Mexico City Boosts Mobility and Security Budgets for 2026 FIFA World Cup Preparation | December 27th, 2024
Lyft sues San Francisco over $100M tax dispute, Hertz scales back EV plans but sells rentals like Teslas at discounts.
Issue [#269] - Every week, we deliver analysis and curation of emerging mobility news - post a job listing here!
Cities & Policy
California dealerships are challenging Volkswagen's new Scout EV brand for bypassing traditional franchise models, citing violations of state franchise laws. Scout intends to use a direct-sales approach like Tesla and Rivian, excluding dealerships from the process. Dealers argue that Volkswagen cannot operate both a dealership and direct-sales model under California law. This dispute highlights ongoing tensions between traditional dealerships and electric vehicle companies with alternative sales methods, impacting the future of car sales in the state | Green Car Reports
Mexico City is increasing its mobility and security budgets to prepare for hosting the 2026 FIFA World Cup. The mobility budget will rise to nearly 7 billion pesos, focusing on stadium access and new transit lines. Security measures include 600 million pesos for subway cameras. Additional funds target public works, water management, and social programs. Finance Minister Juan Pablo de Botton emphasized fostering safety, efficiency, and sustainability for residents and visitors alike | Bloomberg
Rivian is facing scrutiny over workplace culture following lawsuits alleging harassment by top executives and inadequate HR responses. Employees accuse leaders of creating a toxic environment, including physical and verbal abuse. The company has settled multiple harassment and discrimination cases while stating its commitment to workplace integrity. These issues echo past criticism, including a 2021 lawsuit over gender discrimination, highlighting ongoing challenges in addressing internal misconduct and fostering a safe, inclusive work culture | TechCrunch
The National Highway Traffic Safety Administration (NHTSA) unveiled a framework to ease rules for fully driverless cars through the AV STEP program, promising faster exemptions for vehicles without traditional controls. However, companies must provide more data to enhance transparency and public trust. While safety advocates criticize the move as premature, the framework marks a pivotal step in federal oversight, potentially boosting autonomous vehicle adoption amid ongoing regulatory and political uncertainties | The Verge
Senators Elizabeth Warren, Jeff Merkley, and Josh Hawley criticized automakers for opposing right-to-repair laws while profiting from selling customer data without consent. They called the stance "hypocritical" and profit-driven, urging automakers to drop their opposition and improve data privacy practices. Right-to-repair advocates argue automakers limit independent repair access, harming competition. The senators emphasized consumer choice, fair competition, and transparency, challenging automakers to end restrictive practices that exploit car owners and repair shops | The Verge
California’s $2,000 e-bike voucher program aims to help low-income residents access sustainable transportation but faces criticism from a hedge-fund-owned media group. Opponents cite safety concerns and limited voucher availability, yet overlook e-bikes’ ability to reduce car reliance, traffic, and emissions. Advocates highlight the program’s potential to improve air quality, promote equity, and support marginalized groups. While imperfect, supporters argue the solution is to enhance—not cancel—this initiative that benefits the public | Electrek
Micromobility
Shared micromobility operators are finding profitability through strategic approaches like high vehicle utilization, efficient operations, and advanced technology. Companies like Swing, Ryde, and Tier-Dott highlight success through durable scooters, focused growth, and strong user experiences. Segway supports this shift with AI solutions, long-lasting vehicles, and sustainable practices, reducing costs and environmental impact. Experts predict major players could achieve profitability by 2025, signaling a scalable and sustainable future for shared micromobility | ZAGDaily
Onyx Motorbikes has been revived by founder Tim Seward, a year after the sudden death of its previous owner, James Khatiblou, left the company in financial and operational chaos. Seward announced the comeback on LinkedIn, supported by new backers. The relaunch includes selling around 100 RCR electric dirt bikes. While legal and debt issues persist, this marks a fresh start for the cult-favorite brand known for its retro designs and powerful e-bikes | TechCrunch
Product Launches & Updates
Kia introduced the Syros SUV, currently gas-powered, with plans to launch an electric version in early 2025. The Syros EV will share its platform with Hyundai’s Inster EV, offering a range of up to 355 km. Priced between $17,500 and $23,500, the Syros EV will maintain the same design as its gas counterpart. Kia aims to boost sales, targeting up to 60,000 units of its affordable EVs by 2026 | Electrek
Several major transportation projects faced setbacks in 2024. Apple canceled its long-rumored car project, while EV startups like Fisker and Arrival declared bankruptcy amid financial troubles. Autonomous vehicle ventures also struggled, with Cruise losing GM funding and Ghost Autonomy shutting down. Even promising sectors like e-bikes and vertical takeoff aircraft saw closures, such as Cake and Lilium. These failures highlight shifting market demands and challenges in sustaining innovation in transportation | TechCrunch
