Latest news with #Telemetry
Politico
12-06-2025
- Automotive
- Politico
GM slow-rolls its all-EV aspirations
General Motors quietly closed the door this week on a goal to make only electric vehicles by 2035. The automaker announced Tuesday that it would spend $4 billion on mostly gasoline-powered vehicles. While GM is not retreating from EVs, the investment means the company is 'giving up any hope of achieving that [2035] goal,' said Sam Abuelsamid, an auto analyst at Telemetry, a Detroit-area research firm. Asked Wednesday whether the goal still exists, GM said in a statement, 'We still believe in an all-EV future.' GM's move away from the 2035 goal is less a singular failure and more a symptom of flagging support among many actors, including government, other automakers, charging companies and car buyers, analysts said. Much has changed since GM set the EV target, just after President Joe Biden took office and amid a surge of confidence in the auto industry about widespread EV adoption. Four years later, the Trump administration is dismantling Biden-era federal support for EVs and implementing high tariffs, upsetting automakers' production plans. Those federal moves, combined with a cooling desire for EVs among car buyers, has moved the sunset date for the internal combustion engine to a vague someday. GM is still ramping up EV production. Earlier this week, it trumpeted the fact that it sold 37,000 EVs in the first quarter of the year, making it the number two EV maker in the U.S. behind Tesla. The company's 2035 goal 'was aspirational. It was more an idea than a strategy,' said Alan Baum, an independent Detroit auto analyst. 'GM's doing a better job than many of their competitors, but there's obviously a relatively low ceiling because of the lack of supportive policy.' GM's all-EV goal back in 2021 was one of the earliest and most prominent of a wave of automaker commitments to electric vehicles. At the time, GM CEO Mary Barra encouraged others to 'follow suit and make a significant impact on our industry and on the economy as a whole.' Others did follow — and all of those promises have been tempered by new realities. Last year, European automakers Volvo, Porsche, Volkswagen and Mercedes all dropped earlier goals that would have seen them producing all or mostly EVs by the early 2030s. Back in 2021, GM also put an asterisk on its 2035 target. 'We say it as an aspirational goal, because to actually make that timing, we need some external things to come together also,' spokesperson Jessica James said at the time. Barra reiterated last month that the company still wants an 'all-EV future.' 'EVs are fundamentally better,' she said at a Wall Street Journal event late last month. 'We have work to do to continue to get battery technology to give us greater density, so we have farther range. We need to have a robust charging infrastructure.' Automakers, including GM, have been mostly mum in public as the Trump administration and Republicans in Congress seek to kill tax incentives that make it cheaper for manufacturers to produce batteries and consumers to buy EVs. But through the main U.S. automotive lobby, the Alliance for Automotive Innovation, automakers have vociferously opposed California's plans to require all-electric auto sales by 2035. The Republican-controlled Congress voted to kill that California 2035 all-EV sales goal — the same one that GM first set for itself — through the Congressional Review Act. The move came after the Senate parliamentarian told lawmakers they couldn't repeal the goal through the CRA. The bill awaits a signature by Trump, after which the California attorney general has pledged to sue. GM's announcement that it would invest $4 billion in domestic manufacturing essentially shuffles production among factories in ways that will help the company dodge Trump's tariffs. It is moving production of about a half-million gasoline-powered vehicles from Mexico to factories in the U.S., according to an analysis by Abuelsamid of Telemetry. Doing so will enable GM to avoid 25 percent tariffs that the Trump administration has placed on vehicles imported from Mexico. For example, the production of several