Honda and Nissan merge their electric vehicle businesses, and the tension at the Tesla Berlin factory union escalates again | Overseas Daily
"Top 3 News"
Honda and Nissan Are Close to Achieving an Electric Vehicle Merger to Respond to the Rapid Electrification Transformation in the Industry
Key Points:
Japanese automakers Honda and Nissan are contemplating a significant move - merging their electric vehicle businesses to contend with the intense competition from Tesla and Chinese electric vehicle manufacturers like BYD. This merger might involve a third Japanese automotive partner.
In March of this year, the two Japanese automotive giants declared plans to jointly develop new software and other electric vehicle technologies. Nissan CEO Makoto Uchida stated that given the "common challenges" confronted by the two traditional automakers, this collaboration is "of great significance". The challenges Uchida refers to precisely are Tesla and the rapidly ascending Chinese electric vehicle manufacturer BYD.
According to the Nikkei, Honda and Nissan are intensifying their cooperation and are on the verge of announcing an electric vehicle business merger plan to catch up. The two companies are considering operating under a holding company, and the specific details such as ownership have not yet been determined. Nevertheless, it is anticipated that Nissan will incorporate Mitsubishi Motors in the new electric vehicle partnership, as Nissan holds a 24% stake in Mitsubishi.
The merger of Honda and Nissan will bring their combined annual sales to approximately 8 million vehicles, making them one of the largest automotive groups in the world. Nissan can benefit from Honda's hybrid technology, while Honda can learn from Nissan, which has numerous years of experience in electric vehicle development since the launch of the iconic LEAF in 2010.
This potential Honda and Nissan electric vehicle merger case indicates that traditional automakers are encountering increasing pressure and must keep pace with Tesla and other global electric vehicle leaders. The sales of Japanese automakers including Toyota, Nissan, Honda, and Mitsubishi in China have been severely impacted. With the emergence of a wave of domestic low-cost electric vehicle models, Japanese car brands are being rapidly edged out of the Chinese market, which is regarded as one of their most crucial markets.
Honda Electric SUV (Source: Electrek)
Opinions:
With the rapid ascent of Tesla and Chinese electric vehicle enterprises, Japanese automakers are experiencing unprecedented pressure in the global market, particularly in China, the world's largest automotive market. This merger might be a win-win strategy as it enables the two companies to share resources, technologies, and market knowledge, thereby enhancing their competitiveness. Honda has a profound accumulation in hybrid technology, while Nissan has rich experience in the electric vehicle field, especially the success of its LEAF model. Through the merger, they can complement each other's advantages, accelerate the development of electric vehicle technology, and better compete with rivals in the global market.
However, this merger also confronts challenges. Discrepancies in corporate culture, management structure, and operational models might lead to frictions during the integration process. Additionally, the two companies need to ensure that the merged business can promptly respond to market changes and maintain innovation capabilities to adapt to the rapidly changing electric vehicle market. Globally, this kind of merger might be a trend, as more and more automakers realize that it might be difficult to survive in the highly competitive electric vehicle market by going it alone. Through mergers, they can concentrate resources, reduce costs, and improve R & D efficiency. But simultaneously, this also implies greater risks, as the merged company needs to remain competitive globally, which requires strong strategic planning and execution.
Tesla Berlin Factory Tensions Escalate, Accusing the Union of Attempting a Coup
Key Points:
Recently, the tensions at Tesla's Berlin Gigafactory have been intensifying. The automaker accuses the local union of attempting a coup against its workers' committee chairman. Tesla is the sole automotive factory in Germany that has not reached a collective bargaining agreement with the union, which has aroused the dissatisfaction of IG Metall, the most powerful union in Germany.
In Germany, factories have workers' committees, which can be controlled by a broader union, but this is not the case at Tesla's Berlin factory. Earlier this year, the majority of workers at Tesla's Berlin factory voted against the IG Metall union representatives entering the new works council, but the union still made substantial progress, successfully obtaining 16 seats on the workers' committee, more than any other group.
IG Metall claims that Tesla employs anti-union strategies and accuses Tesla of having safety, salary, and work-life balance issues to justify the need for a union. Tesla denies these allegations and claims that its employees are satisfied without a union. However, Tesla also admits that the situation is not without problems. This summer, the company held a factory-wide meeting to discuss the union issue. The meeting turned abnormal. After noticing that the factory had to order 65,000 coffee cups because they kept disappearing, factory manager Andre Thierig threatened to take away the employees' tableware.
