May 17, 2024

Tariffs on Chinese EVs and Components:

President Joe Biden imposed tariffs on Chinese-made electric vehicles (EVs), microchips, batteries, and minerals. The tariff rate for EVs quadrupled, while other imports saw doubled levies or were taxed for the first time. Toyota is investing $13.9 billion in a new battery complex in rural North Carolina, which will employ 5,100 people when completed in 2028. Volvo’s Q1 EV sales experienced a decline, raising questions about their 2030 electrification plan.

Hydrogen and Battery Startups in Michigan:

Hydrogen, battery, and clean energy startup projects in Michigan face a significant challenge: finding backers beyond government support to establish factories. These high-profile projects promise substantial investments and job creation, but they’re still far from completion. The primary hurdles include securing financing for construction and distributing risk. While these companies receive grants and incentives, their lack of credit impedes deals. Additionally, the automotive industry’s shift away from hydrogen and the uncertainty around demand further complicate matters. Investors remain cautious, waiting for clearer guidance on tax credits and a more favorable economic landscape.

Toyota and Subaru’s EV Collaboration:

Toyota and Subaru have entered into a collaboration to jointly develop a platform dedicated to battery electric vehicles (BEVs) for midsize and large passenger vehicles. Additionally, they are working together to create a C-segment-class BEV SUV model that will be sold under each company’s own brand. This partnership leverages Subaru’s all-wheel-drive technologies and Toyota’s vehicle electrification expertise, aiming to create attractive BEV products that cater to the evolving automotive landscape.

The Toyota-Subaru collaboration is expected to impact both companies’ product lineups in several ways:

1. Shared Platform: By jointly developing a BEV platform, Toyota and Subaru can optimize costs and streamline production. This shared foundation will underpin future electric models for both brands.

2. C-Segment BEV SUV: The collaboration aims to create a C-segment-class BEV SUV. This model will be unique to each brand but built on the same platform. Expect distinctive styling, features, and branding.

3. Leveraging Strengths: Subaru’s expertise in all-wheel-drive systems and Toyota’s experience in electrification will enhance the performance and capabilities of their BEVs.

4. Expanded EV Offerings: Toyota and Subaru can diversify their electric lineup by introducing new models, appealing to different customer segments and preferences.