+++ BENTLEY has revised its launch plans, investing more into plug-in hybrids and delaying its first electric vehicle to late 2026. The British luxury brand’s first EV had been due in 2025 as the first of 5 new EVs due at a rate of 1 per year when first announced in 2022. A standalone model in the range, it will now be revealed at the end of 2026 with the first deliveries sneaking in by the end of that year. The later arrival of this EV means that the subsequent EVs (which will replace the existing cars in Bentley’s range) have also been pushed back, as part of a rollout that will end not in 2030 as planned but by 2033. Bentley plans to become a full EV brand by this date. This is all part of an investment program that is “locked and loaded” and will not be “rowed back from”, according to CEO Adrian Hallmark and the delay to the EV program means Bentley will invest in hybrid technology that will stay on sale for longer. While Bentley is working in the longer-term on electric replacements for the Continental GT, Continental GTC, Flying Spur and Bentayga, the first EV will be an entirely new model. Hallmark hinted that it’s an opportunity to launch an “incremental model” that doesn’t have a direct predecessor and thus has less pressure on it. A direct replacement for a big-selling SUV like the Bentayaga, he admitted, would be a “gamble” for a debut EV. The EV will be built in Crewe, where significant building work is under way to expand the factory and build a new dedicated production facility. It will be based on the Volkswagen Group’s new Premium Performance Electric (PPE) architecture, which has been co-developed by Audi (Bentley’s parent firm) and Porsche. Delays in the PPE program (which pushed back the launch of the new Porsche Macan Electric and closely related Audi Q6 e-Tron) is cited as the reason for the delay to the first Bentley EV. The delay has allowed for the new car to host “better autonomous features than we’d have got in 2025” , said Hallmark, specifically referring to low-speed driving assistance technology and motorway driving. He said the new technology will even include the ability to avoid kerbing the wheels. While the new model will mark the start of a major EV push by Bentley, the recent slowdown in the EV market has convinced the firm that PHEV powertrains can prove more than an interim technology. It’s currently gearing up to launch a new high-performance PHEV system, based around a V8 engine, that will serve as a replacement for the venerable W12 engine that has just been discontinued. Hallmark said Bentley had originally expected hybrid demand to sharply drop off towards the end of the decade but now expects that demand to grow. To that end, Bentley will invest “hundreds of millions” more into PHEVs and they will remain on sale into the early 2030s. Hallmark called hybrids a “credible transitional technology that effectively reduces CO2 emissions and to start the journey towards electrification for those people that can’t afford an EV or can’t live with the usage pattern that they force you to use”. He confirmed that the GT, GTC and Flying Spur will be heavily updated later this year with the new V8 PHEV drivetrain replacing both the standard V8 and W12, at which point the entire Bentley line-up will be hybridised. The V6 PHEV will stay in the range. The Bentayga will keep a pure-ICE option until 2026, when it goes full hybrid. The model news accompanied the publication of Bentley’s latest financial results. Last year was the third best in Bentley’s history for volume, with 13.560 cars sold, and its second best for profitability, at €589 million. Hallmark said the results were a “great indicator of the business model we’ve created”, as essentially demand was flat but profitability was still able to soar, due to selling cars at higher prices and with more bespoke content on them. Some 70% of all Bentleys sold had bespoke Mulliner content, in addition to the average €38.000-€39.000 of options added. +++
+++ FISKER is pausing production of the Ocean for 6 weeks as it looks to secure crucial financial backing, amid doubts over its ability to continue operating. The move comes as the EV firm announces some $150 million in funding from an existing investor, who remains nameless. The money will be provided in the form of convertible notes, which are subject to interest upon repayment, and is “subject to certain conditions”, including Fisker filing a detailed financial report for the 2023 financial year. The funding will be allocated in 4 tranches. Fisker said it remains in talks with a “large auto maker” over a financial deal, which could take the form of pure investment or a strategic development or production partnership. It has still not named this manufacturer, but Nissan is widely reported to be in talks regarding a potential $ 400 million investment into Fisker. It’s understood that as part of this deal, Nissan would have access to the platform that underpins the Alaska and would build the compact pick-up truck alongside its own related model in North America. While these talks continue, production of the Ocean at Magna Steyr’s factory in Graz, Austria, will be put on hold for 6 weeks to allow Fisker to “align inventory levels and progress strategic and