After the meeting, IG Metall union secretary Jannes Bojert threatened that a strike might be used to force Tesla to engage in collective bargaining. Tesla Berlin factory's pro-management workers' committee leader Michaela Schmitz claims that it is IG Metall that has created a difficult environment in the factory. IG Metall is now submitting a request to the court to revoke Schmitz's position on the committee, claiming that she violated the German labor law aimed at preventing the company from hindering unionization efforts. Tesla describes this move as a "desperate" coup attempt to control the workers' committee.
Tesla claims: "Our independence and the resulting good working conditions and stable jobs in the factory have been a constant annoyance for the union." Tesla has had conflicts with multiple unions globally, including IF Metall in Sweden and the UAW in the United States.
Tesla Berlin Factory in Germany (Source: Electrek)
Opinions:
The tense relationship between Tesla and the union, especially in the case of the Berlin factory, reveals some core issues in modern industrial relations. Firstly, Tesla's stance shows the company's strong desire to maintain independent operation and control of employee relations. This position might stem from concerns about the potential increase in costs and reduction in operational flexibility that a union might bring.
However, from the workers' perspective, the existence of the union is to safeguard their interests, including reasonable wages, a safe working environment, and work-life balance. If the allegations made by IG Metall against Tesla are true, then it is reasonable for workers to seek union protection. Tesla's denial and confidence in employee satisfaction might not fully reflect the feelings of all employees, especially the diverse voices and opinions that might exist within the company.
In addition, Tesla has reduced employee stock compensation in recent years, which might weaken employees' loyalty and sense of belonging to the company. In this case, the union might become a platform for employees to strive for better treatment and working conditions. Tesla needs to recognize that although it might face some challenges in the short term, in the long run, establishing a good relationship with employees, including through union channels, might be more beneficial to the company's stability and growth. Finally, Tesla's global union conflicts might affect its brand image and employee morale. In the highly competitive automotive industry, maintaining employee satisfaction and loyalty is crucial for innovation and maintaining a market-leading position. Tesla might need to reevaluate its stance on the union and find a new model of cooperation with employees to ensure the company's long-term success and the well-being of its employees.
Mercedes-Benz Gets Approval to Launch Level 3 Autonomous Driving Technology with a Maximum Speed of 95 km/h in Germany
Key Points:
The German Federal Motor Transport Authority has recently approved Mercedes-Benz's Drive Pilot conditional autonomous driving system, signifying that the technology will be available for sale in Germany in early 2025. The Drive Pilot system has become the world's fastest certified Level 3 conditional autonomous driving system (SAE Level 3) and can be applied to the S-Class and EQS luxury car series. The price of the system remains unchanged, with a starting price of 5950 euros (including VAT).
The Drive Pilot system is updated for free via the Internet (over-the-air updates) or in the workshop without the need to replace any vehicle components. After activating the Drive Pilot, the driver can use the autonomous driving mode on the 13,191-kilometer-long German highway network at a maximum speed of 95 kilometers per hour under specific conditions in Germany. This allows the driver to use the autonomous driving mode more frequently and for a longer time, while making better use of idle time. When the Drive Pilot is activated, the driver can legally engage in other activities such as watching TV, streaming movies via Sony's RIDEVU application, reading newspapers (physical or via the MBUX system), working, or simply relaxing.
The Drive Pilot system prioritizes safety with a redundant design, and important functions such as the power, steering, and braking systems have dual backups. If the driver fails to take over control after an emergency prompt, the system will decelerate the vehicle to a stop in a controlled manner and activate the hazard warning lights. The system uses more than 35 sensors, including cameras, radars, ultrasonic sensors, and lidars (LiDAR), to achieve precise real-time environmental detection. For SAE Level 3 and above autonomous driving, the use of lidar is crucial for Mercedes-Benz. Combined with a high-precision digital map and a special positioning system, the Drive Pilot can precisely know the exact lane position of the vehicle on the highway.
Mercedes-Benz aims to provide customers with higher speeds, longer driving times without driver intervention, and more comfort and safety. As autonomous vehicles become more prevalent on the road, road traffic will become safer. Currently, the maximum speed for conditional autonomous driving stipulated by German law is 130 kilometers per hour, and Mercedes-Benz plans to achieve this speed range by the end of this decade.
Mercedes-Benz is also the world's first automaker to develop a special blue-green light to indicate from the outside whether the Drive Pilot is activated, allowing other road users to identify Level 3 autonomous vehicles and feel at ease when seeing the driver reading a book. This is expected to significantly increase the public's acceptance of autonomous vehicles. Although this "autonomous driving marker light" is not yet permitted to be used in Germany, the feedback from the first round of tests in the United States is positive. At the end of 2023, the authorities in California and Nevada have approved these "autonomous driving marker lights" for testing purposes or later use in production vehicles.
