Tag Archives: electric vehicles

Tesla’s Price Hokey-Pokey

Posted on by
Reply

By Gary S. Vasilash

In January Tesla cut the price of various Model 3 and Model Y configurations by as much as 20% in the U.S. (there were also price reductions in other markets).

But after the U.S. Treasury Department adjusted its vehicle classification rules pertaining to federal tax rebates through the Inflation Reduction Act, Tesla made price adjustments—again.

This time up.

So there have been additions of as much as $1,500 to the base prices for Model Ys.

Part of this is predicated on those reversed rules.

Whereas the Model Y had been classified by the government as passenger vehicles, it (except for the three-row version) is redefined to be an SUV.

This is advantageous because the retail price cap for those looking for a rebate on an electric car was $55,000, which is pretty much an entry point for Model Ys.

SUVs, however, have a price cap of $80,000. So the Model Y pricing can go well beyond the mid $50Ks.

Presumably, Tesla figures it can do this because of the nature of its fan customer base.

Ford reduced prices on its Mach-Es in response to Tesla’s original move.

While it is unlikely that the company would make the same type of sudden increase in price of the Mach-E for the simple reason that the Ford customer wouldn’t be as financially pliable, it wouldn’t be at all surprising were there folks in Dearborn planning the means by which they can made price rises more palatable to potential customers (e.g., different trim packages).

Start of an EV Price War?

Posted on by
Reply

By Gary S. Vasilash

Last month Tesla did something that OEMs almost never do. (And in its history, Tesla has done lots of things that traditional OEMs almost never do, so at least in this regard it is being consistent.)

It cut the price of its vehicles in China, Germany, and the U.S.

These weren’t slight, either. In the U.S., for example, the Model Y Performance was cut by 19% and the Long Range version by 20%.

There were all manner of assessments as to why this happened. Some suggested that Elon Musk’s Twitter distraction was causing the company to lose sales. Others were pointing out that there is increased competition from some of the traditional OEMs. (Who, to be frank, are bigger on rhetoric about their electric scale today and tomorrow than they are in putting EVs in customer’s driveways.)

Tesla has some 2/3 of the U.S. EV market.

Mustang Mach-E: When does a popular vehicle–and it is popular–get a price reduction? (Image: Ford)

Consider: while the Ford F Series seems like a force of nature when it comes to sales, in 2022 there were 653,957 of those trucks sold—and GM sold 764,771 Silverados and Sierras combined, so it isn’t like either of the primary players have anything near 2/3. Yet a company that wasn’t taken all that seriously 10 years ago now dominates a category.

Shortly after Tesla made its announced cuts, the folks at Ford joined in on reducing the prices of its 2023 Mustang Mach-E models. The reductions ranged from $600 on the Select eAWD Standard Range model to $5,900 for the GT Extended Range.

Ford clearly wants to move metal. What’s curious, though, is that in 2022 it sold 39,458 Mach-Es, which is a 45.4% increase over the number it sold in 2021. It’s not like things were lagging. (Ford execs may have noticed that in July of last year GM cut the prices of the Bolt EV and Bolt EUV by $5,900 and $6,300, respectively, and those vehicles ended the year at 38,120 deliveries, not only close to that Mach-E number, but a 53.5% increase over 2021–greater than the Mach-E rise. Although it is hard to imagine the vehicles being cross-shopped..)

Everyone knows that EVs are more expensive than vehicles with internal combustion engines for a wide array of reasons. And while the overall percentage of EVs sold in the U.S. is still small—5.8%–it is growing, not declining.

So why were the cuts to prices made and will other OEMs follow suit?

Those are the primary questions raised and discussed on this edition of “Autoline After Hours.” Charlie Chesbrough, Cox Automotive Senior Economist, and Joe White, Reuters Global Automotive Correspondent, join “Autoline’s” John McElroy and me to talk about those topics and more.

And you can see the show here.

How Canadian Companies Developed an All-New EV Crossover

Posted on by
Reply

By Gary S. Vasilash

Each year there are some two million vehicles and $35-billion in auto parts produced in Canada. The country has several top-notch facilities, both in terms of companies that produce things and universities that develop things of an automotive nature.

Canadian Prime Minister Justin Trudeau has a plan for a zero-emissions future by 2050. So the Canadian Automotive Parts Manufacturer’s Association (APMA), being aware of that plan, decided that it would do its part by developing an electric vehicle. A vehicle that is designed and engineered in Canada and is fully assembled using parts, systems and technologies from Canadian suppliers, 58 in all.

