Hyundai, Kia Plan to Invest $16.5 Billion in EV Production in South Korea
Hyundai Motor Co. and its Kia affiliate plan to invest $16.5 billion to boost electric vehicle production in South Korea, including building a new factory that would ultimately have the capacity to produce around 150,000 cars a year. Under the plan, the two automakers aim to increase annual EV production in the nation to 1.44 million units by 2030, up from an expected 350,000 units this year, Hyundai said. That forecast would account for about 45 percent of Hyundai and Kia's planned global EV production volume by then. The new factory will be located within Kia's existing Hwaseong manufacturing site, Kia said. Automotive News reports construction is expected to begin in the first half of 2023, with commercial production starting in the second half of 2025. Hyundai Motor Group, including Kia, Hyundai Motor and Genesis, aims to sell 3.23 million EVs a year globally by 2030, shooting for a 12 percent share of the global EV market. Click here for the full story.
Most Americans Staying Above Water on Car Purchases
Auto affordability is something to watch closely, even though the average U.S. household keeps up with higher monthly payments, significant financial obligations, and inflation’s effect on all-around household expenses. “Consumers, at least in the first quarter of 2022, have the liquidity to make the payments,” says Satyan Merchant, senior vice president and automotive business leader at TransUnion. “We’ll keep an eye on that,” with inflation rising and interest rates set to increase, he says. Using a measure that’s not strictly automotive, Merchant tells Wards he finds it encouraging that consumers continue to pay more than their minimum obligation on their monthly credit statements. It’s rare to make more than the minimum monthly payment on an auto loan or lease. But it’s commonplace in the credit-card segment and a good indication of whether households are struggling – and by that measure, on average, they’re not, Merchant says. Click here for the full story.
Mercedes-Benz to Use Energy-Dense Silicon Battery for G-Class
Mercedes-Benz will incorporate a new, highly energy-dense battery in its upcoming electric G-Class from 2025, a solution to the problem of how to power large electric cars without weighing them down with heavy batteries. The battery, made by start-up Sila Nanotechnologies, uses silicon-based anodes and is 20-40 percent more energy dense than comparable cells currently available, Reuters reports. Silicon - which Tesla said in 2020 it would build up the use of in its batteries - provides an alternative to the more commonly used graphite, 70 percent of which comes from China. Mercedes-Benz is the first publicly announced automotive customer of California-based battery start-up Sila Nanotechnologies, which said in early May it was investing a figure in the low hundreds of millions of dollars in a new plant in Washington state due to open in 2024. The premium carmaker has a minority equity stake in the unlisted Sila, which is also working with BMW. Sila, founded by an ex-Tesla engineer, raised an additional $590 million last year, boosting its valuation to an estimated $3.3 billion. Click here for the full story.
Most Midsize Vehicles Earn ‘Good' Rating in New IIHS Side Crash Test
Ten out of 18 midsize light vehicles earned "good" ratings in the Insurance Institute for Highway Safety's new side-impact evaluation. IIHS updated the side test to "address higher-speed crashes that continue to cause fatalities." The new test also uses a 4,200-pound barrier striking the vehicle at 37 mph, instead of the previous 3,300-pound barrier that struck the vehicle at 31 mph. Automotive News reports these changes mean the simulated crash "produces 82 percent more energy." IIHS gave ratings of "good," "acceptable," "marginal" and "poor" to vehicles it classified as midsize. To earn a "good" rating in both versions of the side test, the occupant compartment of the vehicle must hold its shape, the crash-test dummies must not show signs of severe injuries, and the side airbags and seat belts must "prevent the dummies' heads from making hard contact with the interior of the vehicle." The 10 vehicles to receive a "good" rating were the Ford Explorer, Infiniti QX60, Lincoln Aviator, Mazda CX-9, Nissan Pathfinder, Subaru Ascent, Toyota Highlander, Volkswagen Atlas, Volkswagen Atlas Cross Sport and the electric Volkswagen ID4. Click here for the full story and to see the rest of the rankings.
Biden’s $3.1B Electric Car Battery Plan Leaves Mining Concerns in Limbo
Early this month, the Biden administration announced a $3.1 billion dollar plan to boost domestic battery production for electric vehicles. U.S. Secretary of Energy Jennifer Granholm had this to say about the announcement, “President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations.” Joining CBT News today to discuss the development is Trent Mell, President and CEO of Electra Battery Materials. President Biden’s $3.1 billion funding largely targets major electric car battery and cell manufacturers. The allocates some funding for electric car recycling as well. However, the plan heavily still focuses heavily on the bottom end of the supply chain, leaving little room for refining and mining, the upper end of the supply chain, Mell explains. Ford CEO Jim Farley was recently quoted as saying that the lack of raw materials is what keeps him up at night. Mell adds that mining raw materials for electric car batteries is costly and labor-intensive, and is not yet reflected in Biden’s plan. This will be a year of reckoning for the auto industry from Mell’s perspective. Click here for the full story.
Industry Leaders Connect on Multiple Topics at 2022 Federated Insurance® Advisory Council Meeting
Eighteen business leaders recently gathered in Scottsdale, Arizona to participate in the 2022 Federated Insurance Advisory Council Meeting including past AIADA Chairman, Jason Courter. This is the 32nd consecutive year of this meeting, which provided industry leaders the opportunity to discuss challenges facing their businesses. On the first day, council members engaged in discussion on people, one of the most valuable assets a business has. The topics of customer service, employee recruiting, hiring, and retaining, along with how to train and develop future leaders, were explored in depth. Day two consisted of talks on continuing the business culture for future generations through succession and estate planning, exploring the importance of determining how assets should be preserved, managed, and distributed now in case the unexpected were to occur. “Each year, our Advisory Council members contribute valuable insight that helps us deliver value to our clients,” reflected President and CEO of Federated Insurance, Mike Kerr. “What they bring is invaluable in helping to ensure industry-wide growth and success, and we appreciate their contributions to Federated’s culture.” To continue reading about the 2022 Federated Insurance® Advisory Council Meeting, click here
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Mercedes-Benz May Have Just Sold a Car for a Record $142 Million [Fox News]
Apple Could be Looking to Buy Struggling Canoo for Engineering Talent [Carscoops]
Cars with the Biggest Engines Ever [Motortrend]
Google Maps’ New Immersive View is Like Street View but in the Sky [Carscoops]
