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Archive for the ‘Funding’ Category

Ford China 2.0: Automaker Kicks Off Second Act in China

Automaker looks to better integrate Chinese partners into business.

by on Apr.03, 2019

Ford China President Anning Chen lays out the tenets of Ford China 2.0.

When it comes to its newest business blueprint for China, Ford Motor Co. is going by the numbers, specifically Ford China 2.0.

That’s what the automaker dubbed its reworked business plan for the world’s largest auto market where it has been perpetually behind its competition. However, Ford is pinning its rebound on an influx of new product and an increased reliance on its Chinese partners.

Global News!

Ford China 2.0 comprises five key plans and four centers of competence to accelerate the redesign of its business and sharpen its focus on the Chinese market. (more…)

Volvo Raises $677M With New Bond Issue

Automaker taps debt markets again instead of IPO.

by on Mar.26, 2019

Volvo Chief Executive Hakan Samuelsson said that trade tensions between the U.S. and China as well as the EU were one reason to halt its IPO last year.

More than half a year removed from squelching a run at a stock market listing, Volvo Cars raised 600 million euros, or $677 million, with a new bond issue on Tuesday.

The new issue is the second in the last year for the Swedish/Chinese automaker, which is owned by China’s Geely, as it looks to find ways to fund its ongoing development of battery-electric cars and self-driving vehicles.

Business News!

Volvo said on the Tuesday the bond would mature in April 2024, pay a fixed coupon of 2.125% and have an issue price was 99.625, equating to a yield of 2.205% and a Euro mid-swap of plus 215 basis points. The settlement was expected to be April 2, and the bonds would be listed on the Luxembourg Stock Exchange, Volvo said. (more…)

“Boutique” EV Company, Now Named Canoo, Plans to Market by Subscription Only

Former Evelozcity, wants to change the way cars are designed, built and marketed.

by on Mar.26, 2019

Canoo's leadership team is looking to change the way electric vehicles are built and bought.

In a market crowded with wannabe battery-car manufacturers, Los Angeles-based Canoo hopes to create a niche for itself with what’s its describing as a vehicle using “minimalist design that maximizes interior space.”

“Boutique” start-up Canoo is trying to to pitch itself as the alternative to conventional automotive manufacturers, as well as some of its new EV competitors, among other things by “Liberating you from the tyranny of auto ownership.” That translates into offering its planned products only through a subscription service.

Electrifying News!

Originally known as Evelozcity, Canoo has yet to show any of the vehicles it’s planning to bring to market, something that might raise questions about the start-up’s viability. But to gain at least a little credibility, the company has announced it is hiring three battery-car veterans from BMW and rival EV wannabe Faraday Future. (more…)

Deal with Mobile Gaming Company May Save Faraday Future

California-based EV maker to launch a “two-brand strategy” in China.

by on Mar.25, 2019

Faraday Future has been at death's door for several months now, but a new deal with an investor may clear the way for its return to life.

Once again, struggling battery-carmaker Faraday Future may have found a way back from the abyss, this time with the help of Chinese mobile gaming company The9 Limited.

The California-based FF is getting a $600 million lifeline from The9 as part of a new, 50/50 joint venture that will target the Chinese market with a new battery-electric vehicle based on Faraday’s FF91 concept.

News You Can Trust!

Only a handful of details have yet to be released but the long-troubled Faraday said the plan is to produce up to 300,000 vehicles in China. It also said it will have the right to produce additional vehicles in China in the future. (more…)

Ford Investing $900M in Second EV Plant, AV Facility in Michigan

New operation set to open in 2023, add 900 workers.

by on Mar.20, 2019

Ford is planning to use its underutilized plant in Flat Rock, Michigan, to build electric vehicles starting in 2023.

Ford Motor Co. will invest $900 million in two Detroit-area facilities meant to focus on the cars of the future.

The bulk of the investment, about $850 million, will go to Ford’s now under-utilized Flat Rock facility that will become the automaker’s second source for pure battery-electric vehicles, or BEVs, in the process creating 900 new jobs. The rest will fund what the automaker is describing as an “Autonomous Vehicle center,” where conventional vehicles will be modified to operate hands-free and even entirely without a driver.

Product News!

