Auto Industry News: Mercedes Makes Moves, Tesla Makes Money, GM Sues Ford, and Rivian Proves the Power of Networking

The market for luxury EVs continues to heat up as Mercedes doubles down with a high-tech, long-range prototype. The German badge also joins a growing list of companies making all-electric production pledges. Despite the growing competition, Tesla still remains the EV brand to beat – and the company just posted its largest-ever quarterly profit. Fellow EV brand Rivian sees dollar signs too, as the startup received an impressive infusion of cash from some powerful friends. And Detroit’s famous frenemies – GM & Ford – are back at each other’s throats, arguing what really is in a name, anyway?

Plus, scroll down for some enthusiast updates!

Mercedes Slides Further into Electric

Mercedes-Benz made headlines in recent weeks, thanks to a few ambitious new projects and initiatives. One of the biggest is a new EV prototype called the Vision EQXX. Using refined, energy-dense battery technology, the new car boasts a driving range of more than 620 miles per charge!

Additional details remain scant, with the EQXX concept expected to unveil sometime next year. Still, preview pictures definitely tout a sleek, aerodynamic-looking car that takes hints from the automaker’s long tradition of James Bond-worthy villain vehicles.

The announcement of the EQXX was in tandem with Mercedes’ recent news that it plans to go fully electric by 2030 — kind of.

According to the manufacturer, “all newly launched architectures” will be electric-only from 2025 onwards. Additionally, while Mercedes prepares to be all-EV by the decade’s end, it was careful to clarify this plan would unfold “where market conditions allow.”

The company didn’t make any indications, but this hints that they might continue making ICE engines beyond 2030 if the money isn’t there with EVs. “Mercedes-Benz intends to manage this accelerated transformation while sticking to its profitability targets,” it said in a July 22 EV strategy update, driving home the idea that the bottom line is still front-and-center.

Even still, the manufacturer is digging in on EV efforts. Mercedes says it is committing roughly $47 billion towards that 2030 goal with plans for 8 battery plants, including one in the US. The company also recently acquired YASA – a pioneer in electric drive technology often serving supercar makers. As part of the deal, YASA will develop ultra-high-performance e-motors for Mercedes-AMG.EA electric-only platform.

Hands Off

The German brand also rolled out its new Drive Pilot, a semi-automated driving system. Featured on the new 2022 Mercedes-Benz EQS (also a premium EV with 630 HP and up to 478 miles of range), Mercedes says the system is Level 3 ADAS. That means drivers can take their eyes off the road and let the car do the driving without continually supervising. (NOTE: You still need to be ready to take over when the vehicle prompts, so don’t plan on napping with this tech.)

However, there are reports that the AV tech comes with some “quirks.”

According to JD Power, the system only operates under certain conditions and there are several limitations. Because Drive Pilot relies on radar, lidar, a road moisture sensor, microphones, ultrasonic sensors, and cameras to operate, it is essentially useless in inclement weather. Additionally, road features like toll booths, tunnels, or traffic control devices disengage the system. Perhaps most notably, Drive Pilot only works in a pre-defined geo-fenced area, which is limited to highway use right now. (That means, you can’t actually use the tech to cruise around town.)

Jalopnik also covered some core concerns regarding the technology too. The biggest? If a driver doesn’t respond to the AV’s take-over prompts, Drive Pilot basically activates the hazard lamps and stops in the middle of the road.

So, yea, there’s certainly some room for refinement before the tech is 100% reliable…

Tesla Posts a (BIG) Profit

Tesla posted a massive quarterly profit last week, racking up a whopping $1.14 billion. That marks the largest-ever quarterly profit for the automaker.

Even with the ongoing chip shortage, Tesla still managed to deliver a record number of vehicles and doubled revenue in the quarter. According to Automotive News, the company delivered more than 201,000 vehicles in the quarter, a 121% jump over the same quarter last year.

Having a foothold in the tech world has undoubtedly helped Tesla hit these numbers. CEO Elon Musk said that in response to the shortage, the company rewrote its firmware “in a matter of weeks” to support alternative chips and keep production in motion.

EV Update: Seventeen Republican senators voted with all 50 Democrats on Wednesday (July 28) to advance a bipartisan infrastructure deal, in a win for President Biden and the bipartisan group of negotiators, reports The Hill. The trillion-dollar infrastructure package includes substantial infrastructure investments like new roads and bridges, as well as an expansive EV-charging network.

What’s in a name?

GM recently announced it is suing Ford for trademark infringement.

Ford dubbed its new hands-free driving tech “Blue Cruise,” slating the system for over-the-air download in F-150s and Mustang Mach-E’s. The issue? GM’s hands-free technology – which launched in 2017 – is called Super Cruise. Additionally, GM’s subsidiary developing self-driving cars is also called Cruise.

While Ford argues the word “cruise” is a relatively universal term (since most drivers are familiar with cruise control) GM is calling for the company to drop the name, accusing unfair competition and malicious intent. The automaker is also seeking unspecified monetary damages. Ford, which calls the lawsuit “meritless and frivolous,” cited several other cruise-named technologies that all seem to have escaped GM’s notice, including ZF’s Autocruise, Hyundai’s Smart Cruise Control and BMW’s Active Cruise Control.

