VIDEO1:1101:11Trump officially postpones auto tariffs for up to six monthsSquawk BoxThe Trump administration will delay tariffs on cars and auto part imports for up to six months as it negotiates trade deals with the European Union and Japan.
In a proclamation Friday, Trump said he directed U.S.Trade Representative Robert Lighthizer to seek agreements to “address the threatened impairment” of national security from auto imports. Trump could choose to move forward with tariffs during the talks.
“United States defense and military superiority depend on the competitiveness of our automobile industry and the research and development that industry generates,” White House press secretary Sarah Huckabee Sanders said in a statement. “The negotiation process will be led by United States Trade Representative Robert Lighthizer and, if agreements are not reached within 180 days, the President will determine whether and what further action needs to be taken.”
In his proclamation, Trump argued in part that “domestic conditions of competition must be improved by reducing imports.”
Vehicles wait for shipment at Lianyungang Port in Lianyungang, China.VCG | Visual China Group | Getty ImagesThe White House had to decide by Saturday whether to slap duties on autos. Earlier this year, the Commerce Department said Trump could justify the move on national security grounds. By law, the administration can push back its decision by up to six months if it is negotiating with trading partners.
In a statement Friday, EU Trade Commissioner Cecilia Malmstrom said “we completely reject the notion that our car exports are a national security threat.” She added that the trade bloc “is prepared to negotiate a limited trade agreement” including cars, but not so-called managed trade, in which the partners could set targets like quotas.
Malmstrom said EU officials will discuss the issue with Lighthizer next week in Paris.
Levying the auto tariffs threatened to open new fronts in a global trade war that could drag down the U.S. economy. The EU has already prepared a list of American goods to target with tariffs if Trump goes ahead with the car duties.
Automakers and some U.S. lawmakers opposed the potential tariffs. The American car industry said the duties would put jobs in jeopardy and raise prices for consumers.
The decision comes after the U.S. and China fired new shots in their trade war. The White House is working to salvage a deal with Beijing to address what the U.S. calls trade abuses amid the widening conflict.
Trump also used the national security justification last year to put tariffs on steel and aluminum imports, including metals coming from allies such as the EU, Canada and Mexico. Europe previously retaliated after those duties.
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Author: CNBC Online news
Usain Bolt launches two-seater electric vehicle which starts at $9,999
VIDEO4:1504:15Cities need help with congestion: Usain Bolt on electric scooter firmStreet Signs EuropeUsain Bolt's Mobility company has launched a two-seater, all-electric and zero-emission vehicle.
Dubbed the Bolt Nano, it was unveiled at the VivaTech conference in Paris Thursday. Whilst detailed information about the vehicle has yet to be revealed, prices start at $9,999, with deliveries starting in 2020.
Those interested in the Bolt Nano can put down a refundable deposit of $999 to reserve a vehicle, which has a swappable battery and seats one passenger in the front and one in the back. The vehicles are small enough for four to fit into one parking space.
The launch of the Bolt Nano comes in the same week that the firm announced it was rolling out its e-scooter offering in Paris. Users of the scooter service locate their vehicles via an app, paying for their ride through an account with the company. In the U.S., it costs $1 to unlock a vehicle and then 15 cents per minute.
Speaking to CNBC's Karen Tso Thursday, Bolt said that, having retired from sport, he was entering a new chapter of his life. “Through traveling, through my times as a track athlete, I've learned that the cities around the world need help with congestion,” he said.
Bolt, one of the most successful and iconic athletes of all time, is a co-founder of the business. The firm says its aim is to cut congestion and people's reliance on “personal vehicles” by partnering with city governments to “weave transportation alternatives into the fabric of urban environments.”
Sarah Haynes is also co-founder of the firm. She told CNBC that there was a “big, big appetite for finding solutions for transportation issues.”
“The cities that we have today are the same ones that have been there for centuries, and they're not made for this many cars,” she explained, going on to add that the firm was “looking at a fleet of transportation solutions that are electric. Our designs with our scooters are all customized so we can recycle every single part, including the batteries.”
