Autonomous vehicle technology and electrification startups were once the darlings of the VC and corporate world. The two technologies promised billions of dollars in revenue β and a new pathway for automakers to make money beyond building and selling cars.Β Those VC-money-printing days have been over for AVs for a while now, with a few [β¦]
Struggling electric van startup Canoo has placed its remaining employees on what itβs calling a βmandatory unpaid breakβ through at least the end of the year, according to an email obtained by TechCrunch. The company told employees they are being locked out of Canooβs systems at the end of the day Friday, according to the [β¦]
Four employees have sued Rivian in separate lawsuits this year over allegations they were harassed, in some cases by top executives, and that the companyβs leadership did little to address their concerns, according to a TechCrunch review of court records. Rivian has also reached settlements in three other harassment and discrimination cases, TechCrunch has learned.Β [β¦]
Nissan's lack of hybrids has affected the success of popular models like the Rogue.
Honda has seen big sales increases for popular models with hybrid offerings.
A potential tie-up between Nissan and Honda could solve one big problem for Nissan: a lack of hybrids.
That's what dealers who spoke with Business Insider said this week amid reports that the Japanese automakers are in talks to create a new global auto goliath. Nissan is one of few car manufacturers in the US without a hybrid or plug-in hybrid offering, despite taking an early lead in EV sales with the Leaf in 2010.
Green car shoppers have turned away from EVs in favor of hybrid models this year, leaving Nissan with unpopular and unprofitable battery-powered offerings in the Leaf and Ariya SUV.
Nissan dealers have dealt with slumping sales all year, particularly for the brand's top seller, the Rogue. Once a segment leader, sales of the Rogue fell 10% through the first nine months of the year compared to the same period last year, according to company data.
And dealers say they're losing customers to Honda and Toyota, which have hybrid versions of their CR-V and RAV4 SUVs.
One dealer with both Nissan and Honda stores says it's "painfully obvious" that Nissan is losing customers to brands with more hybrids. The dealer didn't want to be identified, but Business Insider confirmed his identity.
He said it has become common for a Nissan shopper to migrate to the Honda store after they realize there aren't any hybrids.
Following disappointing sales results in the first quarter, Nissan CEO Makoto Uchida acknowledged the hybrid blind spot, saying during an earnings press conference that until last year, Nissan wasn't able to predict the rapid rise in demand for hybrids. The company has said it is shifting efforts toward hybrid offerings, but dealers and automotive industry experts say that change could take years.
Meanwhile, Honda is riding the hybrid wave this year as customers gravitate toward the hybrid versions of the CR-V SUV and Civic sedan. Just this month, Honda said it has plans to double its global hybrid sales to 1.3 million vehicles by 2030, as it aims to create a "bridge" to EV adoption.
Dealer skepticism over another auto merger
While details of a potential tie-up between Nissan and Honda remain scant, some dealers are wary of yet another global auto merger. In separate statements, the companies didn't comment specifically on the reports, pointing instead to a March announcement in which they said they were exploring "various possibilities for future collaboration."
Adam Lee, a dealer in Maine with several major brands, including Nissan, Honda, and Chrylser, said he's grown cynical about promised "synergies" after experiencing several different mergers as a Chrysler dealer.
"Show me a merger where the synergies actually existed, and I'll show you something that doesn't exist," Lee said. "I'm trying to give them the benefit of the doubt, but I tend to be cynical about anything like this."
Chyrsler-owner Stellantis is in the middle of a tough transition right now, as the CEO who led the merger of Fiat Chrysler and PSA stepped down suddenly at the start of the month. Before that, Chrysler lived through a messy marriage with Germany's Daimler in the late 1990s and early 2000s.
Lee said Nissan could probably use some help with hybrids and other plug-in models but argued: "You don't necessarily need to merge to do that."
Struggling EV startup Canoo says it has furloughed 82 employees and is idling its factory in Oklahoma while it grasps for the capital needed to survive. The company claims it is in βadvanced discussions with various capital sourcesβ to raise emergency funding. The announcement comes just a few days after board member James Chen resigned, [β¦]
Rivian has released a new software update to its vehicles that brings some long-awaited apps to its in-vehicle experience. Owners who update their R1S SUV or R1T pickup truck can now use YouTube (while parked) or SiriusXM (with a subscription). The company is also adding Google Cast functionality. That also can only be used while [β¦]
Stellantis is tapping the brakes on the all-electric Ram 1500 REV truck and will push its launch into 2026, the company said Wednesday, citing slowing industry demand for half-ton battery electric pickups. The automaker had originally planned to begin selling the electric truck to customers in the first half of 2025. The automaker will instead [β¦]
Honda and its rivals are facing a growing headache over sales in China, the world's largest car market.
