Stellantis thinks it could actually make some huge cash in India, midsize SUVs did largely positive in a brand new facet crash take a look at, and Elon Musk. All that and extra in The Morning Shift for Might 18, 2022.
1st Gear: Hyundai
It wasn’t two days in the past once we have been speaking about Hyundai being an actual drive in EVs, and, what are you aware, on Wednesday Hyundai and Kia introduced a brand new plan to spend $16.5 billion on EV improvement in what is an EV arms race amongst automakers.
From Bloomberg:
Hyundai Motor Co. and its affiliate Kia plan to take a position 21 trillion received ($16.5 billion) to spice up the manufacturing of electrical automobiles in South Korea, together with the institution of latest manufacturing unit that will finally have the capability to make round 150,000 cleaner automobiles a yr.
Underneath the plan, the 2 automakers goal to extend annual EV manufacturing in [South Korea] to 1.44 million models by 2030 from an anticipated 350,000 models this yr, Hyundai mentioned in a press release Wednesday. That forecast 1.44 million output would account for about 45% of Hyundai and Kia’s deliberate international EV manufacturing quantity by then.
The brand new manufacturing unit for purpose-built automobiles will probably be situated inside Kia’s present Hwaseong manufacturing website, Kia mentioned in a separate assertion. Building is predicted to start within the first half of 2023, with business manufacturing beginning within the second half of 2025.
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We’re going to be awash in EVs earlier than we all know it, and, hopefully, at some point, one among them will probably be reasonably priced.
2nd Gear: Elon Musk and Twitter
I’ve kept away from commenting an excessive amount of on Tesla CEO Elon Musk’s thirsty try to purchase Twitter, primarily as a result of it’s extremely boring. I counsel you learn Bloomberg’s Matt Levine on the matter in case you are , as a result of he truly is aware of what he’s speaking about, however the broad outlines of the story are that Elon signed a binding settlement to purchase Twitter at a sure worth after which, this week, mentioned that the deal possibly can’t occur due to spam bots or one thing, although, as a result of he signed mentioned settlement, most likely nonetheless has to purchase it, until Twitter’s board is made up of a bunch of colossal weenies.
In line with Bloomberg, Twitter’s board signaled on Tuesday that they will not be a bunch of colossal weenies.
“We intend to shut the transaction and implement the merger settlement,” the board mentioned Tuesday in a press release to Bloomberg Information. Administrators voted earlier to unanimously really helpful that shareholders approve Musk’s $54.20-a-share provide.
The proposed takeover features a $1 billion breakup charge for every get together, which Musk must pay if the deal falls aside because of financing points. However Musk can’t simply stroll away by paying the cost.
The merger settlement features a particular efficiency provision that enables Twitter to drive Musk to consummate the deal, in accordance with the submitting. That would imply that, ought to the deal find yourself in courtroom, Twitter would possibly safe an order obligating Musk to finish the merger slightly than successful financial compensation for any violations of it.
Many have mentioned, most likely appropriately, that that is all Elon angling to purchase Twitter at a lower cost, as a result of Twitter’s inventory has tanked because the deal was introduced, closing at $38.32 on Tuesday, which is far lower than the $54.20-per-share worth that Elon locked in to purchase. I hope Twitter’s board holds its nerve, if solely to show some extent.
third Gear: Talking of Tesla
Here’s a barely weird story from Automotive Information, about an unlucky incident final week at a Manheim Auctions website in Florida:
In line with the Palm Seashore County Sheriff’s Workplace, a person driving a Tesla misplaced management of the car within the Manheim car parking zone and struck the passenger facet of a 2010 Hyundai and a concrete wall, pinning one pedestrian between the 2 automobiles and one other pedestrian between a automotive and a wall. The accident befell Thursday, Might 12.
The sheriff’s division mentioned one of many pedestrians had important accidents and was airlifted to Delray Medical Heart in Delray Seashore, Fla. The press launch mentioned the opposite pedestrian had minor accidents and was transported to HCA Florida JFK Hospital in Atlantis.
In a press release to Automotive Information, Manheim spokeswoman Lois Rossi confirmed three folks have been despatched to the hospital and wrote that Manheim was cooperating with legislation enforcement and had no additional touch upon the reason for the accident.
A neighborhood TV station, CBS12 Information, clarifies that the motive force was a Manheim worker who was “transferring round automobiles” throughout an public sale. Ideas and prayers.
4th Gear: The Insurance coverage Institute for Freeway Security Says ‘Most’ Midsize SUVs Did All Proper in a New Aspect Crash Take a look at
That’s higher than virtually all the compact SUVs that IIHS examined, all however one among which did not get score. The midsize SUVs did higher, but in addition didn’t hit it out of the park.
From IIHS:
Ten out of 18 midsize SUVs earn good rankings: the Ford Explorer, Infiniti QX60, Lincoln Aviator, Mazda CX-9, Nissan Pathfinder, Subaru Ascent, Toyota Highlander, Volkswagen Atlas, Volkswagen Atlas Cross Sport and Volkswagen ID.4, the one electrical car within the group.