Mercedes-Benz Autonomous Driving Test Vehicle (Source: ElectricCarsReport)
Opinions:
The approval of Mercedes-Benz's Drive Pilot system is undoubtedly an important milestone in the development of autonomous driving technology. This progress not only demonstrates Germany's open attitude in formulating autonomous driving regulations but also sets a new benchmark for the global development of autonomous driving technology. The certification of the Drive Pilot system with a maximum speed of 95 kilometers per hour positions Mercedes-Benz at the forefront in the field of conditional autonomous driving, which is of great significance for enhancing brand competitiveness and attracting technology enthusiasts.
From a safety perspective, the redundant design of the Drive Pilot and the use of more than 35 sensors illustrate Mercedes-Benz's emphasis on the safety of autonomous driving. This design can ensure vehicle safety in emergency situations and reduce the risk of accidents. In addition, the combination of lidar use and high-precision maps provides more accurate environmental perception capabilities for autonomous driving, which is crucial for improving the reliability and safety of autonomous driving. However, the development of autonomous driving technology also brings new challenges, such as legal liability, data privacy, and network security. As technology progresses, these issues need to receive more attention and solutions.
"Big Events"
General Motors Recalls 2025 Chevrolet Equinox EV Due to Safety Hazard of Excessive Quietness
General Motors (GM) recently announced the recall of the 2025 Chevrolet Equinox EV due to the vehicle's excessively low noise at low speeds, which might not effectively alert pedestrians and cyclists. Electric vehicles (EVs) are inherently quieter due to the absence of the noise from an internal combustion engine, and the pedestrian alert system of the Chevrolet Equinox EV is malfunctioning, possibly causing the vehicle to fail to generate sufficient sound to alert those around it when driving at low speeds.
According to reports, the reason for this recall is that the vehicle's pedestrian alert system might have the incorrect software installed, resulting in an inability to generate enough noise to meet the requirements of Federal Motor Vehicle Safety Standard 141, the "Minimum Sound Requirements for Hybrid and Electric Vehicles". General Motors states that if the vehicle fails to emit sufficient sound when driving or reversing, it may increase the risk of pedestrian injury.
This recall affects 7,606 electric Equinox models, and it is expected that all vehicles have this defect. It is worth noting that this recall does not involve the fuel-powered Chevrolet Equinox models.
General Motors fixed this problem at its assembly plant on October 16, 2024, and issued a non-compliance recall notice on December 5. If the vehicle owner has a 2025 Equinox EV, they can take it to the dealer for a free update of the body control module (BCM). It is expected that the owner letters will be sent out on January 27, 2025.
If the vehicle owner has any questions, they can contact the Chevrolet customer service hotline at 1-800-222-1020. General Motors' recall number is N242479760. For more information, you can contact the National Highway Traffic Safety Administration (NHTSA) hotline at 1-888-327-4236 or visit the NHTSA website.
General Motors 2025 Chevrolet Equinox EV (Source: Electrek)
The 2025 Chevrolet Equinox EV has different starting prices and ranges depending on the configuration. The LT FWD version has a starting price of $34,995 and an EPA-estimated range of 319 miles; the LT AWD version has a starting price of $40,295 and a range of 307 miles; the RS FWD version has a starting price of $45,790 and a range of 319 miles; the RS AWD version has a starting price of $49,090 and a range of 307 miles. (All prices include a $1,395 destination fee)
The Chevrolet Equinox EV has been selling well since its launch, with more than 15,000 units sold in its first full sales quarter. General Motors finally launched the highly anticipated 2025 LT FWD version with a starting price of $34,995, claiming that the Equinox EV is "the most affordable electric vehicle in the US with a range of over 315 miles".
This recall incident highlights the pedestrian safety issues that need to be considered in the design of electric vehicles and also reflects General Motors' emphasis on product safety and compliance. As the electric vehicle market continues to expand, how to balance the quietness and safety of the vehicle will become an important issue for automakers to solve.
European Automakers Lower EV Prices and Increase Prices of Fuel-Powered Models to Cope with New Emission Rules
Facing the stricter emission rules to be implemented by the European Union, European automakers are adopting a price reduction strategy to boost the sales of electric vehicles (EVs) and increasing the prices of internal combustion engine models (ICE) to avoid high fines that will come into effect at the beginning of 2025.
Starting from January 1, 2025, the European Union will significantly lower the carbon dioxide emission limit for cars. According to Reuters, by then, most automotive companies need to have at least