Costfoto/NurPhoto via Getty Images
Three of Japan's iconic car companies are struggling.
Toyota, Honda, and Nissan have seen sales in China slump, and now Nissan and Honda are considering merging.
Japanese automakers, which have prioritized hybrids, are facing pressure from China's EV giants like BYD.
Japan's iconic auto industry is going through a rough patch, and now two of its most important companies are considering merging as they fight for survival.
It comes after the two companies and major rival Toyota reported slumping profits in their most recent earnings, as they grapple with ferocious competition in China and a bumpy transition to electric vehicles.
All three companies face a similar problem; they are failing to sell enough cars in China.
Toyota's sales in China were down just over 10% in the first nine months of the year, with the company blaming "severe market conditions" such as "intensifying price competition."
Still, a Toyota spokesperson told Business Insider that its declining profits were not only attributable to China; it also saw weakness in Japan and North America.
Honda flagged a decline in sales in China in its most recent quarter, dragging down its total group sales. While Nissan reported a drop of over 5% in retail sales in China in the first half of the fiscal year β the largest drop of any of its regions.
Like other foreign automakers, Japan's car giants are being squeezed in China by local rivals. These rivals have rapidly gained market share by offering a range of affordable but high-tech EVs and hybrids.
"The real battle is happening in the emerging markets. And that's exactly where the Japanese car makers are suffering the most," said Munoz, pointing to the rapid expansion of the likes of BYD in Southeast Asia and Latin America.
"Japanese carmakers have a strong presence in Southeast Asia. And Southeast Asia right now is a hot market for Chinese cars," he said.
Electric woes
Japanese automakers have taken a broadly cautious approach to the transition to EVs, focusing instead on hybrid vehicles.
That approach has mostly paid off as EV demand has slowed, with Toyota reporting bumper profits on the back of strong hybrid sales in the US earlier this year.
Toyota is considered to have started the hybrid-car craze in the early 2000s with the release of its Prius.
iStock; Rebecca Zisser/BI
However, Munoz said that while the hybrids-first strategy may have worked out in the US and Europe, it has created problems for Japanese automakers in China, leaving them without a strong lineup of EVs that can compete with local offerings that can cost less than $10,000.
"China is definitely shifting to fully electric. And this leaves out all of the car makers that are not competitive with their electric cars," said Munoz.
He added that Toyota, Honda, and Nissan are at risk of becoming overly dependent on US and European markets, which are experiencing stagnating growth while losing out in expanding markets like China.
"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," he added.
There are signs that Japan's auto giants are changing their strategies.
Nissan has pledged to accelerate the introduction of new EVs in China and hybrids in the US, while Toyota is reportedly planning to expand production in China as it attempts to take on local firms.
A Nissan spokesperson told BI that the company is taking measures to meet the market's and customers' needs, including introducing new products.
They added that the US remains a priority market for Nissan, and that the company was expecting an increase in sales from new models.
Shares of the carmaker jumped after news of the potential merger with Honda broke, rising as much as 24% in early trading on Wednesday. Nissan's shares are down nearly 25% this year.
Speaking on an earnings call in November, Honda executive vice president Shinji Aoyama warned that Trump's proposed tariffs on vehicles imported from Mexico could have a huge impact on Japanese automakers, many of whom have factories in the country.
Honda did not respond to a request for comment, sent outside normal working hours.
