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Am I the only one whose head is spinning from all the transpo news this week? Remember that it is only Thursday morning. Let’s jump in!
Oh wait, before I do that, a maintenance 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 laid off 35 employees. Cruise confirmed the cuts and added some important context. These were described as routine role eliminations rather than layoffs – the latter usually carried out 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 are paying attention to all the happenings on Cruise.
Separately, Cruise announced an employee reorganization that will bring the company’s security functions under Chief Security Officer Steve Kenner and integrate two teams (customer success and remote assistance). This reorganization is part of the company’s ongoing investment in security, according to the company.
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Offers!
I’m going to put Rivian–The Volkswagen Group about the things I didn’t expect in the 2024 bucket. It is a terrible and curious arrangement.
Here’s what we know so far. The deal is supposed to give VW access to Rivian’s existing electrical architecture and software platform. Meanwhile, Rivian will get some of that sweet VW cash and manufacturing expertise that will likely help the EV company reduce its costs.
This deal has the potential to bring $5 billion to Rivian’s coffers. But first, 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 into 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 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…
Ethereal fuelsan e-fuels startup that works on making fuel for aviation and marine transportation, raised $30.4 million of a $34.3 million round, according to a public filing.
Bitsensinga South Korea-based startup developing 4D imaging radar, raised $25 million in a Series B round.
Fetcherr, a startup founded in 2019 that provides infrastructure for dynamic pricing systems used by airlines, raised $90 million in a Series B funding round led by Battery Ventures.
Getherfood delivery startup, will undergo a restructuring that includes Abu Dhabi’s wealth fund, Mubadala Investment Company, investing $250 million in the company and taking control of most of its Turkish food operations, Financial reported Times.
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 subsidiary of Boeing, acquired Verocel, a software verification and validation company serving the aerospace industry for 25 years. Terms were not disclosed.
Visible readings and other data
Autonomous vehicles
If I were a betting woman, I can bet that cruise will return to the streets of San Francisco by the end of 2024. Why? Some developments have begun 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 robot taxis last year. And also appointed Marc Whittena video game veteran who was most recently CTO at Unity, as its CEO.
Project 3 MobilityCroatia-based autonomous vehicle startup came out of Rimac Groupannounced a new name, Verne – as in Jules Verne – and some details about the enterprise. Verne was founded by Mate Rimac and two close friends from Rimac Group, Marko Pejković, who is now the CEO of Verne, and Adriano Mudri, designer of Nevera and head of design at Verne. The plan is to launch a two-seater autonomous electric 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 collaboration that will see Aurora’s autonomous driving technology offered on the Uber Freight network by 2030. Read more to learn about the benefits of this agreement.
Waymo has removed the waiting list for its San Francisco robotaxi service, giving anyone the chance to download the app and then instantly hail one of its San Francisco robotaxis. Nearly 300,000 people have signed up to the waiting list since last year.
Electric vehicles, charging and batteries
Bankruptcy procedures for Fisker is shaping up to be just as eventful as EV’s launch last year. One of the more troubling admissions: It appears that Fisker was facing “potential financial litigation” as recently 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 pickup truck.
Meanwhile, a fight over Fisker’s assets has already been litigated, with a lawyer claiming the startup has liquidated 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.
Software, applications and technology in the car
CDK, which makes customer management software for car dealerships and auto shops to handle their customer and vehicle data, is still reeling from the damage from back-to-back cyber attacks. The problem is wreaking havoc on the 15,000 car dealerships and auto shops across the U.S. that depend on the company’s software. The company says it will take “several days” to resolve.
Stellantis’ AI chief Berta Rodriguez-Hervas has left the automaker, 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 to emerge since the merger with Rimac.
The Bugatti Tourbillon is special for a number of reasons – and not just because of the base price of €3.8 million or that only 250 will be built. I would argue that this Bugatti epitomizes what luxury will look like in a future digital age.
There’s no giant screen inside, a modern detail that seems to be a requirement in every new car these days. Instead, the centerpiece of the plush interior is the instrument cluster, which was designed and built with the help of Swiss watchmakers. The instrument cluster, which contains more than 600 parts and includes precious stones such as sapphires and rubies, is fixed in place as the steering wheel rotates around it.
Then there is the movement. Bugatti ditched its famous quad-turbo 8.0 W16 and instead created a naturally aspirated V16 engine and an electric motor with three electric motors. The vehicle features a 25-kilowatt-hour battery pack that provides about 60 to 70 kilometers (37 to 43 miles) of range. Rimac Group founder and CEO Mate Rimac noted that “it’s a good electric range if you need it, especially to future-proof the car in case, in some areas, you won’t be able to work at all with a combustion engine”.
So forget screens and apps. You won’t find them here. Instead, innovation and technology seem more like art.