JLR – Page 945 – I wish I had more to offer

Could buying ride-share app help secure JLR’s future?

“ Reeling from a £3.4bn quarterly loss, Jaguar Land Rover is sniffing around ride-share app Addison Lee. Is this what automotive manufacturers need to do to grab a piece of burgeoning ride-share market? The market for car-sharing is growing – image courtesy of Depositphotos. London’s second biggest taxi provider, Addison Lee, has been put up for sale by its… Continue reading Could buying ride-share app help secure JLR’s future?

Lotus to make ‘first electric British hypercar’ ever

“ Lotus has confirmed its plans to make its first all-new production car since 2008, the Type 130, which it is hailing the ‘world’s first electric British hypercar’. What does this mean for Britain, electrification and the automotive industry? Lotus will unveil its electric hypercar later this year in London – image courtesy of Lotus.… Continue reading Lotus to make ‘first electric British hypercar’ ever

Peugeot signals openness to deals after JLR report

The logo of Tata Motors is pictured at at the 37th Bangkok International Motor Show in Bangkok, Thailand, March 22, 2016. REUTERS/Chaiwat Subprasom/File Photo LONDON/PARIS (Reuters) – PSA Group said on Thursday it was ready to consider potential tie-ups, after the French carmaker’s shares briefly rose on a report that it was in advanced talks… Continue reading Peugeot signals openness to deals after JLR report

AAA study finds Americans warm to electric vehicles, but most aren’t ready to buy — at least not yet

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Americans aren't ready to buy electric vehicles and don't think their neighbors are either, according to a new study by AAA.

That said, as many as 40 million Americans say they will at least consider a battery-electric vehicle, or BEV, for their next vehicle, the automotive group found. And the public may be more interested in battery-based vehicles as a flood of new models comes to market, but only four in 10 people believe that the majority of vehicles will be electric by 2029. The majority of Americans actually expect that most new cars will be able to drive themselves within the coming decade.

“Today, more than 200,000 electric cars can be found on roads across the country as almost every manufacturer sells them,” said Greg Brannon, AAA's director of automotive engineering. “But, like other new vehicle technologies, Americans don't have the full story and that could be causing the gap between interest and action.”

Battery-based vehicles of all forms, including conventional hybrids, plug-in hybrids and BEVs, accounted for barely 5% of the American new car market last year. But plug-based models, BEVs in particular, saw sales roughly double, according to industry data. And the numbers are expected to continue growing rapidly as more long-range offerings, such as the Audi e-tron crossover, the Tesla Model Y SUV and the Porsche Taycan sports car come to market. By mid-decade, industry analysts such as LMC Automotive anticipate well over 100 options for potential buyers.

But the AAA study shows that Americans haven't been keeping up with the rapid rate of change reshaping the electric vehicle market, including the shift from first-generation models barely capable of running 100 miles on a charge to new and updated offerings that are now approaching 400 miles per charge.

“Many consumers are not sure what to expect from an electric vehicle,” a summary of the AAA report found, such as what sort of conditions typically yield the best range. As with hybrids like the Toyota Prius, electric vehicles can recapture energy lost during braking and coasting, which means they actually do better in stop-and-go traffic than on the highway – the opposite of what's true for conventional, gas-powered vehicles.

There remains plenty of confusion about what electric vehicles can and can't do, and not only in the United States. A survey of British motorists last year found 42% saying a BEV can't be driven through a car wash. It can. Some new models, like the Jaguar I-Pace, can even ford moderately deep levels of water.

The AAA study found that a growing number of Americans are at least considering BEVs and other electrified models, with millennials at the forefront. Other findings show:

Sixteen percent of those surveyed said they are likely to buy an EV next time they shop for a new vehicle.Concern about the environment is the primary motivator, cited by 74% of those surveyed; lowering vehicle operating costs is mentioned by 56% of those surveyed.There are fewer worries about the traditional obstacles to widespread adoption. The study found 11% fewer respondents pointing to a lack of places to charge up than raised that concern in a 2017 study.Significantly fewer respondents pointed to higher purchase prices and repair costs than in the 2017 AAA study.

Limited range, higher costs and the lack of a public charging infrastructure are traditionally seen as the key obstacles to mainstream adoption of battery-electric vehicles. But a number of new models now cost under $40,000. And the AAA found 44% of buyers would be willing to pay up to $4,000 more for an electric vehicle than a gas model, with 23% willing to pay even more of a premium.

A potential selling point is that the range of the second-generation models now coming to market routinely top 200 miles. Tesla is now offering an extended-range pack for its Model S sedan capable of 370 miles.

