Showing posts with label ford. Show all posts
Showing posts with label ford. Show all posts

Wednesday, December 16, 2020

The US Automotive Market From a Global Perspective

Before Tesla, there were only 3 major American automakers: General Motors, Ford and Chrysler. Apart from some very small companies, every other automobile manufacturer in the US had either gone out of business or been bought up by one of the Big Three. And even Chrysler had been owned for a while by Daimler-Benz, turning the American Big Three into a Big Two. Chrysler is an independent, American-based entity again, and the Big Two became the Big Three again. 

The inability of any other corporation to challenge the Big Three led many to predict that Tesla wouldn't last, and some, although fewer, are still predicting that Tesla will either go broke or be bought out by one of the Big Three. Also, many people give other new American automakers such as Rivian, Bollinger and Lucid little chance of surviving. Some disagree, saying that EV's have changed the game, as demonstrated by Tesla. To that, some reply that the game is still making automobiles and that it hasn't changed all that much, despire Tesla having made a huge splash.

If we change our focus from the US to the global automotive industry, suddenly things are much more complex: there are currently more than 50 different countries who each have their own indigenous automobile brands. I'm not talking about all of the countries where automobiles are manufactured, because a company based in one country will very often have manufacturing plants based in other countries. If we count every country where there is an automobile factory, the count goes well up into three figures. No, what I mean is that more than 50 different countries have their own independent companies making their own separate brands of automobiles.

That number might seem very high to some Americans, because most of those countries have never tried to import cars to the US. From the 1980's to the present, the only countries who have imported cars to the US in large numbers have been Japan, Germany, France, Italy, South Korea, the UK, Sweden, Czechoslovakia/the Czech Republic and the former Yugoslavia. In the 1980's both Yugo from the former Yugoslavia and Hyundai from South Korea began importing automobiles into the US. At first, both brands, while undercutting every other automaker in the the US in price, were also very inferior in the quality of their products. Yugo disappeared again from the US market, while Hyundai improved its product quality to an amazing degree in a remarkably short time and are now thriving in the US along with their South Korean subsidiary KIA.

China's enormous automotive sector will very soon be trying to make a go of it in the US, with three brands importing cars: XPeng, Nio and Kandi. The US imports from these companies will be electric only. And other Chinese brands will be following, most likely importing EV's only. 

It seems that the whole wide world is in love with crossovers and SUV's. I'm not. But apparently the whole world is. In India, wealthier customers have been buying the same cars as wealthy people elsewhere: Rolls Royces, Mercedes, BMW's, Jaguars and so forth. They've been buying the same electric SUV's, The Jaguar I-Pace and the Audi e-tron. But there's a brand-new all-Indian electric SUV, the Tata Nexon EV, 


 

and the Indian automotive press is going more than a little bit nuts over it. Reviewers say it's just as good as the I-Pace and the e-tron, some say it's better. There's obviously a lot of Indian patriotic pride here over a domestic product which can stand comparison with the finest luxury SUV's in the world, but there's obviously also a very special new vehicle here. 

And although I haven't heard anyone else say anything about it, I have wondered whether Tata might bring the Nexon EV to the US, as the first Indian attempt to enter the US automotive market.

Wednesday, June 3, 2020

Rivian, Electric Vehicle Manufacturer

There is a community of electric vehicle enthusiasts on the Internet -- we refer to electric vehicles as EV's, and we call conventional vehicles ICE, which stands for internal combustion engine -- and next to Tesla, the EV company which which is generating the most excitement in the EV community may be Rivian. Rivian was founded in 2009, and it hasn't sold any vehicles yet. The R1T,


a pickup truck, and the R1S, an SUV, are scheduled to go on sale in 2021, or at least that was the schedule. I don't know whether the coronavirus pandemic will delay the debuts of the R1T and the R1S.

Some of you may be thinking that it is taking Rivian an awfully long time to actually start selling, but the thing is, it generally takes a very long time for large automotive companies to get started. For example, Tesla was founded in 2003. The Tesla Roadster and Model S, both made in relatively limited quantities, were introduced in 2008 and 2012, respectively. The Model 3, Tesla's first truly mass-produced vehicle, was first delivered to buyers in 2017.

Speaking of Tesla, Rivian has been making headlines by hiring former Tesla employees, but, according to this story from electrek from July 2019, Rivian had by that time hired more employees from McLaren, Ford and Faraday Future, an EV startup which has been having financial problems.

Speaking of Ford, Rivian has received a large financial investment from Ford, which has announced that it plans to manufacture electric trucks of its own using Rivian's platform. That same platform will also be available to other automotive manufactures who want to make their own EV's around it.

Speaking of large investments in Rivian, Amazon has invested over half a billion dollars in the company, and committed to buy 100,000 of their vehicles by 2030.

I'll give you a moment to shake off being stunned by the news that Amazon signed a contract to buy 100,000 vehicles from one company. Yeah, Amazon is big.

All set? Okay, onward -- obviously, Rivian is also moderately big solely by virtue of that deal with Amazon, and the deal with Ford is also huge, both for the money involved and for the fact that Ford will be building electric Ford trucks based on Rivian platforms. But another big factor in the excitement in the EV community about Rivian is that some people who write or make videos about EV's full-time have seen Rivians up close at car shows and been very impressed, and a privileged few have taken test drives and been very, very impressed, and some have announced that they're going to buy their own Rivians.

Suggested retail price? Something like $65-75,000 and up, depending on the options. Wait, wait, come back! Remember I just told you about Amazon committing to buy 100,000 of these? Is Amazon known for losing money? No. You save a lot with an EV, compared to ICE, in fuel and maintenance costs. A lot. And more, the more miles you drive. Before you just walk away, saying that EV's cost too much, without actually doing all of the math including the expenses of running an EV compared to running an ICE vehicle, ask yourself again, very seriously: is Amazon known for losing money? And while you're at it, look into all of the other large companies, and governments and so forth, who are buying EV's. (Not to mention all the utility companies building huge solar and wind installations.) Oh, they're all schmucks? Yeah, sure they are. They're the schmucks.