A judge has not yet ruled on the matter.

Legal spats aside, both automakers shared positive news with their Q2 numbers.

Ford said its sales rose 38% to $26.8 billion, compared to $19.4 billion a year ago. Its automotive revenue rose 45% to $24.1 billion and about $1.3 billion above consensus. Ford also said it was moving to a “build-to-order” model instead of stockpiling dealer lots in its earnings report. It said the benefits of moving to a reservation system could reduce dealer costs and promotions.

GM’s second quarter also shined brightly, with an almost 40% boost in new vehicle sales and a strong demand for pickups and SUVs. The automaker said it sold 688,236 new vehicles in the US compared to 492,489 vehicles in Q2 2020. Pickups remain a hotspot for the company, with a roughly 40% increase in sales of GMC Sierras and a 34.5% jump in sales of Silverados.

Rivian Has Some Powerful Friends

Even without selling any vehicles, Rivian’s also seeing dollar signs. The electric vehicle startup closed a massive funding round on June 23, raking in $2.5 billion. Rivian’s investors are a healthy mix of the auto, tech, and investment world, and this round saw big players from all of those markets. Amazon, Ford Motor, and T. Rowe Price threw their hats in the ring on this round, which means Rivian’s total amount raised reaches $10.5 billion to date.

Interestingly, this massive cash generation is all before any models have left the factory!

The Rivian R1T electric pickup and R1S electric SUV are both in the pipeline, but the R1T has been delayed until September, while the R1S is projected to roll out closer to 2022. Rivian’s CEO R.J. Scaringe told CNBC that as the company moved towards the start of vehicle production, it was vital for the automaker to “keep looking forward and pushing through to Rivian’s next phase of growth.”

Part of that growth includes Rivian’s domestic facility footprint. The company shared plans for a second U.S. EV assembly plant, to the tune of $5 billion. Dubbed “Project Tera,” the plant requires an estimated 10,000 acres of land according to a revised economic development document seen by Reuters. Original documents – which did not name Rivian – said the facility required only 2,000 acres. For reference, Reuters points out that BMW’s South Carolina assembly plant sits on about 1,200 acres.

Rumors say Rivian is eyeing up Arizona, east of Mesa and near Gold Canyon. Construction was set for Fall 2021, with vehicle production to kick off by Q2 2023, but COVID is expected to have shifted that timeline by about 6 months. Rivian’s existing U.S. plant is in Normal, Illinois.

While anticipation builds for the R1T and R1S, we’re also learning that it’s helpful to have someone like Jeff Bezos in your back pocket.

One of Rivian’s battery-powered electric delivery vans was spotted in Detroit’s Royal Oak suburb last week. Amazon was apparently testing out the van, and the Amazon driver was accompanied by a Rivian engineer. There are three total vans testing in the area, which makes sense since they were assembled at Rivian’s nearby plant. The e-commerce titan has been a significant backer of Rivian, and it’s already committed to buying 100,000 of the delivery vans.

Bad news for another EV startup. Nikola Motor founder and former executive chairman, Trevor Milton, surrendered to federal agents on July 29 to face fraud charges. Milton is accused of intentionally misleading investors with false claims about his company’s vehicles and technology. Read more here.

Enthusiast Events

Enough of all this future tech… what’s happening now?? There’s still plenty of go-fast fun on the docket for traditional auto enthusiasts.

From the drag strip…

This past week, the NHRA made a stop in Pomona, California for the Lucas Oil Winternationals. After two long, hot days of qualifying battles, Sunday’s racing determined the victors:

…Ron Capps nabbed his fourth Winternats Funny Car crown with an incredibly consistent performance.

…Leah Pruitt scored her first Top Fuel win of the season.

…Aaron Stanfield won for the second straight event in Pro Stock, denying Greg Anderson the chance to make history.

…Matt Smith did make history, becoming the first Pro Stock Motorcycle winner at a Winternationals event. He also proved he still dominates the class, taking his fourth win of the season.

For full results and race details, click here.

… to the auction block.

On the East Coast, Mecum wrapped its 2021 Summer Special in Orlando, Florida. The event was one for the books, with American Muscle stealing the Top 3 hammer prices:

• 1970 Ford Mustang Boss 429 Fastback with a mere 7,745 miles sold for $352,000.
• 1961 Chevrolet Corvette Convertible bearing a Gen V 6.2L V-8 engine and Art Morrison Chassis also sold for $352,000.
• 1963 Chevrolet Corvette Split Window Coupe with a new GM LS3 crate engine sold for $324,500.

Check out all the top-selling vehicles from the auction here.

Looking for more automotive entertainment? This weekend, WoO, Ultra4, and Carlisle all serve up some fun. To read more about these events and everything else slated for the month of August, check out the most recent edition of Competition Corner.

The Engine Block is your one-stop source for any and all auto industry news. Keep an eye on our weekly round-up of enthusiast coverage, product reviews, vehicle spotlights, auto show/expo features, and more. Be sure to check back Wednesday for a list of top campgrounds across the country to help you plan that last getaway of the season!