#15 (EN): VALMET Automotive
Have a nice Sunday: This week was rich in content, the road long to get there. Easter can now come - who goes away, have a nice vacation!
+++ VALMET AUTOMOTIVE +++
Big News: Valmet Automotive is the new contract manufacturer. Valmet is building vehicles in Finland for Lightyear and Mercedes, among others. The CEO - Olaf Bongwald - was personally on the Sono YouTube Livestream to update the community, joined by the supervisory board member and community representative Sebastian (me, humble brag).
A lot of reservation holders were immediately happy with the new partner. The only downside is that production will ramp up more slowly. Not everyone will get a Sion in 2023. On the other hand, Valmet Automotive are professionals; if that's how they see it, you have to accept that.
How would you have decided if there were two options on the table? NEVS with the chance of a slightly earlier delivery but more risk in setting up production - or Valmet, a little later in the ramp-up but with an active business doing just that?
Three significant hurdles now remain on the road to the Sion: Homologation, financing the series production - and building the vehicle.
Here Sono's press release on the Valmet deal: https://sonomotors.com/de/press/press-releases/sono-motors-to-produce-sion-at-valmet-automotive/
Valmet was kind enough to refer to the cooperation several times on its Twitter account:
https://twitter.com/ValmetAutomotiv/status/1511939723748646916
+++ YOUTUBE LIVE +++
After the announcement, Sono followed up with a YouTube Live to provide details. Asti and Andreas have been logging what is being said in the video:
The Sion will be built in Uusikaupunki (transl: Neustadt/Nystad (Swedish)) from the second half of 2023: Here we practice pronunciation if needed: https://www.howtopronounce.com/french/uusikaupunki?fbclid=IwAR0c_oDuE3FP2sLr-32KwbQ2izelI4Trcilotusq42qSSjvhF4Lr_9x8mh0
The production line is already productive for other brands and can be seen well in the video: https://www.youtube.com/watch?v=McqtUaVs_zk
The YouTube video from Wednesday is also available with German subtitles since Thursday: https://www.youtube.com/watch?app=desktop&v=MTOGOJe2TFU
What can Valmet do?
The Sion has an "Alu Space Frame" - Valmet is already building with it now. Currently the first 37 "Body in White" are built at ThyssenKrupp, later it will happen in Uusikaupunki.
Pure BEV they will have learned by launch, because the Lightyear One is being built there. This was only hinted at Wednesday, but we know - no secret. There is also already a high contingent (50%) of hybrid vehicles from Uusi. In 2010, the all-electric ThinkCity was built and the Fisker Karma. The CEO and his wife have been driving fully electric for years. We assume that with the Sion, an important project on the way to building pure BEVs will move in, benefiting Valmet.
Gap dimensions are probably something the Finns can do; they build to Mercedes factory quality. I wouldn't set the standards too high for the polymer outer skin - we'll see. Some people need that to be happy. It's important for aerodynamics, so it has justification beyond looks.
SOP 2 HY 2023. The start of production is delayed by three to six months, (admittedly, many had already expected this anyway). Valmet makes the time target more realistic, the production line is booked.
What other details have been disclosed?
"Delivery of a small 4-digit number of units in 2023", what does that mean? That means all 17,000 reservers:inside so far and many beyond, will have their Sion in 2024 then at the latest. Sebastian is not allowed to say anything, Asti estimates between 1,000 and 3,000 for 2023. I am confident, even with my 4,000 number. Andreas with his 1,500 number is even more relaxed.
The annual production capacity or full load of the production with 43,000 Sions/a will be reached later after production ramp-up. The total will be 257,000. So at least six years of capacity utilization for Valmet.
Were you also wondering something in the stream? The Sion goes to the PaintShop? That was supposed to be omitted. Maurice clarifies: protective coating yes, paint no. The PaintShop also includes an electro-coating facility, which actually describes it a bit more accurately. The protective coating is applied in an environmentally friendly process without volatile substances, electro-coating (eCoating). This has nothing to do with the colorful smelly spray paints, the Sion is not available in color and not with paint on the outside. Sono uses the existing facility for the protective coating of the Spaceframe.
The production is shared with other OEMs (starting with the electrocoating plant) and Sono/Valmet also build their own road/hall for the assembly of the aluminum space frames, the "body in white", when production ramps up. What is behind this? Existing capacities that are no longer needed can be used. Sounds conclusive.
Test drives with the SVC3, which is currently being built in Munich at Bertrandt, will be available from mid-2022, but development and production have priority in accessing the vehicles. It can be viewed in Munich at Sono headquarters at any time starting in the summer.
Purchase contracts will come only when you can promise sound delivery dates, so sometime in 2023, especially for the Finland vacationers is important, but also for all who need to collect their money and sell Verbrenner.
It will also be delivered directly to the front door, for an additional charge. Otherwise, it will be delivered via central distribution centers. One Sion load should then be enough for everyone to drive home - says Thomas.
Fun Fact, Valmet was surprised that many want to pick up the car, they are not used to that as a contract manufacturer, but they make it happen. Possibly with a drop-off zone outside.
B2B customers are not preferred, delivery is by order date, so sort of by sequential number if available.
