✨Autowist Report 74

Layoffs at GM

Summary of what's going on via CNBC:

There are a few obvious ways to explain this move. Let me try and go through a few:

1. Shake down from top management after some rather worrying issues. Almost in a Elon-Musk-Twitter-takeover fashion.

2. Make room for newer talent and to equip the organization with different technical skills. Could this be a sign of a major technical shift in the direction they have chosen internally?

3. Cost reduction. Although, the GM spokesperson told the Detroit Free Press that these cuts aren't about saving money. Instead, it's about operating more efficiently.

4. New execs from Apple(Baris Cetinok vice president of software and services and Dave Richardson senior vice president of Software and Services Engineering). As a step in the direction of streamlining. Less number of internal solutions and platforms to maintain and keep up. Which in turn results in a smaller head count.

5. Great management insight. To try and break away from the long standing manifestation of Conways law(Organizations which design systems (in the broad sense used here) are constrained to produce designs which are copies of the communication structures of these organizations.). Break from beaurcracy. To actually form an organization based on the technical architecture instead of the other way round

BONUS: See how the Lyriq infotainment stack up against Apple Carplay (Link)

Germany to get a new TSMC chip plant (Link)

Taiwan's TSMC, the world's largest contract chipmaker, has launched a significant new computer chip plant in Dresden, Germany. The project, valued at €10 billion, received €5 billion in state aid from the EU, marking the largest such grant under the EU Chips Act and the first in Germany. This plant, TSMC's first in Europe, is expected to be a crucial supplier of semiconductors for European industries and car manufacturers, enhancing Europe's resilience against future chip shortages.

The new plant is part of a joint venture, the European Semiconductor Manufacturing Company (ESMC), with European firms Robert Bosch, Infineon, and NXP, each holding a 10% stake. The facility, scheduled to begin production in 2027, will operate as an open foundry, allowing any customer to order chip production. Although the chips produced will not be the most advanced, they will be vital for automotive and industrial applications, particularly in producing microcontroller units (MCUs) used in car components.

This is a big deal

1. European manufacturers can actually look at a tighter and more closer supply chain. Starting with new chip plants, this can be followed by manufacturing other parts of the value chain downstream. In June, Germany signed an agreement with Intel paving the way to build two semiconductor facilities in the eastern city of Magdeburg.

2. They can strategize to undercut Chinese manufacturers in cost as they are now less depended on Chinese manufactured chips.

3. State aids provide a more level playing field between competitors in Europe and China. As the OEMs in China are heavily subsidized by the Chinese government, but can sell their products in the European market. Even though EU has imposed tariffs in Chinese built vehicles in Europe, the trends of Chinese EV exports are only increasing. The EU has already approved a €43 billion subsidy plan to double its chipmaking capacity by 2030.

Northvolt moves it R&D to Sweden (Link)

Northvolt has decided to shift the development of its next-generation lithium-metal battery technology from California to its R&D campus, Northvolt Labs, in Västerås, Sweden. This move aims to consolidate the research and industrialization of its battery technologies, including lithium-ion, sodium-ion, and lithium-metal, in one location to leverage the expertise and capabilities available at Northvolt Labs. This strategic decision is expected to maximize the success and cost-efficiency of lithium-metal technology development.

1. Keeping R&D together has so many benefits

   1. Better integration

   2. Shorter feedback loops when you are closer to production

   3. Added benefit of cross pollination of ideas and execution.

2. Using acquisitions as a tool to be more vertically integrated in the battery value chain

   1. But that comes with a cost of integrating 2 different company work cultures into one. once could argue that this move to consolidate R&D is also done to improve the commonification of different R&D business units.

On a similar note (Link)

Varta AG, a German battery manufacturer, has reached a restructuring agreement with its creditors, which includes Porsche becoming a majority stakeholder in Varta's car battery subsidiary, V4Drive Battery GmbH. This deal significantly reduces Varta's debt from €485 million to €200 million, ensuring the company's long-term financial stability.

Porsche's planned majority takeover of V4Drive, which produces large-format lithium-ion cells for the Porsche 911 Carrera GTS, is contingent on antitrust approvals and the successful financial restructuring of Varta AG. Porsche has also confirmed that the construction of a new production facility for booster cells in Nördlingen, set to begin operations in 2025, will proceed as planned. This move is seen as a key step in advancing battery technology and maintaining it within Germany.

Backlash on Rivian Connect+ (Link)

Rivian recently introduced a new subscription service called Connect+ for its second-generation R1 electric vehicles, sparking controversy among owners. The subscription, priced at $14.99 per month or $149.99 per year, includes access to several new and previously free features, such as music streaming apps like Spotify, satellite navigation images, and an in-vehicle hotspot with unlimited data. However, this move to put features behind a paywall, especially ones that were once free, has caused frustration among Rivian owners.

To alleviate some concerns, Rivian updated its software to allow vehicles to stay connected to a phone's Wi-Fi hotspot while in motion, which could provide access to some features without the subscription.

Here is a tweet explaining how other OEMs are also charging similar amounts for the same features:

Audi Q2 Report

Here are some interesting bits from Audi's Q2 report:

Source 1, Source 2

US Department of Transport announces V2X plan

The National V2X Deployment Plan outlines the DOT's vision, goals, and milestones for the widespread implementation of V2X technology. It calls on various stakeholders, including government entities, public agencies, and the private sector, to collaborate in this effort. The plan emphasizes the need for "interoperable connectivity," ensuring that diverse technologies can communicate securely and efficiently across different platforms while protecting personal information.

1. Firstly, it is great to see that regulators are coming around V2X and treating it as part of the road infrastructure of the country, instead of a new feature that car makers have to patch throughout the country.

2. Privacy concerns on what happens to all this data. Even anonymized, it is still an attack vector

The DOT has defined three timeframes:  

• Short-Term (2024 - 2028): Leading Deployers in Operation.  

• Medium-Term (2029 - 2031): V2X Deployer Community Growth.  

• Long-Term (2032 - 2036): Nationwide Secure, Interoperable V2X Deployed and Operational.

The EV Hype Cycle

It definitely does look like we are an Trough of Disillusionment!

A slower than expected transition to EVs is probably not so bad. As we have larger problems to figure out solutions to before this can really work on a global scale

1. The amount of raw earth elements that are required for producing these vehicles

2. The effects a pure EV population would have on the electric grid

3. Charging infrastructure that can meet the global demand

Source