Project Arrow: An EV developed by a team organized by the Canadian Automotive Parts Manufacturer’s Association. It’s all-Canadian. (Image: Project Arrow)

Named “Project Arrow” (a tribute to a supersonic jet development program that occurred in Canada in the 1950s), the $20-million (CN), the crossover was designed by the Carleton University School of Industrial Design, engineered by an APMA-led team, and the running prototype was built at Ontario Tech University.

The Project Arrow vehicle had its debut at the 2023 CES in Las Vegas earlier this month.

According to APMA president Flavio Volpe the Project Arrow vehicle had a massively successful reveal. He said that the focus going forward is that if an OEM is interested in taking the crossover to production, it will be as Canadian as it is now (this wouldn’t be the case of, “Quite a crossover. We’ll build it in ________________ (not Canada) with parts from suppliers in _______________ (not Canada).” This won’t happen.)

On this edition of “Autoline After Hours” Volpe provides insights into the vehicle that has a 500-km (a.k.a., 310-mile) range, and 550 hp from its dual-motor setup. The price would be less than $60,000.

One interesting thing that Volpe points out is that the Lexus RX is produced in Cambridge, Ontario, and that that vehicle was one that the Project Arrow team benchmarked.

Volpe talks with “Autoline’s” John McElroy, freelance writer John Voelcker and me.

Watch this “Autoline After Hours” right here.

Building Cars Is Hard

Posted on by
Reply

By Gary S. Vasilash

On September 18, 2021, this announcement was made by Rory Harvey, vice president, Global Cadillac:

“Today, reservations for the 2023 Cadillac LYRIQ Debut Edition sold out in just over ten minutes and we continue to see a lot of enthusiasm around the brand – both current product and in our all-electric future. The initial response for LYRIQ has been extraordinary. Since the show car unveiling last year, more than 200,000 people have expressed interest in learning more about the vehicle and our electric future.”

Deliveries of the electric SUV, which had obtained significant, deserved acclaim, began in July 2022.

The Cadillac LYRIQ: an impressive electric SUV that more people would undoubtedly like to be behind the wheel of. . .except production is rather limited. (Image: GM)

The LYRIQ is built in the GM assembly plant in Spring Hill, Tennessee. The factory originally built for Saturn. At the plant the Cadillac XT5, Cadillac XT6 and GMC Acadia are also produced.

LYRIQ went into production on March 21, 2022.

So keep in mind: production starts in March, deliveries start in July, and thousands of people wanted to get behind the wheel of Cadillac’s first electric vehicle.

Now admittedly all OEMs in 2022 had to deal with all manner of issues related to COVID and chips and supply chain snafus.

But here is something that is simply startling:

GM announced its U.S. deliveries for 2022.

All in, 2,274,088 vehicles, making it #1 in the U.S.

Cadillac LYRIQ: 122 vehicles.

How many of those LYRIQ “hand wavers” are going to put down their arms and go across the street to an Audi or Mercedes store?

And what about those who were part of the 10-minute sellout? How are they feeling about their decision?

Yes, building vehicles is hard.

But you would imagine that for a vehicle that is as important to Cadillac as the LYRIQ is, that would have been addressed and any speedbumps mitigated.

(Incidentally: while the LYRIQ was the vehicle with the fewest deliveries among all GM vehicles for 2022, the second lowest was another electric vehicle that sold out in 10 minutes when its reservations opened in October 2020 and is now said to be sold out for at least two years: the HUMMER EV. GM delivered 854 in all of 2022.)

Why Would Apple Bother?

Posted on by
Reply

By Gary S. Vasilash

The 23rd KPMG Global Automotive Executive Survey—some 900 execs in 30 countries surveyed—includes an array of findings that should be of startling interest to OEMs, particularly those vehicle manufacturers that are, as they sometimes say, “all in” on electric vehicles.

For example, in the 2021 survey the execs predicted that by 2030 EVs would be 52% of the U.S. market.

A year later that number is down to 29%.

Quite a tumble.

Remember: these are execs in the auto industry, people whose livelihoods depend on how vehicle sales play out.

(Do some of those people look at that 29 and think about the billions being invested in EV assembly plants and battery facilities?)

Another question was about what companies would be market leaders in electric vehicles by 2030.

The top three are Tesla, Audi and BMW.

The fourth is somewhat of a surprise: Apple.

While the rumors of an Apple entry into auto have been rife for a number of years, the question as to why the company would want to get into what is a low-return space should squelch said rumors.

Vehicle manufacturers aren’t doing particularly well from a Wall Street valuation point of view.

