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We’re all business this Monday as we talk about Ford closing battery supply deals, Chevy’s surprise announcement, and consumers pulling back on discretionary spending.
- In a strategic move to bolster EV production, Ford has announced a series of supply deals for lithium-based battery materials as they ramp up EV production to 2 million units by 2026
- Deals include: one with Nemaska Lithium for the supply of up to 13,000 tons of lithium hydroxide each year and a contract with EnergySource Minerals for lithium hydroxide from the Imperial Valley, California site, expected to be operational in 2025.
- The company also entered a five-year agreement with Albemarle Corp to supply over 100,000 metric tons of battery-grade lithium hydroxide, sufficient for about 3 million future Ford EV batteries
- The company is expected to lose $3 billion from its electric vehicle unit this year but maintains its full-year guidance of $9 billion to $11 billion of adjusted earnings before interest and taxes and around $6 billion in adjusted free cash flow.
- In a surprise announcement, GM released an upgrade to the Chevrolet Silverado EV Work Truck's (WT) range, boosting it to an EPA-estimated 450 miles on a single charge, 50 miles more than originally anticipated. This gives it over 100 miles more range than its closest competitor, the Ford Lightning.
- Our engineering team long targeted at least 400 miles of range, but they were able to go above and beyond to achieve this increase. Over the past several months, extensive development and testing unlocked the increased 450-mile range. This figure, paired with the ability to charge at 350 kW, makes the Silverado EV WT the choice electric pickup to serve fleet buyers’ needs. After all, this truck wears a Silverado badge – it’s made for tough jobs.
- The company also said that a lower, 350 mile range model would be available shortly and also said they are still on track for a launch in Spring of 2023
- According to new government and earnings data, consumers are exhibiting more frugal behavior, focusing on essentials, and seeking affordable alternatives, as inflation continues its squeeze.
- Now, even higher-income consumers are pulling back on large, discretionary purchases
- “A consumer slowdown is underway,” said Neil Saunders, managing director of analytics company GlobalData. “Growth is a lot more sluggish than it has been for quite some time and … retailers are reporting quite stark changes in consumer behavior.”
- Value-based Walmart is still winning as they reported a 7.4% YoY store sales
- “We do see … higher purchase rates of categories like prime beef versus [regular] grade beef,” said John Furner, chief executive of Walmart U.S. “You see trade-ups … [in] apparel and marketplace. And that is definitely being driven by some of our newer higher-income c
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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