Good morning! It’s Thursday, August 21, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Jeep Worker Dies At Toledo Assembly Complex
In the midst of crisis talks over its performance this year and the threat of legal action from shareholders annoyed about its dropping profits, Stellantis has now reported that a worker at one of its Jeep plants has died. The death at Toledo Assembly Complex in Ohio occurred Wednesday, according to reports from the Detroit News.
The worker was killed at the Toledo Assembly Complex, which assembles the Jeep Wrangler SUV and Jeep Gladiator pickup truck. The worker reportedly died as a result of injuries sustained when they were crushed. As the Detroit News reports:
Toledo police were called to the plant at 1:55 p.m. and the incident was under investigation, Lt. Paul Davis said. The Lucas County Coroner’s Office said investigators were headed to the facility — which employs more than 4,600 people — as of midafternoon, adding the victim’s name had not been released.
Toledo news outlets, as well as plant employees posting to an internal message board viewed by The Detroit News, reported that the employee had been crushed on the Gladiator side of the complex, also known as JT.
“Stellantis is aware of an incident involving one of our employees at the Toledo Assembly Complex,” said a company statement sent by spokesperson Ann Marie Fortunate. “The Toledo Fire Department has been called for assistance. As this incident is currently under investigation, we cannot provide any further details at this time.”
Following the death, federal Occupational Safety and Health Administration inspectors have been sent to the site to open an investigation into the tragedy. This marks the third time that investigators have been sent to the Ohio site since Stellantis was formed in 2021, with one previous inspection resulting in an “other-than-serious” violation related to a lack of fall protection measures, reports the Detroit News.
The death on Wednesday is also the second time a person has died at the plant since 2021. Three years ago, 60-year-old plant electrician, John Ballard, committed suicide at the Jeep assembly facility.
2nd Gear: Automakers Desperate To Preserve IRA’s EV Incentives
One of the hottest topics in the impending election is America’s future support for electric vehicles. Vice president Kamala Harris wants to continue support for our switch to EVs while convicted felon Donald Trump has been sending mixed signals over his opinions on EVs. That uncertainty surrounding things like tax breaks for EV sales has automakers across America stressing out.
Specifically, automakers are concerned about the future of the Inflation Reduction Act, which brought $7,500 tax breaks to many EVs sold across the U.S. Now, the auto industry is bracing for changes to the law as a result of the election in 74 days. As Automotive News reports:
Republican presidential candidate Donald Trump told Reuters on Aug. 19 that if elected he will consider ending a $7,500 tax credit for EV purchases.
At the CAR Management Briefing Seminars in August, Chris Nevers, Rivian’s senior director of public policy, said that going backward now would amount to “basically yanking the rug out from underneath all those suppliers and manufacturers that invested either domestically or in some of our trading partners.
“That’s really scary,” he added.
The act has had a huge impact on the state of EVs in America in recent years. Automakers across the country have pledged more than $220 billion in investment towards their switch to EVs, and two-thirds of that investment came following the passage of the bipartisan infrastructure law in November 2021, reports Automotive News. Investment was further accelerated by the Inflation Reduction Act less than a year later, the site adds.
If those laws are backtracked by a second Trump presidency, experts warn that $89 billion in investments could “evaporate” from the EV space in the coming years. This could mean reduced battery capacity in America, fewer EV options for buyers and a further drop behind EV adoption compared with the likes of China and Europe.
3rd Gear: Investigation Opened Into Tesla Semi Crash
Federal regulators have opened an investigation into yet another crash involving a Tesla, but this time it’s not relating to a deadly incident involving Autopilot. Instead, the investigation will probe a crash involving a Tesla Semi truck earlier this week, which saw the truck burst into flames and spew toxic fumes across the highway.
The crash occurred in California on Monday when a Tesla Semi plowed off the road and burst into flames. The fire burned for hours and resulted in the closure of I-80 for hours while toxic smoke filled the air. Now, investigators from the U.S. National Transportation Safety Board are probing the crash to uncover the causes, reports Reuters:
The NTSB will carry out the safety investigation along with the California Highway Patrol authority, it said in a post on social media platform X.
The electric vehicle (EV) maker and the California Highway Patrol did not immediately respond to Reuters’ requests for comment.
A Tesla electric semi-truck crashed near Emigrant Cap in northern California late on Monday night after its engine caught fire, closing off a highway for more than half a day, local media reports said, adding that no injuries were reported.
There are already multiple investigations ongoing into Tesla and its cars. The Semi truck investigation joins an inquiry into a deadly crash involving the Cybertruck electric pickup as well as another probe into the company’s “concerning” Autopilot recall that was announced earlier this year.
4th Gear: EVs And Hybrids Boost Geely Sales
Chinese automakers are having a real moment right now, with EV maker BYD fighting against Tesla for the crown as the world’s biggest electric car maker and companies based in China increasingly looking to offer their cars in more and more markets around the world. Now, Volvo owner Geely Group has shown what it’s capable of after posting stellar growth for its range as a result of rising EV and hybrid sales.
Geely, which owns brands like Lotus, Polestar and Zeekr, saw sales grow bymore than 40 percent in the first half of 2024, reports Bloomberg. The growth came despite uncertainty for the future of Chinese brands around the world, with the U.S. and Europe looking to clamp down on imports with strict tariffs. As Bloomberg reports:
Geely Auto posted a 575% rise in net income earlier Wednesday to 10.6 billion yuan ($1.5 billion) for the six months ended June 30 from a year earlier. The deemed disposal of subsidiaries from establishing the Horse venture with partners Renault SA and Saudi Aramco resulted in an one-time gain of 7.47 billion yuan, the automaker said.
Excluding the item and impairment loss on assets, profit attributable to shareholders was 3.37 billion yuan, up 114%. Revenue climbed 47% to 107.31 billion yuan.
Vehicle deliveries gained 41% in the first half to 955,730 units, with EVs and plug-in hybrids leading the growth. The strong performance saw Geely raise its 2024 sales target to 2 million vehicles from 1.9 million.
While the stellar performances led the automaker to increase targets for the year, its plans may come unstuck by an announcement from the EU that it will impose a 19.3 percent tariff on Geely EV imports going forwards.
The tariff could hit successful models like the Polestar 2 and 4 as well as premium offerings like the Lotus Eletre SUV, which are all assembled in China for sale in Europe.