The way people move around urban areas is changing, with ride-hailing services such as Uber and Lyft now offered in major cities across the world. Well established cycle-share schemes are also available in capitals such as London and Paris.
In the electric scooter market, Usain Bolt's venture is one of many looking to tap in to the shared transport sector. Firms such as Bird, Lime, and Bolt – formerly known as Taxify – also offer users a platform that allows them to locate and hire electric scooters using their smartphone.
Whether electric scooters take off and become a popular mode of transport for urban commuters remains to be seen. Regulatory hurdles pose a significant challenge to their mass adoption.
In the U.K., for example, e-scooters are considered to be “powered transporters.” This means that, currently, they are defined as being “motor vehicles” and it is illegal to use them on a public road without complying with several requirements, which in practice is difficult. Use of powered transporters on U.K. pavements and cycle lanes is also prohibited.
Change is afoot, however. In March 2019, the government announced what it described as “the biggest review into transport in a generation.” The review will look at regulations surrounding vehicles such as e-scooters and e-cargo bike trailers and will explore modernizing old laws that date back to the 1800s.
Europe’s ride-sharing unicorns call for reform to help the sector thrive
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Volvo Cars signs ‘multi-billion dollar’ supply deals with Asian battery firms
VIDEO2:0002:00Volvo Cars wants open trade and zero tariffs, CEO saysSquawk Box EuropeThe Volvo Car Group has signed long-term, “multi-billion dollar” deals with two major battery makers in Asia. In an announcement Wednesday, the car firm said that the agreements with firms CATL and LG Chem would ensure a supply of lithium ion batteries for its next generation Volvo and Polestar models.
The deals chime with Volvo Cars' wider strategy to electrify its vehicles. In 2017 the firm committed to ensuring all new Volvo cars launched from 2019 would be electrified. In addition, it wants fully electric cars to account for half of its global sales volume by 2025.
“The future of Volvo Cars is electric and we are firmly committed to moving beyond the internal combustion engine,” Hakan Samuelsson, the president and CEO of Volvo Cars, said in a statement Wednesday.
“Today's agreements with CATL and LG Chem demonstrate how we will reach our ambitious electrification target,” he added.
CATL and LG Chem are Chinese and South Korean businesses respectively. A major player in the automotive sector, Volvo Cars was bought by China's Zhejiang Geely Holding in 2010. The business sold 642,253 cars last year.
Speaking to CNBC's Squawk Box Europe on Wednesday, Samuelsson emphasized the importance of infrastructure being in place to support its commitment to electric mobility.
“That is really going to decide the pace we have in the transition,” he said, going on to add that the “supply of batteries will be crucial.”
Overall, 408,000 plug-in vehicle units were sold across Europe in 2018, according to analysis from EV-Volumes.
In 2017, there were more than 3 million electric and plug-in hybrid cars on the planet's roads, according to the International Energy Agency's (IEA) Global Electric Vehicles Outlook. This represents an increase of 54 percent compared to 2016.
Almost 580,000 electric cars were sold in China in 2017, according to the IEA, while around 280,000 were sold in the U.S.
Tesla may be about to lose a key group of investors that have stuck with the struggling stock
Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Tesla Model Y crossover electric vehicle in Hawthorne, California, U.S., on Friday, March 15, 2019.Patrick T. Fallon | Bloomberg | Getty ImagesTesla's recent move to raise cash may quiet down its skeptics. Yet Elon Musk has given them new ammo as he shifts his focus to autonomous vehicles — which pushes out the automaker's path to profitability even further.
Musk last week tapped Wall Street to raise $2.7 billion in stock and bond offerings, which sparked a relief rally in its stock that had been struggling amid disappointing production and the company's legal woes.
But on an investor call hosted by the deal's underwriters, Musk changed his tune, talking up Tesla's self-driving strategy right off the bat, confidently saying autonomous driving will transform Tesla into a company with a $500 billion market cap.
VIDEO2:5002:50Trading Nation: Tesla picks up speedTrading Nation “Case for a trillion-dollar market cap used to center around high-volume, high-profit auto sales … now it's all in on autonomy,” Barclays autos analyst Brian Johnson said in a note Tuesday. “Tesla [is] apparently pivoting from auto profits to autonomy profits.”