full-size SUVs and pickup trucks will transfer to GM's Orion plant, north of Detroit. The gas-powered Equinox, a strong U.S. seller, will move to the Fairfax plant in Kansas City. The gas-running Blazer will go to the company's Spring Hill plant in Tennessee. Meanwhile, more EV production will move to GM's Factory Zero, a dedicated EV plant in metro Detroit that is running far below capacity. Electric versions of the Chevrolet Silverado and GMC Sierra pickup trucks will now get made in the plant, alongside other large EVs made in low volumes, including the Cadillac Escalade IQ and the Hummer. Other EVs will be made elsewhere. Other electric Cadillacs, for example, will be made at the Spring Hill plant, while a rebooted version of the Chevy Bolt will be produced at the Fairfax plant, which the company described as the site for the 'next generation of affordable EVs.' Those changes, combined with other recent moves, make it clear that GM is laying the groundwork to produce gas-powered vehicles well into the 2030s. In May, the Detroit automaker said it would ditch plans to make electric motors at its Towanda Production plant in Buffalo, New York, and instead spend $888 million to make V-8 engines. In 2023, GM put $579 million toward refurbishing an engine plant in Flint, Michigan. Electric vehicles don't have engines — they rely instead on batteries for propulsion. Engine factories are large, fixed investments that are meant to operate for 15 years or more, according to Neal Ganguli, a managing director and auto-manufacturing expert at the business advisory firm AlixPartners. Meanwhile, the manufacturing lines that make finished cars — like the ones GM unveiled this week — have shorter but still lengthy lives. 'When you put these [manufacturing lines] in, you are planning on a five- to seven-year time horizon,' Ganguli said. 'Maybe 10 years.' Analysts said General Motors' swerve back into the gasoline lane — and away from the path to all EVs by 2035 — is not a surprise, given the market and policy realities. 'It was always a long shot at best,' said Abuelsamid.
E&E News
12-06-2025
- Automotive
- E&E News
GM slow-rolls its all-EV aspirations
General Motors quietly closed the door this week on a goal to make only electric vehicles by 2035. The automaker announced Tuesday that it would spend $4 billion on mostly gasoline-powered vehicles. While GM is not retreating from EVs, the investment means the company is 'giving up any hope of achieving that [2035] goal,' said Sam Abuelsamid, an auto analyst at Telemetry, a Detroit-area research firm. Asked Wednesday whether the goal still exists, GM said in a statement, 'We still believe in an all-EV future.' Advertisement GM's move away from the 2035 goal is less a singular failure and more a symptom of flagging support among many actors, including government, other automakers, charging companies and car buyers, analysts said. Much has changed since GM set the EV target, just after President Joe Biden took office and amid a surge of confidence in the auto industry about widespread EV adoption. Four years later, the Trump administration is dismantling Biden-era federal support for EVs and implementing high tariffs, upsetting automakers' production plans. Those federal moves, combined with a cooling desire for EVs among car buyers, has moved the sunset date for the internal combustion engine to a vague someday. GM is still ramping up EV production. Earlier this week, it trumpeted the fact that it sold 37,000 EVs in the first quarter of the year, making it the number two EV maker in the U.S. behind Tesla. The company's 2035 goal 'was aspirational. It was more an idea than a strategy,' said Alan Baum, an independent Detroit auto analyst. 'GM's doing a better job than many of their competitors, but there's obviously a relatively low ceiling because of the lack of supportive policy.' GM's all-EV goal back in 2021 was one of the earliest and most prominent of a wave of automaker commitments to electric vehicles. At the time, GM CEO Mary Barra encouraged others to 'follow suit and make a significant impact on our industry and on the economy as a whole.' Others did follow — and all of those promises have been tempered by new realities. Last year, European automakers Volvo, Porsche, Volkswagen and Mercedes all dropped earlier goals that would have seen them producing all or mostly EVs by the early 2030s. Back in 2021, GM also put an asterisk on its 2035 target. 