The lithium-manganese-rich cell, developed with LG Chem, uses far less cobalt and nickel than current lithium-ion cells. It’ll be produced in the U.S. and show up in large pickups and SUVs in 2028.



General Motors, which sells the biggest lineup of electric vehicles in the U.S., plans to slash the cost of its rechargeable pickups and large SUVs by thousands of dollars thanks to a new type of battery that uses more of the cheap material manganese and much less of expensive metals cobalt and nickel while still offering a long driving range.



The lithium-manganese-rich (LMR) cathode, which has been in development by GM and battery partner LG Energy for a decade, will cut the cost of battery packs in electric vehicles like the Chevrolet Silverado EV, GMC Hummer and Cadillac Escalade by more than $6,000, GM’s vice president of battery propulsion Kurt Kelty told&nbsp;Forbes. It has nearly the same driving range as “high nickel” lithium-ion cells now used in most EVs while competing on price with cheaper lithium-iron-phosphate (LFP) cells from Chinese battery makers that are heavier and offer less range, he said. The new batteries are also durable enough to be recharged frequently for at least eight years.



“We look at this as a game-changing battery for EV trucks, and that&#8217;s really going to set the new bar for performance in this particular segment,” said Kelty, who built up Tesla’s battery operations for over a decade and previously worked for battery maker Panasonic. “With LMR we can actually deliver over 400 miles of range while reducing our costs.”



The LMR packs will be made by Ultium Cells, the GM-LG Energy battery joint venture, in Michigan and Ohio, with a goal of getting most of the lithium, manganese and other raw materials from non-Chinese suppliers. GM also plans to cut battery costs by shifting to a flat “prismatic” cell instead of the traditional cylindrical form. “That alone is going to reduce the number of parts in our battery packs by over 50% and that makes a huge difference,” Kelty said.



GM significantly trails Tesla as the largest seller of EVs in the U.S., but that could change in the next few years as it continues to build out its lineup and finds ways to make them more affordable. It can also take advantage of its rival’s sagging sales thanks to&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2025/03/27/things-are-bad-at-tesla-theyre-about-to-get-much-worse/">many of its core buyers being increasingly turned off by CEO Elon Musk</a>. Though Tesla currently tops U.S. electric sales–delivering 128,100 in the first quarter versus GM’s 31,887–GM estimates it now makes more battery cells than any other automaker in the U.S., including Tesla. It also supplies batteries for Honda and Acura brand EVs, in addition to a dozen Chevrolet, Cadillac and GMC models. (Tesla makes more battery packs overall, mainly using high nickel lithium-ion cells supplied by Panasonic.)



Using less cobalt and nickel, which can respectively cost more than $30,000 and $16,000 a ton, and more manganese–which is less than $1,000 a ton–could be a major boost for EV sales. That’s because reducing costs, while simultaneously improving performance is critical to getting more American drivers to shift to EVs from gasoline-powered cars and trucks, especially as the Trump Administration works to eliminate federal incentives to buy them.



Since he arrived at GM in 2023, Kelty has focused on helping the company build up both its battery production operations as well as finding new domestic sources of key components such as lithium, rare earth metals and other critical minerals needed for the market that China now dominates.



<h3 class="wp-block-heading" id="h-lithium-ion-alternatives">Lithium-ion Alternatives</h3>



Over the past two decades, EV makers have dramatically improved the energy density and reduced the cost of lithium-ion batteries, but the range of those gains is becoming more incremental, said Kelty, who’s worked in the industry for more than 30 years. While GM is the first automaker to announce plans for LMR, other alternatives include lithium-sulfur cells, which Stellantis is experimenting with; sodium-ion batteries that China’s CATL and BYD are developing; solid-state cells that Toyota and Volkswagen want to commercialize; and lithium-metal batteries, a chemistry GM, Ford, Mercedes-Benz and other companies see as a longer-term low-cost, high-powered option.



The LMR cells are going to heavy, large EVs first as that will likely be the biggest opportunity for big cost savings, Kelty said. New electric models like the Chevrolet Equinox, Blazer and revamped Bolt hatchback, due later this year, won’t initially get the new chemistry as those models are already designed to be price-competitive with LMC packs, Kelty said. Over the next two years, before the LMR packs go into production, GM and LG Chem will continue to refine their chemistry.



“One reason we&#8217;re not going to market next year is because there&#8217;s a few more little tweaks we can do,” Kelty said. “We know we can get that last little bit out of it. And in 2029 and 2030 you&#8217;re going to see even further improvements.”



Separately, the Energy Department said on Tuesday that Ultium Cells, the GM-LG battery venture, paid off its low-interest $1.8 billion loan about seven years ahead of schedule. The loan, which closed in December 2022, was used to build battery cell factories in Ohio and Tennessee.



GM shares rose about 1% in Tuesday trading to $50.17. They’re down about 6% this year.

Inside the Shanghai Auto Show

GM’s New Battery Will Cut The Cost Of Its Electric Trucks By Over $6,000

At a time when the global automotive space is navigating an era of transformation, the country’s industry stands at a crossroads. Toyota South Africa Motors (TSAM) CEO and President, Andrew Kirby, recently depicted a stark yet hopeful vision for the sector.



The automotive business council of South Africa, NAAMSA, has released a report that paints a mixed picture of the country’s automotive sector. However, policies play a key role in addressing challenges in the industry and four, in particular, are worth noting.



According to the NAAMSA report, total vehicle sales in 2024 reached 515,712 units, reflecting a 3% decline compared to the previous year. Passenger car sales grew by 1.1%, but light commercial vehicle sales dropped by 12%, and heavy trucks and buses saw declines.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="654" src="https://cms.forbesafrica.com/wp-content/uploads/2025/03/GettyImages-11860916591-1024x654.jpg" alt="" class="wp-image-64931" srcset="https://cms.forbesafrica.com/wp-content/uploads/2025/03/GettyImages-11860916591-1024x654.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2025/03/GettyImages-11860916591-300x192.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2025/03/GettyImages-11860916591-768x491.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2025/03/GettyImages-11860916591-1536x981.jpg 1536w, https://cms.forbesafrica.com/wp-content/uploads/2025/03/GettyImages-11860916591-2048x1308.jpg 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Getty Images</figcaption></figure>



With regards to this, Andrew Kirby, the CEO and President of Toyota South Africa Motors (TSAM) emphasized, in January, that five key market shifts would redefine the automotive landscape this year, namely:



<ol class="wp-block-list">
<li>A consumer-driven shift in the affordability factor</li>



<li>SUVs continue to dominate</li>



<li>The rise of in-car technology</li>



<li>The Chinese and Indian automotive surge</li>



<li>The new energy vehicle (NEV) transition</li>
</ol>



“If we look at used car sales, we’ve seen a significant increase,” Kirby explained at the time. “Consumers are prioritizing affordability, with many unable to meet financing requirements for new vehicles. This trend will persist into 2025, influencing model availability and pricing strategies.”



He added: “The in-car experience is now a decisive factor in purchase decisions… it’s not just about driving anymore; consumers want seamless connectivity between their vehicles and smartphones, creating a digital-first car ownership experience”.