The "one-product strategy" remains in place, but there may be legally necessary adjustments over time, for example in the case of necessary assistance systems. The equipment does not depend on the reservation price, which is certain for everyone, as stated in the account (25,500 euros until around November 2021/ 28,500 euros until now/ 29,900 euros - from reservation 18,500).
There is still some time to reserve a Sion at the target price of €28,500 (including 19% VAT). (Status Saturday).
The Sion will continue to come to you CO₂-compensated; Valmet meets all the necessary conditions.
Valmet has also published its sustainability report on the same day, stating why "Leading SEV brands" (meaning Lightyear and Sono) choose Valmet Automotive:
https://twitter.com/ValmetAutomotiv/status/1512026403193204741
A question from Facebook or forum, I don't remember where: in the car Sono Motors is listed as the manufacturer, not Valmet. Like the other cars from there, the A-Class also has Mercedes as its manufacturer in it.
Full Video:
https://www.youtube.com/watch?v=MTOGOJe2TFU
+++ OPEN QUESTIONS +++
Carsten asked what this wording in the press release could mean in relation to Sono Sion: "Sono Motors' headquarters in Munich remains the sole development site for Sono Solar technology." The ownership and divisions (Sion, Solar, Digital) have not changed. Valmet "only" produces on behalf of Sono Motors.
HV battery: It remains as planned with the LFP battery from Build Your Dreams (BYD). That CATL is on-site in Uusikaupunki is not a mistake.
Financing: money is still lacking, 275 million euros are currently mentioned. Criticism of Sono is as old as Sono itself, and no sooner was the issue of pavers in the clear than this was made out as a new target. It is quite simple: the lower the risk for an investor, the lower the risk premium. In the summer, you will see the final Sion, the development is complete, and with Valmet, there is a partner ready to build exactly this car. If you have it in your back to wait until then with financing, you simply have more options and have to accept less dilution.
+++ IN THE PRESS +++
The announcement has made it quite prominently into the press:
ZEIT
https://www.zeit.de/news/2022-04/05/partnerwechsel-sono-solarauto-wird-in-finnland-gebaut
HANDELSBLATT
Automobilwoche
https://www.automobilwoche.de/nachrichten/sono-motors-lasst-den-sion-bei-valmet-bauen
Sveriges Radio
Even the elektroauto-news is getting conciliatory:
"Sono Motors: Sion comes later, costs more - but it's coming!".
https://www.elektroauto-news.net/2022/sono-motors-sion-kommt-spaeter-kostet-mehr
+++ MANAGER MAGAZIN +++
Manager Magazin has lost track - instead of the Valmet news it brought up an old announcement from January: "Sono Motors - Supervisory Board Chairman Leaves Solar Car Company".
Electrive.net fell for the manager magazine, - and assumed that this just happend along with the Vamet deal. On top of that they claim Sono was born out of a SPAC, which is not true. Sono had a normal IPO, with all the necessary transparency.
https://www.electrive.net/2022/04/08/wilko-stark-verlaesst-aufsichtsrat-von-sono-motors/
We have reported here about the change in the supervisory board and the departure of Wilko of course already in detail in January when Sono published the announcement (6K).
Here is the post on Wilko from January along with details.
https://www.facebook.com/photo/?fbid=10216084162575344
https://www.sono.community/inoffizielle-sononews/5-de-youtube-live-pressemitteilung-amp-newsletter
+++ THE HORN +++
Horns have to sound loud, you don't get much content across with it. It sounds critical in podcast 39 regarding Sono from about minute 25. Nice example of sound air pump podcasting. Thanks to Kay for the reference.
https://diehupe-podcast.de/episoden/
+++ SOLARBUS +++
The cooperation with MVG Munich is shown in the construction of the first solar bus trailer for Stadtwerke München. A short video can be found on YouTube.
https://www.youtube.com/watch?v=N92BDpLleQs
+++ SONO DIGITAL +++
The Sono app has received a small update, you can now search for a community in the app to join it. When restarting it sometimes hangs.
https://twitter.com/SonoMotors/status/1511008773879615493
+++ FILM +++
After the YouTube Live there was an image film from Valmet Automotive about Uusikaupunki, Sono has posted it again separately.
https://www.youtube.com/watch?v=McqtUaVs_zk
+++ FUN FACT +++
Uusikaupunki, the word is really not easy. Hannes gave us a very fitting comic about it. At YouTube Live we always have a rehearsal beforehand, where we talk about the sequence and time for each segment. Of course, we also incorporated Uusikaupunki every now and then, just for fun - and like passing a verbal ball. The problem with that is, you have to laugh after the third or fourth Uusikaupunki - half out of relief and the other because it's just a funny word - and no one wants to get flustered live on camera. After Olaf, the CEO of Valmet Automotive had presented in the interview - and of course with perfect pronunciation, Uusikaupunki had to be at least once. Seb took a chance, as a prize there was a light Helles from the video crew afterward.
Stay healthy. Stay safe.
Astrid, Sebastian, Andreas, Wolfgang
P.S: Thanks to Hannes Mercker for the permission to use his Sono Motors comic as of today's cover picture!