'We say it as an aspirational goal, because to actually make that timing, we need some external things to come together also,' spokesperson Jessica James said at the time. Barra reiterated last month that the company still wants an 'all-EV future.' 'EVs are fundamentally better,' she said at a Wall Street Journal event late last month. 'We have work to do to continue to get battery technology to give us greater density, so we have farther range. We need to have a robust charging infrastructure.' Automakers, including GM, have been mostly mum in public as the Trump administration and Republicans in Congress seek to kill tax incentives that make it cheaper for manufacturers to produce batteries and consumers to buy EVs. But through the main U.S. automotive lobby, the Alliance for Automotive Innovation, automakers have vociferously opposed California's plans to require all-electric auto sales by 2035. The Republican-controlled Congress voted to kill that California 2035 all-EV sales goal — the same one that GM first set for itself — through the Congressional Review Act. The move came after the Senate parliamentarian told lawmakers they couldn't repeal the goal through the CRA. The bill awaits a signature by Trump, after which the California attorney general has pledged to sue. What GM is doing GM's announcement that it would invest $4 billion in domestic manufacturing essentially shuffles production among factories in ways that will help the company dodge Trump's tariffs. It is moving production of about a half-million gasoline-powered vehicles from Mexico to factories in the U.S., according to an analysis by Abuelsamid of Telemetry. Doing so will enable GM to avoid 25 percent tariffs that the Trump administration has placed on vehicles imported from Mexico. For example, the production of several full-size SUVs and pickup trucks will transfer to GM's Orion plant, north of Detroit. The gas-powered Equinox, a strong U.S. seller, will move to the Fairfax plant in Kansas City. The gas-running Blazer will go to the company's Spring Hill plant in Tennessee. Meanwhile, more EV production will move to GM's Factory Zero, a dedicated EV plant in metro Detroit that is running far below capacity. Electric versions of the Chevrolet Silverado and GMC Sierra pickup trucks will now get made in the plant, alongside other large EVs made in low volumes, including the Cadillac Escalade IQ and the Hummer. Other EVs will be made elsewhere. Other electric Cadillacs, for example, will be made at the Spring Hill plant, while a rebooted version of the Chevy Volt will be produced at the Fairfax plant, which the company described as the site for the 'next generation of affordable EVs.' Those changes, combined with other recent moves, make it clear that GM is laying the groundwork to produce gas-powered vehicles well into the 2030s. In May, the Detroit automaker said it would ditch plans to make electric motors at its Towanda Production plant in Buffalo, New York, and instead spend $888 million to make V-8 engines. In 2023, GM put $579 million toward refurbishing an engine plant in Flint, Michigan. Electric vehicles don't have engines — they rely instead on batteries for propulsion. Engine factories are large, fixed investments that are meant to operate for 15 years or more, according to Neal Ganguli, a managing director and auto-manufacturing expert at the business advisory firm AlixPartners. Meanwhile, the manufacturing lines that make finished cars — like the ones GM unveiled this week — have shorter but still lengthy lives. 'When you put these [manufacturing lines] in, you are planning on a five- to seven-year time horizon,' Ganguli said. 'Maybe 10 years.' Analysts said General Motors' swerve back into the gasoline lane — and away from the path to all EVs by 2035 — is not a surprise, given the market and policy realities. 'It was always a long shot at best,' said Abuelsamid.