financing initiatives”. Fisker said around 1.000 units of the Ocean were produced between 1 January and 15 March and it delivered around 1.300. There are allegedly some 4.700 in its inventory, claimed to worth more than $200 million. Fisker recently paused development of its affordable compact electric crossover, the Pear, having made a loss of $463.6 million during the 4th quarter of 2023. The company is currently focusing its remaining cash reserves on ramping up production of the Ocean, as well as rolling out further software updates for the car. It produced 10.193 units of the Ocean and delivered 4.929 across 12 countries in 2023 and expects to deliver between 20.000 and 22.000 in 2024. “We are not planning to start external expenditure on our next projects until we have a strategic manufacturer partnership in place”, said company boss Henrik Fisker previously. Work continues on the Alaska, but chief financial officer Geeta Gupta-Fisker said its development depends on the successful tie-up with the car maker. “Any programs which are beyond the Ocean would only incur expenses if there’s a strategic collaboration”, she said. Pear prototypes were planned to hit the road later this year, ahead of the first customer cars being handed over at the “very end” of 2025, Fisker said earlier this year. However, it is now very possible that the company will have to file for bankruptcy. The company didn’t make a required interest payment of about $8.4 million last week on its unsecured convertible notes due in 2026, according to a regulatory filing Monday. Fisker warned it may not be able to meet obligations to service its debt and “could need to seek protection under applicable bankruptcy laws”. Fisker shares fell as much as 14% shortly after the start of regular trading. The stock had plummeted 90% this year through last week’s close. Fisker said it will cut 15% of its workforce after struggling with production issues, software glitches and short-seller criticism. +++
+++ INDIA on Friday lowered import taxes on certain electric vehicles produced by carmakers that commit to invest at least $500 million and start domestic manufacturing within 3 years, bolstering Tesla’s plans for the market. The policy is a big win for Tesla as it’s in line with what the company had been lobbying for in New Delhi, despite pushback from domestic carmakers. Tesla CEO Elon Musk has been trying to enter the Indian market for years, but New Delhi wanted a commitment to local manufacturing. Tesla officials visited India several times over the last year, with Musk meeting Prime Minister Narendra Modi in June. Sources said in July that the U.S. carmaker had offered to produce a €32.000 car (Dutch pricing) at a yet-to-be-built factory but wanted a cut in import taxes that Musk said were among the highest in the world. Under the new policy, effective immediately, companies that meet the requirements will be allowed to import up to 8.000 EVs costing $35.000 or more a year at a lower tax rate of 15%. India currently levies a tax of 70% or 100% on imported EVs depending on their value. Tesla’s current cheapest vehicle, the Model 3, starts at €43.990 in the Netherlands. We invite global companies to come to India. I’m confident India will become a global hub for EV manufacturing and this will create jobs and improve trade”, commerce minister Piyush Goyal told reporters at a press briefing. India’s EV market is small but growing, with domestic carmaker Tata Motors dominating sales. Electric models made up about 2% of total car sales in India in 2023, with the government targeting 30% by 2030. EV imports at the lower tax rate will be allowed for a maximum of 5 years. The duty foregone would be limited to the investment made by the company or around $800 million, whichever is lower. The policy comes at a time when global EV sales growth is otherwise slowing. This will open up the world’s third-largest auto market to new carmakers, suppliers, technologies and the overall EV ecosystem, said Gaurav Vangaal, associate director at S&P Global Mobility. “Multiple carmakers, who are sitting on the fence, would now like to enter India”, he added. Tesla, weighed down by a lack of entry-level vehicles and the age of its line-up, is battling a decline in demand and stronger competition from rivals like China’s BYD. BYD wants to invest in building EVs in India but has been stalled by New Delhi’s strict investment rules for countries sharing the land border. Vietnam’s VinFast, which also wanted lower EV import taxes, plans to invest $2 billion and last month began constructing a factory in the southern state of Tamil Nadu. India has been working on the EV policy for several months despite lobbying from Tata Motors and rival Mahindra. The objective of the new policy is to “strengthen the EV ecosystem by promoting healthy competition among EV players”, the commerce ministry said. +++
