A new report from Bloomberg states that by 2022, there will be 50 new electric vehicles available on sale as part of automakers’ goals for cleaner transportation. General Motors is part of this group and has recently announced a plan to introduce two more EVs within 18 months and sell 20 new all-electric models by 2023. Dyson, yes, the vacuum cleaner maker, is also jumping in with its intention to make an electric vehicle and batteries.
One reason for the EV push is government regulations in California that require automakers to make EVs or buy credits from the competition, in addition to China’s EV production mandate. Erich Joachimsthaler, CEO and founder of Vivaldi, a brand strategies firm, told Bloomberg that government regulations and Tesla are forcing the world’s big automakers to make electric vehicles. However, losses are looking massive for automakers because consumers haven’t yet embraced electrification and the costs of battery tech remain high. General Motors, for instance, loses $9,000 for every Chevrolet Bolt EV sold, according to Bloomberg. The U.S.-market Fiat 500e, on the other hand, causes FCA to lose a whopping $20,000 a pop. FCA CEO Sergio Marchionne confirmed this figure in a speech on Monday.
Prices for lithium-ion batteries, however, are expected to come down with GM indicating that it now costs it $145 per kilowatt hour. The goal is currently to get that price below $100 per kWh. Bloomberg New Energy Finance expects that battery costs will drop to $109 per kWh in 2025 and $73 per kWh by 2030, which should help electric car sales overtake those of internal combustion engine vehicles.
China, in particular, is a major reason for the continued push toward all-electric vehicles after it announced that it will ban combustion vehicles by 2030. Marchionne points out in an interview with Bloomberg that legacy automakers could be left behind and that they have to speed up decision making in order to keep up with new players. He also believes that automakers need to be open to whatever technology wins out in the future.
The long list of electric vehicles coming in the next few years includes Audi’s e-Tron Quattro, the Porsche Mission E, an all-electric Mini hatchback and BMW X3 crossover, Mercedes-Benz’s lineup of EQ models, Tesla’s small crossover said to be called the Model Y, and Volvo models made from 2019, all of which will be offered only as hybrids, plug-ins, or EVs.
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