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We look forward to ramping up production of the Ocean EV because ‘we have more demand than we counted on’

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Henrik Fisker, CEO of his eponymous EV company, rang the opening bell at the NYSE today to mark a huge milestone for the company.

Last week at the contract manufacturer’s sprawling Magna plant in Graz, Austria, the company Initial production has begun of the Ocean EV SUV.

fisker (FSR) expects production in Austria to initially reach 300 vehicles in the first quarter of 2023, with a “rapid increase” to 8,000 vehicles in the second quarter. Then, 15,000 vehicles will follow in the third quarter, and in the fourth quarter of the year, the plant will crank out nearly 20,000 vehicles, ending with 42,400 vehicles for the year.

“We’re planning a total of 42,400 vehicles next year, which is quite a lot for an EV startup, probably double what everyone else has done,” Fisker said in an interview with Yahoo Finance from the NYSE floor.

“We’ve worked with the world’s largest contract auto manufacturer and they know how to ramp up the work; our suppliers have been hand-picked, so we have hardworking suppliers and quite frankly, they’ve worked hard with us to get up to speed,” he said.

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A Fisker Ocean is shown during an event outside the New York Stock Exchange (NYSE) in New York City, US, November 22, 2022. REUTERS/Brendan McDermid

The rise in production came on the back of a shortage of spare parts across the auto industry’s supply chain – from chips to die-cast parts. But Fisker thinks shortages may be a thing of the past.

So we’re working through the supply chain crisis this year; “We’ve seen all the suppliers are in much better shape than they were three months ago,” he said of the suppliers on board the plant in Austria. “So at this point in time, we don’t see any supply chain issues. We’re looking forward to seeing how we can ramp up manufacturing because we have more demand than we counted on around Fisker.”

Fisker is right, the company has a huge order to fill, with 63,000 global ocean reservations as of last week, with two trim levels sold in the US market for 2023.

The interior of the Fisker Ocean is shown during an event outside the New York Stock Exchange (NYSE) in New York City, US, on November 22, 2022. REUTERS/Brendan McDermid
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As for its next vehicle, the PEAR compact SUV that Fisker says will start at around $30,000, the company said it will have a completed drivable prototype ahead of plan, which will be ready later this month. Fisker revealed this information about pears When it released its third-quarter financial results in early November.

Fisker PEAR bookings have exceeded 5,000 as of the end of October, and the company has begun preparations for plant layout and tooling.

Fisker also plans to build PEAR, or at least some units, at the Foxconn plant in Lordstown, Ohio. While the decision to build PEAR in the US occurred before the inflation-lowering act was passed, the new legislation will likely make the company ramp up production, or at least shift production to the Foxconn plant.

Fisker PEAR teaser interior
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“We’re at full speed getting ready in Ohio for that car—I’m really surprised we have 5,000 reservations because we haven’t shown the car yet,” says Fisker. “I am getting more and more excited about this car because it is going to be a disruptive vehicle and a game changer.”

Fisker believes the PEAR will be important not only as a budget EV option for most consumers, but because he envisions using it for ride-hailing, food delivery, and the “last-mile” achievement typically handled by gas-powered cars. Cheap cars, combined with cheap electricity versus the volatile price of gas, may make pears a solid choice for some commercial applications.

But it’s also the cheaper electric vehicle market that Fisker thinks is ripe for choice (please forgive the pun), pears with it.

“We’re really looking to revolutionize the affordable electric vehicle market specifically, where everyone is pricing new electric vehicles in the ultra-luxury segment,” said Fisker. “I think we’re doing the right thing by entering a market that’s been denied by automakers right now, and that will give us a huge head start in the next few years.”

It’s definitely one of the reasons why Elon Musk’s Tesla is so eager to get the $25,000 entry level, The robotaxi will be in production by 2024.

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Pras Subramanian is a correspondent at Yahoo Finance. You can follow it Twitter and on Instagram.

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Coca-Cola is ‘fully’ compliant with SEC supplier emissions regulations — after controversy with some details

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One of the most controversial issues in corporate environmental impact reporting is called environmental impact reporting required by federal law Scope 3 emissions: those of third parties in the company’s supply chain.

For a company like Coca-Cola — the world’s largest polluter of plastic, according to A 2020 Report – This will include the carbon emissions from the suppliers you use to make their plastic soda bottles.

It is a hotly contested topic because companies feel they should not be held accountable for the decisions of others, while climate activists and regulators say that without assessing the entire supply chain, it is difficult Reducing global emissions by 45% by 2030.

On Wednesday, o’clock luckImpact Initiative Conference in Atlanta, luck Executive Editor Peter Vanham spoke to The Coca-Cola Company’s President of Communications, Sustainability and Strategic Partnership Pia Perez, and Christina White, Deputy General Counsel at carbon accounting firm Persephone. Prior to her current role, Wyatt was a senior counsel with the Securities and Exchange Commission, where she helped craft its proposal Climate reporting regulations.

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The reason for these proposed federal rules, White says, is that investors wanted “consistent and comparable information” about the company’s climate initiatives — or lack thereof. They wanted it to be in a format that allowed comparisons between companies to better gauge climate-related investment risks or opportunities. She added that the companies themselves welcomed the regulations as well because they did For a long time Clear guidance on what to disclose and how.

However, in June’s The Business Roundtable, a pressure group made up of CEOs – to which Coca-Cola belongs – sent message to the Securities and Exchange Commission, requesting that it review the Scope Measurement Requirements 3.

