Good morning! It’s Wednesday, August 7, 2024, and that is The Morning Shift, your day by day roundup of the highest automotive headlines from all over the world, in a single place. Listed below are the essential tales you’ll want to know.
1st Gear: Rivian Misplaced $1.46 Billion This Quarter
It’s a tricky time to be an electrical automobile maker with competitors throughout the board, uptake not matching predictions and value wars throughout the sector hitting income. Now, the extent of that hit has turn into clear for American EV maker Rivian, which simply posted its newest losses.
The electrical truck and SUV builder posted losses of greater than $1.4 billion for the final three months, experiences Automotive Information. The deficit follows equally eye-watering losses for the primary three months of this yr, and signifies that by 2024 it has been shedding cash hand over fist on each automotive it sells. Actually, the automaker loses greater than $32,000 on each automotive that rolls off the manufacturing line in Regular, Illinois, as Automotive Information experiences:
For the primary quarter, Rivian reported a internet lack of $1.4 billion. It reported a internet lack of $5.4 billion for the 2023 calendar yr.
Rivian mentioned it misplaced $32,705 per automobile delivered within the second quarter, in contrast with a $32,595 loss per automobile in the identical interval final yr.
The losses have hit the automaker’s money reserves, with Rivian reporting that it’s sitting on $5.8 billion in money in contrast with the $7.9 billion that it held on the finish of 2023. The hit got here because of elevated losses for the automaker regardless of a 9 % enhance in gross sales in contrast with the identical interval final yr.
Regardless of shifting 13,790 autos between April and June 2024, Rivian’s income have been hit by prices required to retool its manufacturing facility and a manufacturing shutdown in April. As Automotive Information provides:
Regardless of the money burn, Rivian is on a path to profitability, executives mentioned at a June investor occasion, bolstered by a $5 billion funding from Volkswagen Group. A part of the cash will probably be used for a three way partnership to include Rivian’s electrical structure into future VW Group autos.
Rivian can also be utilizing the brand new structure, which it developed for the freshened R1 fashions, on lower-cost autos of its personal starting in 2026.
Whereas Rivian’s present R1 autos begin at greater than $70,000 with transport, the EV maker is getting ready its Regular, In poor health., manufacturing facility for the launch of a smaller crossover, the R2, that may begin round $45,000. It plans a good lower-cost R3 mannequin however hasn’t given a timeline or value goal for it.
Rivian reaffirmed its dedication to increasing manufacturing and deliveries by the rest of 2024. After saying its newest monetary outcomes, the automaker confirmed that it remained on observe to construct 57,000 autos in 2024, nevertheless deliveries are predicted to dip barely in Q3 because of manufacturing slowdowns.
2nd Gear: Tesla Rolls Out Repair For 1.6 Million Automobiles
Whereas Rivian is dashing to promote extra of its vehicles, American EV rival Tesla is dashing to repair its vehicles. After greater than one million EVs bought in China by Tesla have been discovered to have defective door latches, the American automaker is scrambling to roll out a repair to each automotive impacted.
A software program subject uncovered in Tesla vehicles bought throughout China meant that the EVs weren’t in a position to detect whether or not the vehicles’ hoods have been locked or not, experiences Bloomberg. Now, the automaker is rolling out a software program patch that ought to tackle the problem in Mannequin X, S and Y vehicles. As Bloomberg experiences:
A latch meeting subject could at occasions stop the driving force from being alerted about an unlocked entrance hood, which may enable the hood to totally open with the automobile in movement, rising the danger of a collision, in line with a recall discover by the State Administration for Market Regulation on Tuesday.
The carmaker will deploy an over-the-air software program repair to greater than 1.6 million imported Mannequin S and Mannequin X autos in addition to Mannequin 3 and Mannequin Ys produced domestically between October 2020 and July 2024. Tesla may even contact customers with vehicles that may’t be repaired with a software program replace for other ways to repair the problem, the discover mentioned.
Tesla first started investigating the problem with its defective hood latches in March. Since then, the problem has been recognized in 1.8 million vehicles right here within the U.S. in addition to on the 1.6 million vehicles in China. A software program replace was rolled out to impacted vehicles within the U.S. earlier this yr and now China will comply with go well with. The replace will probably be important for any 2021-2024 Mannequin 3 and Mannequin S vehicles, in addition to 2021-2024 Mannequin X and 2020-2024 Mannequin Y autos.
The recall is the second such monumental repair that Tesla has been pressured to subject in China this yr, and follows a recall of 1.6 million autos with points with their Autopilot techniques. Again then, the repair was additionally rolled out in over-the-air-updates.
third Gear: Value Rises Enhance Honda Earnings
Whereas losses are mounting at Rivian and income are falling for Tesla, Japan’s automakers are having much better fortunes as of late. Final week, Toyota posted a 20 % revenue increase and now Honda has shared its personal earnings development in its newest monetary filings.
Honda reported an increase in quarterly income, experiences the Wall Road Journal. The increase in earnings for the corporate got here because of value will increase throughout its vary of motorbikes and vehicles. Because the WSJ experiences:
The Japanese automaker mentioned Wednesday that internet revenue elevated 8.7% from a yr earlier to 394.66 billion yen, equal to $2.73 billion, for the three months ended June. That beat the estimate of ¥338.90 billion in a ballot of analysts by information supplier Fast.
Honda mentioned product-price will increase and a weaker yen contributed to its earnings development. First-quarter income climbed 17% to ¥5.405 trillion.
Working revenue for its automotive enterprise rose 26% to ¥222.84 billion and that of its bike enterprise elevated 24% to ¥177.65 billion.
The elevated income for Honda got here regardless of a warning from the automaker earlier this yr that gross sales for its monetary yr could possibly be down. Gross sales for Honda in China have been down a large 32 % in contrast with a yr beforehand, main the corporate to decrease its full-year gross sales predictions to round 3.90 million vehicles.
Honda’s lowered projections for 2024 comply with related strikes from Nissan.
4th Gear: Volvo Caught Up In Lawsuit Over Pulled Twitter Advertisements
Twitter has been a scorching mess since Tesla boss Elon Musk was pressured to purchase it round this time final yr. Now, the social media platform, which has been renamed X, is biting again after a complete host of advertisers left the location following Musk’s takeover.
Automakers together with Volvo and Renault have now been named in a go well with that’s suing an business group that ran an promoting boycott of the social media platform, experiences Automotive Information. The International Alliance for Accountable Media (GARM) has been accused by X of costing the social media firm billions of {dollars} because of an promoting boycott that it says violated antitrust legal guidelines. As Automotive Information experiences:
The lawsuit, filed Tuesday in federal court docket in Texas by the Tesla Inc. CEO’s firm, claims the business group coordinated the boycott of the platform by advertisers underneath the guise of concern about whether or not X would adhere to sure model security requirements.
“To place it merely, persons are harm when {the marketplace} of concepts is undermined and a few viewpoints aren’t funded over others as a part of an unlawful boycott,” X CEO Linda Yaccarino mentioned in a publish on the platform. “This conduct is a stain on a terrific business, and can’t be allowed to proceed.”
Volvo and Renault are simply two of the businesses which are a part of the GARM collective. Within the business group, they’re joined by multinational giants comparable to Procter & Gamble Co. and Unilever Plc. Automotive Information notes that different automakers are a part of GARM’s guardian group, the World Federation of Advertisers.