The pivot to autonomy now means growth investors will have to wait around even longer for any payoff, Johnson notes. The so-called rational bulls, typically large institutional investors with a growth mandate, believed that “Tesla will be a multi-product automaker in the next five to seven years with its light vehicle lineup,” Johnson said.
Now that's changed.
Shares of Tesla surged more than 4% the day the company announced its the stock and bond offering, and they jumped another 4% a day later when Tesla decided to upsize the deal to $2.7 billion from $2.3 billion as the offering eased the concerns about the company's liquidity and financing. Tesla's stock is still down more than 24% this year.
Musk first touted the idea of robotaxis on the company's investor day on April 22, saying Tesla would be able to offer robotaxis next year and it will be making cars with no steering wheels or pedals in two years.
Barclays rates Tesla at underweight and has a 12-month price target of $192, which would represent a 25% loss based on Monday's close of $255.
“We believe the appeal of Tesla shares to growth investors may fade,” Johnson said. “Some of the rational bulls may need to reassess the idea that Tesla will become a profitable auto market.”
— With reporting by Michael Bloom
WATCH: David Einhorn calls out Tesla Founder Elon Musk
VIDEO1:2501:25Hedge fund manager David Einhorn calls out Tesla's Musk at Sohn conferenceThe Bottom Line
VW’s new electric car passes 10,000 orders in just 24 hours
Juergen Stackmann, member of the Board of Management, Volkswagen Passenger and Cars brand presents the pre-order scheme of the Volkswagen ID 3 electric car during a press conference in Berlin on May 8, 2019.ODD ANDERSEN | AFP | Getty ImagesVolkswagen has claimed that pre-orders for its ID.3 electric hatchback surpassed 10,000 cars in just 24 hours.
The auto giant revealed Wednesday that the entry-level car will cost less than 30,000 euros ($33,600), with deliveries in Europe slated for the middle of 2020.
VW's Golf-sized ID.3 will officially launch this September at the Frankfurt Motor Show. The car is named ID.3 because Volkswagen views the model as the third major evolution in the firm's history, after the Golf and Beetle.
The German automaker started to accept pre-orders for the ID.3 Wednesday, asking for a deposit of 1,000 euros.
VIDEO3:0403:04VW launches electric dune buggy concept at Geneva Motor ShowSquawk Box EuropeCustomers who pre-book can officially order their cars after the Frankfurt show. Orders become binding in April 2020, with those who change their mind able to get a full refund until then.
Volkswagen sales boss Jürgen Stackmann said on Twitter Thursday that more than 10,000 registrations were received throughout Europe within 24 hours of the launch.
That number falls well short of the launch of the Tesla Model 3 in April 2016. According to the company's chief executive Elon Musk, in just two days the Model 3 generated 276,000 pre-orders secured by deposits of $1000.
On Wednesday, VW's Stackmann told reporters that the electric car will allow for more internal space than a traditional internal combustion engine (ICE).
“From the outside, the ID.3 will be as large as a Golf. In the interior, it will be as spacious as a medium-sized car.”
VW plans to sell three versions of the ID.3 (45kWh, 58kWh, 77kWh) with varying ranges (200 miles, 261 miles and 342 miles).
The German firm said a full warranty on the ID.3's battery will cover eight years, just under 100,000 miles or the normal depreciation of the battery to 70% of its original maximum capacity.
WATCH: Concerns about EV infrastructure 'overplayed'
VIDEO2:3702:37Analyst: Concerns about EV infrastructure are 'overplayed'Squawk Box Asia
Tesla faces twin assault as Mercedes, VW start taking orders for first long-range EVs
Elon MuskMike Blake | ReutersIt's been a tough month for Tesla, and the challenges the Silicon Valley electric-car maker faces will only accelerate now that two major European automakers are launching sales of their first entries into the long-range EV market.