Concerns about charging nonetheless remain a major issue, with six in 10 of those surveyed raising that issue as a reason they are unlikely to buy, or are unsure about buying, a BEV. Fifty-seven percent said they think electric vehicles aren't suitable for long-distance travel.

Public charging is still limited, especially in the middle of the country, but companies including ChargePoint, EVgo and Electrify America plan to invest billions over the coming decade to fill that gap. And the latest versions of their high-speed Level 3 chargers are capable of delivering as much as 20 miles of range per minute, meaning a “fill-up” can be cut to around 10 minutes on some vehicles, roughly matching what it takes to fill a gas tank.

“These vehicles are a big part of the future of transportation since self-driving cars, when they do arrive, will likely be electric,” AAA's Brannon said. “The difference, of course, is that electric vehicles are already here (and) have become an even more viable option for many Americans.”

Tesla Thanks VW

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Published on May 8th, 2019 |

by Maarten Vinkhuyzen

Tesla Thanks VW

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May 8th, 2019 by Maarten Vinkhuyzen

Today was another exiting day for the electric drive aficionados. Volkswagen presented its ID. sub-brand to the world, with the first model, the ID.3, ready for reservation. The times that VW was short for VaporWare are over.

My colleagues are covering everything there is to say about today’s announcement from a VW perspective. This article is about the impact on the competition.

Who are the competition? We have seen announcements from PSA about the Peugeot e-208 — and its siblings for the Opel, Citroen, and DS brands. We expect the Renault Zoe and Nissan Leaf to become mature with larger batteries and usable DC fast charging. In the upper regions of the market, the Jaguar I-PACE, Audi e-tron, Mercedes-Benz EQC, Polestar 2, and Porsche Taycan are all trying to get a piece, and the 900 pound gorilla out of Fremont, California, is extending its market to the rest of the world.

What the competition is not doing (yet) is launching a big marketing campaign. This afternoon’s presentation will be a big news item on the evening news in much of Europe, followed by repeated segments on all the mobility and auto shows on television and numerous articles in the car segments of major newspapers and in auto magazines.

What VW is doing with this introduction of its ID. sub-brand is giving electric cars a seal of approval that no other carmaker has provided. It is not that VW has something new for a few enthusiasts (most of you reading this). However, VW is saying that electric vehicles will replace their fossil fuel models in the coming years, likely in the next decade, and transfers the story we enthusiasts know so well to the broader public. VW is clearly all-in, which means a lot more to the average Joe (or Jürgen) than Tesla predicting the industry will go electric. It also means a lot to all of VW’s conventional auto industry colleagues.

Thank You, VW
The impact on the competition can go two ways in the eyes of many critics and followers. Those who see the electric car space as a limited space will argue that VW will push the competition to the margins. VW will crush the ambitions of PSA, Renault, Nissan, and most of all Tesla, according to these people. The competition is here — go home, Tesla. No doubt Seeking Alpha and Wall Street will see this as another sign of the coming demise of the upstart from California.

The market researchers who see the auto market as one market where all powertrains are competing for a bigger slice think differently. The battery electric powertrain is still mostly unknown and misunderstood. The biggest problem is still convincing customers that fully electric cars are real cars, better cars. Able to do everything one expects from a normal car, but better.

This media campaign by VW will not only sell a lot of ID.3 cars all over Europe. It will also sell a lot of Leafs, Zoes, e-208s, i3s, Konas, Niros, and most of all, very many Tesla Model 3s. It is the perfect example of a rising tide lifting all ships.

The competition in the luxury segment from Jaguar, Audi, Mercedes, and Porsche is mostly sold out for over 12 months. Some have stopped taking new orders. It will be frustrating for automakers to see this tide wash away fossil fuel sales without having the capacity to profit with their own new electric offerings. The interest VW is generating can only be turned into orders by Tesla, because it’s the only company with the production capacity and maturity to profit right now from this rising tide.

It is great to be the only one that can deliver in volume when the competition starts a media campaign. Tesla (investors) must thank VW for this present. Other automakers in the top half of the EV market — Renault, Nissan, Peugeot, Hyundai, and Kia — should also thank VW for the long-term benefit, for the extra demand and interest they get from VW’s public push.

Editor’s note: One thing I found interesting from the Q&A after the presentation was that journalists repeatedly referenced Tesla without saying “Tesla” — but everyone knew what company was being referenced. Something I learned long ago in a sociology class was that unspoken shared assumptions are often the most powerful — they are so clear that no one has to speak them. It is clear that Tesla is setting the high bar for this competition. And not only were the questioners clearly referencing Tesla — many of the highlights of VW’s presentation were essentially VW’s copies of what Tesla had done, what Tesla had shown consumers like and want.

