Ford is gearing up for a major battle, Waymo has issues with its self-driving car software, and another autonomous vehicle startup faces layoffs.
TechCrunch Mobility is a weekly newsletter about the future of transportation. This week, learn about major updates from Ford, Lucid, Waymo, and other leading companies.
🚗 The Future of Transportation: Ford’s Strategies, Chinese EV Threats, and More
Welcome back to ENBLE Mobility — your central hub for news and insights on the future of transportation. This week, we have a mix of interesting developments in the automotive industry, including a security lapse at BMW, blowback over an anti-Tesla Super Bowl ad, and a federal investigation into Fisker. But before we dive into those stories, let me share some exciting details from my recent visit to Detroit, where I met with Ford executives to get the inside scoop on their plans for 2024 and beyond.
Ford’s Tactics to Thwart Chinese EV Manufacturers and Tesla
According to Ford CFO John Lawler, Chinese EV automakers and Tesla are top concerns for the company. To counter these threats, Ford believes that a low-cost electric vehicle (EV) and cutting-edge software are the best strategies. In fact, Ford has a secretive EV skunkworks project dedicated to this task. Lawler bluntly stated, “We have to assume that eventually they’ll be here.” He explained that China has been aggressively pursuing its global champion status in the automotive industry, and they have been focused on electric vehicles since 2010. With competitive designs and ample production capacity, Chinese automakers are expanding into other regions, posing a long-term challenge to global automakers like Ford.
Ford CEO’s $2 Billion Cost Savings Mission
In addition to addressing the threat from Chinese EV manufacturers, Ford CEO Jim Farley is determined to achieve $2 billion in cost savings across the company’s industrial system. Improving the quality of new vehicles is a key priority for Ford, as it directly affects warranty costs. During an interview, Farley emphasized the importance of this goal, signaling a clear focus on excellence and efficiency within the company.
Q&A with the Expert
Q: How do Chinese automakers compare to their global counterparts?
A: Chinese automakers have made remarkable strides in recent years, becoming increasingly competitive on the global stage. With substantial investments in production capacity and innovative designs, China is poised for further expansion in other regions. It’s crucial for global automakers to acknowledge the strong presence and potential of Chinese EV manufacturers.
Q: How will Ford’s low-cost EV project impact the market?
A: Ford’s low-cost EV initiative is a response to the growing demand for affordable electric vehicles. By providing a cost-effective alternative, Ford aims to capture a larger market share and counter the threat of Chinese EV manufacturers. This project has the potential to disrupt the market and reshape the competitive landscape.
Q: What does Ford’s cost-saving mission mean for consumers?
A: An intensified focus on cost savings allows Ford to optimize its operations and allocate resources more efficiently. This can lead to potential benefits for consumers, such as improved vehicle quality, competitive pricing, and increased innovation in future Ford models.
Faraday Future’s HQ in Peril
Faraday Future, an EV startup that went public in 2021 through a merger, is facing financial turmoil. The company is at risk of losing its Los Angeles headquarters after failing to pay rent amounting to nearly $1 million. The landlord has filed a lawsuit seeking to repossess the commercial space. This latest development adds to Faraday Future’s ongoing challenges, including internal conflicts, executive turnover, and federal investigations.
Q: What does the potential loss of Faraday Future’s headquarters signify?
A: The possible loss of Faraday Future’s headquarters is a significant blow to the struggling EV startup. Losing such a critical operational hub could further destabilize the company, exacerbating its already precarious financial situation. It underscores the importance of sound financial management and stability in the competitive EV industry.
🤝 Deal of the Week
This week, we don’t have just one deal but a list of deals that caught our attention:
- Celadyne, a hydrogen fuel cell startup, raised $4.5 million in a seed round with major participation from investors.
- Revel, a Brooklyn-based startup transitioning from shared mopeds to electric ride-hailing and EV fast-charging businesses, is reportedly seeking to raise $200 million in equity.
- Roam, a Kenyan EV startup, raised $24 million in a Series A round, with significant debt commitment from the U.S. International Development Finance Corporation.
- Skylo Technologies, a provider of direct-to-device satellite connectivity services, raised $37 million in a round co-led by prominent investors.
- Velocys, a startup focused on sustainable aviation fuel, secured $40 million in funding from multiple investors.
In-Depth Reads and Fascinating Tidbits
ADAS: GM’s Super Cruise Expansion and NTSB’s Warning
GM plans to expand access to its popular Super Cruise hands-free advanced driver-assistance system, covering over 750,000 miles of roads in the United States and Canada by 2025. This expansion nearly doubles the current Super Cruise network, now including rural and minor highways.