Miami Herald
14-05-2025
- Automotive
- Miami Herald
Inside this ‘virtual reality arena,' Stellantis aims to build a better car factory
AUBURN HILLS, Michigan - Deep inside the sprawling Chrysler Technology Center is a metal structure equipped with sensors that Stellantis NV engineers call their "virtual reality arena." Stepping into this VR laboratory, the engineers don headsets, pick up controllers, and are virtually transported to an assembly line inside any one of the automaker's North American production facilities. They can simulate what it's like to attach the doors to a Toledo-made Jeep Wrangler SUV, or connect wiring on the underbody of a Sterling Heights-built Ram 1500 pickup. The purpose behind the lab is to improve the automaker's existing assembly lines and help design new factories, specialists said in a Thursday demonstration. In virtual reality, engineers can try out out ergonomic or efficiency improvements, they said, or mock up how to install new equipment at an employee's workstation. "It's very costly to shut down an assembly plant - we never want to do that; we're not making products for our customers," said Keenan O'Brien, head of the automaker's Process Engineering Center. "So doing as much as we can in the digital world beforehand shortens that period in which we have to rely on physical trials and prototypes to get things up and running." The virtual reality room opened in 2018 and has been continually updated with better software and equipment. Several trackers mounted on the metal frame trace the movements of the person working below on the "assembly line." Stellantis has created digital mock-ups of all of its North American assembly plants and simulations of most of those plants' operations, said Joe Dzwonkowski, a virtual reality design review specialist. The automaker has in recent years opened similar VR labs at several of its European and South American sites. Even before construction began on the Detroit Assembly Complex-Mack plant that builds the Jeep Grant Cherokee more than five years ago, Dzwonkowski noted, engineers were already working inside a "digital twin" of the factory. In other instances, virtual testing helps update plants that are being converted to make new models. Those include factories switching over to make electric vehicles, which have new production processes and ergonomic concerns tied to building and installing batteries. Other automakers are using virtual reality in similar ways, said Sam Abuelsamid, vice president of market research at communications firm Telemetry, who attended this week's Stellantis demonstration. For years, some carmakers have used it on the product design side of their operations; Abuelsamid recalled in 2016 attending a virtual walkaround of the Lucid Air electric sedan at the Los Angeles Auto Show. But others like BMW AG and Mercedes-Benz Group AG are also using digital mock-ups to improve their manufacturing designs in similar ways as Stellantis, he said. Mercedes and chipmaker Nvidia, for instance, partnered two years ago to digitize the automaker's production processes to make better factories. Near the Stellantis virtual reality arena is a 3D printer - another tool that the automaker has increasingly turned to in recent years to improve its manufacturing sites. All of the company's North American assembly plants have been equipped with 3D printing capabilities over the last few years, said Don Clack, a 3D printing and mixed reality specialist. Those capabilities have continually improved, and the printers can now churn out hand tools used by workers, or parts and fixtures needed to keep the assembly line running. "If it can fit into the 3D printer, we can design it," said Clack, who noted that the printers use a mix of carbon fiber and fiberglass to generate components with metal-like strength. The 3D printers at each plant are helping employees respond to tricky problems. In one notable instance at Mack, a printed component helped the factory's paint shop create a cleaner two-tone paint process for the Grand Cherokee, where the dark roof needed to be crisply differentiated from the rest of the SUV's paint color. In other instances, Clack said, 3D printed parts prevented entire assembly plants from shutting down after a critical component broke down. "We really believe in keeping those (3D printing) labs as close to production as possible, so that they understand the pain points that the plant has, and then they can be agile in their responses," he said. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Zawya
09-04-2025
- Automotive
- Zawya
Analysis: In Saudi debut, Tesla faces desert heat, few chargers