Volkswagen and Mercedes-Benz began taking orders Wednesday and Thursday, respectively, for new battery-electric vehicles, with the two companies each planning to follow up with a wave of additional entries over the next few years. Whether they will prove to be “Tesla killers,” as some observers have dubbed them, is far from certain but the two German manufacturers are each investing billions of euros in their electrification programs.
VIDEO1:3501:35Tesla has new competitor from AudiThe Bottom Line “With the Mercedes-Benz EQC, we are entering a new era of mobility,” said Britta Seeger, member of the board of management of Daimler responsible for Mercedes-Benz cars sales. “It is part of the growing family of all-electric vehicles at Mercedes-Benz and combines brand-defining features such as quality, safety and comfort.”
But one of the keys to success Seeger added, is likely to be longer “range absolutely suitable for everyday use.”
The Mercedes Benz EQC.Adam Jeffery | CNBCThe first wave of electric vehicles, such as the Nissan Leaf and Ford Focus Electric, could deliver only around 100 miles per charge. Tesla proved an immediate breakout with its Model S sedan yielding more than double that – and its latest version of that sedan is EPA-rated at 370 miles between charges.
The compact Mercedes EQC, essentially an electrified version of its GLC crossover, will get around 270 miles in European trim and even more in the version slated for the U.S. market.
Volkswagen's first long-range entry, the ID.3, lifts a page from Tesla's playbook by offering customers three different battery pack options. The smallest, at 45 kilowatt-hours, is expected to manage around 200 miles, based on European testing, with optional 58 and 77 kWh battery packs rated at around 260 and 340 miles, respectively.
The new VW hatchback hasn't even had its official world premiere — expected to take place at the Frankfurt Motor Show next autumn — and it will be about a year before the first customers can take delivery. But the automaker on Thursday opened up a special website for advance orders. Pricing for the ID.3, which initially will target the European market, will start at 30,000 euros ($34,000). Customers in Europe preordered 10,000 ID.3s in the first 24 hours on the market there, overwhelming the company's website and leading to long wait times online, VW said.
A Volkswagen ID 3 electric car is seen in a glass cage during a press conference in Berlin on May 8, 2019.ODD ANDERSEN | AFP | Getty ImagesThe crossover, which will anchor a new sub-brand dubbed Volkswagen ID, will be just the first in a broad array of about 50 long-range electric vehicles the Wolfsburg, Germany-based carmaker plans to bring to the market by mid-decade through its various brands. It has already launched sales of the new Audi e-tron crossover and is preparing to deliver the first Porsche Taycan battery sports cars.
For the U.S., VW will begin its electrified assault next year with a production version of the ID Crozz concept. In January, during a visit to the North American International Auto Show in Detroit, Volkswagen Chief Executive Officer Herbert Diess said his company will spend $800 million to expand its factory in Chattanooga, Tennessee, to handle that crossover and another all-electric model, a move that also will create about 1,000 new jobs.
“The supertanker is picking up speed,” Volkswagen executives said during a March presentation in Frankfurt. “We are aligning Volkswagen with e-mobility like no other company in our industry.”
Adam Jeffery | CNBCAdam Jeffery | CNBCVolkswagen's diesel emissions scandal has already cost it around $30 billion and seen a number of executives jailed or indicted, including former CEO Martin Winterkorn. The company's shifting its focus from the “oil-burners” that long dominated its lineup to focus on electrification.
It has announced plans to spend 9 billion euros, about $10 billion at current exchange rates, on battery cars by 2023. And during his Frankfurt speech, Diess upped his estimate of VW's global EV salesprojections from 15 million vehicles to 22 million over the next decade.
These numbers dwarf those of Daimler, but the parent of the Mercedes-Benz and Smart brands is making a similarly aggressive push relative to its size.
“We are going to launch 10 pure battery-electric vehicles until the end of 2022, and we are covering the whole portfolio — from Smart [cars] to big SUVs and big sedans,” board member Wilko Stark announced during a news conference at the Paris Motor Show in September.