In terms of theshift in the automotive power map, the following should be noted:



<ul class="wp-block-list">
<li>Chinese-made vehicles now account for 29% of global production and sales, with a 645% increase in South Africa alone over the past five years.</li>



<li>India’s automotive market share has grown by 20% globally, now making up 30% of South Africa’s vehicle imports.</li>



<li>Germany, once a dominant force, has now fallen out of the top five vehicle-producing nations globally.</li>
</ul>



The Four Policy Challenges That Must Be Addressed



A review of these challenges necessitates that, to remain competitive and stimulate a strong sector, several factors must remain at the forefront as the year advances:



1. The Stalled South African Automotive Masterplan (SAAM)



SAAM, released to the public in 2018, set ambitious targets for production volumes, employment, and local content. However, six years later, critical pillars remain unimplemented — particularly optimizing the local market and regional trade integration.



2. An Unequal Playing Field for Imports



China’s state-backed incentives and aggressive pricing are reshaping global trade. South Africa, however, lacks a fair competition framework.



The country, therefore, needs balanced trade policies that allow competition without undercutting local manufacturers.



3. An Incomplete EV Policy



South Africa’s current EV incentive structure is inadequate and Kirby had urged that, “we need a broader industrial policy that considers hybrids, plug-in hybrids and battery electric vehicles, rather than a narrow focus on full EVs”.



4. The Early Signs of Deindustrialization



According to the Toyota CEO, South Africa is showing signs of deindustrialization, with imported vehicle sales outpacing locally built models.



“We need to create scale, increase local content, and attract investment — or risk losing our automotive manufacturing stronghold,” he has said.



5.The Road Ahead



Despite the challenges, Kirby stated that there are incredible opportunities here but they hinge on proactive policy reforms.



As South Africa stands at this defining moment, the decisions made in the next three years will determine whether the country remains an automotive powerhouse — or falls behind in the global race.

Professional Engineer Works on a Computer with a 3D CAD Software and Tests the Electric Car Chassis Prototype with Wheels, Batteries and Engine Standing in a High Tech Development Laboratory.

What Lies Down The Road For South Africa’s Auto Industry?

TOPLINE Volkswagen, one of the <a href="https://www.carlogos.org/reviews/largest-car-companies.html" target="_blank" rel="noreferrer noopener">world’s largest carmakers</a>, plans to accelerate its transition to electric vehicle production in Europe by 2030, joining an array of other global automakers seeking to move deeper into the electric vehicle market in the coming years to help meet EU emissions targets.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<ul class="wp-block-list"><li><a href="https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-is-accelerating-transformation-into-software-driven-mobility-provider-6878" target="_blank" rel="noreferrer noopener">Volkswagen said Friday</a> that it expects all-electric vehicles to account for at least 70% of sales in Europe by 2030 — double its previous target of 35%.</li></ul>



<ul class="wp-block-list"><li>The automaker’s electric vehicle sales in the U.S. and China are targeted to reach 50% by 2030.</li></ul>



<ul class="wp-block-list"><li>Volkswagen also said it will invest about $19.1 billion in its electric vehicle programs by 2025.</li></ul>



<h3 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h3>



“We are stepping up the pace. In the coming years, we will change Volkswagen as never before,”&nbsp;<a href="https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-is-accelerating-transformation-into-software-driven-mobility-provider-6878" target="_blank" rel="noreferrer noopener">said Ralf Brandstätter</a>, CEO of Volkswagen.



<h3 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h3>



The goal to increase electric vehicle production by 2030 matches the mandate by the&nbsp;<a href="https://www.reuters.com/article/us-climate-change-eu-transport/eu-to-target-30-million-electric-cars-by-2030-draft-idUSKBN28E2KM" target="_blank" rel="noreferrer noopener">European Commission</a>, the executive branch of the European Union, to have at least 30 million zero-emission vehicles on European roads by that year as part of its overall campaign to achieve carbon-neutrality in the EU by 2050.&nbsp;<a href="https://www.eea.europa.eu/data-and-maps/indicators/transport-emissions-of-greenhouse-gases/transport-emissions-of-greenhouse-gases-12#:~:text=In%202017%2C%20transport%20(including%20aviation,increased%20by%200.7%20%25%20in%202018." target="_blank" rel="noreferrer noopener">About 27% of EU greenhouse gas emissions</a>&nbsp;come from the transport sector, the Commission estimates, adding “The EU’s goal of climate neutrality by 2050 cannot be reached without introducing very ambitious measures to reduce transport’s reliance on fossil fuels.”&nbsp;



<h3 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h3>



To achieve its own electric vehicle sales goals, Volkswagen said it will release at least one new electric model car every year. Volkswagen joins a list of global automakers seeking to accelerate their own electric vehicle production goals.&nbsp;<a href="https://pressroom.toyota.com/toyota-to-debut-three-new-electrified-vehicles-for-u-s-market/" target="_blank" rel="noreferrer noopener">Japan’s Toyota</a>, is planning to have 40% of new global vehicle sales be electrified models by 2025 and raise that proportion to 70% by 2030. Last month,&nbsp;<a href="https://www.forbes.com/sites/palashghosh/2021/02/17/ford-motor-vows-to-sell-only-electric-cars-in-europe-by-2030/?sh=4fecdc08650c">Ford Motor said</a>&nbsp;it plans to invest $1 billion in an electric vehicle manufacturing facility in Germany, as part of its goal to sell electric cars exclusively in Europe and the U.K. by 2030.&nbsp;<a href="https://www.forbes.com/sites/michaeltaylor/2020/12/03/volvo-cars-to-be-all-electric-by-2030/?sh=6ce030ac33cb">Sweden’s Volvo</a>&nbsp;said last December that it will exclusively make electric vehicles by 2030.&nbsp;<a href="https://www.nytimes.com/2021/01/28/business/gm-zero-emission-vehicles.html" target="_blank" rel="noreferrer noopener">General Motors</a>&nbsp;said in late January that it will sell only emission-free vehicles by 2035. IHS Markit, a London-based data provider, said recently that<a href="https://ihsmarkit.com/research-analysis/ihs-markit-forecasts-global-ev-sales-to-rise-by-70-percent.html" target="_blank" rel="noreferrer noopener">&nbsp;global sales of electric vehicles</a>&nbsp;are estimated to have reached 2.5 million in 2020 and then projected to rise by 70% in 2021. This year, China and Europe will account for 44% and 28%, respectively, of global sales, followed by North America at 16%. In 2025, global sales will exceed 12.2 million, IHS Markit forecast.



<h3 class="wp-block-heading" id="h-big-number">BIG NUMBER</h3>



<a href="https://www.bloomberg.com/news/articles/2021-01-22/volkswagen-posts-12-2-billion-profit-in-resilient-pandemic-year" target="_blank" rel="noreferrer noopener">$12.2 billion</a>. That’s the profit recorded by Volkwagen in 2020, well ahead of analysts’ expectation of about $5.7 billion, but far below the $23 billion posted in pre-pandemic 2019. Volkswagen’s 2020 performance was boosted by soaring demand for luxury vehicles in China.