Hyundai will provide free CCS-to-NACS adapters to its EV customers starting early 2025, enabling access to Tesla's 20,000+ Supercharger stations. Eligible vehicles include the Ioniq 5, Ioniq 6, and Genesis models purchased before January 31, 2025. Additionally, the 2025 Ioniq 5 will feature a native NACS port for seamless charging. Customers can request adapters via the My Hyundai portal, with Kia offering a similar program for its EV owners | The Verge
The 2025 McLaren Artura redefines hybrid supercars with a starting price of $254,000. Combining a twin-turbo 3.0-liter V6 engine and an electric motor, it delivers 690 horsepower, a top speed of 205 mph, and 19 miles of electric-only range. Its lightweight design and advanced tech offer a seamless driving experience, including all-electric mode and reverse motor use. The Artura blends performance, efficiency, and daily practicality, setting a new benchmark for hybrid innovation | The Verge
Sixthreezero’s ANYterrain Stabilized 4-wheel Electric Bike introduces a stable, innovative design with four wheels for added balance and a low center of gravity. Powered by a 750W motor, it reaches speeds of 20 mph and supports up to 350 lbs. Features include fat tires for off-road comfort, leaning geometry for smooth turns, and a 960Wh battery offering up to 50 miles of range. A reverse mode adds convenience, making it versatile for various uses | Electrek
Ridehailing, Carsharing & Delivery
Lyft has sued San Francisco, alleging the city overcharged it $100 million in taxes by misclassifying driver earnings as company revenue from 2019 to 2023. The company claims this tax calculation violates its rights and misrepresents its business model, which treats drivers as independent contractors. This dispute highlights ongoing regulatory challenges for gig economy firms like Lyft and Uber, emphasizing broader debates over taxation and worker classification in the sector | Bloomberg
Hertz is scaling back its investment in electric vehicles after struggling with its Tesla fleet. The company began selling off its Teslas at steep discounts, citing financial losses and a lack of charging infrastructure. Despite a bold move to acquire 100,000 Teslas in 2021, Hertz faced challenges with customer adoption due to limited charging stations. Critics argue that poor execution and infrastructure issues led to the company's shift away from EVs, highlighting ongoing struggles in the electric vehicle market | SFGate
Hertz is offering renters the chance to purchase the electric vehicles (EVs) they are renting, including Teslas, Polestar 2s, and Chevy Bolts, at discounted prices. This move, aimed at connecting rental customers with sales options, includes cars with limited warranties and a buy-back option. Despite earlier plans to scale back its EV fleet due to low demand, Hertz continues to explore ways to integrate its rental and sales operations, offering buyers unique opportunities | The Verge
Hertz is offering renters the chance to buy its used Tesla cars, including Model 3s, as part of an effort to reduce its electric vehicle inventory. After a significant drop in Tesla values, Hertz aims to sell around 20,000 Teslas. Offers, such as one for a 2023 Model 3 with 30,000 miles priced under $18,000, are being sent to renters. This move helps Hertz mitigate losses amid challenges in selling used Teslas | Electrek
Lilium, an electric air taxi startup, was saved by Mobile Uplift Corporation, a consortium of investors, after the company shut down and laid off 1,000 employees. The investors agreed to acquire Lilium's assets, and the company plans to restructure and exit insolvency. Lilium’s technology will remain intact, and the new owners aim to rehire laid-off workers, though not all may be brought back. The deal is expected to close in January, enabling a restart of operations | Techcrunch
Investment & Deals
Honda and Nissan have signed a memorandum to merge, aiming to become the third-largest carmaker globally, behind Toyota and Volkswagen. Mitsubishi Motors is also in talks to join the merger, potentially creating a company worth over $50 billion. The deal, focused on competing in the electric vehicle market, will combine resources to enhance innovation. The merger could be finalized by August 2026, with Honda leading the management. The merger seeks to address industry challenges and global competition | The Verge
China’s CATL, the world’s leading battery manufacturer, plans to list on the Hong Kong Stock Exchange by issuing offshore H-shares. The move, aimed at expanding its global strategy and enhancing competitiveness, has received board approval but awaits regulatory approval. With a 37% market share in EV batteries, CATL is looking to strengthen its position amid the ongoing price war in China’s EV sector, following a boost in third-quarter profits | Reuters
Volkswagen AG has reached an agreement to restructure its operations, aiming to become the technology leader in volume manufacturing by 2030. This includes reducing production capacity by 734,000 units, cutting over 35,000 jobs in Germany, and lowering labor costs by €1.5 billion annually. The agreement, expected to save over €15 billion annually, will help Volkswagen invest in future products while maintaining competitiveness. The company aims to ensure job security and continued production in Germany | Volkswagen
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