AD #3908 – Stellantis Sues UAW Over Strike Threats; Toyota May Drop Pure ICE Vehicles in U.S.; Fisker Under SEC Investigation

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

STELLANTIS SUES UAW OVER STRIKE THREATS
The war of words between Stellantis and the UAW is really ramping up. The union is calling for a strike vote, accusing the company of reneging on promises it made in last year’s labor contract, saying that layoffs at its Warren Truck plant, its Sterling Heights truck plant and Kokomo Transmission plant violate the jobs commitment it negotiated. The UAW also says the company is delaying the opening of its Belvidere assembly plant. For its part, Stellantis says it has a side letter to the labor contract that the union agreed to that gives the company freedom to make changes based on market conditions. Last month Stellantis’ sales in the U.S. plummeted 20% and it announced it’s cutting back on production to get rid of an excess of inventory that its dealers are carrying. To prevent the union from going on strike at a parts plant in Los Angeles, Stellantis filed a lawsuit in U.S. Federal court. So now the next step is up to a federal judge.

UAW MAY STRIKE GM PICKUP PLANT
Meanwhile, General Motors is also tangling with the UAW. The union is mad that GM didn’t convert 250 part time employees into full time ones at its massive Fort Wayne assembly plant for full-size pickups. When the union refused to allow those employees to continue as part-time workers, GM laid them off. The company also moved some workers from the first shift to the second and third shift. The UAW says that violates seniority rules, while GM says the union cannot legally strike over that. And so there’s going to be more negotiating over what happens next, but we would not be at all surprised to see this end up in a federal courtroom as well.

RIVIAN SLASHES PRODUCTION FORECAST
Rivian says it’s running into a serious parts shortage that is forcing it to lower its production forecast for the year. Last year Rivian produced over 57,000 vehicles but this year it expects to make 8,000 to 10,000 fewer. And yet, Rivian forecasts it will deliver more trucks and vans to customers this year. And you know what that means, Rivian has a lot of inventory. Investors were unhappy with the news. Last week Rivian’s stock dropped 8% and it’s down 50% for the year.

TOYOTA MAY DROP ALL ICE VEHICLES IN U.S.
Toyota is thinking about dropping all of the ICE-only versions of its vehicles in the U.S. The company’s chief scientist, Gil Pratt, told Bloomberg in an interview that a decision is being made now about “whether to stop making pure ICE for the U.S. market.” And while he says he’s not a part of that decision, he also added “Just the fact that we’re thinking of that means that, OK, it must be close.” Toyota’s electrified vehicle sales in the U.S. have taken off the last few years. In September, hybrids, PHEVs and BEVs, accounted for 48% of its sales, up from less than 20% two years ago. 

MERCEDES TEASES NEW ELECTRIC VANS
Mercedes is getting ready to launch an all-new generation of vans. It says in 2026 all new medium and large vans will be based on a new architecture, called VAN.EA. It’s modular, flexible and scalable and is FWD-based, but has the option for AWD with an additional motor on the rear axle, and a variable length center section that can house different size battery packs. The lineup will expand to include everything from “family vans to exclusive VIP shuttles to luxurious and spacious limousines for customers with the highest demands.” They will also feature the latest operating system, 800-volt charging capability and a 22 kW AC charger. Mercedes says current tests involve getting all the components to interact properly with each other, which will be followed by cold weather testing in Sweden. 

 

GM WORKING TO MAKE SUPER CRUISE AN L3 SYSTEM
GM is trying to ramp up the capability of Super Cruise, its hands-free driving system. Dave Richardson, the VP of Software and Services at GM told TechCrunch “We’re looking aggressively to make that an L3 solution, where you don’t even have to look at the road anymore.” Currently, Mercedes is the only automaker that offers a Level 3 system outside of China, which I believe is limited to parts of Germany and California and Nevada in the U.S. But Richardson didn’t say when Super Cruise will get Level 3 capability. 

FISKER UNDER SEC INVESTIGATION
More bad news for Fisker. The EV startup is now under investigation by the U.S. Securities and Exchange Commission. The company filed for bankruptcy in June after burning through cash trying to ramp up production of its Ocean SUV. Fisker is planning to ask a bankruptcy judge this week to approve its liquidation plan. However, the SEC objects to that plan and has sent multiple subpoenas to Fisker. Regulators are seeking details on how it will maintain its corporate records after its settlement is approved but so far, the SEC says it hasn’t received a response. So, they say they may issue more subpoenas if necessary.

FORTESCUE DEVELOPS FAST CHARGER FOR MINING TRUCKS
Chinese automakers are starting to come out with EVs that have incredible charging capabilities, some that are able to fully charge in under 10 minutes. That also requires incredible charging rates of 800 kW or more, which is more than double some of the top fast chargers today. However, mining company Fortescue laughs at those pitiful numbers. It says it’s developed a 6 MW or 6,000 kW DC fast charger that can recharge a massive 1,900 kWh battery pack that goes into one of those giant mining trucks in just 30 minutes. Those chargers will be used on its growing EV fleet. Fortescue signed a $2.8 billion deal with heavy equipment maker Liebherr for 475 electric trucks, excavators and dozers as well as to deploy an autonomous EV haulage solution for mining.  

TESLA EXPANDS SUPERCHARGER NETWORK
Speaking of EV charging, Tesla says it opened 2,800 Supercharger stalls globally in the third quarter, which is down slightly from last year. But it was able to grow its overall network by 23% and delivered 27% more energy or 1.4 TWh or 1.4 billion kWh. It says that was enough to save more than 150 million gallons of gas and offset over 3 billion pounds of CO2. 

VW CEO WANTS TARIFF EXEMPTION FOR CHINESE OEMs
Volkswagen CEO, Oliver Blume, has been very vocal about his opposition to the EU’s new tariffs on Chinese-made EVs. He’s concerned that China will retaliate with its own tariffs that could hurt its sales and profits in the country. To help avoid a trade war, Blume says Chinese automakers should be exempt from the tariffs if they invest and create jobs in Europe. Last week, EU countries voted in favor of raising tariffs on Chinese-made EVs that go as high as 45%. But the EU says it’s still trying to negotiate a deal with China to avoid those tariffs before they go into effect next month.

TRUMP THREATENS 200% TARIFF ON MEXICO CAR IMPORTS
And speaking of tariffs, Republican presidential candidate Donald Trump threatened to slap vehicles imported from Mexico with a 200% tariff at a campaign rally over the weekend. Trump has threatened to boost tariffs on imports from Mexico in the past but the auto industry is against it because they say it will lead to higher vehicle costs. Last year, nearly 3 million vehicles were imported from Mexico, with Detroit automakers accounting for about half of them.

The Battery Show gets going in Detroit this week. And it’s the hottest automotive show in town, jam packed with exhibitors and attendees. Even though it’s called the Battery Show, it’s not just about batteries. It’s about anything to do with electric vehicles. And we’ll be posting videos about some of the things we see there, so stay on the lookout for them.

And that brings us to the end of today’s show. Thanks for tuning in.