The Mercedes Benz EQC.Adam Jeffery | CNBCThe new Mercedes EQC will go on sale in Europe first and then follow with an American market launch sometime next year, officials said during last month's New York International Auto Show. The event saw the debut of the EQC Edition 1886, a special launch version referencing the year when the founders of what is now Daimler patented the world's first vehicle to use an internal combustion engine.
The EQC Edition 1886 is promised to deliver 292 miles per charge and, with an output of 402 horsepower and 564 pound-feet of torque, it will launch from 0 to 60 in less than five seconds. Those numbers suggest it will pose a direct challenge to both Tesla's older Model X and upcoming Model Y.
While Mercedes-Benz and Volkswagen are just putting their battery-car programs into motion, BMW is preparing its own ramp-up. It currently offers an all-electric city car, the i3, through a special sub-brand, though that model doesn't match the range of what can be thought of as second-generation BEVs.
A new BMW i3 electric car is seen on the assembly line at the BMW factory in Leipzig, Germany.Getty ImagesFuture long-range products will more directly target Tesla, as well as Mercedes and VW. The Bavarian automaker recently confirmed plans to migrate to new vehicle platforms that will allow it to offer all-electric versions of virtually every model in its lineup.
Jaguar Land Rover was actually the first European automaker to enter the long-range space, its Jaguar I-Pace last month being named World Car of the Year by an international panel of motoring journalists.
But the wave of new products will soon turn into a tsunami. According to InsideEVs, a website devoted to electrification, 14 new battery cars will land in the U.S. market in 2020, with even more coming to Europe and China — the latter market encouraging the buildup with tough new energy vehicle regulations enacted in late 2017.
Ian Callum and the Jaguar I-Pace accept the award for the 2019 World Car Award at the New York Auto Show in New York on April 17th, 2019.Adam Jeffery | CNBCThe big question is whether consumers will accept the new offerings. A study released by AAA on Thursday found that only about 16% of U.S. motorists surveyed are definitely considering battery power for their next vehicle.
Last year, all forms of battery-based vehicles, including conventional hybrids, plug-ins and battery-electric vehicles, accounted for barely 5% of the American market. But BEV sales, in particular, roughly doubled.
That said, virtually all the growth could be accounted for by Tesla's new Model 3 sedan. Demand for competing long-range offerings like the Chevrolet Bolt EV and Jaguar I-Pace did grow, but at a much slower pace.
Manufacturers such as Mercedes and Volkswagen will have to hope more buyers start to plug in. The good news for them is that AAA found 40 million U.S. motorists would at least consider a BEV in the future, with millennials particularly open. And the long-standing axiom in the auto industry is that the more product available, the bigger the appeal.
Paul Eisenstein is a freelancer for CNBC. His travel and lodging to the New York auto show was paid for by an automaker.
Uber prices IPO at $45 per share, toward the low end of range
VIDEO3:3403:34Needs to be path to profitability to go publicPower LunchUber priced its IPO at $45 per share Thursday, toward the low end of its stated range.
At the IPO price of $45 per share, the company will be valued on a non-diluted basis at about $75.46 billion, which will put the stock's market cap right around the size of Caterpillar's and make it one of the most valuable companies ever to go public. On a fully diluted basis, Uber has an implied market valuation of $82.4 billion.
Early reports suggested Uber was seeking a valuation of up to $120 billion. Its expected rangewas between$44 and $50 per share, according to a filing last month.
The company is offering 180 million shares of common stock, which means it could raise around $8.1 billion on Friday, with an option for underwriters to buy an additional 27 million shares.
A ride-hailing pioneer and Silicon Valley darling, Uber made on-demand transportation a new norm throughout the world, while accumulating massive losses and controversy along the way.
In 2018, Uber's revenue reached $11.3 billion for the year, up 43% from 2017, while reporting adjusted losses of $1.8 billion, an improvement over losses of $2.6 billion in 2017, according to its IPO filing. The company has never turned a profit.
To cover these losses and fund its rapid expansion, the company raised more than $24 billion from a wide range of investors since its founding a decade ago, according to Crunchbase. Investors have included traditional VC firms like Benchmark, and companies with interests in transportation like Alphabet and Toyota. Its biggest shareholder is Japanese tech conglomerate SoftBank, which invested more than $8 billion through its Vision Fund and owns 16.3% of the company pre-IPO.
