Artificial intelligence is having a huge impact on the automotive industry.

Revenue from sales of self-driving cars is expected to reach $70 billion by 2033, according to Future Market Insights. But AI self-driving cars aren’t the only change – AI technology has already been integrated into car production.

As part of this industry-wide trend, the BMW Group is now shifting gears to rely more on artificial intelligence to create a leaner and more efficient manufacturing process.

Over the past few years, BMW has She upgrades her Spartanburg, South Carolina factory to include new AI capabilities. The plant spans over 8 million square feet and produces approximately 60% of all BMW vehicles sold in the United States which amounts to more than 1,500 vehicles produced daily.

At The Body Shop, robots weld between 300 and 400 metal studs into the frame of each SUV. That’s about half a million studs a day that are applied by machines and now run by AI.

On top of that, AI technology checks to make sure each bolt is precisely positioned, according to BMW Group Principal Curtis Tingle. If a stud is out of place, the system tells the robots to correct it. No human intervention needed.

“It’s a complete closed loop,” Tingle told CNBC. “[AI] It removes human thinking, human manual intervention, right out of the equation.”

Tingle said the new technology has greatly improved efficiency. “We are achieving five times more than we thought possible even before, with what AI is achieving now.”

According to Tingle, the AI ​​nail correction laser has already saved the company more than $1 million annually. He said the new technology allowed BMW to remove six workers from the line and redeploy them to other jobs at the plant.

BMW told CNBC that the AI ​​technology is patent pending and developed within the Spartanburg plant.

On the factory floor, Camille Roberts, Project Head of IT at BMW Group, explains that the new artificial intelligence software is helping speed up the carmaker’s existing inspection process.

Even SUVs are moving down the line, 26 different cameras around the grounds are taking pictures. That’s when, according to Roberts, “the AI ​​kicks in, identifies problems and reports them for a human to fix,” thus preventing the imperfect car from being shipped.

Roberts told CNBC that prior to the new AI upgrade, human workers could not inspect every vehicle as often as they can now, adding, “It’s not really possible to inspect every vehicle. … Production numbers are not going to meet global demand.”

There is still room to run for BMW’s AI technology, said Oliver Bilstein, BMW Group Vice President for Logistics and Production Control.

Workers at the plant wear what Bilstein calls factory scanners that take high-resolution measurements and images of every centimeter of the plant.

These images are used to build a 3D “digital twin” of the plant, Bilstein said, allowing BMW to instantly make adjustments and understand how they affect production before it implements a change in the real world. BMW plant planners around the world can access these detailed plans online.

With the help of the new AI software, Bilstein said, the scanning process now takes days instead of months.

Ultimately, this kind of AI technology will be able to learn, on its own, how to discover and recommend new ways to make the BMW Group’s automated assembly line more efficient, he said.

Tesla reported earnings after the bell, showing record quarterly revenue but lower margins thanks to price cuts and incentives. The share price was essentially unchanged in after-hours trading.

• Income: $24.93 billion. That may not compare to Refinitiv’s expected $24.47 billion.
• Earnings: 91 cents per share adjusted. That may fall short of Refinitiv’s expected 82 cents per share.

Net income (GAAP) was $2.70 billion, an increase of 20% over last year.

By comparison, in the first quarter of 2023, Tesla reported net income of $2.51 billion on revenue of $23.33 billion. In the second quarter of last year, Tesla reported net income of $2.27 billion on $16.93 billion in revenue.

Earlier this month, Tesla reported a total of 466,140 vehicle deliveries for the second quarter and said it produced 479,700 electric vehicles. Deliveries are the closest approximation of sales that Tesla reports.

Those deliveries were higher than Wall Street’s expectations and were driven in part by incentives and discounts. Accordingly, operating margins reached 9.6%, the lowest in at least the last five quarters. Total gross margin was 18.2%, also low for the same period.

Tesla explained in the shareholder panel that its lower margins in the second quarter were the result of lower average selling prices “due to the mix and pricing” of the cars it sells and the cost of ramping up production of battery cells it designs in-house, known such as 4680 cells, among other factors.

