Tesla recalls software for nearly 700,000 vehicles, and Honda invests in building a new-generation fuel cell system factory in Japan | Overseas Daily
"Top 3 News"
Tesla Recalls Nearly 700,000 Vehicles Due to TPMS Software Issue
Key Points:
Tesla recently announced a software recall for nearly 700,000 vehicles to address a malfunction in the Tire Pressure Monitoring System (TPMS). The recall involves Model 3 vehicles from 2017 to 2025, Model Y vehicles from 2020 to 2025, and the 2024 Cybertruck. Tesla stated that in the recalled vehicles, when the TPMS detects a fault, the malfunction indicator light does not remain continuously displayed after the vehicle is turned off or in a dormant state, which does not comply with the requirements of the Federal Motor Vehicle Safety Standard FMVSS 138. Notably, the solution for this recall is a simple OTA (Over-the-Air) software update, and Tesla has already pushed the repair software to the relevant vehicles. Users do not need to take the vehicle to a service center; the update can be automatically completed when the vehicle is connected to the network. This method significantly reduces the hassle and time cost for vehicle owners.
Tesla's software recalls have been a subject of attention. In the past few years, Tesla has conducted multiple recalls due to software issues, and the convenience of its OTA updates has also sparked discussions within and outside the industry. Some consumers and media believe that referring to software updates as "recalls" is not accurate, as it is significantly different from traditional hardware recalls. Hardware recalls typically require vehicle owners to take their vehicles to a service center for repair, while software updates can be completed remotely with less impact on vehicle owners. The National Highway Traffic Safety Administration (NHTSA) has also noticed this issue. Although they have not changed the term "recall", in the latest recall notices, they have specifically marked "Software Update Repair Recall" to distinguish the differences between software and hardware recalls. This measure helps the public better understand Tesla's recall situations and reflects the regulatory agency's adaptation and tolerance towards emerging technologies. This large-scale software recall by Tesla once again highlights the importance of software in the era of smart cars. As the degree of vehicle intelligence continues to increase, the role of software in vehicles becomes increasingly critical. From autonomous driving systems to in-vehicle entertainment systems and various assisted driving functions, the stability and safety of software are directly related to the vehicle's performance and driving safety. As a leading enterprise in smart cars, Tesla has been at the forefront of the industry in software innovation and application, but it also faces more challenges and responsibilities.
Tesla Model S Interior (Source: Electrek)
Opinions:
As a globally renowned electric vehicle manufacturer, Tesla has achieved significant accomplishments in technological innovation and market expansion, and its multiple vehicle models are deeply favored by consumers. However, as sales continue to increase, various problems that arise during the actual use of the vehicles are gradually emerging, with software malfunctions being one of them. From a positive perspective, Tesla's ability to promptly detect and resolve software issues demonstrates its emphasis on product quality and user safety. Conducting recalls through OTA software updates not only improves the efficiency of problem-solving but also reduces the repair costs and time for vehicle owners. This innovative recall method provides a beneficial reference for other automakers, promoting progress in the entire automotive industry in software management and updates.
However, from another perspective, Tesla's frequent software recalls also expose potential deficiencies in its software development and testing processes. Although software updates can quickly address problems, frequent recalls may have a certain negative impact on the brand image. Consumers may have doubts about the software stability of Tesla, which could subsequently affect their purchasing decisions. Therefore, Tesla needs to pay more attention to quality control in the software development process to ensure the reliability and stability of the software and reduce the occurrence of software malfunctions. Additionally, Tesla's software recalls have also sparked widespread discussions on the safety of smart cars. As the degree of vehicle intelligence continues to rise, the role of software in vehicles is becoming increasingly important. Once software issues occur, they could have a serious impact on the driving safety of the vehicle. Therefore, the safety standards for smart cars need to be continuously improved, and relevant regulatory agencies should also strengthen the supervision of smart car software to ensure that the interests of consumers are not compromised.
Rivian Reaches "Secret" Agreement with UAW: To Remain Neutral on Unionization After Achieving Profitability Goals
Key Points:
Rivian (RIVN) has reportedly reached a "secret" agreement with the United Automobile Workers Union (UAW), paving the way for its next stage of growth. Under the new agreement, Rivian will remain neutral on unionization efforts at its manufacturing plant in Normal, Illinois. According to informed sources, the agreement is based on Rivian achieving specific goals, including reaching profitability. This private agreement could potentially pave the way for the UAW to establish a union among workers in Normal. Rivian has not yet achieved adjusted quarterly profitability. The electric vehicle manufacturer reported a net loss of $1.1 billion in the third quarter, down from a $1.34 billion loss in the third quarter of 2023. Chief Financial Officer Claire McDonough reaffirmed that Rivian remains on track to achieve positive gross margin in the fourth quarter. CEO RJ Scaringe stated that the company has made "substantial progress" in reducing costs after closing the Normal plant for upgrades.