<h3 class="wp-block-heading" id="h-tangent">TANGENT</h3>



Volkswagen faces a fine of more than $119 million this year for<a href="https://www.cnbc.com/2021/01/23/volkswagen-profits-fell-automaker-missed-co2-emission-targets-in-2020.html" target="_blank" rel="noreferrer noopener">&nbsp;failing to meet</a>&nbsp;the European Union’s carbon dioxide emissions targets from its passenger car fleet last year.&nbsp;



<h3 class="wp-block-heading" id="h-further-reading">FURTHER READING</h3>



<a href="https://www.forbes.com/wheels/best/electric-cars/">Best Electric Cars For 2021</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/enriquedans/2020/12/06/the-moment-of-the-electric-vehicle-hasarrived/">The Moment Of The Electric Vehicle Has Arrived</a> (Forbes)



By Palash Ghosh, Forbes Staff

Volkswagen AG Headquarters Ahead of 2020 Earnings Announcement

Volkswagen Is The Latest Carmaker To Accelerate Its Electric Vehicle Ambitions

Electric car billionaire William Li, the so-called Elon Musk of China, entered 2020 in a terrible predicament. His publicly-traded electric vehicle concern, Nio, had consumed some $6 billion-plus in funding and was in a cash crunch so dire it warned investors of “substantial doubt about the company’s ability to continue as a going concern.”



By February, Nio’s shares, listed on the New York Stock Exchange, traded as low as $3, valuing the company at less than its total cash raised. Dizzying losses meant Li’s electric car dream was proving harder than expected to realize, and then came Covid-19. With Nio’s stock limping along, down 80% from its first day of trading, Li turned to governments around the world for bailout cash.



On April 10, the company’s wholly-owned California-based operation, Nio Inc. USA, applied for and was granted a $5.4 million loan as part of the Cares Act’s Paycheck Protection Program (PPP), via its lender East West Bank. The cash was used to save 204 jobs, according to its application, and was part of a series of bailouts that helped save Nio and eventually turn its founder Li into a billionaire many times over. In April and May, Nio also raised over $1 billion in new cash from the Hefei and Anhui municipalities in China via manufacturing and investment partnerships.



Since its bailouts, Nio has transformed from a desperate electric vehicle concern into a stock market darling, fueled by a speculative investment mania not seen since the dot-com-era. It’s shares now trade at over $46, or a $60 billion-plus market capitalization. With its soaring valuation, Nio has raised more than $2 billion in new cash by selling stock, some of it used to redeem investments made by Chinese municipalities, according to prospectuses.&nbsp;<a href="https://www.forbes.com/profile/william-li/?sh=74ba8b3911a1">Forbes values Li’s net worth at $7 billion</a>, almost entirely based on Nio’s skyrocketing stock.



Despite its success, Nio plans to keep its PPP bailout money, which was intended to keep struggling small businesses in the U.S. afloat. The millions of U.S. bailout cash the company was granted sits in its U.S. banks account and will be used for expenses. Says a Nio spokesperson in an email to&nbsp;Forbes, “NIO’s research and development center that is part of NIO, Inc. and based in San Jose, California, applied for the program and received a loan of $5.4m on April 13, 2020. The maturity date is 2 years after April 13, 2020 (i.e. April 13, 2022) with an annual interest of 1%. The entire amount has been kept in NIO’s US bank account and used for US payroll, rental expenses, and utility bills.”



Nio is far from alone among well-funded electric vehicle and self-driving car startups that took taxpayer cash. EV and self-driving car startups now worth $75 billion on public and private markets took over $50 million in PPP cash, according to&nbsp;Forbes’&nbsp;research. Many, like Nio, have decided to keep the cash even as their fortunes soar and their founders become billionaires. Included in this group are a number of EV startups that&nbsp;<a href="https://www.forbes.com/sites/antoinegara/2020/11/19/the-looming-spac-meltdown/?sh=d02d47770d7e">have cashed in on the speculative Spac boom this year to go public</a>.



Soaring EV and autonomous driving Spac concerns such as Hyliion, Luminar Technologies, Nikola Motor, Canoo, Velodyne Lidar and Lordstown Motors all took millions in PPP money. While Hyliion and Luminar have since completed their Spac IPOs and returned their $10.1 million and $7.8 million PPP loans, respectively, filings indicate Canoo and Velodyne Lidar have not returned their bailout money.



Electric mini-bus startup Canoo, which has raised over $1 billion in funding according to PitchBook data, was valued at $1.8 billion in a merger with a Spac named Hennessy Capital Acquisition IV, which raised $600 million in investor cash. Since the Spac merger was agreed in August, Canoo has seen its implied valuation surpass $3 billion based on a heavy speculative buying. Regardless, the company recently told investors it expects to see its $7 million PPP loan forgiven by taxpayers.



Says Canoo in a Dec. 4 filing. “During October 2020, Canoo submitted its application for forgiveness of the PPP Loan.&nbsp;Canoo has and intends to continue to use the PPP loan proceeds for purposes consistent with the provisions of the PPP and believes that such usage will meet the criteria established for forgiveness of the loan.” (A spokesperson didn’t respond to an email seeking comment.)



Velodyne Lidar, a startup selling self-driving car technologies, took $10 million in PPP cash. As a private startup, it raised hundreds of millions of dollars in venture capital. Then, in July, it struck a merger with a Spac called Graf Industrial at a $1.8 billion valuation, raising about $400 million in new investor cash. Since the summer, Velodyne Lidar’s stock has doubled to a $3.5 billion valuation. At current prices, founder&nbsp;<a href="https://www.forbes.com/profile/david-hall/?sh=7a1eb7dd6249">David S. Hall’s beneficial ownership of 59 million shares are worth over $1 billion</a>.



According to its financial disclosures, as of Sept. 30, the PPP loan was still sitting in company coffers. Says Velodyne in a Nov. 9 filing, “The principal and accrued interest are forgivable after 24 weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels and that approval is received from the relevant government entity. The unforgiven portion of the PPP Loan is payable in two years at an interest rate of 1% per annum, with a deferral of interest payments for the first six months.” (Velodyne didn’t respond to an email seeking comment).



Electric bus startup Proterra is one of the most well-funded Silicon Valley EV startups ever, raising a $750-million-plus from backers like Masa Son’s SoftBank and George Soros, according to PitchBook. It took a $10 million PPP loan in April from Town Centre Bank. Says a spokesperson of the loan, “We can confirm that Proterra received a Payroll Protection Program (PPP) loan earlier this year, which supported our ability to maintain a full workforce as we’ve navigated the uncertainty caused by the COVID-19 pandemic. Beyond that, we do not comment on financial matters involving the company.”



Lordstown Motors, an EV pickup truck startup that raised $675 million in August as part of a merger with a Spac called DiamondPeak Holdings, took a $1 million PPP loan. It will keep the cash. It recently told shareholders it&nbsp;“intends to use the entire PPP Loan amount for qualifying expenses and to apply for forgiveness of the loan in accordance with the terms of the CARES Act.”