Revenue from Tesla’s core car business rose 46% year over year to $21.27 billion, up about 6.5% sequentially. Its revenue from energy generation and storage — from solar installations and backup batteries — grew 74% year-over-year to $1.51 billion. With more vehicles on the road, Tesla’s “service and other” revenue, including fees for out-of-warranty vehicle repairs, rose 47% to $2.15 billion.

Tesla’s research and development spending rose to $943 million (from $771 million in the first quarter), as the company wrote in a shareholder package that it is focusing on “being at the forefront of AI development” and has begun production of its Dojo “trained computers.”

Tesla’s crossover, the Model Y, became the world’s best-selling car in the first quarter of 2023.

Retail shareholders are hoping the company will offer more updates on the Cybertruck on Wednesday’s earnings call, according to questions submitted in advance on a platform run by Say Technologies.

During the last week, Tesla shared a photo on social media of what it said was the first Cybertruck ever built at its factory in Austin, Texas. However, the company has yet to reveal specs or pricing for the sci-fi-inspired angular pickup that Musk originally debuted and touted in 2019.

Beyond Cybertruck details, retail investors posting on Say Technologies are asking for updates on Tesla’s production of 4,680 battery cells, which are seen as critical to ramping up production of the company’s Class 8 semi-truck and Cybertruck; regarding Tesla’s development of a humanoid robot called the Tesla Bot or Optimus; and about a new factory Tesla said it would build in Mexico.

Investors are also looking for updates on the company’s progress toward developing an autonomous or robotics-ready vehicle. While Musk touted Tesla’s self-driving ambitions in 2016, he said the company would conduct hands-free travel in the U.S. by the end of 2017. Tesla has yet to complete that mission.

Morgan Stanley analyst Adam Jonas wrote in a note earlier this week: “For the rally to continue, we think Tesla needs to prove it’s more than just a car company.”

Musk, who is also CEO of SpaceX and controlling shareholder and chief technology officer of social media company Twitter, recently launched another new company, xAI, which he registered in Nevada. Musk said earlier this month that xAI plans to collaborate with both Tesla and Twitter, and that xAI will likely work with its EV business on the “silicon front” and on the “AI software front.”

shares Rivian Motors It jumped 17.4% on Monday after the electric car maker beat Wall Street expectations for quarterly delivery.

On Monday, Rivian reported deliveries of 12,640 vehicles during the second quarter, up 59% from the previous quarter and exceeding analyst expectations of 11,000 vehicles, according to estimates compiled by FactSet.

The automaker, which makes R1T electric pickups and R1S consumer SUVs, reiterated its annual production target of 50,000 units. Rivian produced nearly 23,400 vehicles during the second quarter, including electric delivery vans and consumer models.

Monday’s stock price increase pushed Rivian stock into the green for the first time since late February. The stock is up about 5% in 2023. Rivian stock closed Monday at $19.56 a share — its highest closing price since February.

The company has taken longer than expected to build its electric vehicles. It also worked to reduce its spending to preserve liquidity.

Rivian’s results come a day after the EV Commander’s debut Tesla It said it delivered 466,140 vehicles globally during the second quarter, also exceeding analysts’ expectations.

Better-than-expected deliveries for both automakers are good signs for investors optimistic about emerging EV stocks and vehicle adoption.

Stocks of embattled EV startups such as LucidAnd Kano Other prices rose after Tesla and Rivian reported delivery numbers.

DETROIT — Let’s set the scene: A pickup truck driver and their wife, the truck in reverse, try to align the truck’s tow ball with the coupler on the trailer. “A little bit left. No, your left. No, your left. Okay, now a little bit to the right. Never mind. Let’s try it again.”

This familiar headache, among other things, is to blame Ford Motor It improves the technologies in its most expensive trucks to make the vehicles more manageable for new owners and alleviate major pain points for seasoned truck drivers.

The Detroit automaker is adding features to the 2023 Ford Super Duty lineup to boost transaction pricing for trucks and ease difficulties with some of the vehicle’s most important functions: towing and hauling/hauling.