The secret UAW agreement also helped Rivian secure a recent $6.6 billion conditional loan from the US Department of Energy. The loan will assist in funding Rivian's new manufacturing plant in Georgia, where it will produce its more affordable R2 model. However, the loan is also based on the electric vehicle manufacturer meeting certain financial indicators and other requirements. Rivian currently produces its R1S SUV and R1T electric pickup at the Normal plant and plans to begin R2 production in 2026. Although the smaller, more affordable electric vehicles will initially be produced in Illinois, Rivian plans to significantly increase production through the new plant in Georgia. The electric vehicle manufacturer expects to produce between 47,000 and 49,000 vehicles this year. After upgrading facilities at the beginning of the year, Rivian stated that its annual production capacity at the Normal plant can reach 150,000 electric vehicles. When the R2 is launched in 2026, Rivian expects annual production capacity to reach approximately 215,000, of which 155,000 will be R2. After the Georgia plant opens, Rivian expects to increase production by 400,000.
According to Bloomberg, Rivian has been a "long-term target" of the UAW. If the agreement is implemented, workers in Normal will have more say in matters such as wages and working conditions. The UAW's targeting of Rivian is part of its broader plan to unionize the electric vehicle industry. As more details unfold, this agreement could be an important step in its efforts and could distinguish Rivian from its competitors such as Tesla. Last month, Rivian and Volkswagen officially launched their new joint venture, "Rivian and VW Group Technology LLC". This partnership will leverage Rivian's expertise to develop the next-generation electric vehicle architecture and "best-in-class software" for future electric vehicle models of both companies. Scaringe described the collaboration as "a milestone development in the industry". Volkswagen plans to invest up to $5.8 billion in Rivian and the new joint venture, which Scaringe called "a meaningful financial opportunity". Rivian's stock has risen approximately 33% since reporting third-quarter earnings on November 7, but the stock price is still down 37% in 2024.
Rivian (Source: Electrek)
Opinions:
The agreement reached between Rivian and the UAW is an important milestone in its development and reflects the new trends in labor relations in the electric vehicle industry. As an emerging electric vehicle manufacturer, Rivian has been working hard to expand production scale, reduce costs, and achieve profitability. Reaching an agreement with the UAW means that Rivian will be open to unionization after achieving its profitability goals, which may bring more rights and protection to workers at its Normal, Illinois plant, such as the right to negotiate wages and improve working conditions. This not only helps to enhance employees' work enthusiasm and loyalty but also helps Rivian attract and retain outstanding talents in the highly competitive electric vehicle industry.
From a broader perspective, the UAW, as the largest automotive workers' union in the United States, has been committed to promoting the unionization process in the automotive industry. With the rapid development of the electric vehicle industry, the UAW has set its sights on emerging electric vehicle manufacturers such as Rivian. If the Normal plant of Rivian is successfully unionized, it will provide a reference and demonstration effect for the UAW to promote unionization in other electric vehicle manufacturers, thereby promoting the unionization process of the entire electric vehicle industry. This may have a profound impact on the operating models and cost structures of electric vehicle manufacturers, prompting them to invest more energy and resources in labor relations management.
However, it is worth noting that the agreement between Rivian and the UAW is based on its achieving the profitability goal. Currently, Rivian has not yet achieved profitability and is facing fierce market competition and constantly changing market demands. In order to achieve the profitability goal, Rivian needs to continue to exert efforts in technological innovation, product development, marketing, etc., while also dealing with external challenges such as fluctuations in raw material prices and unstable supply chains. In this process, Rivian needs to balance its cooperative relationship with the UAW to ensure that while achieving the profitability goal, it can provide a better working environment and development opportunities for employees.
In addition, Rivian's cooperation with Volkswagen also brings new opportunities and challenges for its future development. Through the joint venture with Volkswagen, Rivian can leverage Volkswagen's resources and experience to accelerate technological innovation and product development and enhance its competitiveness in the electric vehicle market. However, this also means that Rivian needs to maintain its independence and innovation ability in the cooperation with Volkswagen to avoid excessive reliance on the partner, thereby affecting its long-term development strategy.