Forbes&nbsp;<a href="https://www.forbes.com/sites/maneetahuja/2020/04/20/crony-capitalism-why-the-best-connected-businesses-got-much-of-the-sba-coronavirus-cash/?sh=2f5e1d175a3b">was also first</a>&nbsp;to report Nikola Motor Co., the once high-flying electric startup, took $4.1 million in PPP loans as it consummated a merger with a Spac called VectorIQ. After billionaire founder&nbsp;<a href="https://www.forbes.com/sites/antoinegara/2020/04/24/the-billionaire-founder-of-nikola-motors-explains-why-his-33b-company-needs-small-business-rescue-cash/?sh=2b9d8fa9362a">Trevor Milton said Nikola would keep its PPP funds</a>, the company eventually returned its bailout cash. Nikola’s soaring stock made Milton into a billionaire many times, but then he was quickly ousted from the company amid regulatory investigations into the company’s disclosures. A direct investment from General Motors was recently withdrawn, slamming Nikola’s stock. Milton’s net worth has plummeted alongside the pricking of Nikola’s pie-in-the-sky valuation.



If anything, Milton’s wax-winged rise to multi-billionaire status is a grim reminder of the hype and speculation behind today’s EV fortunes. No doubt they are being fueled by&nbsp;by&nbsp;<a href="https://www.forbes.com/sites/jeffkauflin/2020/08/19/the-inside-story-of-robinhoods-billionaire-founders-option-kid-cowboys-and-the-wall-street-sharks-that-feed-on-them/?sh=790f4e2d268d">get-rich-quick Robinhood options traders</a>&nbsp;and&nbsp;<a href="https://www.forbes.com/sites/antoinegara/2020/11/19/the-looming-spac-meltdown/?sh=d02d47770d7e">well-compensated Spac promoters</a>&nbsp;spitting out new fortunes by the month. But, before today’s crop of EV startups struck it rich, they needed government rescue cash.



Disclosure: Forbes Media LLC confirmed on July 6, 2020 that it received a Paycheck Protection Program loan of $5 million to $10 million on April 15.



&#8211;By Antoine Gara, Forbes Staff &amp; Eliza Haverstock, Forbes Staff

The 18th Guangzhou International Automobile Exhibition

Electric Vehicle Bailout: Car Startups Took $50 Million In Taxpayer Cash, Then Soared By $75 Billion

REE Automotive thinks the way to get electric vehicles into the mainstream is to flatten things out–by using a skateboard platform that integrates the battery, motors and driving controls into a flush floor and allows for independent steering of wheels. And while this tech startup’s concept is radical, it’s finding support from traditional automotive partners.



The latest to sign on is Tokyo-based KYB Corp., one of the world’s biggest makers of shock absorbers. The companies said today they’ve formed a partnership to develop suspension capabilities for electric vehicles that will be built off of Tel Aviv-based REE’s platform. Financial details of the arrangement, the first EV project for KYB, weren’t disclosed. REE emerged from stealth mode in 2019 and is also working with Toyota-affiliated truckmaker Hino, Mitsubishi Corp. and FiatChrysler.



<div class="wp-block-image"><figure class="alignleft size-large is-resized"><img loading="lazy" decoding="async" src="https://www.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1-797x1024.jpg" alt="" class="wp-image-45572" width="194" height="249" srcset="https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1-797x1024.jpg 797w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1-300x386.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1-600x771.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1-233x300.jpg 233w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1-768x987.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-1.jpg 960w" sizes="auto, (max-width: 194px) 100vw, 194px" /><figcaption>CEO and cofounder Daniel Barel REE AUTOMOTIVE</figcaption></figure></div>



KYB is “excited to partner with REE Automotive and share its revolutionary EV vision by engineering a suspension subsystem that supports the needs of tomorrow’s mobility ecosystem,” Kazunori Masumoto, KYB’s general manager of engineering, said in a statement. 



For more than a decade, many companies have touted the benefits of standardized, flat undercarriages that could support multiple vehicle types, from sedans and crossovers to vans and commercial trucks, to dramatically eliminate costs to create individual platforms for each. Most recently, electric truck startup&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2019/12/23/electric-truckmaker-rivian-backed-by-amazon-ford-raises-whopping--13-billion/#3a2ca1031847">Rivian</a>, automotive tech firm&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2020/02/11/hyundai-adds-electric-vehicle-skateboard-project-with-la-startup-canoo-to-its-87-billion-mobility-push/#139d4beb1017">Canoo</a>&nbsp;and the U.K.’s&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2020/01/29/ups-jumps-into-the-future-with-plan-to-buy-10000-electric-vans-and-a-waymo-self-driving-delivery-pilot/#735e17105aa5">Arrival</a>&nbsp;have promoted flat platforms for a range of battery-powered vehicles, but REE cofounder and CEO Daniel Barel says his company takes the approach even farther.&nbsp;



“They’re great, but they are not skateboards. Only the middle is a skateboard,” Barel tells Forbes. The difference is how much battery REE’s design can accommodate and the complete integration of drive controls into the floor, he says. “We hold the most batteries per footprint than anybody else in the industry.&#8221; 



Barel says his company, which is not building complete vehicles, intends to have its technology on the road in 2021. One possible version was shown in October at the Tokyo Motor Show by Hino, with its <a rel="noreferrer noopener" href="https://www.hino.co.jp/tokyomotorshow2019/en/booth/" target="_blank">FlatFormer electric concept vehicle</a> riding on an REE-based platform. The Japanese truckmaker showed variations of the concept modified to serve as delivery trucks, food service and sanitation vehicles, mobile offices and salons and even agricultural and sanitation trucks, with different tops riding on the platform.



“KYB’s technology will play a crucial role in the rapid development of our next-generation EV architecture, which reinvents the electric vehicle with a completely flat, scalable and fully modular platform, ready to carry the future of e-mobility,” Barel said.



Along with lowering development costs, electric vehicles using REE’s technology will be lighter and considerably more compact. “We’re not only 33% lighter, but we’re almost 70% smaller in footprint” relative to Tesla Model 3, with the same interior volume, Barel claims. The business plan would rely mainly on supplying its design to different companies, ranging from auto and truck manufacturers to delivery and logistics companies, that he declined to identify.&nbsp;



To date, REE has raised “about $100 million” from investors and automotive partners, Barel said, without elaborating. That’s more than double the $40.2 million the company had raised through its Series C round in 2018, according to Crunchbase. Additional fundraising is planned for 2020, though he didn’t provide details.&nbsp;



If REE or other startups can bring viable platforms to market, demand could be strong, says Gartner&nbsp;<a href="https://www.forbes.com/companies/gartner" target="_blank" rel="noreferrer noopener">IT</a>&nbsp;transportation tech analyst Mike Ramsey. “There&#8217;s a lot of reasons to think that this would be super appealing. You&#8217;ve opened up the world of automakers very large, potentially, you know, with this platform approach,” he said. “But it does still require a lot of additional work–the crash testing, the assembly system and everything needed to support it.”&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



Whether REE’s approach works in the real world remains to be seen, but it’s an approach that could help speed the slow shift away from conventional internal combustion engine designs if it helps make EVs easier to build and much cheaper. Barel sees flat platforms as doing just that.&nbsp;



“To keep on building vehicles the same way we’ve been doing it for a hundred years doesn&#8217;t make a lot of sense.”