Here is a list published today by CNBC of the performance of OEMs over the past year:

  • Ferrari (RACE): -18%
  • Stellantis (STLA): -25%
  • Toyota (TM): -26%
  • Nissan (NSANY): -35%
  • General Motors (GM): -43%
  • VW (VWAGY): -46%
  • Ford (F): -46%
  • Fisker (FSR): -57%
  • Tesla (TSLA): -68%
  • Nio (NIO): -68%
  • Lordstown (RIDE): -69%
  • Nikola (NKLA): -75%
  • Rivian (RIVN): -82%
  • Lucid (LCID): -83%
  • Canoo (GOEV): -86%

Yes, every single one of those companies with a minus sign in front of two digits.

The EV Market May Not Be What Some Think It Will Be

Posted on by
Reply

By Gary S. Vasilash

There must be—and certainly ought to be—some consternation this week at GM HQ.

International consulting and accounting firm KPMG came out with its 23rd Global Automotive Executive Survey, with responses from execs in and related to the auto industry. More than 900 of them from 30 countries.

When asked to rank the companies they think will have a leadership position in electric vehicles by 2030, it went like this:

  1. Tesla
  2. Audi
  3. BMW
  4. Apple
  5. Ford
  6. Honda
  7. BYD
  8. Hyundai-Kia
  9. Mercedes
  10. Toyota
  11. Baidu
  12. Fisker

Look what’s not on the list. And I don’t mean VW, though that is absent, too.

Yes, Apple is on the list. It was last year, too. Then it was in 8th position. Clearly there are more than a few people in the industry that see something that many of us don’t (i.e., Why should Apple bother getting into a low-margin industry? It is unlikely that it could get considerably more in the way of subscription monies than it already has.)

There is another somewhat troubling survey results across the board.

On the question of what percentage of the market battery electric vehicles will have in 2030:

  • U.S.:             29%
  • China:          24%
  • Europe:        24%

While there is some evident optimism regarding the potential uptake of EVs in the U.S., 29% surely isn’t the 50% that is regularly bandied about by domestic OEMs.

And while some may think the 29% average is satisfactory, the median may give them more joy: 35%.

Until they find out that the median number for the percentage of EVs in the U.S. market by 2030 in last year’s KPMG survey was 65%

Cadillac CELESTIQ Explained

Posted on by
Reply

By Gary S. Vasilash

“Go make something epic.”

That, Tony Roma, chief engineer of the Cadillac CELESTIQ, says was the mandate he and his team received from GM management to develop a vehicle for the brand that is more like an aurora borealis than a mere halo.

This is a full-size uber-lux electric vehicle that customers will commission, not simply buy.

The Cadillac CELESTIQ is an expression of what can be accomplished by a team given a mandate to “make something epic.” (Image: Cadillac)

It is a sedan that has aluminum mega-castings at the base of its overall structure and an exterior skin made primarily with carbon or glass fiber panels. Roma says that the doors are made with SMC—because the material is transparent to radar, and there are radar units in the doors. Yes, the vehicle is also ladened with plenty of technology, including Ultra Cruise, which will allow hands-free driving in multiple driving scenarios, going well beyond the Super Cruise that GM offers in Cadillacs and other brands.

The CELESTIQ has an 111-kWh Ultium battery pack and a two-motor, all-wheel drive system that generates an estimated 600-hp and 640 lb-ft of torque: Roma says that the car goes faster in a straight line than a CT-5 Blackwing—but the vehicle, he says, is powered such that it provides confidence for the driver and is not meant to have performance for performance’s sake.

This is not simply another vehicle in the Cadillac lineup: the companies benchmarked for the CELESTIQ included Rolls-Royce and Bentley. The pricing for the vehicle is on the order of $300,000+.

Roma says that the production rate of the hand-built vehicles—and the building is going to occur not in a factory, but at the GM Global Technical Center in a special clean-room like facility that is called the “Artisan Center.” The company has made an $81-million investment for producing the vehicle. Within the Artisan Center there will be no more than six vehicles being built at any given time.

Speaking of the development of the vehicle Roma says, “This is all-in house. We didn’t write a check [to another company] and put our badge on it.”

The CELESTIQ, in effect, is a vehicle that makes a statement that Cadillac is a brand that is competitive at the highest echelon within the auto industry.

Roma talks about the engineering that goes into the CELESTIQ on this edition of “Autoline After Hours” with “Autoline’s” John McElroy, Frank Marcus of MotorTrend and Richard Truett of Automotive News.

It is arguably one of the most comprehensive insider looks on what will be a landmark vehicle, not only for Cadillac, but for the overall auto industry.

And you can see it here.

All About Jeep

Posted on by
Reply

By Gary S. Vasilash

While Jeeps have been rolling along—literally and figuratively—since 1941, and while the competitors have come, gone, and come back again, it seems that the brand has essentially stuck to its knotting,* building vehicles that allow drivers the freedom to go places where other vehicles would fail to get beyond the parking lot.