The National Transportation Safety Board (NTSB) ordered the Dawn Project organization to stop using its seal, which appeared in a Super Bowl ad calling for a Tesla boycott. The NTSB found this usage inappropriate and potentially misleading.
Autonomous Vehicles: Cruise’s Chief Safety Officer and May Mobility Layoffs
Cruise, an autonomous vehicle company, appointed Steve Kenner as its first-ever chief safety officer. This long-overdue appointment is a smart move for Cruise, as safety is a critical aspect of autonomous driving. However, Cruise also faced the resignation of Carl Jenkins, head of hardware.
May Mobility, a company specializing in autonomous shuttles, laid off 40 employees, amounting to around 13% of its workforce.
Electric Vehicles, Charging, and Batteries: Lucid’s Price Drop and Fisker’s Investigation
Although electric vehicles (EVs) had a remarkable 2023, recent data indicates a cooling-off in sales. While new EV registrations increased by 52% compared to the previous year, the surge appears to have tempered, with EVs now holding a 7.7% share of the U.S. light-vehicle market.
Lucid Motors reduced the price of its luxury Air sedan by several thousand dollars. However, the company faced scrutiny from the National Highway Traffic Safety Administration (NHTSA) regarding a windshield defroster recall. The NHTSA is concerned that Lucid’s over-the-air update solution may not fully address this issue.
Following customer complaints and an injury, the NHTSA initiated a second investigation into Fisker’s Ocean SUV. Additionally, Fisker received a noncompliance notice from the New York Stock Exchange due to its stock closing under $1 for 30 consecutive days.
Stellantis, the parent company of brands like Jeep and Chrysler, announced that it will adopt Tesla’s North American Charging Standard (NACS), finally joining other major Western automakers in compatibility.
Ride-Hailing and Ride-Sharing: HopSkipDrive and California Emissions Standards
HopSkipDrive, a youth ride-share startup, successfully met two new key California emissions standards in 2023. This achievement strengthens HopSkipDrive’s case for using shared passenger vehicles to transport children and teenagers to and from school.
This Week’s Wheels: Testing Blue Cruise in the 2023 Ford Mustang Mach-E
During my recent visit to Michigan, I had the opportunity to test Ford’s Blue Cruise, an impressive hands-free active driver assistance system, in a 2023 Ford Mustang Mach-E. The system offers a smooth driving experience, with the ability to accelerate, brake, and maintain a selected following distance from other vehicles. One notable feature is that the driver can maintain control of the steering while Blue Cruise remains engaged, preventing accidental disengagement commonly encountered with other similar systems.
What I particularly liked about Blue Cruise is its simplicity and visual clarity. Engaging the system is straightforward, and it’s clear when the system is actively assisting the driver. There’s one minor quirk that may cause some confusion, though. The word “ready” illuminates in green below Blue Cruise on the instrument cluster, even though it’s unrelated to the system. Ford might want to consider this minor design improvement for future models.
Wrapping Up and Sharing Is Caring
That wraps up this week’s edition of ENBLE Mobility! We hope you enjoyed our in-depth analysis and engaging insights into the latest trends and developments in the transportation industry. Don’t forget to share this article with your friends and colleagues who share your passion for technology and the future of mobility.
đź“š References: 1. BMW Security Lapse – TechCrunch 2. Fisker Investigation – TechCrunch 3. Faraday Future’s Headquarters – TechCrunch 4. Celadyne Raises $4.5M – TechCrunch 5. Revel’s Funding Endeavors – Bloomberg 6. Roam Raises $24M – TechCrunch 7. Skylo Technologies Raises $37M – TechCrunch 8. Velocys Raises $40M – TechCrunch 9. GM Expands Super Cruise – ENBLE 10. NTSB Orders the Dawn Project to Stop Using Its Seal – TechCrunch 11. Cruise Appoints Chief Safety Officer – TechCrunch 12. May Mobility Lays Off Employees – TechCrunch 13. Cruise’s Robotaxi Uniform Change – TechCrunch 14. Waymo’s Voluntary Recall – TechCrunch 15. EV Sales Cooling Down in December – Automotive News 16. Lucid Drops Price of Air Sedan – ENBLE 17. Stellantis Adopts Tesla’s Charging Standard – TechCrunch 18. HopSkipDrive Meets California Emissions Standards – TechCrunch
🤓💻 Stay tuned for more exciting updates next week! And remember, the future of transportation is just a click away. Subscribe to ENBLE Mobility to receive our weekly newsletter directly in your inbox.