“Uber is a great reminder to venture capitalists that the biggest opportunities lie in our most common needs as humans,” said Shawn Carolan, an early Uber investor and partner at Menlo Ventures. “When a start-up presents, look beyond the current product, which often feels trivial, to the underlying need being served. An on-demand black car service was easy to dismiss, but nearly everyone needs transportation.”
At Uber, CEO Dara Khosrowshahi replaced co-founder Travis Kalanick in 2017 after myriad missteps for the company. Kalanick's ouster was preceded by revelations about unchecked sexism within Uber's ranks, and a high-stakes lawsuit over trade secrets from Waymo, Alphabet's self-driving car business.
While Khosrowshahi is working to restore Uber's reputation, the company faced driver strikes in major cities this week leading up to the IPO.
Personal mobility remains Uber's core business. Its ride-hailing services reach into 63 countries and more than 700 cities. But its ambitions and revenue streams have diversified into bike and scooter rentals, food delivery and freight. Uber is also developing air taxis and driverless car technology, among other things.
Uber is engaged in an intense pricing battle with its chief competitor in the U.S., Lyft, as the companies try to attract and retain riders with low fares, while paying drivers just enough to keep them on the platform. Lyft went public in late March. Its stock has fallen more than 25% since its IPO.
The companyplans to list on Friday with the ticker UBER.
CNBC's Leslie Picker contributed to this article.
Clarification: Uber priced its IPO at $45 per share on Thursday, toward the low end of its stated range. The relation of the price to the stated range was unclear in an earlier version of this article.
Ford CEO reassures investors of EV plans as it pours money into electric F-150, Mustang-inspired car
An electrical charging port sits on the bodywork of a Kuga Vignale hybrid automobile displayed during a Ford Motor Co. launch event in Amsterdam, Netherlands, on Tuesday, April 2, 2019.Jasper Juinen | Bloomberg | Getty ImagesWith the automaker's first long-range electric vehicle set to be unveiled later this year, Ford officials said Thursday they're on the right path as they “reconceptualize” the company's vehicle lineup as well as its future.
Ford is in the midst of one of the most dramatic transformations the company has faced since founder Henry Ford threw the switch to start the auto industry's first assembly line rolling more than 100 years ago. The automaker is largely abandoning passenger cars in favor of SUVs and crossover vehicles, pursuing the development of self-driving vehicles and exploring the transition from a classic automaker into a provider of mobility services.
The automaker laid out plans last year to spend $11 billion on the technology by 2022 — up from its original target of $4.5 billion by 2020 — to develop 40 new all-electric and hybrid models. The company has already announced two EVs it plans to introduce next year: a fully-electric F-150 pickup and a “Mustang-inspired” electric crossover vehicle.
VIDEO1:2901:29Ford is investing $500 million in electric truck maker RivianThe Bottom Line “When there's new technologies, it takes a while, and there's a tipping point,” CEO Jim Hackett told investors during the automaker's annual shareholder meeting Thursday. “When it happens, you want to be there.”
Investors need some reassurance. While the company's shares are up by more than 33% so far this year, they're still down by almost 8% over the last 12 months. Sales of its first-generation EVs, like the Ford Focus Electric, have been modest at best. Hackett assured investors that more buyers will plug in. Company data shows one in five younger buyers would consider buying an electric vehicle at some point.
That's not far out of line with a study released by AAA on Thursday that found that 16% of American motorists it surveyed are giving serious consideration to an electric car for their next vehicle. The AAA report also said 40 million Americans would consider a battery-electric vehicle, or BEV — especially as prices drop, range improves and it becomes easier and quicker to recharge batteries.
Ford is clearly not alone.
Two of Europe's most powerful automakers, Volkswagen and Mercedes-Benz parent Daimler AG, launched sales of their first battery-electric vehicles this week. VW said it took about 10,000 advance orders for the new ID.3 crossover during the first day, even though the vehicle won't actually reach showrooms until next year. VW AG CEO Herbert Diess last year said his company is committing about $10 billion through 2023 to electrification. He also upped the number of battery-electric vehicles VW expects to sell by 2029 from 15 million to 22 million.