<figure class="wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="The future of electric mobility" width="500" height="281" src="https://www.youtube.com/embed/RnbSnVPFSNg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



&#8211;<a href="https://www.forbes.com/sites/alanohnsman/">Alan Ohnsman</a>, Forbes Staff, <a href="https://www.forbes.com/transportation">Transportation</a>

960×0

A Bottom-Up Approach To Cheaper, Next-Gen Electric Vehicles

Brought to you by Hugo Boss



<div class="wp-block-image"><figure class="aligncenter is-resized"><img loading="lazy" decoding="async" src="https://www.forbesafrica.com/wp-content/uploads/2019/05/Hugo-Boss-Logo-1024x576.jpg" alt="" class="wp-image-40468" width="60" height="34" srcset="https://cms.forbesafrica.com/wp-content/uploads/2019/05/Hugo-Boss-Logo-1024x576.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2019/05/Hugo-Boss-Logo-300x169.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2019/05/Hugo-Boss-Logo-600x338.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2019/05/Hugo-Boss-Logo-768x432.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2019/05/Hugo-Boss-Logo.jpg 2048w" sizes="auto, (max-width: 60px) 100vw, 60px" /></figure></div>



HUGO BOSS and Porsche have partnered to bring an action-packed racing experience to the streets of the world’s major cities through Formula E. 







Formula E is known
for its fascinating races globally. The partnership will have a strong focus on
the future of motorsport. In doing so the races will host a unique series for
the development of electric vehicle technology, refining the design,
functionality and sustainability of electric cars while creating an exciting
global entertainment brand.



HUGO BOSS which boasts a long tradition of motorsports sponsorship – has been successfully engaged in the electric-powered racing series since the end of 2017. 



In
this collaboration, HUGO BOSS brings its 35 years of experience and expertise
in the motorsport arena to Formula E, as well as the dynamic style the fashion
brand is renowned for.



<figure class="wp-block-image"><a href="https://ad.doubleclick.net/ddm/trackclk/N4022.3065143FORBESAFRICA/B22341404.245922753;dc_trk_aid=442353181;dc_trk_cid=115471848;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=" target="_blank" rel="noreferrer noopener"><img loading="lazy" decoding="async" width="1024" height="683" src="https://www.forbesafrica.com/wp-content/uploads/2019/04/HB_Formula_E_01_CMYK-1024x683.jpg" alt="" class="wp-image-40367" srcset="https://cms.forbesafrica.com/wp-content/uploads/2019/04/HB_Formula_E_01_CMYK-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/HB_Formula_E_01_CMYK-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/HB_Formula_E_01_CMYK-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/HB_Formula_E_01_CMYK-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/HB_Formula_E_01_CMYK.jpg 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></a><figcaption> Alejandro Agag (Formula E CEO) and Mark Langer (HUGO BOSS CEO)</figcaption></figure>



Mark
Langer HUGO BOSS, Chief Executive Officer (CEO) says that though they have been
working successfully with motorsports over the years, he is exceptionally
pleased that as a fashion brand they are taking the cooperation to new heights.




“As a fashion brand, we are always looking at innovative approaches to design and sustainability. When we first encountered Formula E, we immediately saw its potential and we are pleased to be the first apparel partner to support this exciting new motorsport series,” he says. 



The fashion group is also the official outfitter to the entire Porsche motorsports team worldwide. 



The
fascination with perfect design and innovation, along with the Porshe and Hugo
Boss shared passion for racing, inspired Hugo Boss to produce the Porsche x
Boss capsule collection.



Its
standout features include premium leather and wool materials presented in the
Porsche and HUGO BOSS colors of silver, black and red. 



<figure class="wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Porsche x BOSS: introducing a new collaboration | BOSS" width="500" height="281" src="https://www.youtube.com/embed/Fx-BDDA-FOM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div><figcaption> Porsche x BOSS: introducing a new collaboration | BOSS </figcaption></figure>



Since
March, a range of menswear styles from the debut capsule collection is
available online and at selected&nbsp;BOSS stores.&nbsp;In South Africa the
first pieces of the capsule will come as a part of the FW 19 collection.



Alejandro
Agag, Founder and CEO of Formula E says he is confident that the racers will put
their best foot forward on the racecourse. 



“This new partnership will see the team on the ground at each race dressed with a winning mindset and ready to deliver a spectacular event in cities across the world. As the first Official Apparel Partner of the series, we look forward to seeing the dynamic style and innovation on show that BOSS is renowned for,” says Agag.



<figure class="wp-block-image"><a href="https://ad.doubleclick.net/ddm/trackclk/N4022.3065143FORBESAFRICA/B22341404.245922753;dc_trk_aid=442353181;dc_trk_cid=115471848;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=" target="_blank" rel="noreferrer noopener"><img loading="lazy" decoding="async" width="1024" height="683" src="https://www.forbesafrica.com/wp-content/uploads/2019/04/SR19_HugoBoss_Porsche_04_sRGB-1024x683.jpg" alt="" class="wp-image-40376" srcset="https://cms.forbesafrica.com/wp-content/uploads/2019/04/SR19_HugoBoss_Porsche_04_sRGB-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/SR19_HugoBoss_Porsche_04_sRGB-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/SR19_HugoBoss_Porsche_04_sRGB-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/SR19_HugoBoss_Porsche_04_sRGB-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2019/04/SR19_HugoBoss_Porsche_04_sRGB.jpg 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></a><figcaption> Hugo Boss x Porsche&nbsp;&nbsp; </figcaption></figure>



Oliver Blume CEO of Porsche AG says Formula E is an exceptionally attractive racing series for motorsport vehicles to develop. 



&#8220;It offers us the perfect environment to strategically evolve our vehicles in terms of efficiency and sustainability. We&#8217;re looking forward to being on board in the 2019/2020 season. In this context, the renowned fashion group HUGO BOSS represents the perfect partner to outfit our team.&#8221;

SR19_HugoBoss_Porsche_04_sRGB

HUGO BOSS Partners With Porsche To Bring Action-Packed Racing Experience Through Formula E

If Volkswagen realizes its ambition of becoming the global leader in electric cars, it will be thanks to a radical and risky bet born out of the biggest calamity in its history. 



The German giant has staked its future, to the tune of 80 billion euros ($91 billion), on being able to profitably mass-produce electric vehicles &#8211; a feat no carmaker has come close to achieving.



So far mainstream automakers’ electric plans have had one main goal: to protect profits gleaned from high-margin conventional cars by adding enough zero-emission vehicles to their fleet to meet clean-air rules.



Customers have meanwhile largely shunned electric vehicles because they are too expensive, can be inconvenient to charge and lack range.



The biggest strategy shift in Volkswagen’s 80 years has its roots in a weekend crisis meeting at the Rothehof guesthouse in Wolfsburg on October 10, 2015, senior executives told Reuters.



