The future of the automotive industry depends on two things: batteries and software. Unfortunately, GM spent most of 2023 floundering at both. Now, as it prepares to launch some significant electric vehicle models in an even more uncertain market, the company’s CEO Mary Barra says the biggest challenges of the Ultium revolution are in the past. That’s a bold claim, and we’ll respond shortly if she’s right.
Welcome back to Monday morning, you’re welcome Critical materials A roundup of what matters in the world of cars, technology and mobility. Also on deck today: Kia is also increasing its lineup of hybrid models, and a look at exactly what went wrong with Mercedes-Benz’s push for electric vehicles. (You can probably guess.)
30%: Has GM overcome Ultium’s quality issues?
Barra is confident the automaker is out of the woods on the worst of electric vehicle quality issues, Barra said in a new, expanded interview with . Detroit News. (The same interview in which she confirmed that GM’s hybrids would return to the US market in 2027.) Meanwhile, there are a lot of initial questions of “How hard can it be?” It seems like the position the automaker took early on by building cars centered around batteries and electric vehicles:
Last year, I actually started completely new lines with a completely new supplier that makes (battery) modules. We’re a company with a deep manufacturing background, but I think in hindsight, we should have been more focused on doing something that was relatively new to us in terms of cells but it’s behind us now, and these lines have grown, we’re right on schedule for what We said we would. It’s not an issue now.
A primer, if you need it: GM intended to launch a big future push for all-electric vehicles last year, but the rollout of several models — the Cadillac Lyriq, the Chevy Blazer EV and others — was delayed and deterred by production issues related to battery cells. And then the software problems. One InsideEVs writer was left stranded when a then-new Blazer EV installed itself on a fast charger. Since then, GM has addressed both issues, including the latter, through rigorous multi-region testing that spanned several months.
Let’s hope for GM’s sake that the worst is behind it, because it’s set to launch some important EV models soon: the Chevrolet Silverado EV RST and the Chevrolet Equinox EV, both of which you’ll see First Drive reviews and videos for this week and next on InsideEVs.
But there’s also the issue of electric vehicle demand in 2024; The price of the Equinox EV in particular seems to be a real hit. Will GM then be able to convince its customers to abandon the market, or will it face an oversupply and be forced to engage in drastic price cuts?
Barra hopes to avoid both:
As we move forward, we will build to order. We now have the capability: Factory Zero is up and running, Spring Hill is up and running, Ramos is up and running. With our electric vehicles, we’re going to make sure that we’re not overbuilding and managing our day-to-day supply because we believe we have desirable electric vehicles, and we want to make sure that we protect those vehicles from a pricing perspective, from a residual perspective, and not delving into what’s happened in other areas, and frankly, In some cases here, about quick write-offs because that really impacts your residual value and hurts the brand over a long period.
I don’t think any of the long-term investments GM has made in electric vehicle plants and owning its own battery supply chain are going anywhere, but the question is more about where it will put its focus in the near term.
60%: Kia also aims to produce more hybrids and PHEV models in the United States
But if you’re an EV advocate, you can’t help but feel frustrated with at least a few of these automakers. After a few mixed quarters of EV growth, many are starting to feel hesitant and are backing away from their big all-electric promises, turning to hybrids instead and talking about offering the customer “choice” until they are “ready.” It’s a big reversal from the big talk they all had a few years ago.
We can’t accuse Kia, or the larger Hyundai Motor Group, of lagging behind in the electric vehicle space. They make some of the best all-electric models in the world right now, and certainly some of the best on sale in America. But even Kia sees hybrid and plug-in hybrid powertrains as part of the equation more and more. Car News Reports from a new interview with Kia America’s COO Steve Center:
In a Cox Automotive study released last week, nearly half of all in-market car shoppers said they were not interested in electric vehicles, and 54 percent of the group, which is three to five years away from purchasing, cited a lack of charging stations as the No. 1 barrier. .
“People need to feel comfortable that they will not be stranded,” the center said. “We raised money, we built factories, we built cars, and now we are selling them, but the infrastructure had to be in place first,” he said.
