Automotive-related news
The Bronco is back
A quarter of a century has passed since the Ford Bronco disappeared from dealerships, but that’s set to change with the introduction of the 2021 model this year, CNET reported. Rocking two different body styles, in addition to a smaller Bronco Sport variant that will certainly be better than the Bronco II, Ford’s latest SUV is ready to recapture buyers that might have flocked to vehicles like the Jeep Wrangler. With the exception of certain truck trims, Ford hasn’t had a properly bulky off-roader in a long time.
Uber will let California drivers set their own rates
According to NBC News, Uber said in July it would let drivers across the state of California set their own rates as a function of the company’s price “multiplier” – used in Uber’s so-called “surge” pricing. The move builds on a pricing experiment that began in January in Sacramento, Santa Barbara and Palm Springs. Previously, drivers had no ability to set their own rates, which was one of the primary critiques of proponents of AB5, the state law that took effect at the beginning of the year, according to the report. The law attempts to ensure that so-called gig economy workers are considered employees rather than independent contractors. Under state labor law, employees are eligible for consideration benefits, including workers’ compensation, unemployment, unionization rights and more. Numerous companies including Uber save millions annually by avoiding such financial costs.
Honda signs agreement with electric car battery manufacturer
Honda will purchase a 1% stake in a Chinese electric vehicle battery maker as part of a joint development of batteries for new energy vehicles (NEVs) and joint R&D into next-generation fundamental technologies.
Contemporary Amperex Technology Co., Limited and Honda have signed an agreement to form a comprehensive strategic alliance on new energy vehicle batteries to strengthen their strategic partnership and promote the popularization of electrified vehicles. This agreement will enable the two companies to begin discussions on a broad range of areas including joint development, stable supply, and the recycling and reuse of batteries.
CATL and Honda will conduct joint development on NEVs batteries and joint R&D into fundamental technologies, aiming for their future application. CATL will provide stable supply of NEV batteries to Honda, mainly for battery electric vehicles (BEVs). The first model equipped with a CATL battery is scheduled to be launched in the Chinese market in 2022. This alliance will be further expanded to the global level in the future, the companies said in a release. Moreover, battery recycling and reuse also will be a topic in further discussions between CATL and Honda. Honda has acquired approximately 1% of CATL shares through the non-public issuance of stocks, which makes Honda a leading strategic partner of CATL.
Kia struggling to keep up with Telluride demand
The good news for Kia is that its 3-row SUV, the Telluride, has been a hit with U.S. consumers. The bad news is, the auto manufacturer underestimated just how popular it would be. According to The Car Connection, when the Telluride debuted in February 2019, Kia set an annual production capacity of 60,000 Tellurides at its only U.S. production facility in West Point, Georgia, where certain trims of the Sorento and Optima are made as well. “We blew past that and ramped it to 100,000 units,” James Bell, director of communications for Kia, told The Car Connection. Meeting demand “is going to be tight even at 100,000, but it’s the best we can do.” The pandemic did Kia and Telluride buyers no favors. In May Automotive News reported the Georgia factory was shut down for nearly eight weeks then resumed with just one shift out of an abundance of caution. The factory’s back up to three shifts, but it’s “not full guns on production, yet,” Bell said, noting a parts shortage from a supply chain in Mexico.
Hertz sells thousands of vehicles in its fleet at discount prices
After filing for Chapter 11 bankruptcy protection May 22, car rental company Hertz announced this summer it was selling vehicles in its fleet at discount prices, USA Today reported. The coronavirus pandemic forced several companies strained before the crisis to file for bankruptcy to try to survive. J.C. Penney, Neiman Marcus and Tuesday Morning are among the chains that filed for bankruptcy since the start of the pandemic. Hertz competitor Advantage Rent A Car filed for court protection from its creditors May 26. Hertz’s fleet consists of roughly 700,000 rental cars, which have greatly diminished in value because of a sharp drop in used car prices caused by a freefall in auto sales stemming from the pandemic.