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Am I the only one whose head is spinning from all the transpo news this week? Reminder, it’s only Thursday morning. Let’s jump!
Oh wait, before I do that, a housekeeping item: We won’t have a newsletter next week due to the 4th of July holiday. See you on July 11!
A little bird
A little bird reached out to let us know Cruise recently cut 35 employees. Cruise confirmed the cuts and added some important context. These were described as routine eliminations of roles rather than layoffs — the latter usually being done for financial reasons. And yes, we know this is a small cut (just 1% of their workforce) compared to the round of 24% layoffs at the end of last year. However, we pay attention to everything that happens on Cruise.
Separately, Cruise announced an employee reorganization that will bring the company’s safety operations under Chief Safety Officer Steve Kenner and integrate two teams (customer success and remote assistance). This reorganization is part of the company’s continued investment in security, according to the company.
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Agreements!
I’m going to put it on Rivian–Volkswagen Group tying into the bin of 2024 with the things I didn’t expect. It’s an incredible deal and a strange one at that.
Here’s what we know so far. The deal is supposed to give VW access to Rivian’s existing electric architecture and software platform. Meanwhile, Rivian will get some of that sweet VW cash and manufacturing know-how that would likely help the EV company lower its costs.
This deal has the potential to bring $5 billion to Rivian’s coffers. However, initially, VW Group will invest $1 billion in Rivian through an unsecured convertible note that will convert into Rivian common stock once certain regulatory approvals are received. This is expected to happen in the fourth quarter of this year. VW Group will then buy another $1 billion of Rivian common stock in 2025 and 2026. The remaining $2 billion will go to the joint venture, split between an initial investment and a loan in 2026.
This joint venture will be a 50-50 partnership with co-CEOs reporting to both Rivian Group and Volkswagen Group. Rivian will share its electrical architecture expertise with VW and is expected to license existing intellectual property rights to the joint venture.
There’s a lot more to learn here, so stay tuned as we report this story.
Other offers that caught my eye…
Ether fuelan e-fuels startup working to produce aviation and marine fuels, raised $30.4 million in a $34.3 million round, according to a public filing.
Bitsensinga South Korea-based startup developing 4D imaging radars has raised $25 million in a Series B round.
Fetcherr, a startup founded in 2019 that provides infrastructure for dynamic pricing systems used by airlines, has raised $90 million in a Series B funding round led by Battery Ventures.
Getirfood delivery startup, to undergo restructuring involving Abu Dhabi investment fund Mubadala Investment Company investing $250 million to the company and taking majority control of its operations in Turkey, the Financial Times reported.
SkyCella Swiss startup that developed hardware and software for transporting pharmaceuticals, raised $116 million in a Series D round. SkyCell is now valued at $635 million, the company told TechCrunch.
Wisk Aero, a Boeing subsidiary, has acquired Verocel, a software verification and validation company serving the aerospace industry for 25 years. Terms were not disclosed.
Notable reads and other items
Autonomous vehicles
If I were a betting woman, I could bet on it Cruise it will be back on the streets of San Francisco by the end of 2024. Why? Some developments are beginning to point in this direction.
First, Cruise agreed to pay a $112,500 fine to California regulators for failing to provide full information about an accident involving one of its robotoxins last year. And appointed also Marc Whittena video game veteran who was most recently CTO at Unity, as CEO.
Project 3 MobilityCroatia-based autonomous vehicle startup launched The Rimac Groupannounced a new name, Vern — as in Jules Verne — and some details about the business. Verne was founded by Mate Rimac and two close friends from the Rimac Group, Marko Pejković, who is now the CEO of Verne, and Adriano Mudri, the designer of Nevera and chief designer of Verne. The plan is to launch an electric autonomous two-seater vehicle designed for urban environments and equipped with Mobileye technology by 2026, starting in Zagreb, Croatia, where Rimac Group is based.
Uber Freight and Aurora Innovation announced a multi-year partnership that will see Aurora’s self-driving technology offered on the Uber Freight network by 2030. Read more to learn about the details of this deal.
Waymo has removed the waiting list for its San Francisco robotaxi service, allowing anyone to download the app and then instantly hail one of its San Francisco robotaxis. Almost 300,000 people have joined the waiting list since last year.
Electric vehicles, charging & batteries
Bankruptcy process for Fisher are shaping up to be as eventful as the EV company’s launch last year. One of the more startling admissions: It appears that Fisker was facing “potential financial distress” as early as last August. For context, that same month Fisker held a “Product Vision Day” event to promote several new models in development, including a low-cost EV and an electric truck.
Meanwhile, a dispute over Fisker’s assets has already been charged, with one lawyer claiming the startup is liquidating assets “outside the court’s oversight.” At issue is the relationship between Fisker and its largest secured lender, Heights Capital Managementa subsidiary of financial services company Susquehanna International Group.
Automotive software, applications and technology
CDK, which makes customer management software for car dealerships and auto shops to manage their customer and vehicle records, is still reeling from the damage from cyber attacks. The problem is wreaking havoc on the 15,000 car dealerships and auto shops in the US that depend on the company’s software. The company says it will take “several days” to resolve.
Stellandis AI chief Berta Rodriguez-Hervas has left the car industry, Automotive News reported.
This week’s wheels
I didn’t get a chance to drive this particular vehicle, but wow, I have to share what I saw up close. I’m talking about Bugatti Tourbillonthe successor to the Bugatti Chiron and the first vehicle launched after the merger with Rimac.
The Bugatti Tourbillon is special for a number of reasons — and not just because of the €3.8 million base price or the fact that only 250 will be built. I would argue that this Bugatti encapsulates what luxury will look like in a future digital age.
There are no giant screens inside, a modern detail that seems to be a requirement in every new car these days. Instead, the pinnacle of the plush interior is the instrument panel, which was designed and built with the help of Swiss watchmakers. The instrument panel, which contains more than 600 parts and includes precious stones such as sapphire and ruby, is fixed in place as the steering wheel rotates around it.
Then there’s the drivetrain. Bugatti abandoned the famous quad-turbo 8.0 W16 and created a naturally aspirated V16 engine and electric drive system with three electric motors. The vehicle contains a 25 kilowatt-hour battery that provides approximately 60 to 70 kilometers (37 to 43 miles) of range. Rimac Group founder and CEO Mate Rimac noted that it’s “good electric range if you need it, especially to future-proof the car in case, in some areas, you won’t be able to run on an engine at all internal combustion”.
So forget screens and apps. You won’t find them here. Instead, innovation and technology are more like art.
