Commentary: Innovation opens path to better future for suppliers

It's still tough out there for suppliers, even as the crisis stage of COVID-19 fades into the background.

The pandemic and ensuing microchip shortage took quite an economic toll on parts manufacturers, which might be expected, although automakers and dealers reaped record profits.

Things are getting better for suppliers as the semiconductor supply improves and output becomes more routine and closer to full capacity.

Production rose 15 percent globally in the second quarter from a year earlier, said Nikolai Setzer, CEO of Continental. But he stressed to a group of reporters at the company's North American headquarters in Auburn Hills, Mich., last week that the positive numbers are mostly a reflection of the fact that China was still in shutdown mode a year ago.

"It's a lot about the comps," he said. "Times are still challenging."

Inflation remains a challenge for suppliers — arguably for all manufacturers — and Continental is feeling it, t…

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Blowout sale at Sons Chevrolet

A bolt of lightning blew up several vehicles at a Chevrolet dealership in Georgia last week.

Lightning struck a gasoline storage tank near the back of Sons Chevrolet, causing it to explode, an employee told TV station WTVM in Columbus. A Chevy Corvette, several SUVs and a Ram pickup were among the vehicles hit by the blast.

The storm occurred when the dealership was closed and no one was injured. The business was able to open normally despite the damage on its lot.

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GM working to increase production of EVs

By mid-2024, General Motors plans to have several new electric vehicle nameplates in production, from the Chevrolet Equinox that was designed with affordability in mind to the Cadillac Escalade IQ costing four times as much.

That's also when the automaker expects to have built 400,000 EVs, on the way to reaching capacity for 1 million a year starting in 2025.

GM will get some help reaching that goal when its second Ultium Cells battery plant with joint- venture partner LG Energy Solution opens in Tennessee this year, joining the one already operating in Ohio. With more battery capacity and more EV nameplates on the way, GM is working to resolve issues that have constrained its ability to scale production.

Production of the Ultium-based EVs that GM already sells, including the Cadillac Lyriq crossover and the GMC Hummer EV pickup and SUV, started off slower than planned. Production demands are only going to grow, as all four of GM's U.S. brands have EV …

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Hyundai pushes to lead the EV race

Hyundai Motor Co. has made important steps over the past year to reposition itself as a leading electric vehicle maker.

By 2030, Hyundai Motor Group expects half of its U.S. sales to be EVs. The Hyundai brand is enjoying early success with its two dedicated EVs — the Ioniq 5 crossover and the Ioniq 6 sedan. Its revamped second-generation Kona EV goes on sale this year offering shoppers a more affordable option in the compact crossover segment.

The group is making large EV investments in the U.S. with its $5.5 billion Metaplant, now under construction near Savannah, Ga. Six battery-powered models will be built at the complex, which will have the capacity to churn out 300,000 EVs to start.

For now, Hyundai's mix of electrified offerings in the Santa Fe and Tucson crossovers and the Sonata and Elantra sedans is helping boost its market share of green products. The Tucson has plug-in and conventional hybrid variants, and the sportier N Line trim level is mo…

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Hyundai, Genesis and Kia EVs are U.S. bound

Hyundai Motor Group is laying down deeper roots in the U.S. The automaker's Hyundai, Genesis and Kia brands are localizing their planned electric vehicle production while they continue to battle for market share with their roster of crossovers.

The group has committed $5.5 billion to build an EV and battery plant outside Savannah, Ga., called the Metaplant, which is under construction and expected to open in January 2025. This year the company said it will partner with LG Energy Solution for onsite battery assembly.

Six models are planned for the plant, which has a capacity to build 300,000 EVs a year and the ability to produce up to 500,000, depending on demand. Three of those models are likely to be Genesis vehicles. Production of the Ioniq 7, Hyundai's three-row electric kid hauler, could also move to Georgia. In late 2026, both Kia and Hyundai are expected to launch midsize electric pickups geared toward the U.S. market; both could be candidates for Metapl…

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Texas dealer who beat cancer gives $25M to help others do same

When Texas dealer Steve Fox was diagnosed with Stage 4 tongue and neck cancer, he had to travel back and forth to the other side of the state repeatedly to get the treatment he needed.

Fox is now helping his hometown of El Paso get its own comprehensive cancer center with a $25 million gift to Texas Tech University. The Steve and Nancy Fox Cancer Center will be built with that donation and a $65 million appropriation approved this year by the Texas legislature.

"Three of the scariest words you'll ever hear are, 'You have cancer.' It was a difficult journey in the beginning," the CEO of Fox Auto Team said in a statement last week. "Even if you have the ability to travel for treatment, it's still very hard. It became obvious to me there was a big disparity in cancer care here in El Paso."