OpenAI is bringing o1, its βreasoningβ AI model, to its API β but only for certain developers, to start. Starting Tuesday, o1 will begin rolling out to devs in OpenAIβs βtier 5β usage category, the company said. To qualify for tier 5, developers have to spend at least $1,000 with OpenAI and have an account [β¦]
The Trump transition team wants to end a federal rule requiring automakers to report crashes when advanced driver-assistance or autonomous driving technology is engaged, Reuters reports. Federal safety agencies would lose the ability to investigate and regulate the safety of vehicles with automated-driving systems should the rule β which went into effect in 2021 β [β¦]
San Francisco is the most prepared city for new transportation technologies like AI, autonomous vehicles, and air taxis, according to an new urban mobility readiness index released Tuesday. The index, created by the Oliver Wyman Forum and the University of California, Berkeley, evaluated 70 global cities on a range of factors such as walkability, air [β¦]
The first Lucid Motors Gravity SUV just rolled off the companyβs production line last week, and now it has an official EPA range estimate of 450 miles. Thatβs a tick higher than the 440-mile estimate Lucid had been citing in the run-up to the official launch and production run of the SUV, which starts at [β¦]
The National Highway Traffic Safety Administration said Monday it has closed a preliminary investigation into Fisker over complaints that its all-electric Ocean SUV rolls away unexpectedly. The U.S. safety regulator opened an investigation in February after receiving four complaints β one of which resulted in an injury β over the failure of the vehicles to [β¦]
EV startup Rivian was ranked as the worst vehicle brand for reliability, while Tesla was voted the 6th least reliable of the 22 major brands surveyed.
Japanese brands Subaru, Lexus, and Toyota led the rankings, which are based on surveys of around 300,000 vehicle owners.
Percieved unreliability hasn't affected Tesla and Rivian owner's enjoyment of their vehicles, however.
86% of the Rivian owners surveyed by Consumer Reports said they would buy their Rivian EV again, giving it the highest owner satisfaction rating of any brand surveyed.
Tesla was not far behind, with 72% of owners saying they would buy their vehicle again.
In April, Tesla recalled almost 4,000 Cybertrucks over fears the accelerator pedal could become jammed at full throttle.
Consumer Reports found that conventional hybrids remain more reliable than EVs and plug-in hybrids, which had 42% and 70% more problems on average than combustion engine vehicles and hybrids, respectively, according to owners surveyed.
Rivian and Tesla did not respond to requests for comment from Business Insider, sent outside normal working hours.
Consumer Reports has put out its annual automaker reliability list, and the top spot is relatively unsurprising: Subaru. What may come as a surprise to some is that Rivianβs EVs are dead last, especially considering the company topped a different Consumer Reports survey from earlier this year about the βmost lovedβ auto brands. The consumer [β¦]
Sodium-ion batteries for electric vehicles and energy storage are moving toward the mainstream. Wider use of these batteries could lead to lower costs, less fire risk, and less need for lithium, cobalt, and nickel.
On November 18, CATL, the worldβs largest battery manufacturer, announced its second-generation sodium-ion battery, mass production of which would begin in 2027. The China-based company said the new battery has an energy density of 200 watt-hours per kilogram, which is an increase from 160 watt-hours per kilogram for the previous generation that launched in 2021. Higher energy density in an EV battery translates into more driving range.
On Nov. 21, a consortium of seven US national laboratories announced a new initiative in which they would spend $50 million to foster collaboration to accelerate the development of sodium-ion batteries. The partnership is led by Argonne National Laboratory in the Chicago area.
Automakers are facing lower-than-expected demand for EVs this year.
Shutterstock
Auto execs see an opportunity to roll back state EV mandates under President-elect Donald Trump.
Nissan and Toyota say state rules requiring a rapid uptick in EV sales are unrealistic.
Automakers are facing slowing EV demand, job cuts, and competition from China.
Some auto executives see an opportunity with the incoming Trump administration to roll back state rules requiring a rapid uptick in electric vehicle sales.
Executives at Nissan, Toyota, and the auto industry's largest US lobbying group say it will be impossible for the industry to meet aggressive timelines to phase out gas-powered cars and trucks by 2035 in a dozen states including California and New York, as well as Washington, DC. In six states, a target kicks in in 2026, when at least 35% of new car sales must be EVs.
He noted that EVs accounted for about 9% of new car sales nationwide in the third quarter β a record, but still far short of what regulators are requiring by 2026.
Automakers, facing lower-than-expected demand for EVs this year, are pulling back on production, and some companies are cutting jobs to save costs. At the same time, they have poured billions of dollars into EVs and executives say they are committed to the transition, especially to stay competitive with China as it churns out more affordable EVs. That balancing act has put the industry in a delicate position with Trump who railed against EVs on the campaign trail, vowing to kill tax credits and other incentives encouraging Americans to buy them.
Now the industry is strategizing how to influence Trump, including on EV sales requirements they view as too ambitious. Trump will likely take their side.
At a campaign event in Michigan in October, he said no state would be allowed to ban gas-powered cars. Trump during his first term tried to revoke California's authority to set stricter limits on tailpipe pollution than the federal government. California is granted that authority under the Clean Air Act but must get waivers from the Environmental Protection Agency. Biden restored the states' authority β a move currently being litigated and could reach the Supreme Court.