This is, honestly, not a knock on VW. To the contrary, I think it’s very big of VW and a sign of strong long-term vision that the gigantic company swallowed its pride and rolled into its doors and policies numerous lessons it learned from Tesla. Sure, it threw some shade here or there to try to place its evolution a foot above Tesla’s. Perhaps that fooled some people, while it surely didn’t fool others, but much more important than that is that the company has studied Tesla and is trying to be flexible, innovate, and evolve quickly in order to try to maintain its position on top of the world’s auto market (in terms of sales). The journalists recognized the similarities, felt confident getting up and asking questions about other puzzle pieces that were lacking or didn’t match Tesla’s example, and Mr. Stackmann politely and graciously answered the questions to — I think — honestly explain where the company thought it was smart to copy Tesla and where the company thought it was smart to do something else — without mentioning “Tesla.”

In the end, we’ll see how the automaker’s approach serves the German giant. We’ll also see if the departures from Tesla’s path are smart or are strategic mistakes. To me, though, VW’s new focus is long-delayed (very long-delayed) leadership, the kind of honest leadership that does not pretend to invent the wheel but instead learns from prior leaders. And the good news, as Maarten insightfully shows us, is that it will push less thoughtful, less humble, less ambitious, less in-need-of-a-brand-revival fossil automakers to follow the growing excitement down electric avenue.

About the Author

Maarten Vinkhuyzen Grumpy old man. The best thing I did with my life was raising two kids. Only finished primary education, but when you don’t go to school, you have lots of time to read. I switched from accounting to software development and ended my career as system integrator and architect. My 2007 boss got two electric Lotus Elise cars to show policymakers the future direction of energy and transportation. And I have been looking to replace my diesel cars with electric vehicles ever since.

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The first Chinese automaker sets sights on US with start-up Zotye taking on big rivals in Detroit