Perez explained that when Coca Cola signed the letter, he wasn’t against including Scope 3 emissions per se, just against the all-supplier requirements. She says some of the company’s suppliers are small, family-owned businesses that would not be able to make the investments needed to comply and risk going out of business.

(Disclosure: I used to be a PepsiCo employee, one of Coca-Cola’s largest competitors).

“It’s about making sure that we look at fairness and consistency, as well as the lead time,” Perez says. “So we are fully in favor of disclosure.”

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However, White countered that under the SEC’s proposed regulations, it would be “entirely acceptable” for smaller suppliers to use industry standard emissions standards as they develop the capabilities to measure them themselves. It was a sentiment echoed by the Securities and Exchange Commission, which said the plan would include a “phase period for Band 3 emissions,” according to one of the agencies. statement.

Coca-Cola’s current climate targets

The Coca-Cola Company already makes voluntary disclosures about its climate impact based on Science-based goals The initiative, which independently checks the company’s progress against its goals. that it current target is to cut total greenhouse gas emissions by 25% by 2030, according to the 2015 standard. The company also has an “ambition” of achieving net zero carbon emissions by 2050, which Perez was quick to define as “not a goal”.

Perez expressed that in her ideal world, the SEC’s guidelines for environmental reporting requirements for companies would be based on one of the reporting methods currently developed and used by companies. “If I could wave a magic wand, I’d like the SEC to adopt one of these existing frameworks that many companies already fill out,” she says.

White was more lukewarm about the possibility of adopting a set of guidelines from corporate actors rather than a regulatory agency. Her prediction: “The SEC will move to adopt the rules you proposed.”

Wyatt hopes climate reporting guidelines will be adopted and become part of the normal reporting process that public companies already go through.

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“Eventually this will become like financial reporting,” White says. “Just a standard.”

The new Impact Report weekly newsletter will examine how ESG news and trends are shaping the roles and responsibilities of today’s CEOs – and how they can better overcome these challenges. Subscribe here.

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Core PCE prices in the US rose less than expected; spending gains

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(Bloomberg) — A key measure of U.S. consumer prices posted its second-smallest increase this year while spending accelerated, offering hope that the Federal Reserve’s rate hikes will curb inflation without sparking a recession.

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Commerce Department data on Thursday showed that the personal consumption expenditures (PCE) price index excluding food and energy, which Federal Reserve Chairman Jerome Powell stressed this week is a more accurate measure of inflationary sentiment, rose less than expected by 0.2% in October from the previous month.

Compared to a year earlier, the gauge rose 5%, which is down from an upwardly revised 5.2% increase in September.

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The overall personal consumption expenditures price index rose 0.3% for the third month and was up 6% from a year ago, still well above the central bank’s target of 2%.

Personal spending, adjusted for changes in prices, rose 0.5% in October, the most since the start of the year and largely reflecting a rise in spending on goods.

Similar to last month’s CPI data, the report shows that while inflation has begun to ease, it is still very high. While a slowdown is certainly welcome, Powell stressed on Wednesday that the US is far from price stability and that it will take “significantly more evidence” to provide comfort that inflation is in fact declining.

Policymakers are expected to continue raising interest rates next year, albeit at a slower pace, and remain on hold for some time.

The median estimate in a Bloomberg survey of economists was for a 0.3% monthly increase in the core PCE price index and a 0.4% advance in the overall measure. The S&P 500 rose, the dollar fell, and 10-year Treasury yields fluctuated.

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What Bloomberg tells the economy…

The larger-than-expected slowdown in PCE prices in October adds to the case for a gradual increase in the pace of rate hikes at the upcoming FOMC meetings. However, there was strength elsewhere: Consumer spending started the fourth quarter at a strong clip, gains in wage income remained strong, and government distributions of refundable tax credits — which boosted income — likely just aren’t a one-off.”

Andrew Hesby and Eliza Winger, economists

For the full note, click here.

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Supported by a flexible labor market and continued wage increases, the pick-up in household spending points to a strong start for GDP in the fourth quarter.

Inflation-adjusted expenditures for goods jumped 1.1% in October, driven by new vehicle purchases. Spending on services rose 0.2%, supported by expenditures on health care, food services, accommodation, housing and utilities.

However, it is unclear whether consumers will be able to maintain this momentum in 2023.

With inflation continuing to outpace wage gains, many families are relying on savings, stimulus checks from some state governments, and credit cards to keep spending. There is growing concern that tight monetary policy will push the US economy into recession.

Low savings rate

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The Commerce Department report showed that the savings rate fell to 2.3% in October, the lowest level since 2005.

Inflation-adjusted disposable income rose 0.4%, the largest rise in three months. Non-price wages and salaries increased by 0.5%. The report also noted that one-time payments issued by countries boosted income in October.

Continued wage gains, particularly in the service sectors, could keep inflation consistently above the Fed’s target for a long time, underscoring the importance of the labor market to the Fed’s decision-making in the months ahead.

A measure of core services inflation that excludes housing and energy, Powell said on Wednesday “may be the most important category for understanding the future development of core inflation,” which was revised in October from the previous month.

Data released on Friday is expected to show that employers added another 200,000 jobs in November, while the unemployment rate remained at a historically low level of 3.7%.

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— with assistance from Matthew Boesler and Kristy Scheuble.

(Adds Market Open, comment from Bloomberg Economics)

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Tivic Health has an agreement with ALOM for product supply chain and logistics

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The company also recently announced additional steps to reduce cost and improve margin, including the implementation of a manufacturing partnership with Microart Services, which is expected to reduce printed circuit board subassembly costs by up to 70% while increasing manufacturing scalability.

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