To avoid uncertainty, a group of automakers, including BMW, Ford, Honda, and Volkswagen, struck an agreement with California in 2020 to follow the state's rules through 2026.
The rules are stricter than federal regulations issued earlier this year by the Biden administration's EPA. Those federal rules aren't an "EV mandate," as Trump falsely said on the campaign trail. Rather, automakers can choose how to curb greenhouse gas emissions from cars, trucks, SUVs, and vans sold between 2027 and 2032. The agency estimated the rules could boost EVs to up to 56% of new car sales, with the rest from a mix of hybrids and gas vehicles.
'Not ready to go electric'
Dealers, which were the first to sound the alarm on changes in the EV market last year, have argued that state and federal emissions requirements are out of step with demand. As companies push to meet these requirements, dealers complain they are stuck with unpopular EVs on their lots.
"A majority of customers are simply not ready to go electric right now," Dave Kelleher, a Chrysler-Dodge-Jeep-Ram dealer in Pennsylvania, told BI. "Maybe with a new administration, some of those fines will become a thing of the past, or even mitigated."
Karoline Leavitt, spokeswoman for Trump's transition effort, said Trump will stop attacks on gas-powered cars.
"When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles," she said in an email.
John Bozella, president of the Alliance for Automotive Innovation, which represents companies producing nearly all the new vehicles sold in the US, sent a letter to Trump in November asking that he ease emissions regulations but keep EV tax incentives fueling domestic investment in the supply chain.
An analysis commissioned by the Natural Resources Defense Council found that companies have announced $312 billion in planned investments in EVs and battery production since Biden took office in 2021, fueled partly by tax incentives in the Inflation Reduction Act.
One automaker, Toyota, supports doing away with EV mandates and subsidies altogether. In a recent op-ed in the Wall Street Journal, Toyota Chief Operating Officer Jack Hollins wrote that state mandates distort the market because companies funnel zero-emissions vehicles to those locations and ultimately limit choices for customers.
General Motors initially sided with Trump in his crusade against California's EV rules, but dropped its support of the legal battle after Biden won the 2020 election. It's unclear whether the automaker would once again side with Trump if he tries to roll back emissions requirements. Paul Jacobson, General Motors' executive vice president and chief financial officer, told reporters that ideally there'd be more consistency between federal and state rules. But the automaker will respect regulators' authority, he said.
"There's a lot at stake here," Jacobson said during the event in Washington. "That's why we talk about being nimble across the board, because sometimes it's the marketplace and sometimes it might be the regulatory environment. But we can't make excuses for poor performance. It's not just Washington. It's China, it's Europe. There's a lot of things going on all over the world and we have to be able to respond to that."
The first Lucid Motors Gravity SUV has rolled off the companyβs production line in Casa Grande, Arizona, according to a post on X. The company will now set its aim on ramping up production of the new electric vehicle and making the first deliveries β though the company is staying quiet about when it will [β¦]
Rivian has opened a new charging station in Joshua Tree, California, that is open for other EV owners to use β a first for the company. Itβs part of a plan to build out a much larger interoperable charging network across the U.S., though the company is still very early in that process. The new [β¦]
Advertising veterans told Business Insider the strategy could help mark a new era for the brand.
Still, not everyone was convinced: Other marketing experts said Jag's final product might disappoint.
Jaguar has generated a lot of buzzΒ since unveiling its rebranding campaign, culminating this week with the release of a conceptual design for its next generation of electric vehicles.
When the luxury British carmaker debuted its redesigned logo, brand philosophy, and promotional video last month, it stirred up controversy on social media. Some conservative personalities argued that the new aesthetic abandoned Jaguar's heritage and pushed into "woke" politics, while others questioned why the promo video didn't feature any cars.
And that division carried through to Jag's latest update on Monday, which finally paired images of cars with its "exuberant modernism" vision. Now that concept cars are connected to the initial rebranding video, some marketing professionals are praising Jaguar's "brilliant" strategy β while others remain less convinced.
Jaguar's video ad, released in November, featured models in colorful, modern clothing but didn't show any cars.
Jaguar
"Jaguar's paced unveiling is a brilliant strategy to keep people talking and interested in a highly competitive auto marketplace," Jim Heininger, the founder and principal of the Chicago firm The Rebranding Experts, told Business Insider after seeing the conceptual car rollout.
