Electric cars

GM and Honda want to sell electric cars at low prices

At one point during Tuesday’s conference call, a reporter asked for a definition of the word “affordable.”

The question was posed to Ken Morris, executive vice president of electric, autonomous and fuel cell programs at General Motors. (GM) – Get General Motors company reportand Rick Schostek, executive vice president of corporate operations at American Honda (HMC) – Get the report from Honda Motor Co. Ltd..

millions of cars

The two leaders had announced that their companies would develop a series of affordable electric vehicles based on a new common platform, enabling the production of millions of cars from 2027.

Morris said the vehicles should cost less than $30,000, which would make them cheaper than most electric vehicles on the market.

The average price for a 2022 Chevrolet Bolt starts at $31,995, but the future of this mainstream electric vehicle is somewhat clouded, given the Bolt’s low number of deliveries last year.

The Ford F Electric Mustang is $43,895 and Volkswagen ID. 4 starts at $41,230.

Several commentators dismissed automakers’ plans for an electric vehicle under $30,000.

“GM and Honda will never produce enough electric vehicles in the next 5 years to bring the price down below $30,000, and if they do, they will lose thousands on each one they sell,” said a person. tweeted.

“Road to bankruptcy”, another commentator declared.

“I too will have developed a low-cost electric car by 2027”, another mentioned. “Please, please buy my stock!”

But another commentator said the collaboration was “logical”.

‘EV Engineering Prowess’

“Bringing together the EV engineering prowess of Honda and GM,” the person tweeted. “They’ve both done so well on their own, how can adding two teams like this not benefit both of them?”

You’re here (TSLA) – Get the Tesla Inc report is the electric vehicle maker that other automakers chase like greyhounds chasing an electric rabbit.

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Last month, Tesla announced price increases across its entire vehicle lineup, with CEO Elon Musk Tweeter that the company “sees significant recent inflationary pressure in commodities and logistics.”

The rear-wheel-drive Model 3 saw its price drop from $44,990 to $46,990, while the long-range version of the vehicle saw its price drop from $51,990 to $54,490.

Sticker price is a barrier for many consumers considering buying an electric vehicle, according to Cars.com, which found that 52% of Americans see cost as a significant barrier to buying a vehicle. electric.

Electric vehicles are gaining notoriety and popularity, Cars.com said, but actual purchases are lagging behind extremely limited supply and other factors, so electric vehicles make up less than 1% of vehicles in circulation.

Searches for electric vehicles on Cars.com have almost doubled since last year and increased by 173% from February 24 to March 25.

Cars.com said the war in Ukraine, the infrastructure bill, rising gas prices and the supply chain issue are among the issues that are piqued by consumers’ interest.

“Recent macro events”

“Recent macroeconomic events, including historic inflation, rapidly rising gasoline prices, and the debate over oil production and supply, have transformed consumers’ simple curiosity about electric vehicles to a unprecedented level of interest,” said Jenni Newman, editor of Cars.com. in a report.

The cost of batteries is a major factor in building electric vehicles, with electric vehicle manufacturers raising prices in response to rising inflation that has pushed the price of nickel, a key component of electric vehicle batteries, to record levels.

GM and Honda said they would seek to collaborate on future battery technology for electric vehicles “to further reduce the cost of electrification, improve performance and promote the durability of future vehicles.”

GM is working to accelerate new technologies such as lithium-metal, silicon and solid-state batteries, while Honda “is making progress on its all-solid-state battery technology that the company considers as the central element of future electric vehicles”.

Solid-state batteries are more stable and compact than lithium-ion batteries, which are used in most electric vehicles today.

Solid-state batteries are lighter, have greater energy density, provide longer range and recharge quickly, noted consumer intelligence firm JD Power.

Other automakers are pouring money into solid-state battery projects.

Ford (F) – Get Ford Motor Company reportand BMWs (BMW.DE) are investing in Solid Power, a solid-state battery startup in Colorado, while Hyundai has invested in SolidEnergy, a startup spun off from the Massachusetts Institute of Technology.

Panosonic said it would produce 4680 battery cells for Tesla. Although not solid state, the 4680 is about the size of a soda can.