Henshall-Bell, Husqvarna’s President of its Forest and Garden division for Europe, in that same Forbes piece. “They want to protect that servicing, that aftermarket revenue. Whereas if they really thought about what the customer’s problems are and the job to be done, they would be looking at a completely different solution.”
A solution, frankly, that looks a lot like a little robot mower.
The bigger CEORA can handle up to 18 acres of ground twice each week, while the Automower, with its 80V battery and pinpoint precision EPOS (Exact Positioning Operating System) software, can handle another 2.5 acres. Both are fully electric, and can guide themselves back to their pens to recharge as needed.
Prices aren’t public, but the Husqvarna CEORA and Automowers are available as part of a custom lease package through Husqvarna Finance that will include access to the company’s customizable back end and ongoing support. Check with your local dealer for more.
Electrek’s Take
As a typically pro-union, pro-labor type of guy, I am hesitant to heap praise upon a robot taking away anyone’s job. That said, it does seem to be difficult for landscapers and construction crews to keep and find good labor at rates they can afford (and, let’s face it – the current Trump Administration isn’t going to be making that any easier). As such, if companies like Husqvarna and John Deere and Einride and others can build a demonstrably better mousetrap at a compelling price point … good for them. (?)
Let us know what you think in the comments.
SOURCES: Forbes, Golf Monthly; images by Husqvarna.
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