Two extra, the Buick Enclave and Chevrolet Traverse, earn acceptable rankings. Six others are rated marginal: the Honda Passport, Honda Pilot, Hyundai Palisade, Jeep Wrangler 4-door, Kia Telluride and Nissan Murano.
When IIHS introduced the primary rankings within the new take a look at in October, just one out of 20 small SUVs managed score, whereas half have been rated marginal or poor.
“It’s encouraging to see so many midsize SUVs from totally different automakers earn good rankings on this more difficult analysis,” says IIHS Senior Analysis Engineer Becky Mueller, whose analysis shaped the muse for the brand new take a look at protocol. “These outcomes will assist verify the changes they should make to different automobiles going ahead.”
IIHS launched the brand new, harder facet take a look at to deal with higher-speed crashes that proceed to trigger fatalities. Like the unique facet take a look at, the brand new take a look at represents the kind of crash that happens when two crossing automobiles collide in an intersection.
I don’t know anyone who consults IIHS rankings earlier than shopping for a automotive, however I suppose I’m glad it nonetheless exists. Properly, glad for anybody to be out right here telling automakers they aren’t adequate.
fifth Gear: Stellantis Sees Alternative In India
The Indian automotive market is usually Suzuki, Hyundai, Tata, Mahindra, and Kia, and, to a lesser extent, Toyota and Renault, as a result of Indian shoppers worth small and cheap automobiles, as a result of they know what’s good. Stellantis, which makes a variety of large and costly automobiles, sees a chance in India, for some cause, in accordance with Reuters.
Stellantis chief Carlos Tavares expects India to be a worthwhile market and an even bigger progress alternative than the carmaker beforehand anticipated because it faces challenges in international locations similar to China and Russia.
India, the place Stellantis sells its Jeep and Citroen manufacturers, makes up a fraction of the carmaker’s international gross sales however Tavares mentioned he expects revenues within the South Asian nation to greater than double by 2030 and working revenue margins to be in double-digits throughout the subsequent couple of years.
[…]
“Being worthwhile in India is feasible for those who do issues the India manner,” Tavares mentioned at a digital media roundtable late on Tuesday.
This, in accordance with him, consists of sourcing elements regionally and vertically integrating the provision chain to maintain prices low, and engineering automobiles regionally with options Indian shoppers need and are keen to pay for.
Good luck, Carlos.
Reverse: Completely satisfied Birthday Heinz-Harald Frentzen
He completed second within the Formulation 1 driver’s championship in 1997 and third in 1999. He’s nonetheless underrated in my ebook. Right here’s an outdated clip from The New York Occasions, which can also be a reminder of how good Williams was once and the way lame Michael Schumacher was:
On Sunday, he drives on the Canadian Grand Prix in Montreal the place, in final yr’s chaotic, accident-filled race, Frentzen was concerned in one of many season’s most controversial incidents on lap 20.
After the protection automotive neutralized the race for a fourth time, Michael Schumacher made a pit cease whereas he was within the lead. When he re-entered the monitor, he reduce in entrance of Frentzen, who was going full velocity in third place.
Maybe remembering the household enterprise, Frentzen selected to spin out slightly than collide. Schumacher served a 10-second penalty however received the race. He claimed he hadn’t seen Frentzen, however on tv it appeared as if he reduce him off to realize a place.
The incident symbolized the totally different instructions taken by the careers of the 2 German drivers. Frentzen was within the second of two failed seasons on the once-dominant Williams workforce. He received just one race, whereas Schumacher was the game’s dominant driver, twice world champion.
[…]
Whereas Ferrari and McLaren drivers nonetheless management the races this yr, Frentzen is main the remainder of the pack. He’s fourth within the drivers’ title race, behind two Ferrari drivers and a McLaren driver, and he has positioned his Jordan workforce third within the constructor’s race, forward of Williams.
Frentzen, 33, appears to be answerable for his future for the primary time since he got here to Formulation One in 1994. As an adolescent he outshone Schumacher in karting; he completed second within the Formulation Three sequence in Germany in 1989 when Schumacher completed third, and he was thought of the extra gifted of the 2 at Peter Sauber’s sports activities automotive workforce in 1990.
However the place Schumacher made a lightning begin to his profession in Formulation One, Frentzen went adrift in Formulation 3000. (He additionally misplaced his girlfriend to Schumacher, and he or she is now Mrs. Schumacher.) When he lastly broke into Formulation One, it was with the brand new Sauber workforce. He squeezed good outcomes from a nasty automotive, and when Ayrton Senna was killed at Imola, Italy, Frank Williams invited Frentzen to take Senna’s place.
Impartial: How Are You?
The residents in my constructing are up in arms over a proposal to show a close-by avenue right into a pedestrian plaza, thus eliminating most likely 70 or so avenue parking spots. Anybody who owns a automotive in New York, myself included, is totally mad.