Tesla starts selling cars in Saudi Arabia on Thursday, a country where on a 900-kilometre (559 mile) stretch of its main east-west highway linking the capital Riyadh and the holy city of Mecca there isn't a single charging station. Electric vehicle sales in the kingdom totalled just 2,000 last year, according to Telemetry analyst Sam Abuelsamid, fewer than Tesla sold between breakfast and dinner on an average day. But Saudi Arabia has huge plans for EVs that Tesla has not been able to tap. A new political landscape has given Musk an opportunity to change that. Relations between Riyadh and Musk have improved since he took a high-profile role in U.S. President Donald Trump's election campaign and then a top position in his administration, slashing the federal bureaucracy. Trump is set to visit Saudi Arabia in the coming weeks in his first foreign trip, after asking the kingdom in January to spend upwards of $1 trillion in the U.S. economy over four years, including military purchases. "Plenty of business people are thinking about how to position their firms around President Trump's anticipated visit to the Gulf," said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. "I suspect Tesla wants to firmly plant their flag in the Saudi market before President Trump's visit and then try to capitalise on momentum thereafter." MISSING OUT Musk could do with a boost. Tesla posted a 13% drop in first-quarter sales earlier this month, its weakest performance in nearly three years, driven by a backlash against Musk's politics, rising competition, and delays for a Model Y refresh. Tesla's Saudi debut also lags that of Chinese giant BYD, which opened its Riyadh showroom in May 2024. CHALLENGES Now Tesla has arrived in Saudi Arabia, it faces a number of challenges. These include the paucity of charging stations and summer temperatures that can top 50 degrees Celsius (122 degrees Fahrenheit), draining EV batteries more rapidly. As of 2024, Saudi Arabia had just 101 EV charging stations, compared with 261 in neighbouring United Arab Emirates, a country with a third the population, data from Statista based on Electromaps showed. Most are in major cities, making long journeys across desert highways unfeasible. "I think charging is probably one of the main, if not the main, point of concern," said Carlos Montenegro, BYD's general manager in Saudi Arabia, adding Saudi drivers clock up many more kilometres each year than in other markets. Around 70% of the cars BYD sells in Saudi Arabia are hybrids rather than pure EVs, Montenegro said. Fahd Abdulrahman, a Saudi browsing at BYD's Riyadh showroom, said driving range was his major concern about buying an EV. "I drive a lot, my average is more than 50,000 km (per year). I am afraid that an EV would not serve for that." Yet Riyadh has massive development plans, which include a goal of 30% EV adoption by 2030. It has formed the Electric Vehicle Infrastructure Company, which aims to boost the number of chargers to 5,000 by 2030, 50 times the current number. "EV adoption (in Saudi Arabia) will likely remain below leading countries, such as China, but could still see growth in the coming years," said Seth Goldstein, equity strategist at Morningstar. "I see growing EV demand as more fast chargers are built and affordable long-range EVs enter the market." (Reporting by Pesha Magid in Riyadh and Manya Saini in Dubai. Editing by Andrew Mills and Mark Potter)
Yahoo
07-04-2025
- Automotive
- Yahoo
Tariffs will lead to 2 million fewer auto sales in US this year, auto advisory firm forecasts
By Kalea Hall and Nora Eckert DETROIT (Reuters) - U.S. and Canada auto sales could decline by 1.8 million vehicles this year and be stagnant over the next decade if the global trade war escalates, a Detroit-area automotive advisory firm forecasts. If the current tariffs stay in place until 2035, sales of light-duty vehicles in the U.S. and Canada would be about 7 million units lower than the 24.6 million sales in a scenario with no trade conflicts and strong economic growth, Telemetry said on Monday in a forecast provided exclusively to Reuters. President Donald Trump's 25% automotive import tariffs went into effect April 3. Vehicles made in Mexico and Canada face the levy, but automakers compliant with the terms of the U.S.-Mexico-Canada Agreement can deduct the value of U.S. content. The Trump administration has also imposed reciprocal tariffs of varying rates on different countries, which were not applied to Canada and Mexico. The tariffs have pressured automakers to make production changes with General Motors (GM) increasing truck output at an Indiana plant and Stellantis, maker of Ram trucks and Jeeps, temporarily shutting down production at two plants in Mexico and in Canada, affecting five U.S. facilities that are connected to them. Automakers including Ford Motor (F) and Stellantis (STLA) upped their incentive offers to ease consumers' concerns about the duties adding to vehicle prices. Analysts have projected that sustained tariffs will increase prices by thousands of dollars, and automakers have warned the same. 'Vehicle affordability is already a major issue for consumers,' said Sam Abuelsamid, vice president of insights at Telemetry. On average, new vehicles cost nearly $50,000 and interest rates on vehicle loans have increased since the pandemic. 'With sales going down, you're going to have layoffs,' Abuelsamid said. 'And even to the degree that some production shifts to the U.S., it's not going to be enough to offset the lost employment from higher costs and lower sales.' Although the rate of EV sales growth has slowed in recent years, Telemetry expects battery electric vehicles to be the most common powertrain across the globe in a decade, with 40.5 million vehicles sold. The firm expects BEV volumes in Canada and the U.S. to reach 8.8 million units in a scenario with no trade conflicts and strong economic growth, especially as options such as extended range EVs become more prevalent. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
