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Yahoo
20-05-2025
- Automotive
- Yahoo
Slate Auto draws 100,000 reservations, raises $700 million for EV mini-truck
EV startup Slate Auto is moving quickly on plans to launch a sub-$30,000 mini-pickup out of a brownfield site in the Midwest, drawing 100,000 customer reservations and $700 million in financing, the company said. 'America has shown that it wants what we're making,' Slate said in an email. The startup opened reservations — with a modest $50 refundable deposit — when it revealed its two-door pickup April 24. Slate, which is targeting late-2026 production, also revealed more information about top financial backers after quietly building in 'stealth mode' since 2022. One key investor is Amazon founder Jeff Bezos, it said. The Troy, Mich. startup said it's raised $700 million and the latest funding round closed in late 2024. Slate said its biggest backers include investment funds Bezos Expeditions, General Catalyst and TWG Global. General Catalyst is invested in a variety of brands, including Airbnb and Snapchat, its website says. TWG Global has investments in the L.A. Dodgers and Cadillac Formula 1 Team as part of its portfolio, it said. Slate CEO Chris Barman is a former engineering vice president at Fiat Chrysler Automobiles. Other top executives have industry experience, including at EV maker Rivian, according to their LinkedIn profiles. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Slate plans to sell one basic vehicle configuration and offer a long list of accessories designed for do-it-yourself installation. The options to personalize the base vehicle are extensive, down to colorful decals. The base 'Blank Slate' is a rear-wheel-drive pickup similar in size to the subcompact Subaru Crosstrek. It has plastic body panels with no paint, comes without a radio and offers an estimated 150 miles of range, Slate said. As part of the reservation process, Slate collects $50 and asks whether the buyer is interested in an 'SUV Kit,' which is essentially a camper shell with three passenger seats, seat belts, airbags and a roll bar. Slate also asks customers about their interest in an optional battery with around 240 miles of range. Slate hasn't given prices for the upgrades beyond the estimated starting cost for a DIY body wrap at about $500. The base pickup is expected to cost under $20,000 after federal incentives, the company said. Without the tax break, the price would be $7,500 higher, not including shipping. Slate didn't provide shipping costs. Accessory categories include: vinyls wrap including two-tone designs; bigger wheels and tires; lighting upgrades; bluetooth speakers; and an electric window kit to convert the standard, hand-crank windows. The automaker says that it will provide instructions for owners to install the accessories themselves, including three versions of the SUV Kit, two with a roof and one open air. Slate says it can arrange installation for a fee. For infotainment, Slate said owners can use their smartphones or install a tablet. The phone mount is standard and the tablet mount is optional. The truck doesn't come with any screens but does offer a phone app. The startup's focus on a basic, attractive vehicle with limited standard equipment — which does include air conditioning and heat — has drawn an enthusiastic response on social media and among industry analysts. But some warn that the quoted 'under $20,000″ sticker is unrealistic. Republican lawmakers are working to repeal the $7,500 EV incentive and added accessories are likely to push up average transaction prices. 'A normally equipped one that most people want is going to end up costing $35,000 and for that money you get 150 miles of range, 200 horsepower and a two-door truck,' auto analyst Doug DeMuro said on his podcast May 6. DeMuro warned that U.S. customers have shunned two-door vehicles in general in recent years. Slate says it's disrupting traditional automotive manufacturing that requires enormous upfront investments and high fixed costs. It plans to build its pickup at a former printing plant in Warsaw, Ind. By using plastic exterior panels, Slate doesn't need a factory paint shop or metal stamping, two high-cost areas. The company said it will sell direct to consumers and use a service partner that it hasn't yet named. Despite skepticism from hard-nosed analysts, Slate said it's on track for a 2026 start of production, 'thanks to our highly experienced team and top industry partners.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
Yahoo
03-04-2025
- Automotive
- Yahoo
Rivian Q1 sales fall 36% on weaker van deliveries, L.A. fires
