BY AUTOMOTIVE VENTURES | 29 MAY 2023 | VIEW ONLINE ➡️

This article from Glenn Mercer is a "must-read" for anyone in the automotive industry and makes strong arguments for the benefits of the franchise dealership model being defensible and durable. (Link)

Some on the political right are still suspicious that EVs are a government-subsidized scheme to reduce their standard of living, while some on the left worry that EVs will cause exploitation and environmental destruction and suburban sprawl. And pretty much everyone is asking whether the world has enough minerals to complete the transition. (Link)Subjecting autonomous vehicles to an environment that resembles the insanity of “Mad Max” or “The Fast and the Furious” is precisely how manufacturers and regulators will know that they are ready to be handed responsibility for our very lives. (💲Link)Ford Motor Company CEO Jim Farley: “I think we see the Chinese as the main competitor, not GM or Toyota. The Chinese are going to be the powerhouse.” (💲Link)China is the largest exporter of EVs, and its lead appears to be growing: Around 35% of EVs exported globally came from China last year, compared with 25% in 2021, according to the International Energy Agency (IEA). (💲Link)It's only a matter of time before Chinese automakers bring their impressive — and importantly, inexpensive — electric cars to the US. After years of threatening to set up shop in America, the companies are closer than ever to making the move. (Link)China currently dominates processing of the critical minerals that are now in high demand to make batteries for EVs. In an attempt to gain more power over that supply chain, U.S. officials have begun negotiating a series of agreements with other countries to expand America’s access to important minerals. (💲Link)Roughly 400,000 customers, or about 12% of its total connected-vehicle base, now pay for subscription services offered by Ford Pro, the automaker's commercial unit. That's 60% more than just a year ago, and Ford thinks it can triple that figure to 1.2 million by 2026. By 2026, 20% of Ford Pro's EBITDA will come from software services. They project that Ford Pro will generate $6 billion in earnings this year and by 2026 will have the highest margins in the company, at around 14%. Ford Pro's subscriptions mainly relate to telematics that monitor vehicle health and driver performance as well as charging management. (💲Link)A great recap of some of the more interesting early-stage companies found at EcoMotion Week. (Link)Take a test lap on the new Las Vegas F1 course. (Link)Working on a startup in the automotive aftermarket segment? Think about applying to the MEMA Aftermarket Suppliers conference in Atlanta. (Link).

Have a great week,Steve Greenfield

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📰 Automotive Ventures portfolio company RoboTire can change 4 tires twice as fast as a human (Link)🎤 I am excited to be back in Las Vegas this week: speaking at Origence Lending Tech Live conference. (Link)🗣️ On this week's Future of Automotive segment on CBT News, we discuss how Chinese EV manufacturers are positioned to enter the U.S. market. (💲Link)

🌟 BlueDot allows consumers to use one app to find, pay for and access thousands of EV charging stations, and save money in the process. (Link)

🌟 Coast is the all-in-one card to run your fleet and manage employee expenses, offering smarter security and controls, remarkable visibility, and optimized spend across your fleet - from fuel to supplies

. (Link)

🚗 Dealer Tech & Auto CommerceGlobal automotive technology company MotorK has entered advanced negotiations to acquire automotive retail solutions provider GestionaleAuto.com.  MotorK is a leading SaaS provider for the auto retail sector in the EMEA region. (Link)PartsTech, the B2B parts marketplace for the auto repair industry, has closed a Series C capital raise of $35 million. PartsTech provides a comprehensive e-commerce solution that currently connects more than 15,000 repair shops to 30,000 supplier locations, accelerating the parts-sourcing process and expediting vehicle repair. (Link)

🦾 Autonomy, Robotics & AI

ANYbotics announced a $50 million Series B round. The company is pushing to deploy its ruggedized four-legged robot, ANYmal X, with a very specific industry in mind: filling job openings and patrolling processing plants for worker safety and environmental impact concerns. These sorts of jobs are notoriously difficult to fill — and maintain — due to the variety of different risks they pose to human workers. (Link)Embark Trucks, the autonomous trucking company that recently cut 70% of its workforce, is being acquired by Applied Intuition, a simulation and software provider for autonomous vehicle development. The all-cash transaction has an equity value of about $71 million. (Link)Figure, a Calif.-based company building general-purpose humanoids, has closed $70 million in Series A funding. The company will use the funding to develop its Figure 01 humanoid, that will stand 5-feet, 6-inches tall, weigh 60 KG and be able to carry payloads up to 20 KG. Figure is building humanoids designed for initial deployment into the workforce to address labor shortages and to support supply chain on a global scale. (Link)

Spinframe Technologies has raised $8 million in pre-Seed funding. Spinframe develops vehicle-inspection systems based on artificial intelligence (AI), computer vision, and machine-learning technologies, that create "Digital Twins" for vehicles throughout the supply chain and detect anomalies from the assembly line throughout the vehicle journey to the dealership and end customer. (Link)

⚡ Electrification & Alternative Fuels

Ghana and UK-based energy technology company Kofa Holdings has secured Seed stage funding. Kofa’s battery swap-and-go services enable users, such as motorcycle riders, to conveniently exchange depleted batteries for fully charged ones at charging stations strategically located in key areas within major Ghanaian cities. (Link)Stellantis has invested in Lyten, a Silicon Valley startup that is developing lithium-sulfur EV batteries made with three-dimensional graphene that promise reduced weight, higher energy density and a simpler bill of materials. The size of the investment was not disclosed. Lyten’s lithium-sulfur batteries will be ready for production by the end of the decade. (Link)PIONIX GmbH has raised €5 million in an oversubscribed Seed financing round.  EV charging manufacturers typically develop their own proprietary software. However, products need to function within an ecosystem that involves other brands, cars, and energy networks. PIONIX offers a standardized core that enables faster product development, cost savings, and ensures compatibility with the entire grid of players. (Link)

🛴 MicromobilityScooter scaleup TIER Mobility has raised additional funding from existing investors. The Berlin-based company was working with bankers to raise a new equity and debt round in the hundreds of millions, but those talks didn't produce “satisfactory terms” for the company. Tier is now in conversation with multiple potential acquirers. (Link)🅿️ Parking, Traffic & Smart CityIndian startup Chalo, which is working to transform bus commutes, has raised $45 million in a new funding round and secured an additional $12 million in debt as it works on deepening its mobility offerings and launches in more international markets. (Link)

🚛 Supply Chain & Logistics

Zyngo EV Mobility, a tech-enabled third-party logistics service provider, raised USD $5 million in Pre-Series A funding. Zyngo offers last-mile delivery solutions through a fleet of electric vehicles. (Link)🏭 Vehicle Production & AssemblyClearMotion, the leading software-defined chassis company revolutionizing the in-car experience, announced a $32 million investment. CM1 is ClearMotion’s patented high-bandwidth active suspension technology that improves ride comfort, productivity, and safety by canceling unwanted motion in the car. Moreover, CM1 integrates with infotainment systems to deliver a truly immersive in-cabin experience. (Link)

🏎️ Early-stage AutoTech or Mobility founder? We'd love to hear from you.🏁 Interested in investing directly into early-stage AutoTech and Mobility companies? Check out The Automotive Ventures Investment Club (AVIC)✨ Looking for our Dealership AutoTech Company Landscape? View that here.✨ Looking for our Mobility Tech Company Landscape? View that here.🚀 Interested in exploring Automotive Ventures' portfolio companies shown below? Check them out here.