Ford was one of the earliest of the automakers to focus on battery-based powertrain technology, though it won’t bring out its first long-range all-electric model until next year, a “Mustang-inspired” SUV expected to take aim at the new Tesla Model Y. It will be produced at Ford’s first battery-electric vehicle plant in Cuautitlan, Mexico. (more…)

Tesla Backtracks on Store Closures; Raises Prices 3% Instead

$35K Model 3 exempt from price increase.

by on Mar.11, 2019

Tesla announced it will only close half of its stores and offset that by raising prices 3%.

Tesla buyers looking to walk into a store to buy a new vehicle were disappointed recently when Chief Elon Musk said the company would close the stores to cut costs — now they can rejoice.

In a blog post, the company announced it would only close about half of the stores across the country, after a spate of negative feedback about the move initially.

News Now!

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced,” the electric carmaker said.  (more…)

Las Vegas Ponders Bet on Musk’s High-Speed Tunnel

Mile-long tunnel would ferry riders using high-volume cars.

by on Mar.07, 2019

Instead of cars, the Las Vegas version of Elon Musk's high-speed underground tunnels would use high-volume passenger cars, like a subway or train.

Sin City looks like it’s ready to indulge Elon Musk and his plans to build an underground high-speed transport system to ferry 1 million tourists back and forth across the city, starting January 2021, if approved.

Through the Boring Co., Musk will build the system, which is similar to what he’s proposed for Los Angeles, at a cost of $35 million to $55 million. The plan has already drawn the support of Las Vegas’ tourism agency.

Business News!

“It’s really innovative. I think it will be an attraction in and of itself, frankly,” Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, told The Associated Press. (more…)

Renault-Nissan-Mitsubishi Alliance Partnering With Google

Move marks beginning of post-Ghosn era.

by on Feb.18, 2019

The Renault-Nissan-Mitsubishi Alliance is making plans with Waymo to find ways to exploit the ever-changing mobility world.

The Renault-Nissan-Mitsubishi Alliance, which is preparing to hang together in the post-Ghosn era, plans to join Google’s camp for developing autonomous taxis and other services using self-driving vehicles.

The automakers intend to work with Waymo, a Google spinoff that is among the leaders in technology for self-driving cars. The companies are in the final phase of talks, and plan to announce the arrangement as early as spring, according to a Japanese news service.

Global News!

The partnership would unite a car alliance whose global sales totaled 10.8 million automobiles in 2018 with a developer whose self-driving vehicles have traveled more than 10 million miles on U.S. public roads as of October. Waymo has forged similar deals with Fiat Chrysler Automobiles and Jaguar Land Rover, but the Nissan-Renault-Mitsubishi alliance boasts greater scale. (more…)

Amazon Becoming Lead Investor in Rivian

Rumored GM investment could yet follow.

by on Feb.15, 2019

The Rivian R1T pickup will boast 400 miles range, according to the company.

Just a week after announcing a major investment in an autonomous vehicle development company, online retailer Amazon said Friday it will become the lead investor in a new, $700 million round of financing for Rivian, the Detroit-based battery-electric company.

Rivian is in the final stages of developing two all-electric models, the full-size R1T pickup and R1S sport-utility vehicle. It is aiming to challenge not only electric vehicle rival Tesla but the established Detroit automakers that have long dominated the full-size pickup market.

News Now!

Rumors of a deal between Amazon and Rivian began to circulate earlier this week, though some reports had suggested that General Motors would also come up with some financing. Sources tell TheDetroitBureau.com that this remains a possibility and suggest that Rivian could have more announcements coming. The automaker has scheduled a news conference for the New York International Auto Show in mid-April. (more…)

Waymo to Build Self-Driving Cars in Michigan

Company in the market for a used auto plant.

by on Jan.22, 2019

Waymo is moving east to Michigan to build Level 4 autonomous vehicles in metro Detroit.

More and more automakers looking to develop their autonomous vehicles are finding their way to Michigan, and now add Waymo to the list. The Google spinoff plans to produce robot cars at a to-be-determined location in southeast Michigan.

The company has been testing its self-driving vehicles largely in the southwest, and had planned to find a cold weather state (i.e. a state with snow) to continue testing. However, this plant will be the first-ever site to churn out Level 4 autonomous vehicles.

News Now!

“Waymo will first identify a facility in Southeast Michigan and, over the next few years, aim to create hundreds of local jobs in the community,” the company said in a statement. “We’ll be looking for engineers, operations experts and fleet coordinators to join our team and help assemble and deploy our self-driving cars.”  (more…)