Rivian Automotive reported a first-quarter sales decline of 36 percent, citing fewer commercial van deliveries and weaker demand partially driven by the impact of the L.A. fires in a key EV market. The Irvine, Calif., automaker said April 2 that it delivered 8,640 vehicles in the first quarter compared with 13,588 vehicles in the same quarter a year ago. Rivian's sales fell short of its production pace. The automaker said it produced 14,611 vehicles in the first quarter, which was 4.5 percent higher than the 13,980 vehicles made in the year-earlier quarter. Rivian doesn't break down sales by model. It sells mostly in the U.S. but also has some Canadian sales. Q1 U.S. auto sales live updates For more auto industry data, subscribe to our Data Center. Q1 2025 Q1 2024 Q4 % change 3 mos. 2025 3 mos. 2024 3 mos. % change Rivian Automotive* 9,100 11,950 -23.8% 9,100 11,950 -23.8% *Estimate Source: Automotive News Research & Data Center The automaker reaffirmed its 2025 delivery guidance of 46,000 to 51,000 vehicles. In 2024, Rivian reported sales of 51,579 vehicles. It makes the R1T pickup, R1S crossover and delivery vans for Amazon and for other fleets. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. In a press release, Rivian cited comments by CFO Claire McDonough on the automaker's fourth-quarter earnings call Feb. 20 in which she anticipated lower deliveries in the January-March quarter. 'These lower anticipated volumes are due to seasonality coupled with a challenging demand environment, partially driven by the impact of the fires in Los Angeles, which has historically been one of our largest markets,' she said. McDonough also noted that van deliveries were higher than anticipated in the fourth quarter, which led to fewer deliveries in the first quarter this year. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
06-03-2025
- Automotive
- Yahoo
Hydrogen hopes shudder amid spate of bankruptcies
Hydrogen trucking startups have faltered, leaving legacy manufacturers to determine whether the energy source has a long-term future in hauling cargo. Three startups that built fuel cell systems or upfitted them into commercial vehicles — Nikola Corp., Hyzon Motors Inc. and Quantron AG ― have all declared bankruptcy over the past six months. Nikola, which sold more than 200 fuel cell trucks last year, cited adverse market and macroeconomic conditions when it filed Chapter 11 bankruptcy last month. Those companies had hoped to follow in the path of Tesla as novel zero-emission vehicle plays, said Sam Abuelsamid, vice president of market research at Telemetry Agency. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Amid a higher-interest rate climate and a shift in venture-capital interest toward artificial intelligence, 'there was just no way to raise the capital needed to hang on until they were self-sustaining,' he said. Collectively, the companies' troubles represent a setback to hopes that hydrogen could mature into a clean energy source, particularly in the heavy-duty vehicle applications, in which fuel cell technology offers shorter fueling times and longer ranges compared with battery-electric counterparts. Legacy manufacturers retain a keen interest in hydrogen. Toyota Motor Corp. unveiled its third-generation fuel cell system in February. The company intends to introduce it in heavy-duty commercial vehicles across the globe. Hyundai Motor Corp. has 30 of its Xcient-branded fuel cell trucks operating in the Bay Area and 21 more were deployed in December at the manufacturer's Metaplant America in Georgia. Backed by $237 million in government funding, Daimler Truck AG intends to test 100 of its GenH2 trucks on German roads starting at the end of 2026. Volvo Trucks is developing trucks with combustion engines that run on hydrogen. On-road testing is expected to begin next year. Some of those manufacturers remain bullish on utilizing fuel cells in passenger vehicles, although that tiny market is shrinking. Global fuel-cell EV sales reached a peak of 20,704 vehicles sold in 2022, according to SNE Research statistics. Total sales tumbled to 12,866 in 2024, a drop the firm attributed to dwindling sales of the Hyundai Nexo in the Korean market. Hyundai anticipates unveiling a revamped Nexo this year and expanding its fuel cell commercial vehicle lineup. Toyota has produced its Mirai since 2014, though sales have been scant. Approximately 28,000 have been sold across 30 countries, the automaker said in February. On the trucking side, Those manufacturers can rely on sales of their existing diesel trucks and their dealership networks to fund fuel cell developments, said Conrad Layson, senior alternative propulsion analyst at AutoForecast Solutions. But startups and legacy players alike will be hamstrung by the lack of hydrogen infrastructure across the U.S., he said. The startups 'were on the right path,' Layson said. 