Kia already has three electric vehicles in the U.S. — the Niro EV subcompact, the EV6 compact car, and the EV9 three-row crossover. The affordable EV3 small crossover is expected to go on sale in mid-2025.
“We have many early adopters of electric vehicles already, so now we have to reach out to people who are intellectually curious and a little bit risk-averse,” Senter said.
There are a lot of myths about electric vehicles in this section above, and you certainly can’t count on car dealers to help dispel them. Once again, Kia does more than most; Kia’s EV3 debuts this week, and it could be a real game-changer for the industry.
But as automakers face tightening fuel economy and emissions rules everywhere, hybrids will be the way to stay in the game:
Kia is working on a new hybrid powertrain that will come in two sizes — small, medium and large — that will improve power, torque and fuel economy over the current system.
“A lot of our hybrids are very small turbocharged engines, which perform great, but the bigger engine probably doesn’t need a turbocharger. You just want a bigger hybrid,” Senter said, adding that a car like the Telluride needs more power.
Kia’s popular Sportage compact and mid-size Sorento crossovers offer a hybrid and PHEV model, and the Niro subcompact model only comes with electric powertrains: hybrid, PHEV and EV.
The center did not reveal whether the famous Telluride was being considered for a hybrid powertrain. But he said it will get a new chassis for the next generation. Many dealers say customers often ask for a Telluride hybrid.
You have to admit, the Telluride hybrid would probably sell like crazy.
90%: Was the Mercedes EQS a historic failure?
One automaker with real “we haven’t tried anything, we’re all out of ideas” power is Mercedes-Benz, which appears to be in EV retreat mode after buyers didn’t warm up to those EQ cars the way they once expected.
Well, maybe that’s unfair. Mercedes remains a leader in software, Level 3 automated driving assistance, and is taking steps to build a better charging network itself. but Bloomberg He examines why the EQS sedan struggles, in particular:
The spacious S-Class limousines have been transporting political and business leaders for decades, and are particularly popular among Chinese elites. However, Mercedes has opted for a less boxy design for the EQS, which is built on technical foundations developed specifically for electric cars. Not only will the curved silhouette – which the company has immodestly compared to a bullet train and critics have dubbed a “jelly bean” – will reduce air resistance and thus enhance efficiency and driving range, but the EQS will also be clearly differentiated from combustion-engined vehicles. Mercedes even sacrificed the traditional three-pointed star on the hood, instead incorporating the badge into the stylish black radiator panel.
In hindsight, these were poor design choices. Pampered Mercedes customers are not so much bothered by the driving range and aerodynamics as by the opulence and having enough room to relax in the rear seats, which critics say the coupe-like rear fails to provide.
(…) However, luxury automakers won’t convince more consumers to switch to electric cars unless they also fix their terrible residual values. The cost of buying a one-year-old EQS is approximately 48% less than the average new price, according to a study by US car search portal iSeeCars. This is the worst of any vehicle analyzed.
I think the main part is this:
I’m certainly not suggesting that Mercedes and its peers should slow down the pace of innovation – given the rapid progress that Chinese rivals are making, they need to move even faster – but they should tread carefully when electrifying popular models to avoid frustrating reluctant customers and compromising their legacy.
exactly. Mercedes can’t take the lukewarm receptions for these cars to mean that customers don’t want electric cars, or that it could base its future on internal combustion — a technology that the automaker internally seems more reluctant to give up than others. But they need better designs, and the updated EQS is kind of putting lipstick on a pig.
I’m still very partial to the EQE sedan, but I’m regularly told by my staff that this is “one of my worst” and “please shut up.”
100%: Are plug-in hybrids really the solution?
As I’ve written here before, I’m pro-hybrid. If you want to reduce emissions and gas usage, and perhaps don’t live in an area that has enough public charging yet, they are an excellent option. I’m a little skeptical of this big bet on plug-in hybrid electric vehicles (PHEV) in particular. Will people actually deliver?
The best case scenario is a significant increase in Level 2 and home charging for these cars as they grow in popularity. Instead, I’m afraid people won’t charge them, and that will lead to more gas usage and emissions from engines having to carry dead batteries. what do you think?
Contact the author: patrick.george@insideevs.com
