In the race to go electric, carmakers shift up a gear in advancing car designs
With electric car sales rising and regulations increasingly favouring zero-emission vehicles, a flurry of announcements on Monday demonstrated how the global auto industry has stepped up its game as it tries to pass the fossil-fuel car era.
Stellantis (STLA.MI) - which was created as a result of fusion of PSA and Fiat Chrysler earlier this year announced 'a preliminary agreement' with battery supplier LG Energy Solution to produce battery cells and modules for North America, where the world's No. 4 carmaker expects more than 40% of its U.S. sales will be electric vehicles (EVs) by 2030.
Daimler AG (DAIGn.DE) will acquire a 33% stake in Automotive Cells Company (ACC), which will be founded in 2020 by Stellantis and TotalEnergies (TTEF.PA). The announcement follows rumours that Dailer will buy ACC, which makes battery cell cells, in 2021.
As they transition to electric, carmakers are in desperate need of battery supplies, with dozens of new battery facilities planned across Europe and America as they begin to open up.
Ford Motor Co's (F.N) intentions to go electric in Europe received a boost on Monday when the company said it would invest up to 230 million pounds ($316 million) to revamp an engine factory in northern England to produce electric car power units rather than combustion-engine transmissions.
The No. 2 United States carmaker has stated that its European car lineup will be all-electric by 2030. read more
Ford's announcement is a boost to workers making fossil-fuel engines at its Halewood plant in Liverpool, where businesses such as Mercedes-Benz Daimler have warned that switching to electric will cost jobs at combustion-engine plants.
The shift to electric has also been accompanied by changes in the automotive landscape, with a large number of startups vying to be the next Tesla Inc (TSLA.O).
Foxconn (2317.TW), a Taiwanese firm that has ambitious ambitions to diversify away from its role as the manufacturer of consumer electronics for Apple Inc. (AAPL.O) and other tech firms, has piqued the interest of the Taiwan-based firm.
Foxconn unveiled its first three EV prototypes on Monday - an SUV, a sedan, and stowaway bus made by Foxtron, which is partnering with Taiwanese carmaker Yulon Motor Co Ltd (2201.TW).
It first mentioned its EV ambitions less than two years ago and has since grown somewhat quickly, this year confirming partnerships to build cars with US startup Fisker Inc (FSR.N) and Thailand's energy company PTT Pcl (PTT.BK).
The desire for speed was also a factor in Volkswagen AG's Elon Musk address to top executives at the German carmaker over the weekend.
Herbert Diess, Volkswagen's CEO, has made no secret of his ambitions to chase and surpass Tesla, the world'' s leading electric car manufacturer, while also revealing his desire to surpass the company.
But Diess said in a Linkedin post that he had invited Musk as 'a surprise guest' to highlight the fact that VW needs faster decisions and less bureaucracy for what illustratively named the company's biggest change.
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