'But the biggest challenge remains infrastructure.' Only 54 public hydrogen fueling stations exist in the U.S., according to Department of Energy records. Only six of those cater to medium- or heavy-duty vehicles, according to a July 2024 report from Resources for the Future, a nonprofit research and policy firm. But the lack of stations is only one part of the shortfall. Distribution represents a more underappreciated and nettlesome challenge, Layson said. The nation's pipeline networks require new coatings and fittings to reliably carry hydrogen, and those enhancements are 'nonexistent,' he said. 'In order to make hydrogen economically viable, you have to engage in a massive upgrading and replacement of the existing gas pipe network through the country,' he said. Countries such as China and South Korea have made building out hydrogen networks national priorities. China intends to have approximately 1,200 hydrogen stations online by the end of the year, with a concentration along freight corridors, according to Interact Analysis. South Korea has 159 and Japan has 161, according to the firm's estimates. Infrastructure projects in the more fledgling. In October 2023, the Energy Department awarded $7 billion in funding to seven U.S. regions expected to form 'Hydrogen Hubs,' clusters of infrastructure designed to support hydrogen supply and demand in multiple industries. Yet hydrogen's broad prospects under the Trump administration remain a question mark — and dependent on the fate of a tax credit included in the Inflation Reduction Act known as 45V. The credit is worth as much as $3 per kilogram of clean hydrogen produced. But 'most folks who would otherwise apply for this credit will wait until there is less uncertainty,' said Alan Krupnick, a Resources for the Future senior fellow. 'I think the financial community is also probably waiting for uncertainties to be resolved.' The industry has sought to keep the tax credit. On Feb. 18, dozens of organizations and companies, including General Motors and Hyundai, signed a letter to congressional leadership that said 45V is 'essential' for President Trump's 'bold energy dominance agenda.' Billions in potential investments could be at risk from uncertainty surrounding the future of 45V, the letter said, and jobs could shift from the U.S. to other countries. 'We need to ensure that we do not miss this hydrogen moment,' the letter said. The moment has been fleeting for the likes of Nikola, Hyzon and Quantron. In many ways, their struggles parallel those of startups in the light-duty EV space such as Rivian and Lucid, Abuelsamid said. They all went public at a time investors' appetite in zero-emission technology 'almost completely dried up,' he said. 'Their timing was terrible.' Rivian and Lucid found suitors. Volkswagen will invest as much as $5.8 billion in Rivian in a new joint venture focused on software development. The deal closed in November. Lucid received $1.5 billion from Saudi Arabia's Public Investment Fund in August. Such benefactors have been harder to come by in the commercial-vehicle sector, in part because sales volumes are lower, and the ability to achieve economies of scale are more difficult, Abuelsamid said. 'As a result, the ability to reach breakeven is more difficult,' he said. Trucking is not the only transportation sector where hydrogen hopes have been dashed by recent headwinds. Universal Hydrogen, a startup developing conversion kits that would allow aircraft to run on hydrogen fuel, closed in June after depleting its funding. More recently, in February, global manufacturer Airbus said it has delayed plans to develop a hydrogen-powered aircraft until the middle of next decade. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
05-03-2025
- Automotive
- Yahoo
Ben & Jerry's goes EV with zero-emission Rivian scoopmobiles
Ben & Jerry's is taking the ICE out of ice cream trucks with two electric Rivian vans that will serve up scoops on the go. The Vermont sweet treat maker is among the first high-profile customers for Rivian's commercial vans since the exclusive portion of its deal with Amazon ended in February. The vans will debut at the South by Southwest entertainment festival that starts March 7 in Austin, Texas. The rest of this year, they'll travel across the country to community events for Rivian owners and around Vermont. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. 'Collaborating with the Ben & Jerry's team to build the next generation of electric scoop trucks has been an incredible experience,' Brian Gase, Rivian's senior director of prototype development, said in a statement. 'It's one of those projects that just makes the team smile.' The Ben & Jerry's vans are based on Rivian's Delivery 500 model, which has an estimated range of 161 miles between charges. Rivian has delivered thousands of vans to Amazon since 2022 and in February opened up sales to other businesses. 'Working with Rivian, an industry leader that is committed to sustainability is an ice cream dream come true,' said Sean Slattery, Ben & Jerry's U.S. integrated marketing project lead. 'Today, Rivian helped Ben & Jerry's reduce our reliance on fossil fuels in a small way, while making things a little bit cooler ... which, as an ice cream company, is extremely difficult to do.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
