Auto File: Is the Cybertruck safe?

Aurora Innovation

08/12/2023 15:00

Joe White
Global Autos Correspondent
 
Greetings from the Motor City!  
 
Cheer up! You are not the only one feeling pressure to get a
million things done before December 24. The World of Cars is in
a frenzy this festive season.  
 
Jeep is blaming holiday layoffs on California’s climate rules.
Ford is scrambling to sell Mustang Mach-E electric SUVs before
tax credits expire. Legacy automakers are racing to cut EV costs
before Chinese competitors run them over. Self-driving car
operators in the United States are asking Santa Claus to bring
them subsidies. 
 
Whew! Did I mention the Cybertruck?  
 
We haven’t got a moment to lose. Have a good weekend! Let’s get
rolling. 
 
Today – 
    * Why safety experts are worried about the Cybertruck 
    *         China’s cheap EVs are scaring legacy automakers 
    *         Jeep layoffs escalate Stellantis’ fight with
California 

 
* The Cybertruck: Sharp edges and safety worries 
The angular, hard-edged design of the Cybertruck gives Tesla’s
newest model a menacing vibe.  
 
Now safety experts are raising alarms that the bullet-proof,
stainless steel Cybertruck poses a threat to pedestrians and
occupants of other vehicles in collisions, Reuters colleagues
Hyunjoo Jin and Akash Sriram report. 
 
U.S. safety regulators and the insurance-industry backed
Insurance Institute for Highway Safety have yet to crash test
the Cybertruck. But based on videos of crash tests and other
information released by Tesla and people who have had access to
the Cybertruck, a half-dozen vehicle safety experts said they
are concerned that the stiff, stainless steel skin and heavy
frame of the vehicle pose an outsized risk. 
 
The Cybertruck is the most attention-grabbing example of a
broader trend toward heavy, tall trucks in the U.S. auto
industry that has raised alarms from safety advocates. 
 
    Elon Musk said in a social media post that he is “highly
confident” the Cybertruck will be safer than other trucks for
occupants and pedestrians. U.S. automakers can self-certify that
their vehicles meet safety standards. Federal crash tests
usually aren’t completed until after vehicles go on sale. 
 
A senior Tesla executive told Britain’s Top Gear that Europe’s
strict pedestrian protection rules will make it hard to sell the
Cybertruck there. 
 
* Essential Reading 
    * Why Duke Energy is cutting off Chinese batteries 
    *         China’s auto market is juiced on EVs 
    * Renault’s auto business: Less than Zero 

 
* China’s cheap EVs pressure Western automakers  
Legacy automakers that have struggled for a decade to match the
rich, software-powered features of Tesla’s electric vehicles now
have a new cause for alarm: Chinese EVs that offer many of the
same wow-features at a much lower cost. 
 
With the pace of EV sales growth slowing and more Chinese EVs
rolling onto ships for export, established automakers are
redoubling efforts to slash costs by double-digit percentages.  
 
That’s a threat to engineers and production workers in high-cost
auto-producing nations. But it’s a potential bonanza for
companies developing technology that can help automakers reduce
the size and weight of EV batteries – the main driver of an
electric vehicle’s cost, Reuters colleagues Paul Lienert and
Nick Carey report. 
 
Western automakers also are partnering with Chinese EV makers –
as Stellantis and Volkswagen have done recently – or allying
with China’s CATL to get access to low-cost battery
technology.  
 
More cross-company cost-sharing deals could be on the way.
Renault and Volkswagen are studying collaborating on a low-cost
EV, German newspaper Handelsblatt reported Friday. (GM and
Honda, in contrast, scrapped a $5 billion plan to collaborate on
low-cost EVs.) 
 
    Policymakers in the United States and Europe fume about
China’s sway over EV technology and have threatened to erect
taller barriers to Chinese EV exports and battery technology. 
In response, China is fighting back against policies aimed at
shutting its companies out of EV supply chains. 
 
* The climate fight behind Jeep’s holiday layoffs  
    Jeep parent Stellantis is cutting production of Jeep Grand
Cherokee and Wrangler SUVs, and has warned 3,600 workers they
could be furloughed.  
 
The company blamed California climate regulations for forcing
the cuts – although dealer inventories of Jeep vehicles cruised
into November at a hefty 123 days’ supply, according to Cox
Automotive data. 
 
Stellantis’ production cuts at Jeep plants in Michigan and Ohio
escalate a battle between the automaker and California
regulators over climate emissions rules. The automaker says the
regulations are forcing it to ration shipments of combustion
Jeeps to California and 14 other states that follow its lead on
emissions standards. 
 
By laying off Michigan and Ohio workers, Stellantis should get
the attention of U.S. President Joe Biden’s administration,
which must rule on California’s proposal to ban combustion
vehicle sales by 2035.  
 
Winning Michigan is critical to Biden’s re-election effort.
Republicans have seized on EV mandates to peel away auto state
voters. 
 
* The U.S. AV industry wants a helping hand 
The U.S. self-driving vehicle industry is appealing to the Biden
administration for federal help to ride out troubled times for
robo-taxis and self-driving trucks.  
 
    Doubts about AV safety, fueled by accidents involving
General Motors’ Cruise robo-taxi operation, union opposition and
regulatory inaction, are stalling efforts by AV operators to
generate meaningful revenue.  
 
Share prices for AV companies such as Aurora Innovation have
tumbled. Autonomous trucking company TuSimple said on Dec. 4 it
will wind down U.S. operations. The industry letter warns that
setbacks for the U.S. autonomous vehicle industry hand the
advantage to China. 
 
* Fast Laps 
    - Stellantis is testing the concept of swapping batteries in
and out of electric vehicles, instead of forcing customers to
stand by while an EV recharges. The automaker is partnering with
San Francisco startup Ample to offer battery swapping for 100
Fiat 500e EVs used in a Spanish rental car fleet. Ample has a
similar partnership with Fisker.
 
    - Ford’s Mustang Mach-E will no longer be eligible for a
full $7,500 U.S. government tax credit after Jan. 1, when
stricter rules on domestic content kick in. Tesla has already
warned that U.S. subsidies could be cut next year for buyers of
its Model 3 and Model Y EVs. 
 
    - Volkswagen’s Tennessee assembly plant will be the first
test for the United Auto Workers campaign to organize non-union
U.S. auto workers. 
 
    - Tesla’s Nordic union woes keep getting worse. Norway’s
$1.5 trillion sovereign wealth fund, the seventh largest Tesla
shareholder, on Friday said the EV maker must respect union
collective bargaining rights. Norway is an important market for
Tesla, which faces a widening backlash in the Nordic region over
its refusal to strike a deal with unionized mechanics in
Sweden.  
 
    - Nikola raised $275 million with sales of shares and green
bonds. 
 
    - Tesla lost the executive leading its Dojo supercomputer
project, Bloomberg reported. 

    Auto File is published on Mondays, Wednesdays and Fridays.
Think your friend or colleague should know about us? Forward
this newsletter to them. They can also subscribe here.
 

 (Editing by Andrew Heavens)