“It’s really about making the truck safer for our customers, for the equipment, for everything you tow. It’s about productivity. It’s about ease. It’s about saving marriages,” said Tim Baughman, general manager of business for Ford. “With our new trailer towing features, I’m sure we’ll save some marriages based on what he can do now.”

According to Ford, many owners of pickups, especially newer ones, face such headaches as determining how much weight they can safely put in their vehicles or hitch trailers to their trucks.

The last challenge, specifically, can cause relationship problems, as it can take two people and many tries to get the correct positioning of trucks and trailers for towing—as in the very common but fanciful scenario above.

“Our team is obsessed with our customers,” Baughman said. “It’s about understanding customers and customer obsession. And everything about this truck is purpose-built.”

Ford says 96% of its customers tow its F-250 trucks to the F-450 Super Duty, which are bigger siblings to its well-known F-150 trucks. The majority also use vehicles to haul heavy loads in vehicle beds, which start at around $44,000 and can run more than $103,000, depending on the model.

To help with hitching and hauling, Ford is using technologies like new camera features, automated assistance, and smart taillights.

Ford’s new “Pro Trailer Hitch Assist” takes the hassle out of the process. The truck automatically backs up and aligns the hitch ball with the trailer receiver. The feature is standard or available on many models, starting at $1,035.

“It’s to help take the pain out,” said Aaron Brisky, Ford Super Duty chief technology officer. “People have to run for fun and for work, and the more we can get rid of the pain, the more natural it becomes.”

2023 F-Series Super Duty trucks can tow between 14,000 and 40,000 pounds, depending on the truck.

Besides towing or hauling, Ford Super Duty trucks can tow a lot, up to 8,000 pounds, depending on the model. This includes all people, cargo, and any items that may be in the truck bed.

But having to guess or calculate how much you’re towing can be difficult, especially when you have passengers in the car or don’t know how much your load weighs.

Ford’s answer to this problem is something it calls “Onboard Scales with Smart Hitch,” which debuted on the 2021 F-150. The system uses in-vehicle scales to determine the gross payload/vehicle weight.

Drivers can use the car’s infotainment screen or app to select payload, but Ford also offers a unique way to do so. The vehicle’s tail lights illuminate at different levels to let the owner know how close they are to reaching the vehicle’s maximum gross payload.

If the vehicle exceeds its approved load, the top bar will flash, alerting the owner that they may need to rethink what they’re hauling or let go of a passenger or two.

Taillights can also be used to balance a trailer with a vehicle, which is also known as a trailer tongue weight.

Onboard scales with Smart Hitch are available for $650 on Lariat models and standard on higher-end trucks.

The simplest new feature is the rearview camera, which is mounted at the top of the car’s tailgate. While pointed skyward when the gate is up, it provides a clear view of what’s behind the vehicle when the tailgate is lowered, providing an extra set of eyes when the owner pulls something taller into the vehicle bed.

While all new cars require rear-view cameras, Ford is the first to use such a camera that comes in handy when the tailgate is down. Standard rear-view cameras on American pickup trucks point toward the ground when the tailgate is lowered.

The option also comes with built-in sensors that work with the camera to notify drivers when the lowered tailgate is approaching an object.

A new backup camera and sensors are standard on higher-end models but not available on entry-level and lower-priced trucks.

Detroit – Toyota Motor Stocks concluded their best week since 2009 on Friday, as the automaker laid out an aggressive plan for all-electric vehicles of the future and company scion Akio Toyoda became leader of the Japanese company’s board.

Toyota shares closed on the New York Stock Exchange Friday at $164.35 per share, down 2.3% for the day but still up 10.6% for the week. This 5-day gain is the best week for the stock since April 2009 when shares rose 14.5%.

Such a height is not typical for a stock. It’s only the third double-digit weekly gain in more than two decades for relatively well-performing but otherwise ordinary stocks. Shares of the company are up 20% so far in 2023.

