AD #3226 – Kia Unveils All-New Carens; Dan Ammann Abruptly Leaves Cruise; Arrival Reveals First Prototype for Uber

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

DAN AMMANN ABRUPTLY LET GO AS CEO OF CRUISE
What the heck is going on at General Motors and Cruise LLC? Last night, GM announced that Dan Ammann, the CEO of Cruise, was leaving the company effective immediately. No “Thank you for your years of service,” no “I’m leaving to pursue another opportunity.” Nope, he’s just gone. That tells us it likely ended badly. Cruise is on the verge of launching public rides in autonomous cars. And GM is counting on Cruise to generate $50 billion a year in revenue by the end of the decade. So losing the CEO like this could not come at a worse time. Kyle Vogt, the founder and CTO of Cruise, will temporarily take over until a new replacement for Ammann is found. And no doubt, in the days to come, we’ll get more details of how this all went down.

HYUNDAI’S HEAD OF R&D RETIRES
Now compare Ammann’s departure to another guy we reported was on the way out yesterday, Albert Biermann. Hyundai announced that he’s retiring as head of R&D, but he gets a cushy consulting role as an Executive Technical Advisor based in Europe. Biermann has been with the company since 2015. But despite his short time there, Hyundai speaks glowingly of his “unwavering dedication,” how he advanced vehicle driving dynamics and helped set them up for the future. Yesterday we reported that Hyundai’s design chief Peter Schreyer could be on the way out too, and we also expect him to get glowing reviews when his time is up.

CHINA PRESSURES CONTI TO STOP USING LITHUANIAN MADE PARTS
Continental, the giant German supplier, is getting sucked into the world of hardnose realpolitik. Reuters reports that China is pressuring Continental to stop using parts made in Lithuania. It’s all because Lithuania supports Taiwan, and China sees Taiwan as a rogue province that it wants to bring back under its control. Conti has a plant in Lithuania that makes high tech parts for connected cars and ADAS components such as radar systems. China denies that it’s pressuring Continental, and Continental is keeping its mouth shut. But Reuters reports that China is pressuring other foreign multinationals to cut off doing any business with Lithuania–or else.

UNVACCINATED GM CANADA WORKERS COULD BE FIRED
Get a jab or lose your job. That’s what GM workers in Canada have been told. 70 GM Canada employees were put on unpaid leave and could be fired because they refuse to get the COVID-19 vaccine. GM set a December 12th deadline for its 7,000 workers in Canada to get the vaccine and 99% of them did so. GM is trying to get those unvaccinated employees to get the vaccine, but if they won’t, they’ll have to look for work elsewhere. Unifor, the Canadian union, supports the vaccine mandates. Stellantis set a December 31st deadline for its Canadian workers to get a jab. And Ford workers have until January 10th to report their status but they don’t have to be fully vaccinated until March 28th.

CAR SALES EXPECTED TO RISE NEXT YEAR
Automakers will sell over 79 million vehicles globally this year and that will probably grow to over 82 million next year, according to IHS Markit. But it’s going to vary by region depending on how new variants of COVID spread and how many people get vaccinated. In the U.S., automakers will sell 14.7 million new vehicles this year and that should rise to 15.5 million next year as the chip shortage starts to ease. But IHS Markit says the U.S. market will probably not hit a normal 17 million units until 2024.

AUDI TESTING AI TO DO QUALITY CONTROL CHECKS OF SPOT WELDS
Audi is conducting a pilot project at one of its plants in Germany using artificial intelligence to do quality control checks of spot welds. Normally workers use ultrasound to manually inspect welds but now Audi is using AI to detect any issues automatically and in real time. The test is being done on A6 and A7s built at the plant. The A6, for example, has nearly 5,300 spot welds on its body. The hope is the AI can help cut costs and boost efficiency, and if all goes well, the Volkswagen Group plans to use AI for quality checks in all of its plants.

KIA UNVEILS ALL-NEW CARENS
Kia revealed the all-new Carens, which it first teased a little more than a week ago. The 3-row crossover was designed for, and is being built in India, but it will also be offered in other markets around the world. In terms of design, Kia said it went for a sporty yet sophisticated combination, which is highlighted by edgy character lines contrasted with soft chrome accents. Black cladding around the lower edges is meant to give it a bit of a rugged look as well. Kia calls the interior soothing and it features a digital display for the driver and infotainment. Both gas and diesel engines will be available with a number of transmissions, including a 7-speed DCT and 6-speed auto. The all-new Kia Carens will be available in India and other select markets in the first quarter of next year.

RIVIAN TO BUILD SECOND PLANT IN GEORGIA
EV startup Rivian announced it’s building a second manufacturing plant near Atlanta, Georgia. Construction of the $5 billion facility starts next summer and production is expected to kick off in 2024. The plant will eventually employ up to 7,500 workers and have a capacity to produce 400,000 vehicles a year. Rivian also announced it will expand its current plant in Normal, Illinois by 623,000 square feet, which will give it a total footprint of 4 million square feet.

ARRIVAL REVEALS FIRST PROTOTYPE FOR UBER
Remember Arrival? That’s the company that’s going to build electric commercial vans and buses in microfactories. Well, it also announced a partnership with Uber earlier this year to build vehicles specifically for ride-hailing and it just finished the first prototype. Part of its focus was to make the vehicle affordable and durable, so it uses the same easy-to-replace, molded-in-color body panels as the bus and van. But it also worked with Uber drivers to get some of their input and we think that shows through in the vehicle’s great visibility and leg room that’s twice as large as the average vehicle with the same length. Arrival says testing starts in the new year.

But that wraps up today’s show, thanks for watching and have a great weekend.