Japan-based Toyota plans to bring more than 10 EVs to market in the next six years, aiming to sell about 5.5 million battery-electric vehicles by 2030. The Renault-Nissan-Mitsubishi Alliance – which launched the world's first BEV, the Nissan Leaf, in 2010, is making a similar push.
Ford was an early proponent of electrification, rushing to market with a mix of conventional hybrids, plug-in hybrids and first-generation battery-electric vehicles, like the Focus Electric. But a variety of factors, including limited range and high sticker prices, limited demand. The automaker briefly hesitated before stepping up its efforts. But since Hackett replaced former CEO Mark Fields in a boardroom coup two years ago this month, he has ordered major new commitments to Ford's electrification, autonomous driving and mobility services efforts — including a “Mustang-inspired” crossover vehicle that's generated all sorts of buzz.
VIDEO3:3103:31Here's why Ford is the only auto stock Cramer endorsesMad Money with Jim CramerThe scant details and cult-following of the Ford's iconic muscle car has helped fuel speculation of what the electric version will look like. “Spy photographers” stake out the routes and locations where Ford is known to test its products, hoping to catch a glimpse of even a heavily camouflaged version of the vehicle.
“There's a lot of intrigue around this product,” said Hackett, adding that, “we're going to be telling our community more about it, but it is going to be a great story about Ford.”
Hackett shed little new light on the car Thursday.
“What we've done is reconceptualized [vehicle design] with all of the extra space that you actually retrieve using battery-electrics into a very, very unique vehicle that takes advantage of some inspiration from our Mustang brand,” Hackett said.
Whether Ford's bet on electrification will pay off is far from certain, as its earlier sales serve to remind observers. Nonetheless, there is a growing belief among those in and around the auto industry that battery power is the way of the future.
Ford plans to bring out a mix of hybrids, plug-ins and BEVs, betting that the unique characteristics of each will resonate with different groups of consumers.
In the Snowbelt, for example, where there are fewer public chargers and cold weather reduces range, analysts like IHS Markit and the Boston Consulting Group see stronger demand for the plug-ins that can switch to gas power when their batteries are depleted.
Rivian EV SUV.Adam Jeffery | CNBCMany experts believe that BEVs will be the long-term solution, a strategy underpinning new competitors like Tesla and suburban Detroit-based Rivian. EV ownership is expected to spike by 2030, according to the International Energy Agency, with an expected 125 million Americans owning an all-electric vehicle by that year.
Rivian revealed a pair of all-electric models, the R1T pickup and R1S sport-utility vehicle, at the Los Angeles International Auto Show last November and hopes to launch production within the next year. Rivian has raised more than $1.2 billion in capital recently, first lining up $700 million from a consortium led by Amazon. Ford kicked in the other $500 million. Rivian agreed to a new battery-powered electric vehicle for Ford as part of the deal.
The tie-up with Rivian will help Ford produce at least one, and likely several, new BEVs, according to industry analysts. But it won't slow the battery-car development program Ford already had underway for vehicles like the all-electric SUV that has gone by the codename “Mach One.”
If handled properly, experts contend, electric vehicles offer a number of advantages, including reduced – albeit displaced – emissions, lower energy costs, reduced vehicle noise and even more roomy interiors. That's because there's no engine under the hood anymore, Ford and most other manufacturers migrating to a skateboard-like platform where batteries and motors are mounted under the load floor.
Vacuum-maker Dyson releases patents for new electric vehicle line set to debut in 2021
James DysonLarry Busacca | WireImage | Getty ImagesDyson, a British manufacturer best known for vacuums, fans, air purifiers and hand dryers, could add electric vehicles to its product portfolio, the company confirmed this week, releasing images of new patents it has received.
“We've been researching motors, batteries, aerodynamics, vision systems and robotics for 22 years. Now the time is right to bring all our knowledge and experience together into one big project – an electric car,” founder and CEO Sir James Dyson said in a statement on the company's website.