The Zotye Auto debut at Shanghai auto showH/O: Zotye AutoWhen Guangzhou-based GAC Group rolled out a concept vehicle at the North American International Auto Show last January it was just the latest among a procession of Chinese automakers laying out plans to enter the American car market.
To date, however, the only Chinese-made vehicles to reach U.S. shores have been imported by General Motors and Volvo. But Zotye Auto, a small, privately held carmaker from Yongkang, Zhejiang, China, is determined to be the first domestic Chinese car company to reach American shores — and in as little as 18 months from now.
With a name that few Americans will likely know how to pronounce — it's Zoh-tee, not Zot-yee — a small budget and even less brand equity than bigger Chinese brands like BYD, Geely or Great Wall, there are plenty of skeptics. Americans “have a bad perception of Chinese vehicles, overall” cautioned Augusto Amorim, a senior analyst with LMC Automotive. And Zotye is particularly unknown, he said.
But the team of industry veterans who are leading the Zotye launch effort are confident they can pull it off, including seasoned salesman Duke Hale, 69, who sold his first car as a teenager and has spent decades working with automakers as diverse as Isuzu, Lotus and Land Rover. Hale said he's confident his “seven Ps” strategy will clinch the deal.
The list includes such things as “processes,” as well as “product.” The first model expected to enter Zotye's U.S. line-up debuted barely a month ago at Auto Shanghai. The T600 is a compact crossover that will be aimed at the likes of the Toyota RAV4 and Honda CR-V. It will be followed in 2022 by the midsize T700 crossover and, about a year later, by a three-row model.
The Zotye Auto debut at Shanghai auto showH/O: Zotye AutoBut while the T600 has generated some positive press, Hale believes the brand's biggest selling point will be “price.”
“Think in terms of 20% less than the targeted competition,” notably including the likes of Hyundai, Kia and Toyota, Hale said over dinner with journalists at the Detroit Renaissance Center on Thursday night.
That's an even bigger discount than Hyundai offered buyers when it came to the U.S. market 30 years ago — and with a name that was equally baffling to American consumers. And it would come at a decidedly opportune time, industry officials like Joe Hinrichs, Ford's president of automotive operations, have openly worried about the rising cost of today's new vehicles. The average sticker price of a new car hit a record $34,000 at the beginning of the year, according to data compiled by industry research company LMC Automotive.
Industry observers note that translates into a typical monthly payment of around $550, enough to price millions of potential buyers out of the market, especially millennial and Gen-Z motorists, many already straining to pay off student loans.
Jan Thompson, a former marketing executive with Mazda and Toyota who's now handling that role for Zotye, believes the Chinese brand's primary buyers will be young shoppers who don't want to buy a used car. But with an estimated 42 million used vehicles sold in 2019, nearly three times more than new, customers could come from every market demographic, she said.
2019 Honda CRV with camper tent accessories.Adam Jeffery | CNBC “I tell my neighbors in Tennessee I'm going to sell a Chinese car and they all say they're not interested,” she said. “Then I tell them the price and they all ask where they can sign up.”
Unlike Hyundai, Kia and the many new automotive start-ups coming on the scene, Zotye won't actually run the show, if and when its cars come to the U.S. The marketing operation actually lifts a page from the strategy several Japanese automakers used in decades past when they tried to pry open the door to the U.S. market. Subaru, Mazda and even Toyota initially relied on independent American distributors — the Japanese giant still represented by one in a number of Southern states.
Hale's HAAH Automotive Holdings negotiated a deal to import and distribute Zotye's products in the U.S., a plan the Chinese carmaker was more than glad to accept, he said, considering it currently has capacity to build 1.2 million vehicles annually but only sold about 400,000 last year.
The arrangement gives HAAH plenty of flexibility and, in fact, “There are probably more brands to be announced in the future,” he said Thursday, suggesting his privately held company is negotiating with several other Chinese wannabe exporters.
Of course, the real question is whether HAAH will get past the bright idea stage. There have been plenty of attempts to set up new brands in the U.S. over the past 20 years but only Tesla has so far succeeded. Notable failures include India's Mahindra & Mahindra which even had lined up a network of dealers, early in the decade, before throwing in the towel.
The good news for HAAH and Zotye is that they claim to be generating strong interest from dealers, with several dozen now signed on representing 60 “points” in 15 states, and negotiations are well underway with about 20 others, according to sales chief Bob Pradzinski, who has spent decades working for Asian automakers including Hyundai, Mazda and Toyota.
What might surprise buyers is that despite record new vehicle prices, the typical automotive retailer loses about $331 for every car, truck or crossover they sell, according to the National Automobile Dealers Association. They have to try to make that up by pushing finance, insurance and service.
Hale and his team is trying to make it easier — more profitable — for dealers. Zotye plans to use a “no haggle/no hassle” approach to pricing, like Saturn. And dealers will be offered large geographic franchises in which they could set up multiple outlets. That could include showrooms in malls, something Tesla has done.
Hale and his team acknowledged there are plenty of potential obstacles, like meeting U.S. emissions, mileage and safety standards, for one. The trade war between the U.S. and China is also an issue, although Hale said he's confident it will be resolved well before the first Zotye is ordered in the U.S.
“They seem serious about getting into the market and are clearly trying to understand what buyers want,” said analyst Amorim. While it will likely be a challenge for any Chinese makers, especially in a market already crowded with so many brands, he believes Zotye and HAAH could “have a higher chance of being successful” if they can execute the plan Hale and his team have put together.

Mercedes-Benz EQC Electric SUV Now In Production

The Mercedes-Benz of electric vehicles is ready for launch. Mercedes-Benz EQC just entered production in Bremen, Germany where it is assembled along with the conventional C-Class Saloon and Estate, as well as the GLC and GLC Coupé. Later this year, production will be launched in China too in partnership with BAIC, by joint venture Beijing… Continue reading Mercedes-Benz EQC Electric SUV Now In Production

China’s Lithium Supply Lets It Far Outstrip U.S. In Cell Production

That may give China’s EV manufacturers an edge, too As the U.S. president pushes for more things to be built in his country instead of China, the push to build electric vehicles there comes as the rush for batteries persists. And China holds the lead in lithium supply over the U.S. According to Bloomberg, both… Continue reading China’s Lithium Supply Lets It Far Outstrip U.S. In Cell Production

India: Ratan Tata invests in ride-hailing giant Ola’s electric vehicle arm

May 6, 2019 Ola Electric Mobility, the electric vehicle arm of Indian ride-hailing giant Ola, has raised an undisclosed amount in funding from Ratan Tata, chairman emeritus of Tata Sons, it announced on Monday. The investment is part of the company’s ongoing series A round of financing. In March, the electric mobility arm announced that… Continue reading India: Ratan Tata invests in ride-hailing giant Ola’s electric vehicle arm

Fiat Chrysler CEO Eyes Peugeot’s Electric Car Platform

A Fiat based on a little electric Peugeot makes for an interesting proposition With its electric vehicle push only just beginning to take shape, Fiat Chrysler Automobiles could be looking to other automakers to help it catch up as tougher emissions regulations start to take hold. FCA CEO Mike Manley said Friday in an investors… Continue reading Fiat Chrysler CEO Eyes Peugeot’s Electric Car Platform