At the meeting hosted by then VW brand chief Herbert Diess, nine top managers gathered on a cloudy Saturday afternoon to discuss the way forward after regulators blew the whistle on the company’s emissions cheating, a scandal that cost it more than 27 billion euros in fines and tainted its name.



“It was an intense discussion, so was the realization that this could be an opportunity, if we jump far enough,” said Juergen Stackmann, VW brand’s board member for sales.



“It was an initial planning session to do more than just play with the idea of electric cars,” he told Reuters. “We asked ourselves: what is our vision for the future of the brand? Everything that you see today is connected to this.”



Just three days after the Rothehof meeting of the VW brand’s management board, Volkswagen announced plans to develop an electric vehicle platform, codenamed MEB, paving the way for mass production of an affordable electric car.



For months after the Volkswagen scandal blew up in 2015, rival carmakers treated diesel-cheating as a “VW issue”, according to industry experts. But regulators have since uncovered excessive emissions across the sector and unleashed a clampdown that undermines the business case for combustion engines, forcing a sector-wide rethink.



Now the “villain” of dieselgate is likely to become the largest producer of electric cars in the world in coming years, analysts say, putting it in pole position to flood the market &#8211; should the demand materialize.



“Decisions to convert the Emden factory (in Lower Saxony) to build electric cars, would never have happened without this Saturday meeting,” said Stackmann, one of five senior VW executives who spoke to Reuters.



However the full scale of VW’s ambitions were only revealed two months ago when it took the industry by surprise by pledging to spend 80 billion euros to develop electric vehicles and buy batteries, dwarfing the investment of rivals.



It plans to raise annual production of electric cars to 3 million by 2025, from 40,000 in 2018.



<h4 class="wp-block-heading">STRATEGIC PERILS</h4>



It’s a risky bet.



With regulators and lawmakers, rather than customers, dictating what kind of vehicles can hit the road, analysts at Deloitte say the industry could produce 14 million electric cars for which there is no consumer demand.



It’s also an all-or-nothing bet in the long run.



VW, whose ID electric car will hit showrooms in 2020, has set a deadline for ending mass production of combustion engines. The final generation of gasoline and diesel engines will be developed by 2026.



Arndt Ellinghorst, analyst at Evercore ISI, said betting on electric vehicles (EVs) could be risky because customers did not want to own cars dependent on street-charging facilities.



“What if people are still not ready to own EVs? Will adoption be the same in the U.S., Europe and China?” he said.



But he added that EU and Chinese emissions regulations made electric vehicle adoption inevitable and that being an early industry mover in that direction offered a “positive risk-reward”.



Another by-product of dieselgate that quickened VW’s electric drive, according to the senior executives, was a purge of the company’s old guard, who became the focus of public and political anger.



This empowered Diess, a newcomer who had joined as VW brand boss shortly before U.S. regulators exposed the carmaker’s emission test cheating.



Diess, who joined from BMW where he helped pioneer a ground-breaking electric vehicle, has since been appointed CEO of Volkswagen Group, a multi-brand empire that includes Audi, Porsche, Bentley, Seat, Skoda, Lamborghini and Ducati.Slideshow&nbsp;(3 Images)



Carmakers have failed to mass-produce electric cars profitably largely because of the prohibitive cost of battery packs which make up between 30 percent and 50 percent of the cost of an electric vehicle.



A 500 km-range battery costs around $20,000, compared with a gasoline engine that costs around $5,000. Add to that another $2,000 for the electric motor and inverter, and the gap is even wider.



Even electric start-up Tesla’s cheapest car, the Model 3, is on sale in Germany at 55,400 euros, priced just below a base model Porsche Macan, a compact SUV. In the United States, Model 3 prices start at $35,950.



VW believes its scale will give it an edge to build an electric vehicle costing no more than its current Golf model, about 20,000 euros, using its procurement clout as the world’s largest car and truck maker to drive down the cost.



“We are Volkswagen, a brand for the people. For electric cars we need economies of scale. And VW, more than any other carmaker, can take advantage of this,” a senior Volkswagen executive told Reuters, declining to be named.



The carmaker’s electric-vehicle budget outstrips that of its closest competitor, Germany’s Daimler, which has committed $42 billion. General Motors, the No.1 U.S. automaker, has said it plans to spend a combined $8 billion on electric and self-driving vehicles.



Renault-Nissan-Mitsubishi said in late 2017 they would spend 10 billion euros by 2022 on developing electric and autonomous cars.



“On a 2025 view, we expect Volkswagen to be the number one electric vehicles producer globally,” UBS analyst Patrick Hummel said. “Tesla is likely to remain a niche player.”



U.S. shale boosts BP profits to five year high



<h4 class="wp-block-heading">STRICTER TESTING</h4>



VW’s test cheating using engine management software &#8211; “defeat devices” &#8211; resulted in the introduction of tougher pollution tests which revealed in 2016 and 2017 that emissions readings across the industry were up to 20 percent higher under real-world driving conditions compared with lab conditions.



This has raised the bar on the auto sector’s efforts to cut emissions of carbon dioxide, blamed for causing global warming.



EU lawmakers in December agreed a cut in carbon dioxide emissions from cars of 37.5 percent by 2030 compared with 2021 levels. This was after the European Union forced a 40 percent cut in emissions between 2007 and 2021.



“This goal is no longer reachable using combustion engines alone,” Volkmar Denner, chief executive of Bosch, the world’s biggest auto supplier, said about the 2030 proposals.



Every gram of excessive carbon dioxide pollution will be penalized with a 95 euros fine from this year onwards.



Strategy firm PA Consulting forecasts VW will face a 1.4-billion-euro penalty for overstepping average limits in Europe by 2021, while Ford and Fiat-Chrysler face fines of 430 million euros and 700 million euros respectively.



Daimler, BMW, PSA, Mazda and Hyundai will miss their 2021 average emissions targets, PA Consulting forecasts. Toyota, Renault-Nissan-Mitsubishi, Volvo, Honda and Jaguar Land Rover are on track to meet their goals.



PA Consulting’s forecasts were extrapolated using 2017 registration data for each powertrain type and consumer buying trends, but do not include more recent sales trends.



Ford, VW and BMW said they would meet their targets because of a push to sell more hybrid and electric cars in 2018. Daimler said it aimed to meet the targets, PSA said it would respect the targets while Fiat-Chrysler declined to comment. Mazda had no immediate comment, while Hyundai did not respond to a request for comment.



Carmakers have struggled to lower their average fleet emissions because of a shift in customer taste toward heavier, bigger SUVs (sports utility vehicles), which make it harder to maintain the same levels of acceleration and comfort without increasing fuel consumption and pollution.



SUVs are now the most popular vehicle category in Europe, commanding a market share of 34.6 percent, according to JATO Dynamics. Even Porsche, which makes lightweight sportscars, relies on sports utility vehicles for 61 percent of sales.



As the industry-wide scale of excessive emissions prompted Brussels to push through tougher laws late last year, VW executives concluded that purely electric cars were the most efficient way to meet carbon dioxide goals across its fleet.



This was the point of no return, according to executives, when the company made the final electric investment decisions and committed to staying the course it had plotted after dieselgate.