Toyota Launches Plug-in Hybrid Versions of Alphard and Vellfire in Japan with 73km Electric Range
Key Points:
Toyota Motor Corporation announced that it will launch the plug-in hybrid (PHEV) versions of the Alphard and Vellfire in Japan on January 31, 2025. These two six-seater luxury multi-purpose vehicles (MPV) have an electric range of up to 73 kilometers (approximately 45 miles) in pure electric mode. Although the PHEV version shares many similarities with the existing hybrid system, including a naturally aspirated 2.5-liter engine and an E-CVT electronic continuously variable transmission, its engine has been modified with a lower output of 177 horsepower (130 kilowatts) and 219 Newton-meters of torque.
The lithium-ion battery pack of the PHEV version is placed under the floor, reducing the center of gravity by 35 millimeters compared to the hybrid model. The vehicle supports both alternating current (AC) and direct current (DC) charging, and the latter can complete 80% charging in 38 minutes using a 50-kilowatt charging pile. The vehicle is equipped with a 1.5-kilowatt external power supply and a vehicle-to-home (V2H) system, which can provide approximately 5.5 days of electricity for an ordinary household. Although the engine is different, the PHEV version uses the same electric motor as the hybrid model. All versions come standard with Toyota's E-Four four-wheel drive system, and the combined system output is 306 horsepower (225 kilowatts), exceeding the hybrid and turbocharged versions.
The prices of these luxury MPVs are quite high, with the starting price of the Alphard being 10.65 million yen (approximately $68,000) and the starting price of the Vellfire being 10.85 million yen (approximately $69,000). All models now come standard with a digital inner mirror and a built-in dashcam (front and rear). The Z and Z Premier grades now also come with a JBL Premium Sound System (15 speakers) and a 14-inch rear entertainment system, further enhancing the cabin comfort. In addition, the Vellfire offers three body colors, including a new exclusive precious metal color, highlighting the vehicle's aggressive style. The Alphard and Vellfire PHEV are equipped with exclusive 19-inch aluminum wheels with silver paint, highlighting their elegance. The interior is also equipped with a wood-grain steering wheel and a roof made of Ultrasuede material, enhancing the luxury feel.
Alphard Plug-in Hybrid Version (Source: ElectricCarsReport)
Opinions:
Toyota's launch of the plug-in hybrid versions of the Alphard and Vellfire in Japan is another important step in its new energy vehicle field. As one of the world's largest automakers, Toyota has been committed to promoting the electrification transformation of the automotive industry. The launch of the PHEV version not only enriches Toyota's new energy vehicle product line in the Japanese market but also reflects Toyota's keen insight into technological innovation and market demand. From the product itself, the PHEV versions of the Alphard and Vellfire maintain the comfort and practicality of luxury MPVs while achieving lower emissions and a longer electric range through plug-in hybrid technology. This is a good choice for consumers who want to enjoy the driving experience of traditional fuel vehicles while reducing their carbon footprint. In addition, the vehicle's fast charging function and vehicle-to-home system also provide more convenience and practicality for users, further enhancing the competitiveness of the product.
However, from the perspective of market competition, Toyota faces fierce competition from emerging electric vehicle manufacturers such as Tesla and BYD in the new energy vehicle field. These competitors have certain advantages in electric vehicle technology, brand influence, and market strategies. Therefore, Toyota needs to continue to exert efforts in technological innovation, product differentiation, and market promotion to consolidate its leading position in the new energy vehicle market. In addition, the relatively high price of the PHEV version launched by Toyota may have a certain impact on the purchasing decisions of some consumers. In the context of increasingly fierce competition in the new energy vehicle market, Toyota needs to further optimize cost control and pricing strategies while maintaining product quality and technological innovation to attract more consumers. At the same time, Toyota should also strengthen cooperation with the government, enterprises, and other relevant parties to promote the construction and improvement of new energy vehicle infrastructure to provide consumers with a better use experience and service guarantee.
"Big Events"
Honda Invests in Building a New Generation Fuel Cell System Factory in Japan
Japanese automaker Honda Corporation recently announced that it will invest in building a new factory in Japan to exclusively produce its independently developed next-generation fuel cell system. This move marks Honda's further expansion in the hydrogen energy business field and demonstrates its determination to achieve the carbon neutrality goal in its Green Transformation (GX) strategy. The new factory is planned to start operations within the fiscal year ending March 31, 2028, and will utilize part of the land and buildings of the transmission unit factory in Motegi, Tochigi Prefecture, Japan. The transmission unit factory stopped the production of automotive powertrain components in October 2024. The new factory will become Honda's first facility dedicated to the production of its independently developed fuel cell system and will be equipped with the most advanced equipment to achieve efficient and high-quality production, with an expected annual production capacity of 30,000 units.
Honda Powertrain (Source: ElectricCarsReport)
Honda is expected to receive subsidies from the Japanese government for the production of the new generation fuel cell system, including