The positive rise this year comes as recent supply chain problems eased for automakers, including Toyota, and after Toyoda, the company’s founder’s grandson, announced plans to transition from CEO to chairman after more than 13 years leading the automaker. the cars.

Toyoda, who stepped down as CEO on April 1 and was succeeded by Koji Sato, has faced criticism from some environmental groups and investors for not getting involved in electric vehicles and continuing production of hybrid and plug-in hybrids like the Prius. and Prius Prime.

As investments in electric vehicles increase, Toyota executives have argued that such cars and trucks are one solution, not the answer, to meeting tough global emissions standards and achieving carbon neutrality.

To address skeptics about its strategy, this week the automaker in Japan offered a rare peek behind the curtain at its future plans.

“Management has rarely announced details of technology under development in the past, and we felt an obligation to ensure competitive strength through electrification and reflection under the new management team,” JPMorgan analyst Akira Kishimoto said in a note to investors this week.

Ahead of its annual meeting on Wednesday, Toyota outlined plans for a new generation of electric vehicles for rival industry leaders Tesla and BYD based in China. The company said it plans to launch its next-generation electric cars starting in 2026, including cars with “solid-state batteries” by 2027 or 2028.

Solid-state batteries can be lighter, have a greater energy density and provide more range at a lower cost than today’s EVs that run on lithium-ion batteries.

Takeru Kato, president of the Toyota Factory for Battery Electric Vehicles, said Toyota is targeting a driving range of 1,000 kilometers, or 620 miles, for its electric cars. He explained that the facility aims to produce about 1.7 million cars by 2030.

“The strategic focus on differentiation (in terms of technologies and business model) rather than scope in 2025-30 and the company’s strong ability to develop technologies to that end are long-term positives, in our view,” UBS analyst Kohei Takahashi said Tuesday. In an investor note.

After the announcements, Toyota shareholders on Wednesday approved the company’s new leadership and rejected a shareholder motion asking Toyota to review its climate-related lobbying activities — voting in line with the company’s recommendations.

CNBC channel Michael Blum And Lim Hwi J Contribute to this report.

DETROIT — General Motors CEO Mary Barra said the Tesla charging deal announced Thursday will save the automaker up to $400 million from its planned investment in building EV charging stations in the U.S. and Canada.

In October 2021, GM said it planned to spend $750 million on electric vehicle charging infrastructure in the two countries. That includes home, work and public charging in the U.S. and Canada, GM said at the time.

“We think we can save up to $400 million in the initial three-quarters of a billion dollars that we set aside for this because we’ve been able to do it faster and more efficiently,” Barra said Thursday in an interview with CNBC’s Fast money.” “We’re really looking at ways we can be more capital efficient as we go forward.”

Barra, in response to a question about licensing other Tesla technologies, said the Detroit automaker is “always looking for ways to be more capital efficient” and “if there are other partnership opportunities, you know, we will be very open to them.”

The deal between GM and Tesla will give GM EV owners access to more than 12,000 of Tesla’s fast chargers starting next year using an adapter. It will also feature GM’s take on the Tesla charging port instead of the current industry standard.

The GM deal follows crosstown rival Ford Motor announcing a similar deal with the Elon Musk-owned automaker. The CEOs of the two Detroit automakers announced the deals along with Musk on Twitter.

Wall Street analysts hailed the Tesla-Ford deal as a “win-win” when the deal was announced last month.

Shares of GM and Tesla rose more than 3% in extended trading on Thursday.

The Prime Minister of Mongolia Luvsannamsray Oyun-Erdene and Tesla CEO Elon Musk on Monday discussed possible expansion and investment in the Asian country in a virtual meeting.

“They discussed the possibility of welcoming Tesla to Mongolia for its electric vehicle battery factory, taking advantage of the country’s wide availability of copper and rare earth elements, which are key components of electric car batteries,” said a statement issued on behalf of Mongolian government.

The East Asian country is rich in minerals and boasts large deposits of copper, gold and coal.

“The Government of Mongolia is committed to cooperating with international organizations to support the development of new technologies and increase investment in the country,” the statement said.