+++ Just weeks after admitting its new logistics hub has been the cause of thousands of vehicle parts being delayed, JLR’s efforts to resolve the crisis are being severely tested by a spate of failures concerning the electric power steering motors fitted to the JAGUAR F-Pace. It was reported last October that as a result of supply issues caused when JLR reconfigured its UK parts supply network from 18 warehouses to one ‘super centre’, 10.000 of the manufacturer’s cars were off the road awaiting replacement parts. In January, JLR boss Adrian Mardell claimed the backlog had been reduced to fewer than 2.000 parts and the following month said the company was resolving the problem, although cautioned that it would take dealers time to repair affected cars. “That’s going to take a bit more time but the original bottleneck is actually mostly through”, said Mardell. “It’s not where we want to get it but it’s mostly through”. His words are likely to be received with some scepticism by a group of customers who have formed a Facebook group to share their experiences. Called the JLR Power Steering Alliance Group, it has more than 580 members, 130 of whom own a F-Pace registered between 2016-20 and which, they claim, are suffering water ingress of the electric steering motor, rendering the cars undrivable. Among their ranks is Adrian Woodward whose F-Pace suffered failure of its steering motor after it was driven on rain-sodden roads. “Like the other owners, my car was not driven through a flood”, he says. “We’ve had heavy rain recently and I suspect water entered the motor simply from the roads being soaking wet. I’ve seen evidence of other cars suffering the same problem where the motor has a hairline crack and the electrical circuit board inside the unit is white with corrosion. Replacement motors are supplied with a new steering rack. One member of the group is on his third. At first, insurers blamed flooding and paid the bill but there were so many claims that they will no longer pay out, forcing owners onto the goodwill of JLR”. Woodward says that before it will consider his claim, JLR insists his car is first investigated by one of its dealers and the fault diagnosed at a cost to him of €250. However, he says his local dealership has told him the earliest it can inspect his F-Pace is 5 weeks. If the motor is found to be at fault, the dealer cannot tell him when the new steering rack will be delivered. “It’s frustrating enough that the dealership requires me to wait 5 weeks to diagnose the fault when JLR staff must have data on hundreds of recently failed steering racks but now they tell me they don’t know when a replacement rack will be available”, he says. “I suspect that the demand for replacement racks has exacerbated the firm’s parts supply problems. Fortunately, I’ve been told that if the dealer does diagnose the electric motor as being at fault, I will be provided with a courtesy car while I await the replacement parts”. JLR declined to comment on Woodward’s case until his vehicle has been inspected but a spokesperson told that the firm ’thoroughly reviews every claim regarding an alleged vehicle fault’. They added that regarding the steering issue, the company is working with the DVSA. This suggests that should the organisation consider it necessary, the steering issue might be escalated to the status of a vehicle safety recall. Meanwhile, in a statement regarding parts delays, JLR said, “We are working with our distribution partner, Unipart, to quickly resolve temporary parts delays. We are making positive progress, which is evidenced by the availability of parts being closer to target levels, while backorders are showing significant declines. Continuing this trend at pace, and resuming normal service as soon as possible for clients, is our priority. In the meantime, we have increased mobility options to keep clients mobile”. As JLR made this statement, Woodward said that the company had suddenly told him his car’s problem was currently being diagnosed and that if a new steering rack was required, it would be supplied and fitted free of charge. The firm said it still couldn’t say when, if required, the new part would be delivered but that a courtesy car would be made available to him immediately. “I’m amazed and delighted”, said Woodward. “All I hope is that if I get it, the new part doesn’t suffer the same problem”. +++
+++ JLR is recruiting 250 electrical engineers to work on a host of new EVs arriving by 2030, starting with the electric Range Rover later this year. These new positions join an already announced new 300 technician roles, all funded by JLR’s €17.5 billion Reimagine strategy fund, created to transition the firm into the electric era. Based across its Gaydon Engineering Centre and Whitley Future Energy Lab, 40 of the roles will focus on the electrical architecture and battery technologies that are pivotal to these next-generation EVs. This includes working on advanced energy storage systems, battery cell design, cell stack assemblies and software systems. This area in particular will futureproof the company, said cell design manager Freddy Gunnarsson, offering owners “unique driving and charging experiences expected of modern luxury vehicles”. “This is an exciting opportunity for battery chemistry experts to help define the next generation of electrical powertrains”, he added. The remaining new positions cover propulsion, the integration of high-voltage architecture, electrical system component design and the development of fast-charging tech. “The realisation of our Reimagine strategy is dependent on our investment