"This is a master class in what rebranding can accomplish for a company β a new forward-facing product and brand, clearly designed for its new customer persona, that everyone is talking about," he said.
Heininger β whose 30-year career includes work for P&G, McDonald's, and Anheuser-Busch β argued that Jaguar set high expectations when it debuted its controversial rebrand last month.
He said the concept car unveiling delivered on those expectations. The car effectively signals the company's "boldly modernistic" vision and "departure from the past," he said. The colors, design shapes, and new logo "feel right when you see it on the concept car."
A front view of Jaguar's concept car.
Jaguar
Greg Andersen, the CEO of the Omaha, Nebraska, creative agency Bailey Lauerman, also lauded Jag's marketing strategy.
"What exceeds expectations is the breadth and depth of the Jaguar brand vision," said Anderson, who's worked for brands such as Google, Levi's, Burberry, and Axe before joining Bailey Lauerman.
"They have revealed much more than a concept car," he said. "It seems it is the beginning of the story of the Jaguar brand vision, which they can easily chapter out and stretch to the production model reveal."
But looking to the future, Andersen said the company's strategy has to remain well-executed when it comes time to reveal its new EV, which the company has said it expects to happen in late 2025 before hitting showrooms in 2026.
"I think the biggest risk for them now is making sure the production model lives up to the promise and doesn't suffer death by a thousand cuts," Andersen told BI. "Rolling out an unapologetic, future-facing brand along with a marginally better car might not go so well."
The proof of success will be in the production model
Still, not all of the ad veterans who spoke to BI had so much praise for Jaguar and its rebranding rollout.
Christos Joannides, the founder and creative director of the luxury branding agency Flat 6 Concepts in Los Angeles, told Business Insider that Jaguar's initial rebranding announcement did too much all at once, "overwhelming and confusing" the carmaker's long-standing audience.
And, in releasing its concept car this week, Jaguar didn't do enough to ground its new ethos in reality, Joannides said.
Joannides, who's worked with Jaguar competitors like Maserati and Lotus, argued that the concept car's features, like the rear with no window and the brass-toned divider running through the middle of the cabin, are impractical and bizarre.
Three brass lines run through the length of the concept car, with one right down the middle.
Jaguar
"By showcasing a production model with more realistic features, Jaguar could have conveyed its vision more effectively and provided tangible evidence of its direction," Joannides said. "As it stands, the concept car feels superficial and gimmicky, like a desperate attempt to be different without any real substance or coherent strategy."
Joannides said that while Jaguar's initial teaser video was "certainly audacious," the final product would be what matters.
Richard Brandon Taylor, the founder and CEO of the UK-based brand consultancy firm Brandon, told BI that while Jaguar's rebrand was a smart play in some ways because it got everyone talking, there's still a significant period of time before the first production model comes out to try to maintain that buzz.
"Why they've left a year between concept and car is beyond me βΒ that is a dangerous strategy to play," said Taylor, who's worked with brands like Coca-Cola, Kraft Heinz, and Kimberly-Clark.
Sunny Bonnell, the cofounder and CEO of the strategic branding firm Motto, said that to hold the audience's attention until the new cars hit the market, Jaguar needs to dive deeper into the "why" behind the rebrand.
"What does 'Copy Nothing' mean in practice?" said Bonnell, who's worked with brands like Google and Virgin. "How will it shape the driving experience, not just the look?" To do that, Jaguar needs a storytelling narrative, she said.
Jaguar's next steps in its rebranding rollout
It's unclear which specific design elements of the new concept will be implemented in Jaguar's forthcoming electric-vehicle models. Jaguar said its concept car was "an indicator of design philosophy and intent for the coming new vehicles," which are expected to be available for purchase sometime in 2026.
The new EV model will use dedicated Jaguar Electric Architecture, have a projected driving range of up to 430 miles on a single charge, and be able to add up to 200 miles of range after 15 minutes of rapid charging, the company said.
And the new EVs are expected to be much more upscale than previous Jags. Though Jaguar has not confirmed a price range, Wired reported, without citing a source, that the new Jag could cost at least $127,000 β a significant increase from current average price of around $70,000.
"We have forged a fearlessly creative new character for Jaguar that is true to the DNA of the brand but future-facing, relevant, and one that really stands out," Rawdon Glover, Jaguar's managing director, said of Monday's concept debut.
Update: December 5, 2024 β This story has been updated with comments from two additional marketing veterans.