A statement from the Mongolian government’s cabinet secretariat added that the country’s prime minister emphasized his support for the use of electric cars and urged Mongolian citizens to use such vehicles.

Musk and Oyun-Erdene also talked about bringing Starlink — a satellite communications terminals and service provider run by Musk-founded SpaceX — to Mongolia. Starlink was registered as a company in Mongolia in 2022 and is expected to launch regionally this year.

Musk’s meeting with the Mongolian leader comes after the tech giant last week met Chinese Vice Premier Ding Xuexiang and other senior officials in China, as Beijing looks to portray a friendly business environment for foreign companies amid tensions with the US

Tesla’s CEO praised China’s technological progress and visited the Tesla Gigafactory in Shanghai.

Demand for lithium, a key component for electric vehicle batteries, is expected to grow from 500,000 metric tons of lithium carbonate in 2021 to three to four million metric tons in less than a decade, according to McKinsey & Company.

Albemarle, the world’s largest producer of the critical metal and operator of mines in Australia, Chile and the US, says it plans to bring another local lithium mine online by 2027 – Kings Mountain in North Carolina. It already operates Silver Peak in Nevada.

Albemarle is also building a $1.3 billion processing facility in South Carolina, where it will process lithium hydroxide for batteries. The plant will support the production of 2.4 million electric vehicles a year and will be able to process lithium from recycled batteries.

Despite this growth, Albemarle faces a number of potential headwinds, including a possible economic downturn that could slow demand for electric vehicles, new battery chemicals that could reduce the need for lithium, battery recycling and additional competitors. Tesla began construction of lithium refinery in Texas in 2023.

To better understand how lithium, known as “white gold,” is mined, the challenges involved, and where production is next, CNBC took a behind-the-scenes look at Albemarle’s operations in Chile and the U.S.

Watch the video to learn more.

DETROIT — The automotive and logistics industry is no stranger to robots.

It is among the companies most invested in automation in the American economy, using robots to sort packages, move goods and help build vehicles.

But other industries where robotics has not yet taken root could be potential investment opportunities and expansion areas for automation companies in the coming years.

These emerging areas are of interest to Jeff Bornstein, automation industry expert and president of the Advanced Automation Association. His business group represents more than 1,000 global companies working in robotics, machine vision, motion control, actuators and related technologies.

Bornstein, who was recently awarded a prestigious award for more than 40 years in the industry, believes automation and robotics can greatly help in doing the “boring, dirty and dangerous jobs” that people don’t necessarily want to do.

“If you look at what’s driving a lot of automation in a lot of industries, it’s a shortage of people,” he said on the sidelines of an automation conference last week in Detroit.

He said labor shortages, led by the manufacturing industry, are the main drivers of automation growth.

Here are three industries that Bornstein predicts will be next for automation:

The agricultural industry is already testing or using different technologies that are automated, if not autonomous, to make operations more efficient and safer. It also lowers costs

Tractor maker Deere & Co., for example, offers a host of automated assistance features such as rotation and steering for crop row lines. According to its website, Deere is working on creating an autonomous tractor that can “see, think and act on its own, saving farmers time to complete other tasks simultaneously.”

Other automated farming technologies include drones that can spray pesticides over crops, remote-controlled tractors, automated harvesting systems, and other data farming and logistics applications.

Harvesting and sorting chicken parts are exactly the kind of dull, dirty and dangerous jobs that can help do just that, Bornstein says.

At the automation conference, at least two companies were showing off food-sorting bots whose capabilities included deciding what types of pieces would fit in a tray for packaging.

In addition to the efficiency benefits, there are health and safety benefits, too, advocates point out.

“The machine can’t sneeze. It can’t rub its face. Its hair can’t get caught in anything. So, it’s really safe. The less hands touch, the less any disease will come up,” said Anthony Romeo, a representative for the companies based in Massachusetts Cognex Corp. and Soft Robotics, a company that sorts food and chicken parts, which also attended the conference.

in 2021, Tyson Foods It said it will invest more than $1.3 billion in new automation capabilities through 2024 to increase revenue and reduce labor costs and associated risks — and ultimately create savings for the meat processor.