in people and technology”, said Thomas Müller, executive director of product engineering. “As we continue to invest in our facilities, we are now seeking very talented people to help us develop advancements in propulsion technology that will underpin our next-generation modern luxury vehicles”. These roles join 300 already announced roles, 100 of which will be maintenance technicians looking after 700 robots at JLR’s new €£150 million automated body production facility in Solihull. The new body shop will increase Range Rover and Range Rover Sport production by 30%. These 100 technicians will also be trained to work on a new €80 million body production system that will be used to help build the new electric Range Rover. Future-looking will be the focus of the other 200 new recruits; a mix of technicians and test engineers. Based at the Gaydon engineering centre and Whitley powertrain facility, they will work on testing and developing next-generation EVs. These EVs will start with the electric Range Rover at the end of 2024, followed by a trio of “jaw-dropping” all-new Jaguar models, the first of which will be a 4-door GT in 2025. Both will be built at Solihull, which along with the Wolverhampton engine plant and Halewood factory will be transformed to produce EVs as part of this €17.5 billion investment. The investment has been applauded by Andy Street, mayor of the West Midlands; an area rich in automotive history. “It’s great news that JLR are doubling down on their commitment to our region with this new announcement supporting the Range Rover and future of electric vehicles”, he said. “The West Midlands is blessed with an exceptionally talented workforce, and so I’m so pleased this has been recognized by JLR as they continue to broaden employment opportunities for local people here. The investment JLR is making will boost skills, prosperity and opportunity for even more families in the months and years ahead”. The news comes just a few weeks after JLR parent company Tata Motors confirmed Bridgwater in Somerset as the location for its 40 GWh battery plant. +++
+++ NIO boss William Li has confirmed the Onvo name for the Chinese EV maker’s new volume market sub-brand, ahead of its launch in May. The Onvo brand is an extension to the Nio portfolio, targeted at more price-conscious family car buyers. Its first model is set to be a Tesla Model Y rival, planned for delivery to Chinese customers by the end of 2024. The Onvo name (Ledao in Chinese) was trademarked by Nio in 2022. Up to now, Nio has referenced its new brand as Alps; an internal working title used during its inception and the development of its debut car, the L60. “The name was chosen carefully and Nio finalised the English and Chinese names in the second half of 2023”, said Li. He stressed that Onvo is a “mass-market brand” but “not a low-to-mid range brand”. Earlier this month, Li said the first Onvo (photo) would be cheaper than the Model Y and support Nio’s patented battery-swapping technology. Confirmation of the name comes after spy photos showing a prototype of its first model, the L60, were leaked to Chinese media channels. At this early stage, there is no official word on whether the Onvo brand will be exported to Europe. In a recent interview, the head of Nio’s UK-based engineering centre in Oxfordshire, Danilo Teobaldi, said work was under way to ensure future models would meet the expectations of potential European buyers, confirming they would feature unique suspension tuning and other changes for sale outside of China. Onvo is 1 of 2 new brands being primed for launch by Nio. The other, known under the internal working title Firefly, has been conceived primarily for Europe. Firefly is planned to be launched in 2025 as a premium small car brand. Li has indicated that it will be positioned below Onvo with a range of small to mid-sized EVs targeted at those offered by Mini. “The relationship between Firefly and Nio is similar to the relationship between Mini and BMW. It will be a high-quality small car”, he said. +++
+++ TESLA is no longer a red-hot growth stock. CEO Elon Musk has said as much. But even by that new standard (with growth forecasts on Wall Street sinking rapidly), the grim sales prediction from a key Tesla analyst last week was still shocking. There’ll be zero growth in sales volumes for the electric-vehicle maker this year, Wells Fargo’s Colin Langan said. And in 2025, it’ll be worse yet: Volumes will drop. Shares of the company reacted appropriately, dropping 4.5% to close at a 10-month low of $169.5. The stock has now fallen 32% this year, missing out on a broader rally that has pushed the S&P 500 Index up 8.3%. The reason is clear: Tesla’s ability to grow at the furious pace that its expensive valuation promises is no longer a guarantee. The company still trades at a multiple that is significantly higher than other mega-cap high-fliers, yet the pace of expansion in its revenue and profit have slowed markedly since last year. “Right now, the market is voting and telling us that it believes Tesla does not currently deserve that high valuation”, Adam Sarhan, founder and CEO of 50 Park Investments, said in an interview. “For now, the sellers are in control and the market needs a bullish catalyst