The UK firm has been dropping hints of its interest in electric vehicles since mid-decade, last November revealing plans to set up an assembly line in Singapore, with Dyson indicating the project will cost around $2.7 billion to bring to market.
The patent images, among other things, show what looks like a three-row crossover-utility vehicle that follows the latest industry approach to electric vehicle design, with its battery pack and motors mounted below the floorboards. But while the patents “provide a glimpse” of what the company is working on, the Dyson founder wrote that they “don't reveal what our vehicle will really look like or give any specifics around what it will do.”
Launched in 1991, Dyson Ltd. today offers a broad array of products, mostly consumer household goods like the vacuums and fans that are widely advertised. But Dyson has done little to hide his interest in getting into the auto industry.
In 2015, he underscored his commitment with the purchase of Michigan-based Sakti3, a start-up that was developing a new type of battery known as solid state. Proponents contend the technology could offer significant advantages over the more familiar lithium-ion technology in widespread use today by boosting range and reducing charge times, particular pluses for electric vehicles, but also useful for the cordless appliances Dyson has been shifting towards.
Questions about the vehicle program cropped up last year when Dyson wrote off £46 million, or about $60 million, of its £58 million investment in the University of Michigan spin-off due to problems with the technology. But it subsequently announced new details that made it clear the automotive venture was moving forward. That included word that it would build an assembly plant in Singapore, which the company now says will be complete next year.
“Singapore has a comparatively high cost base, but also great technology expertise and focus,” CEO Jim Rowan told employees in a letter last November. “It is therefore the right place to make high quality technology loaded machines, and the right place to make our electric vehicle.”
The founder's latest e-mail revealed that the project is centered at the old RAF base at Hullavington Airport, 2.5 hours west of London and employees about 500 workers, though with testing set to accelerate next month, that job count is expected to grow.
“Our bespoke automotive development site at Hullavington, UK is a £200m investment in the Dyson electric car. It's 517 acres house restored hangars, with some of the most advanced Research, Design and Development (RDD) labs in the world,” the company says on its website.
Dyson said the patent filings reveal an “androgynous vehicle,” rather than a specific product under development. But he did offer a few hints at what is coming.
“Significantly, many of our competitors base their electric vehicles on existing formats and adapt them for electric propulsion systems,” Dyson wrote in an email to employees. “Such an approach is cost effective, however, it tends to miss opportunities for mass-reduction and aerodynamic improvements which would improve the energy efficiency of the vehicle. Another approach has been to focus on smaller vehicles, as this generally keeps the mass of the vehicle low which can extend driving range. However, the size and ride comfort of such vehicles tends to limit their attractiveness and utility.”
Referencing the patent renderings, Dyson did note that the basic shape, a bit lower than today's typical SUV and CUV, would reduce aerodynamic drag while “the long wheel base could be employed, increasing the driving range and enabling a larger cabin capacity.”
Based on comments James Dyson has made over the last year and reports in various news outlets, the expectation is that three vehicles are in various stages of development, company officials indicating production should launch by 2021. They have offered no details on pricing nor where they plan to launch the product line, though Dyson is expected to set up its own dealer network.
The outspoken company founder has, meanwhile, taken a publicly proactive position in support of a proposal now being studied by Britain's government that would eliminate the sale of all new gas and diesel vehicles. The original concept set a target date of 2040 but British regulators have begun considering the option of pushing that up to 2035. Dyson, for his part, would like the ban to go into effect in 2030.
Similar measures are under study in a number of countries, including China, India, Germany and France. In Norway, where electric vehicles currently account for more than half of the new car market, a ban has already been approved.
Such a move would improve the odds that start-ups like Dyson could carve out a market niche, though traditional automakers like Daimler AG, General Motors and Volkswagen, are intent on reclaiming market dominance. That said, the arrival of upstart Tesla has shown the potential for new entrants, of which plenty more are looking to launch, such as Rivian and Faraday Future. There is also Apple, the technology giant working on its own vehicle program, though it has sent a number of conflicting signals about what it is developing in recent years.