Analysts keep discussing an EV revolution, but it will require readily available, affordable cars. Will vehicle production surge high enough to really change how Americans drive?
The short answer is “Yes.” Let’s review efforts manufacturers are making to boost production, sorting them into three distinct groups.
These manufacturers have made bold monetary commitments and/or promised to go all-EV by the next decade.
Ford is investing $29 billion in development through 2025, and company leadership hopes their EV commitment will be as transformative for Ford and America as the Model T was. They already offer the Mustang Mach-E, F-150 Lightning, and an array of commercial vehicles. Their goals? Two million EV’s per year by 2026, and an all EV fleet by 2035.
Jaguar Land Rover will take all Jaguars electric in 2025 and cease all diesel sales by 2026.
Mercedes-Benz is investing $47 billion and building 8 battery “gigafactories.” Currently they’re rolling out 10 new models, including 8 E-Class EV’s. All newly-launched models will be EV’s starting in 2025, with an all-EV fleet by 2030, depending on market conditions.
Nissan had great success with the Leaf but has introduced few other EV’s. They will invest $18 billion, introducing 15 new EV models by 2030, hoping to have at least 40% of their sales be EV’s by that point.
Stellantis is not a household name, but you’ve heard of their brands: Alfa Romeo, Chrysler, Dodge, Jeep, Fiat, Peugeot, Citroen, and Maserati.
Chrysler was slow to commit to major EV targets but will now go all-EV by 2028. Stellantis is investing $28.2 billion to increase production and develop 4 common chassis designs and two new nickel-based batteries for use by all their brands. By 2030 they will build 5 million EV’s a year, and EV’s will make up 50% of their U.S. sales.
Tesla has been an EV-only manufacturer and innovator since its inception and is making bold changes while weathering multiple storms. They’ve lowered prices across the board (up to 20% on some models) to keep their position as a leader in EV sales and increased market penetration. Their Cybertruck will launch this year, reaching full production in 2024. Tesla is also working to lower costs and develop a wider range of vehicles.
Toyota is going even bigger, investing $70 billion, including $2.5 billion for a battery plant in North Carolina. This may reflect fears they’re falling behind despite the success of the Prius. By 2030 the Lexus sub brand will be fully electric, and Toyota will produce 3.5 million EV’s annually.
Volkswagen Group—which makes Audi, Bentley, Bugatti, Lamborghini, Porsche, and Volkswagen—has promised a stunning 70 EV’s and 60 hybrids by the end of the decade.
GM (home of Buick, Cadillac, Chevrolet, and GMC) and Honda have big dreams and investments—$27 and $40 billion respectively—and are sharing technology, factories, and will even produce a joint SUV model, the 2024 Prologue.
GM hopes to lead the way among American manufacturers by converting its fleets to EV’s on an ambitious timetable. Honda aims for a full range of EV’s by 2027 which cost the same as gasoline models. Both will use GM’s Ultium battery technology and produce cars at the same North American factories.
The 2024 Electra will be the first electric Buick, and even the Chevy Corvette is going hybrid this year, with an E-Ray electric version on the way. An electric Silverado truck will take on the F-150 Lightning.
Hyundai is strongly committed, with an all-EV sub brand (Ioniq) and EV’s in their consumer Hyundai and luxury Genesis fleets. They’re also helping Kia electrify their fleet.
Kia will introduce 14 EV’s by 2027, and Hyundai will offer hydrogen fuel-cell vehicles this year and 11 new Hyundai and 6 new Genesis EV models by 2030. Together they will produce over 3 million EV’s annually by 2030.
The Later Innovators
BMW entered the EV market early with the 2014 i3 compact hatchback but hasn’t made bold new commitments. They do offer a number of EV’s and will introduce a dozen new models by 2025.
When it comes to U.S. EV sales for big name manufacturers, Mazda is currently at the back of the pack, but is doing the work to catch up. They’re spending $18 billion on EV development and launching multiple models in the near future.
Subaru currently has one EV model, the Solterra SUV, but all Subaru models will be hybrid or EV by mid-decade.
Volvo only entered the EV market this year but did so with a bold commitment to build only EV’s by the end of the decade. They are concentrating on launching a small number of SUV models and a sedan and will dramatically increase production capacity at their 2.3 million square foot plant in South Carolina.
Could you use some advice on the what, why, and how of fleet conversions, EV adoption, and charging stations? We have experts on hand who are ready to help. Get in touch with Thayer Energy Solutions at 815-282-1112 today, and together we’ll find the best ways to profit from this revolution.