Texas Tech said cancer is among the leading causes of death for Hispanics, who make up 83 percent of El Paso's population. Having a cancer center nea…

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Kia EV9 to take EV rollout to next step

Kia is on a roll with electric vehicles. This year the automaker again upped its electrification target, saying it will sell 2.38 million full-electric and hybrid vehicles globally in 2030 — an increase of 300,000 vehicles over last year's target. EVs will make up about 1.6 million of those vehicles.

Kia also now plans to launch 15 EV models by 2027 — one more than previously announced.

In the U.S., the automaker will launch eight EVs by 2029 and convert half of its new-vehicle sales to electric power from gasoline by the early 2030s.

First up is the EV9, a new flagship EV and a three-row crossover that offers larger families a legitimate kid-hauler option. It also will be the first domestically built EV from Kia after production moves to its assembly plant in West Point, Ga., next year. Eventually, the EV9 will likely benefit from the joint venture between Hyundai Motor Group and battery maker SK On.

Kia Mexico, the automaker's factory in Monte…

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Hyundai makes $55 million deal to put its name on Georgia Tech football field

Hyundai Motor Co. is ready to take the field for college football season.

The South Korean automaker made a $55 million deal this month to obtain the naming rights to the Georgia Institute of Technology's field for the next 20 years. The Yellow Jackets will now play in Bobby Dodd Stadium at Hyundai Field.

"Proximity to institutions like Georgia Tech was one of the many reasons Hyundai selected Georgia for our new EV manufacturing facility," Hyundai Motor North America CEO Jose Muñoz said in a statement. "We are thrilled to expand our relationship with Georgia Tech, which will include opportunities for student professional development and cooperative work programs in addition to athletic engagements."

The venue, known as Grant Field when it opened in 1913, is the oldest on-campus stadium in the Football Bowl Subdivision, which is college football's top division. It was renamed for Dodd, a former coach and athletic director at the school, in 1988.

T…

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Highlights from the latest ‘Daily Drive’ podcasts, Aug. 14-16

Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, Aug. 14-16, hosted by Jamie Butters with Kellen Walker.

“When you get the assignment of ‘Reimagine the Escalade as an electric vehicle,’ it’s really freeing because you get to challenge everything that we’ve done before. And I think this is a very impressive result.” — Mandi Damman, Cadillac Escalade IQ chief engineer 

“It’s everything a dealer needs to run their entire operation, all of the workflows they need to run their business, starting with that consumer experience.” — Barb Edson, CDK Global CMO, on the auto retail software giant’s new platform, CDK Dearlership Xperience

“In the U.S., Europe and China, the overwhelming majority are satisfied with charging infrastructure on just about every aspect.” — Robert Fisher, SBD Automotive’s EV principal, on the firm’s survey that suggests concerns over EV battery range anxiety might be overblown 

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Genesis EVs will start ramping up

Genesis has spent the past 24 months positioning its lineup, growing its sales volume, launching electric vehicles and opening standalone retail locations — all steps dealers say are imperative to its credibility as an authentic premium brand.

While a convertible roadster or crossover coupe are likely part of its road map, its lineup is expected to remain curated and small, with a sprinkling of niche products that build on its proven formula of sporty sedans and sleek crossovers.

Genesis may start moving its vehicles onto electric platforms in 2026, coinciding with the sell-down of gasoline models. Its ramp-up of launch activities for EVs could start in 2024.

Hyundai Motor North America CEO Jose Muñoz has said the Genesis brand could benefit the most from the Metaplant, Hyundai Motor Group's EV and battery complex under construction outside Savannah, Ga.

Three of the six models that will be assembled at the Metaplant could wear the Genesis badge…

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GM to eliminate 200 engineering positions in effort to reduce complexity

General Motors plans to eliminate about 200 engineering positions, though the employees in those roles will be able to move to other jobs.

In a statement, a GM spokesperson said the automaker "is taking steps to rebalance our engineering resources to better align with our growth strategy. This will require a small number of engineers to move to other parts of the organization over the next several months. We will work with those who are affected and provide them with an opportunity to apply for open positions."

CEO Mary Barra said on GM's second-quarter earnings call in July that the company is launching a strategy called "Winning with Simplicity," which is expected to lower design and engineering costs and reduce complexity in vehicle orders and manufacturing. GM is aiming to cut trim levels in half, which "results in fewer part numbers to simplify marketing, engineering, manufacturing, while maintaining the best features customers want," Barra said.

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Teijin brings a flame-retardant innovation to EV batteries

he frenzy to produce and sell more electric vehicles is haunted by the image of an EV battery on fire. But engineers at Teijin Auto-motive, the Detroit supplier of materials, battery enclosures and pickup boxes, have managed to produce an advanced flame-retardant material that should ease consumer and automaker worries about such fires. Called phenolic, the material is better known in the aerospace industry, but Teijin has redeveloped it for use in autos. That task included altering its chemical composition and rendering the material odor-neutral. The company plans to quickly get phenolic into prod-uction globally to create battery enclosures that do not go up in flames.

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