to get excited about”. Wall Street has been ringing the alarm bell loudly on Tesla since the beginning of March, after disappointing numbers from China, data from European countries and a production disruption at its factory near Berlin pointed to first-quarter deliveries missing analysts’ average expectations. Musk’s response, lowering prices to boost demand, is losing its edge as well. Wells Fargo’s Langan was the latest to note that the company’s growth in its core markets has moderated, as he downgraded the stock to the equivalent of a sell rating. The EV-maker is now a “growth company with no growth”, Langan wrote in a note to clients. He highlighted that sales volumes rose only 3% in the second half of 2023 from the first half, while prices fell 5%. Tesla has cut prices in China repeatedly since late 2022, sparking an international price war. The troubles for Tesla and EVs more broadly started emerging in mid-October, when Musk’s company first warned about a slowdown in demand. But sentiment worsened further in early January after Tesla said its growth will be “notably lower” this year. Other automakers, EV suppliers and even rental-car companies joined in with similarly cautious comments. While the weakness in EV demand spells trouble for all car companies, as a pure-play EV company with an eye-wateringly high valuation, Tesla shares have taken a serious hit. Tesla’s steep slide this year has wiped off more than $245 billion from the company’s market value, and pushed it off the list of the 10 biggest companies on the S&P 500. It has also cost Musk his “world’s richest man” status: he is now placed third, behind Bernard Arnault and Jeff Bezos. Despite the decline, the stock still trades at around 55 times its forward earnings, compared to the average of about 31 for the Bloomberg Magnificent 7 Price Return Index. “While an EV and battery technology leader, Tesla screens poorly relative to Mag 7 peers”, Wells Fargo’s Langan said, noting the valuation discrepancy. The analyst lowered his 2024 profit estimate for the company to $2 a share from $2.40. That compares to analysts’ average expectation of $3.03 a share for the year, according to data compiled by Bloomberg. “For the longest time, Tesla has been heavily invested in one of the market’s favorite narratives, the electrification of the world’s car fleet”, said David Wagner, portfolio manager at Aptus Capital Advisors. “Now, the market’s favorite narrative is artificial Intelligence and ESG has taken a bit of a back seat, thus the historical valuation premium may no longer be warranted, especially as future revenue growth and margin have slowed”. +++
+++ Headlines daily remind us that EVs aren’t going to take over the world just yet in the UNITED STATES , as they also tell us how automakers are responding to the next detour in the revolution. Electric vehicles aren’t dead, though, and an S&P Global Mobility report shows some EV makers are making gains within the downturn. The big-print news is that whereas new EV registrations throughout the full 2023 calendar year were up 52% over 2022, new EV registrations in January 2024 were “only” up 15% over January 2023, accounting for 7.8% of the light-vehicle market in the U.S. compared to 7.1% in January 23. And the EV tide rose inside of a larger vehicle market, buyers taking home more than 1.1 million cars in January, 4.7% more than a year ago. Over the full 2023 calendar year, new EV registrations made up 7.7% of the light-duty market, so January’s numbers are about holding steady, not losing ground. When the story for the past few years has been that EVs are the present, though, holding steady is doom. Naturally, Tesla still holds a massive lead over every other EV maker, its 48.757 registrations in January a 15% jump over Tesla’s January 2023 tally, at the same time outdoing the combined total of the other 30 EV makers on the list. Tesla’s Model Y took up two-thirds of the total, its 32.248 registrations a 35% gain over January 2023; the Model 3 contributed another 11.739 deliveries, down 23% from last year. The big movers away from the juggernaut were Kia with 3.717 registrations thanks to the EV6 and new EV9, more than doubling last year’s January total; Hyundai, up 79% with 4.144 registrations; BMW, its i4 and iX numbers taking it up 47% to 3.564 registrations; and Rivian increasing 46% to 3.818 registrations thanks to its R1S and electric vans. Ford came second in overall registrations with 5.429 units, but that number is 17% less than last January because of cratering Mustang Mach-E sales. Chevrolet, third overall with 4.353 units, endured even more pain, the Bolt’s departure sending registrations plunging 42% compared to last year. If GM were considered as a whole, it would still be third on the charts thanks to Cadillac’s 2.145 Lyriq registrations. The Hyundai Group would overtake Ford for second place with 8.262 registrations between Hyundai, Kia, and Genesis. S&P’s separate market analysis breaks down some overall trends for 2023. On the EV side, combined registrations for the Model Y and Model 3 were more than half of EV registrations last year, and although there are 83 electric vehicles on sale in the U.S., the top 10 were 75% of total EV sales in 2023. +++