Jeeps now come in a wider range than ever, with the iconic Wrangler at one end of the spectrum and the Grand Wagoneer at the other.

Spend some time driving a Wrangler on the highway and you’re going to hope that you get to your destination sooner rather than later—and you’re going to hope that the destination includes some serious off-road driving.

Coming in 2024: the fully electric Wagoneer S–although it will likely have a different name by then. (Image: Jeep)

Spend some time driving a Grand Wagoneer and you’re going to hope that you get to your destination eventually (no hurry)—the comfort and amenities make the term “first class” seem numerically weak.

To help get a better understanding of what is this on-going phenomenon, on this edition of “Autoline After Hours” we talk with Jim Morrison, senior vice president and head of Jeep brand North America.

Morrison was appointed senior manager of Product Marketing for Jeep in 2010 and he has been involved with Jeep in several positions since, getting his current one in 2019.

Like other vehicle brands, Jeep is making the transition to electrification, with current plug-in hybrid versions of the Grand Cherokee and Wrangler (both with the nomenclature 4xe) proving themselves to be well accepted in the market.

Jeep has announced that there will be a full battery electric vehicles coming by 2024, the Jeep Recon and the Wagoneer S (with the latter name being a place holder as the Jeep community is getting an opportunity to provide potential names for the vehicle).

Morrison talks about where Jeep has been—and where it is going—with “Autoline’s” John McElroy, Roman Mica of TFLcar, and me on this edition of the show.

You can see it here.

*While “knitting” is generally the word used, “knotting” seems more Jeep-like robust.

The 2023 NACTOY Finalists

Posted on by
Reply

By Gary S. Vasilash*

The finalists for the 2023 North American Car, Truck and Utility Vehicle of the Year awards were announced today in Los Angeles at the LA Auto Show.

A full third of the finalists are no surprise:

  • Chevrolet Silverado ZR2
  • Ford F-150 Lightning
  • Lordstown Endurance

That’s because those trucks were in the semifinalist category, too, and as there are groups of three. . .

As for the cars, there is something of an interesting divergence.

There are the Acura Integra, the Genesis G80 EV and the Nissan Z.

The Integra and the Z are both sporty cars from brands that are, comparatively speaking, well established.

Genesis is a comparatively new marque. And not only is the G80 EV an (obviously) electric vehicle while both the others have internal combustion under their hoods, it is more of a stately, stylish sedan, not something that would likely end up as a screensaver on the gear of pre-licensed teens.

And then there are the utilities.

All electric vehicles:

  • Cadillac LYRIQ
  • Genesis GV60
  • Kia EV6

The Cadillac and the Genesis are both in the luxury category, while the Kia is a mass-market vehicle.

The LYRIQ is Cadillac’s first major step toward becoming an all-electric company. The GV60 is the first purpose-built EV for the Genesis brand (e.g., there is a non-EV G80). And in the case of Kia, it is no stranger to EVs, as it has had both the Niro and Soul with that powertrain option for a few years.

Every year the NACTOY judges have some challenging choices. This year I’d say they are particularly demanding.

One thing is certain, however: an electric powertrain will certainly be under the hood of one of the winners, and it is completely possible it could run the table.

*I am a NACTOY juror, so I don’t want to make any specific predictions beyond that EV one.

Audi’s Identity Issue

Posted on by
Reply

By Gary S. Vasilash

2018 saw the launch of the Audi e-tron, the German’s first production EV. Even then knowing where the interest was developing (things like the Tesla Model S notwithstanding), the folks in Ingolstadt determined that an SUV was the body style to launch.

Since then, Audi has sold about 150,000 of the vehicles.

Audi Q8 e-tron. (Image: Audi)

Maybe they figured that what the heck an “e-tron” was was something that kept it from gaining significantly more traction in the market.

So for the new model the name has been changed to “Q8 e-tron.”

The company had some equity in the Q8 name for its SUV. So it has appended it to the electric variants (there is also the Q8 Sportback e-tron).

Audi puts it: “By renaming this model the Q8, Audi is making a clear statement that the Audi Q8 e-tron is the flagship model among its electric SUVs and Coupe SUVs.”

Perhaps that will resolve what is arguably an identity crisis in the market.

However, the company goes on to maintain, “The Audi Q8 e-tron and Q8 Sportback e-tron are immediately identifiable as fully electric models, marked out by the new front and rear designs that carry Audi’s electric design language forward.”

There it may be a bit misled. The whole “immediately identifiable as fully electric models” is more than a slight exaggeration.

It was probably that sort of thinking that led Audi marketers to think back in 2018 that prospective customers would immediately know that the e-tron was an electric Q8 by another name.

Seems that that didn’t work out particularly well sales-wise.