27-02-2025
- Automotive
- Yahoo
Ionna goes all-in on Americana vibe, customer service for its EV rechargeries
APEX, N.C. – Ionna is betting on nostalgia to drive the electric vehicle transition forward. Cheeky signs adorn the walls in Ionna's signature retro script at its first EV charging station here. 'Espresso yourself' marks the café. 'How you fillin'?' locates the vending machines. A toilet paper illustration hangs outside the restrooms, noting they are: 'The softest detour on your journey.' Ionna, the charging joint venture founded by eight major automakers, has embraced a vintage Americana aesthetic for its charging stations, called 'rechargeries,' with amenities for both the EV and the driver to recharge. The lighthearted, familiar voice of Ionna was carefully curated to build trust with the customer. A 24/7 phone line goes straight to Ionna's human-staffed call center, and a QR code on the charging station's door gives drivers access to restrooms, vending machines and meeting spaces at any time of day or night. 'What we wanted to do was build a brand that wasn't about the green message. That wasn't about the environment. That wasn't about the tech. This is about the driver,' said Ricardo Stamatti, chief product officer. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. A funky orange, navy and aqua color palette and round, chunky script take drivers back to the days when cars symbolized freedom and adventure. A mural of a family cruising in a classic car is painted on the side of the rechargery here in Ionna's signature hues. Ionna crafted its image and voice to create the at-your-service experience 'of what flying used to be and the experience of what Americana road-tripping used to be,' Stamatti said. 'It's about us and you.' Poor public charger reliability has hindered EV adoption. About a fifth of public charging attempts failed in the third quarter of 2024, according to J.D. Power. In early February, six Ionna locations with 58 charging plugs were open. Ionna plans to open more than 100 sites with more than 1,000 charging bays this year. Drivers' experience at the chargers will ultimately define Ionna's image, Stefan Lysak, marketing lead at Roland Berger consultancy, said. But the company's branding helps set it apart. 'There's an opportunity to stand out in the marketplace, which they've achieved with this,' he said. 'Anything that creates a feel-good factor is both novel and welcome … specifically in EVs.' Ionna displays important information on screens on the sides of the chargers. Prompts show customers — with images and text available in English, Spanish and French — how to pay by card, through a mobile app or via plug and charge. They also include charging and cost details and a 24-hour customer service phone number. The monitors have buttons, rather than touchscreens, because faulty touchscreens are often the reason chargers cannot be used, Stamatti said. Energizing EV batteries can take 30 minutes or longer depending on the vehicle and the charger. To pass the time at Ionna's Apex Rechargery, drivers can order coffee or a meal from the café, purchase a snack and drink from the vending machines, take calls in one of two conference rooms and play retro video games on the Polycade. Ionna distributes flyers about nearby events and a map to the historic Apex downtown, a few blocks south of the chargers. One flyer includes a QR code to Apex's tourism website, history on the railroad town, directions to an outdoor sculpture walk and information about the city's cultural arts center. The vintage imagery, community feel, familiar voice and bold color palette are a 'strategic asset for the company, just as important as the tech and the automakers,' Stamatti said. BMW, Honda, General Motors, Stellantis, Hyundai, Kia, Mercedes-Benz and Toyota founded Ionna, and leaders from each company have a seat on the board. But their brands are intentionally invisible at Ionna's rechargeries. 'We didn't want to be perceived as something that was built by committee,' Stamatti said. 'For Ionna to be successful, one of the main principles is that it truly does operate like an independent company.' That means the customer comes first. As Ionna's website says, 'Customer service isn't the cherry on top, it's the whole sundae.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
