Good morning! Today is Friday, May 24, 2024 and here it is morning shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
Device #1: Production is waning at Tesla
Tesla is having an old time right now. If it is not recalled because of poor quality building its flagship Cybertruck then it is mass layoffs And sales decline. Now, the cost of those lost sales is becoming clear, as Tesla has reportedly cut production of several models and abandoned one of its most ambitious goals.
The electric vehicle manufacturer is said to have cut production Model Y electric SUV In Shanghai, reports Reuters. New data shows the electric vehicle maker has cut production of its best-selling model by “double digits” from its factory in China. As Reuters explains:
The move is aimed at addressing weakening demand for the American automaker’s used models in China, the company’s second largest market, where the majority of vehicles produced at the Shanghai plant are sold and where the Fierce pricing has erupted among electric vehicle manufacturers amid an economic slowdown. slow down.
The Shanghai factory, Tesla’s largest production center globally, planned to cut Model Y production by at least 20% between March and June, an anonymous source said.
Data from the China Association of Automobile Manufacturers (CAAM) showed that Model Y production in China stood at 49,498 units in March and 36,610 units in April, 17.7% and 33% lower respectively. % compared to a year ago.
Besides reducing production in China, Tesla also abandoned one of its most ambitious goals this week. Over the past few years, Elon Musk has proudly announced that by 2030, his company will produced more than 20 million cars annually – more than what Toyota manages today.
However, after making the request in 2021 and 2022 annual impact report, the automaker dropped the wording in its latest edition, Bloomberg reports. As the website adds:
Tesla sold 1.8 million vehicles in 2023 and has warned that it will grow at a “significantly lower” rate this year. In April, Musk announced he would launch lower-cost cars as early as the end of 2024. However, people working with the CEO said he is mainly focused on launching a driverless car all-drive that Tesla plans to launch on August 8.
With a renewed focus on autonomous taxis compared to cheaper electric models For the general public, is Tesla’s goal of 20 million cars per year now out of reach?
Device #2: Elon Musk has changed his stance on electric vehicle taxes
The decision to cut production at Tesla’s Chinese factory was made just days after the attack. The US imposes a huge tax rate of 100% about Chinese-made electric vehicles being imported into this country. This was followed by threats from China to impose similarly harsh penalties on gasoline-powered cars from Europe and the US entering the country. Now, after all that, Musk has decided that, actually, he can Oppose tariffs on electric vehicles.
The Tesla boss initially said the tariffs were necessary to protect the competitiveness of automakers in Europe and the Americas. However, now he has changed his opinion and warns that such measures are “not good” because they “impede free exchange or distort markets,” Forbes reports. According to the website:
Musk’s latest comments are a far cry from the warnings he issued about Chinese electric vehicles earlier this year, when he appeared to call for government intervention. During Tesla’s earnings call in January, Musk said Chinese electric vehicle makers were “the most competitive auto companies in the world” and that he believed they would achieve “significant success.” ” globally “depending on what type of tariffs or trade barriers are established.”
The Tesla CEO then warned that “if no trade barriers are established, they will destroy almost every other company in the world.” China is Tesla’s biggest foreign market, and the automaker faces strong competition from homegrown brands like BYD and Nio.
Under new tariff regulations announced by President Joe Biden last week, a 100% tariff was imposed on electric vehicles, a 25% tariff was added on lithium-ion batteries and battery components, and there was an additional 25% tariff on essential materials for vehicle production electricity such as graphite and cobalt.
With these new fees going into effect on August 1, Tesla can expect some hefty additional fees. Currently, the company has not sell any Chinese-made electric car in the US, but it exports them to Europe, Australia and New Zealand, which are considering additional tariffs on Chinese electric vehicles.
Device 3: Boeing faces a long road to restoring its reputation
If there’s a company with a smoother start to 2024 than Tesla, it’s Boeing. American aircraft manufacturer has been accused of poor manufacturing practices and quality control issues after a door was jammed into one of its flat sides had problems mid-flight and was even caught up in a scandal surrounding the death of a corporate whistleblower. Now it faces a federal investigation into its quality control, which experts warn could take years to recover from.
Investigators from the Federal Aviation Administration has now claimed that the US planemaker faces a “long road” to once again making safe planes, report Guardian. As the website explains:
In late February, Mike Whitaker, the FAA administrator, gave Boeing 90 days to develop a comprehensive plan to address “systemic quality control issues” and prohibit the airline from expanding 737 production. MAX.
He said the FAA has been working closely with Boeing over the past 90 days on “what that plan would look like if it brought quality back to the level needed at their factories.”
“It’s about getting the safety systems where they need to be and getting the culture where it needs to be so that employees can speak up when they see something of concern.”
The FAA does scheduled meeting with Boeing executives next week to see what steps they are taking to resolve the issues. In attendance was company boss Dave Calhoun, who promised a “comprehensive action plan” that would help revive the company.
4th gear: GM is focused entirely on self-driving cars
This week we get our first impressions of some pretty important new models from General Motors, like Silverado EV that means to take fight with Tesla Cybertruck. But such cars are not the company’s top priority, as CEO Mary Barra has outlined her ambitions for the company to achieve that goal. Focus entirely on autonomy.
At an event this week, the GM boss backed his company’s autonomy plan, reports Reuters. So far, GM’s autonomy ambitions have been inclusive Invest heavily in Cruise and the fleet of self-driving taxis that have terrorized California. As Reuters explains:
Barra’s comments come at a time when companies involved in automated driving technology are pushing cars with new features that are expected to be safer than those driven by humans.
However, these companies have faced intense regulatory scrutiny following accidents involving self-driving cars.
“If you think about autonomous vehicles, it’s cutting edge artificial intelligence combined with machine learning,” [said Barra] “It actually leads to a world where we will be safer because 90% of the accidents that happen on the roads today… are due to human error. So if we have technology that helps drivers not be impaired or drowsy, know all the traffic laws, obey all of them, that will result in safer roads for everyone.”
Autonomous vehicles are facing increasing scrutiny this year, as automakers roll out more test vehicles and self-driving pickup truck finally reached our highway. It is because of this that countries like the UK have launched entire organizations dedicated to it Protect self-driving cars and make sure they roll out safely.
Opposite: Cross the bridge
On the Radio: Red Chili Pepper – Under the Bridge