Tyson CEO Donnie King told investors last month that the company continues to “invest in automation and digital capabilities with opportunities to improve our returns.”

He said the company has 50 fully automated chicken nuggets lines.

Pride of HajjThe company, one of the world’s largest chicken producers, has announced significant investments in automation, including more than $100 million announced in 2021.

Automation in healthcare could be applicable to a wide variety of situations – from moving personal goods and medicines to someone’s bed, to cleaning and sterilizing tools.

“You can do it robotically,” Bornstein said. “If you’re having trouble finding people that might be a good solution. There are all kinds of this stuff and then drug discovery, of course, and other applications.”

One notable company currently in the space is Aethon, a Pittsburgh-based robotics company that has made strides in the healthcare sector with an autonomous mobile robot called TUG. According to the company’s website, the robots are able to move around the hospital autonomously.

TUG can be programmed to avoid obstacles and even operate elevators, according to the company.

It’s one example of an AMR, or Autonomous Mobile Robot: a type of vehicle that can perform several different delivery tasks, which Bernstein called “hot in automation” right now.

DETROIT – The United Auto Workers union appears poised to take a hard line when it comes to national negotiations this year with Detroit automakers, warning of strikes or work stoppages if necessary.

UAW leaders publicly laid out their top bargaining issues Wednesday night, including restoring the cost-of-living adjustment that was eliminated during the Great Recession; greater job security; and the end of the incremental or differential pay system where members receive different wages and benefits.

UAW President Sean Fein said “the union will not accept any concessions” from General Motors, Ford Motor and Stellantis – high mission in such negotiations.

Contract negotiations between the union and the automakers typically begin in earnest in July before the previous four-year agreements expire in mid-September. Typically, one of the three automakers is the lead or target company that the union chooses to negotiate with first, and the others extend their terms. Fein, however, said this year could be different, without going into specifics.

The union leaders, led by Fein, are largely newly elected officials who ran on platforms of opposing the companies and reforming the organization after a long-running federal corruption scandal that in part involved previous negotiations.

UAW leaders also discussed the record profits of the Detroit automakers, known as the Big Three, in recent years, while raising the possibility of a strike if their demands are not met.

GM and Stellantis declined to comment on City Hall. Ford did not immediately respond.

“I want to be clear on this, and I know this may sound crazy, but the choice of whether or not to strike is up to the Big Three,” UAW Secretary-Treasurer Margaret Mock said during a virtual union town hall that was broadcast online . “We are clear about what we want.

Labor strikes can be costly and deplete vehicle inventories. A 40-day strike against GM during the last round of negotiations four years ago cost GM about $3.6 billion in 2019, including $2.6 billion in earnings before interest and taxes in the fourth quarter of that year.

Strikes can take several forms: a national strike in which all contract workers stop work, or targeted stoppages at specific plants due to local contract issues.

The company’s demands, the strike rhetoric and the town hall — titled “Back in the Fight: Our Generation’s Defining Moment in the Big Three” — run counter to historic union practices. Past union leaders have sent similar messages, but usually not as confrontationally or publicly before the talks.

“Here’s what you can expect from us: No more backroom haggling,” Fein said Wednesday. “We’re going to have national days of action at plants across the country … showing companies that we’re not playing around, that we’re serious.”

Wall Street analysts noted the possibility of a strike as well as increased labor costs as headwinds this year for Detroit automakers.

The transition to electric cars was another major topic of discussion Wednesday night, particularly over job security (the vehicles are expected to require less labor) and over the organization of critical US battery plants that are in the early stages of production or under construction.

Fein also called out the White House, without specifically naming President Joe Biden. The union last month said it would withhold Biden’s re-endorsement until the UAW’s concerns about the auto industry’s transition to electric vehicles are addressed.

“We need to let everyone know — from the White House to the House to our local labor council — that if you’re with us, we’re with you,” Fein said Wednesday. “Our fight is everyone’s fight.”