The major automotive companies are looking into a wide-ranging collaboration spanning various vehicle types and electric vehicle batteries.
A downturn in Tesla's sales could provide a competitive edge to its competitors, yet both General Motors and Hyundai are not seeking effortless victories. Rather, these companies are intensifying their electric vehicle initiatives and collaborating on upcoming models. Competing for leadership in the electric vehicle market isn't just about surpassing Tesla—it also involves staying abreast of advancements made by Chinese car manufacturers, preparing for possible import duties, and demonstrating resilience amidst international commercial conflicts.
Welcome to this Friday issue Critical Materials , your daily summary of news and developments that are steering the future of automobiles and technology.
Today’s highlights include insights into the number of Tesla owners who have been relinquishing their vehicles. Additionally, Mitsubishi is teaming up with Foxconn to delegate electric vehicle production.
30%: GM and Hyundai Might Collaborate on Upcoming Electric Vehicles
Hyundai's electric commercial vans known as the ST1.
Sales of electric General Motors and Hyundai cars in the U.S. have been shattering records time and time again. Sales of Hyundai’s Santa Fe and Tucson hybrids continue to soaring However, in China, GM is facing intense competition from rapidly advancing domestic car manufacturers that excel in producing high-tech electric and software-driven vehicles.
Hyundai has a limited footprint in China, yet the growing influence of Chinese electric vehicles in various worldwide markets suggests they might benefit from a robust partner to strengthen their global activities. This appears to be materializing as expected.
It is reported that major automakers are considering an extensive collaboration encompassing advanced batteries and their components, shared-platform cars, and potentially jointly procuring or developing computer chips, which are currently quite popular. Reuters Hyundai might offer GM electric delivery vans to compete against the Ram ProMaster, Ford Transit, and Mercedes-Benz Sprinter. Additionally, GM is contemplating providing its midsized pickups to Hyundai.
The GM electric van might be built on the futuristic ST1 platform Hyundai unveiled this model last year. Early reports indicated that it would be available solely in South Korea; however, the company might now offer rebranded variants to GM as well. Initially, Hyundai plans to import these vehicles, but they are contemplating establishing a factory in the United States by 2028. This facility could produce around 60,000 units annually by 2030 and ramp up to approximately 100,000 units per year by 2032.
Below is a list of possible collaborations between GM and Hyundai:
- GM might acquire a compact electric van built on Hyundai’s ST1 platform, along with a bigger variant.
- GM might offer a rebranded Hyundai Creta compact SUV for the Brazilian market.
- Hyundai could potentially receive rebadged versions of the Chevrolet Colorado and GMC Canyon midsize pickup trucks for sale in the United States.
- Hyundai is also pursuing a full-sized pickup, however, GM has not considered that option as of yet.
- Collaborative creation of advanced-generation batteries, battery components, and chip technologies.
- Cooperative sales and service networks for the electric delivery vehicles.
Collaborating with each other to challenge China’s dominant companies appears to be the preferred strategy for established brands nowadays. The sense of urgency behind this approach is intensifying as these brands aim to strengthen their resilience against an unstable regulatory landscape. President Trump’s tariff threats pose a risk to the complex global supply chains that automakers have meticulously developed over many years.
Automakers can better handle the effects of these policies by joining forces rather than acting alone.
60%: This Month Saw A Peak In The Trading Of Tesla Vehicles
We understood that certain Tesla customers were displeased with CEO Elon Musk’s activities at the White House. Among these dissatisfied individuals were several celebrities deciding to trade in their Teslas due to the brand's association with his political involvement. Nevertheless, precise figures regarding how many Teslas were actually being returned remained elusive since countless Model Ys and Model 3s continue to be driven across American roads. Recently, however, an estimation has been provided.
Based on the information from Edmunds accessed by Reuters In the first part of March, there was a notable surge in Tesla trade-ins. Vehicles from Model Year 2017 onwards made up 1.4% of total car trade-ins as of March 15th, which marks an increase from just 0.4% over the equivalent timeframe last year. The count of traded-in Teslas this month has reached its peak since records began at Edmunds. This trend is anticipated to continue rising through the latter portion of the month.
In February, Teslas made up 1.2% of total trade-ins.
Here’s additional information from the report:
"As Brand loyalty becomes more uncertain due to factors like Elon Musk’s growing role in governmental affairs, worries about Tesla vehicle depreciation, and higher presence in key urban centers causing some long-term customers to feel alienated from the company," noted Jessica Caldwell, who leads insights at Edmunds.
Social media has been rife with Protesters filled with anger gathered outside Tesla dealerships. Across the United States, Canada has excluded Tesla from crucial incentive initiatives due to Musk’s backing of Trump, who has suggested incorporating the nation as America’s "51st state." Additionally, Musk’s dismissal of tens of thousands of American employees during his tenure at the Department of Government Efficiency has received criticism from the public. even within areas that typically voteRepublican .
90%: Mitsubishi Might Delegate Electric Vehicle Manufacturing to Foxconn
The Taiwanese contract manufacturing powerhouse Foxconn has had its share of ups and downs. several merger talks lately None of these plans have come to fruition yet. However, they might soon become reality, as Mitsubishi has partnered with Foxconn to assist in manufacturing their electric vehicles, according to recent Japanese reports.
The Japanese carmaker's involvement in the electric vehicle market remains minimal. They have joined the competition quite tardily and now require assistance to hasten their plans for electric vehicles. The Mitsubishi i-MiEV ceased production some time ago, and at present, they offer just one all-electric model in the United States—the plug-in hybrid Outlander.
The company plans to introduce a new all-electric vehicle in the United States next year, with indications suggesting this might be similar to the upcoming generation of the Nissan Leaf. However, it remains uncertain which specific Mitsubishi Electric Vehicle Foxconn will manufacture. Regardless, this partnership allows them to accelerate their development process and maintain cost efficiency.
100%: Does Tesla Need a Different CEO?
Musk New Model Y
The substantial work involved in refreshing the new Model Y—including interactions with the media, delving into complex engineering and design aspects—was managed primarily by Tesla’s Vice President of Engineering, Lars Moravy, along with Design Chief, Franz von Holzhausen. Evidence suggests that Musk hasn’t spent considerable time in Austin. Rather, he has been focused on building relationships with Trump and can often be found at the White House.
Should Tesla operate under separate management like his other firms, SpaceX and the social media platform X, or would it fare better remaining as is? Also, who might be suited for such a role?
Are you currently employed at Tesla or perhaps a former worker with a tale to tell? We're eager to converse confidentially and anonymously. Contact me via the Signal app using suvratk.74 or send an email. suvrat.kothari@insideevs.com
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