“After evaluating alternatives, we opted for electromobility,” chief operating officer Ralf Brandstaetter told Reuters about VW’s deliberations in November. -Reuters



-Ilona Wissenbach and Agnieszka Flak

gettyimages-950606096-594×594

Bet Everything on Electric: Inside Volkswagen’s Radical Strategy Shift

A decade into the modern electric-car era one thing is clear: easy access to charging is vital to convince more drivers to make the leap to battery power from gasoline. So to ensure a smooth launch for its&nbsp;<a href="https://www.forbes.com/sites/lianeyvkoff/2019/01/24/with-better-than-expected-demand-porsche-plans-to-double-taycan-supply/#14b0240d332f" target="_blank" rel="noreferrer noopener">much-anticipated Taycan</a>electric sports car Porsche is taking a page from Tesla&#8217;s playbook and ensuring customers have access a coast-to-coast network of fast-charge stations.



The German luxury company said it will offer three years of charging at hundreds of stations operated across the U.S. with Volkswagen-owned&nbsp;<a href="https://www.electrifyamerica.com/index" target="_blank" rel="noreferrer noopener">Electrify America LLC</a>&nbsp;as part of Taycan&#8217;s purchase price, which starts at about $80,000. Additionally, fast-charge stations will be installed at all of its 191 dealerships across the country, while customers will also be able to purchase Porsche home-charging systems, the company said.



“Together, Electrify America and our Porsche dealer network will provide a national infrastructure for DC fast charging that frees future Taycan owners from range anxiety,&#8221; Klaus Zellmer, president and CEO of Porsche Cars North America, said in a statement. &#8220;Porsche home charging technology will turn the customer’s garage into the equivalent of a personal gas station.”



Tesla has dominated the market for high-end electric vehicles since it began delivering $100,000 Roadsters a decade ago, but faces an onslaught of competition from new entries including the Taycan, Audi&#8217;s e-tron and Jaguar&#8217;s I-Pace, with more on the way from Cadillac and others. Porsche last week said it&#8217;s&nbsp;<a href="https://www.forbes.com/sites/lianeyvkoff/2019/01/24/with-better-than-expected-demand-porsche-plans-to-double-taycan-supply/#14b0240d332f" target="_blank" rel="noreferrer noopener">boosting production</a>&nbsp;plans for the Taycan owing to higher demand than initially planned.



Some&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2019/01/23/tesla-share-slump-deepens-on-news-its-cutting-back-on-model-s-x-production/#7955957461ee" target="_blank" rel="noreferrer noopener">analysts suspect the competition</a>&nbsp;from those new premium EVs, priced between $60,000 and $90,000, were behind Tesla&#8217;s recent decision to&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2019/01/09/so-long-75d-elon-musk-says-tesla-is-phasing-out-mid-range-model-s-and-x/#4205267848b5" target="_blank" rel="noreferrer noopener">discontinue its entry-level 75D versions of the Model S sedan and Model X crossover</a>&nbsp;to focus mainly on pricier versions selling for about $100,000 or more. Tesla&#8217;s core vehicle, the Model 3 sedan, starts at $44,000 and can cost more than $60,000 with all options.



Details of Porsche&#8217;s sleek four-door coupe are limited so far, though it will be a juiced up performance car offering more than 600-horsepower and over 300 miles of driving range per charge.



For three years Taycan buyers will get unlimited 30-minute charging sessions at Electrify America facilities that include&nbsp;more than 300 highway stations in 42 U.S. states and more than 180 stations in 17 cities, Porsche said. Each location will have an average of five charging bays, with some having up 10. The highway stations will have at least two 350 kW chargers per site, with additional chargers delivering up to 150kW.



The initial phase of the network, at 484 locations with more than 2,000 charging dispensers, will be installed or under construction by July 1, prior to Taycan’s launch in late 2019, Porsche and Electrify America said. Porsche dealers will spend about $70 million for fast-charge kiosks at their stores, the company said.



Tesla early on baked in a charging network to support its Model S when it launched the car in 2012. Initially, powering up at its&nbsp;<a href="https://www.tesla.com/supercharger?redirect=no" target="_blank" rel="noreferrer noopener">Supercharger</a>&nbsp;stations was also free, though over time it began charging customers as its owner base grew. Last week it moderated a planned increase in charging rates that&nbsp;<a href="https://electrek.co/2019/01/22/tesla-cuts-supercharger-prices-back-down-customer-backlash/" target="_blank" rel="noreferrer noopener">Tesla fan site Electrek</a>&nbsp;estimated would go up by about 33% per kilowatt hour.



<a href="https://www.forbes.com/sites/alanohnsman/">-Alan Ohnsman</a>Forbes Staff

Macan SUV Production As Porsche AG Plans For $6.8 Billion Profit By 2025

Porsche Borrows From Tesla’s Playbook With Fast-Charge Network For Taycan EV

Off Kampala’s chaotic arterial streets, we are on a dirt road with speed bumps that are large mounds of red earth. The red leads to a yellow building up a slope with awkward barbed wire fencing on its compound walls.
We are at Kiira Motors Corporation’s offices in Ntinda, in northeastern Kampala, home to what the company calls ‘Africa’s first electric car’ and ‘Africa’s first solar-powered bus’.
Outside the main building, a large white bus is parked under a makeshift shed. A scaled-down model of the same is placed under the stairway leading up to the offices. In the distance, a profusion of plantain trees; and a searing sun at 9:30AM.
The bumpy roads to Kiira are in a way akin to the journey ahead for this automobile start-up, ever since the green transportation initiative it kick-started in a little corner of Uganda.
“It’s an uphill task but we are working round-the-clock to deliver on our promises to our nation and the world,” says Allan Muhumuza, Vice-President, Marketing &amp; Sales of Kiira, on the company’s mission to build eco-friendly mobility solutions for urban masses in a country of about 40 million.
<a href="http://www.forbesafrica.com/homepage/2017/10/09/power-woes-stall-ugandas-rise/" target="_blank" rel="noopener">READ MORE: Power Woes Stall Uganda&#8217;s Rise</a>
It all started in 2007 as an extra-curricular activity by a group of students and teachers of the Department of Engineering and Mathematics led by Professor Sandy Stevens Tickodri-Togboa and Paul Isaac Musasizi, currently CEO of Kiira, at Uganda’s Makerere University.
Tickodri-Togboa was head of the department and, together with Musasizi, decided “the paradigm for training university students should be changed, as by the time they graduated, they didn’t have the skills for a working world”.
So they decided to start various extra-curricular projects for students after normal class hours.
Along the way, they were invited to be part of a Massachusetts Institute of Technology (MIT) initiative with the aim of designing and producing a five-passenger plug-in hybrid electric vehicle targeting the Indian market.
Makerere was “the only participant from Africa”, and as part of the project, eventually developed the two-seater Kiira EV, aptly the color green.
The financing came from the Presidential Initiative Fund for Science and Technology Innovations, and the electric car designed and built in Uganda for the first time was launched by President Yoweri Museveni in 2011.
“The original idea was to use the electric car in the Makerere University campus,” recalls Tickodri-Togboa.
In 2014, the team built Kiira EV SMACK, a sedan its makers say is ‘Africa’s first electric hybrid vehicle’; and thereafter in 2016, the 35-seater Kayoola Solar Bus, again ‘a first in Africa’.
“That we have talent in Uganda has been demonstrated with minimum resources… and we also have very good natural resources,” says Musasizi, the engineer-entrepreneur behind Kiira.
<div id="attachment_34060" style="width: 510px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-34060" class=" wp-image-34060" src="https://www.forbesafrica.com/wp-content/uploads/2017/10/Uganda-electric-car-e1509349192781-300x225.jpg" alt="" width="500" height="375" />A prototype hybrid sedan is being ripped apart at the Kiira headquarters. (Photo supplied)</div>
The government of Uganda, acting through the Uganda Investment Authority, has now allocated 100 acres of land for a vehicle assembly plant expected to open in Jinja, a town in the eastern region of Uganda, in 2018.
In contrast to the used expensive imported vehicles on Uganda’s roads, these will be factory-fresh vehicles made in Uganda.
<a href="http://www.forbesafrica.com/entreprenuers/2017/10/27/missionary-built-business-empire/" target="_blank" rel="noopener">READ MORE: The Missionary That Built A Business Empire</a>
Right now, Kiira has the three prototypes, and is looking at 305 units in the first year of production. These will mostly be pick-up trucks and buses.
The idea is to also convert the masses using public transport – mostly the ubiquitous matatus and boda bodas.
“We want to shift the market from 14-seater matatus to this. But most of all we want to reduce traffic and congestion. Our buses will be bigger to seat more people,” says Muhumuza, also an engineer.
“We realized that if we are to solve Africa’s traffic woes, the biggest need was to address public mass mobility, as that’s where the volumes and problems were. But also at the same time provide sustainable green solutions… Our emphasis was on the technology, to show that Africa can build solutions for Africa and these can be futuristic as well.”
At the time it was built, the solar bus cost an estimated $150,000 – it has solar panels on the top that powers lithium-ion batteries. If mass-produced, costs will come down.
“It’s a capital-intensive project and we are open to get tech and financing partners,” says Muhumuza, adding Kiira is in advanced talks with some technological partners.
“We are seeing a niche, a special place in public mobility in urban spaces that can be addressed by green buses,” says Musasizi.
East Africa’s automobile sector seems on track for more news. In neighboring Rwanda, there are reportedly plans to set up a Volkswagen manufacturing plant.
Outside the offices of Kiira, the prototype hybrid sedan is being ripped apart by men in blue overalls and being re-engineered. The car is a mere skeleton of its former self, but its journey on Uganda’s bustling streets, powered by an African sun, may just be about to begin.

On The Road To A Green Future

It is 117 years since the first motor car came to Johannesburg, South Africa. According to historian Anna Smith’s book Johannesburg Firsts it was a Benz Voiturette that was driven around before a large crowd at the Wanderers track in Johannesburg. It was described as the “rage and topic of all Europe” and a noiseless carriage. Voiturette is the French word for a small car, and this first vehicle to arrive in Johannesburg struggled to make walking pace with its wheezing engine.
Now, years later, the truly ‘noiseless’ carriages are on their way to South Africa. They will come in the shape of an electric car called LEAF, which is an acronym for Leading, Environmentally-friendly, Affordable, Family car. However, one of the concerns about electric cars is that, because they tend to be so noiseless, unwary pedestrians do not hear them coming when crossing roads.
Like the wheezing Voiturette, this car is also a “rage and topic” in other parts of the world. It came onto the market in Japan and the United States in 2010 and the following year in Canada and Europe, where it has won the Car of the Year award. In February its global sales topped 50,000.
The LEAF is made by Nissan and will start selling in South Africa later this year. It is a fully electric five-door hatchback with a battery range said to be 175km. Production has begun in North America and Europe, after the car was initially only produced in Japan, and there are two more models in the pipeline.
Nissan says the improvements in the new models include an extended driving range, greater recyclability, more interior space, better charging performance, more equipment and, of course, a greater choice. Subtle styling changes to the nose of the car have improved its already impressive aerodynamic efficiency.
Government, business and conservationists are hopeful that it will start a trend away from South Africa’s carbon-belching road traffic towards a greener system. It is aimed also at reducing the country’s heavy reliance on imported and ever-more expensive oil.
If it takes off, the car could also see the construction of intermittent ‘filling stations’ with solar-power backup along the highways where drivers could recharge their cars. The idea is to make the least possible use of the coal-fired power grid, thereby further reducing reliance on climate-changing energy.
Nissan South Africa is working closely with the government to prepare the infrastructure, most notably the recharging network. To initiate the joint project, the company has given the Department of Environmental Affairs four of the cars to test over three years.
The use of solar power to recharge the cars is part of the test. At the project’s launch in February, the department’s minister, Edna Molewa, said a 15 kilowatt solar tracking device has been installed at Environmental Affairs’ new green building, which is still under construction. She said the installation would produce enough electricity to charge the cars and to feed excess electricity into the power grid as a way of offsetting the carbon footprint of the building’s construction.
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“Any carbon footprint of the vehicle is thus neutralized through the use of free solar energy generated by the tracker. Where charging is required overnight this is offset by the excess energy that the trackers produce during the day. The amount of electricity utilized for charging and running of the vehicle is carefully monitored and logged and is offset against the amount of electricity generated by the solar tracker.”
“It is envisaged that in future, these tracking devices will be installed on the major commuter routes for the direct charging of vehicles in real time. An e-transport location analysis will be conducted in partnership with other government agencies to inform the roll-out of the solar e-cars installation package at key transportation and commuter hubs countrywide, such as key government precincts, Gautrain stations, O.R. Tambo International Airport, key commercial centers and business districts,” she says Molewa.
The move towards greener vehicles is seen also to present opportunities for making the automotive and related industries greener. South Africa’s Department of Trade and Industry has already gazetted the Electric Vehicle Industry Strategy, which is meant to guide investment into car manufacturing.
Other partners in the project are the Departments of Transport, Energy, and Science and Technology, South African Revenue Services, Eskom (the electricity supply commission), municipalities and other car manufacturers and suppliers.
Molewa said in her speech at the launch of the LEAF project that transition in the design and production of alternative propulsion systems should be aimed at maintaining and increasing South Africa’s global market share in the automotive sector, while meeting its commitment to decrease its carbon footprint.
South Africa is listed as the 18th largest vehicle manufacturer in the world, though in Africa it is by far the biggest, accounting for 80% of the continent’s output. The industry contributes around 6% to the gross domestic product and employs more than 230,000 people in manufacturing, distribution and sales.
For Molewa, the first step towards capturing part of the green-car market is for South Africa to develop and grow the market domestically. Hopes are pinned on such development to provide jobs. Molewa even speaks of the transition to a low-carbon and sustainable economy as a likely new engine of development.
But with the transportation sector said to be globally responsible for 30% of carbon emissions, and with the number of vehicles on the world’s roads edging towards one billion, a prime objective remains to reduce the amount of climate-changing gas coming from exhaust pipes. The LEAF project is a part of this objective.

Tag: electric car

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