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Electric Vehicle Manufacturing is Spreading - But Funded By SUV and Truck Sales (detroitnews.com) 236

Slashdot reader DevNull127 writes: GM plans to spend $35 billion on EVs and autonomous vehicles by 2025 (and produce a whopping 400,000 EVs). Jeep's parent company Stellantis will invest $35.5 billion in electrification and software, producing 25 all-electric vehicles by 2030. And Ford will spend even more — $50 billion on electrification — by 2026, while producing two million electric vehicles annually.

These are the statistics in the Detroit News, the top newspaper in America's top car-making city. They predict that by 2026 there'll be 180 different "crossover nameplates" in the electric vehicle market — although here's the most surprising statistic of all.

"The automakers are funding their EV investments with profits from SUVs and trucks."

Even with that, the senior auto analyst at Bank of America tells the newspaper that 25% of U.S. auto sales will be electric within just a few years.

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Electric Vehicle Manufacturing is Spreading - But Funded By SUV and Truck Sales

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  • Only 14% (Score:3, Insightful)

    by VeryFluffyBunny ( 5037285 ) on Sunday July 03, 2022 @06:54AM (#62669426)
    The US automotive industry produces around 10 million units per year so "a whopping 400,000" is just 4%. If the others produce similarly from their investments, calculated generously, that'd be around 14%. The automotive industry could do with a kick up the arse.
    • The automotive industry could do with a kick up the arse.

      I would have gone with a tazer to the balls but yes, I agree that they are dragging their feet.

    • It took Ford 150 months to produce 1 million Model T's. It took Tesla 143 months to produce 1 million of their vehicles. You don't just ramp new technologies up overnight.

    • TFA says Ford will make 2 million, that's 20%. And GM, 400 thousand. That's 24% in summation.That's a lot more than the 14% that you've claimed.

      That's not even counting Tesla, though I get the impression that you purposefully didn't want to include them because they don't represent the broader auto industry, which is true.
  • by gweihir ( 88907 ) on Sunday July 03, 2022 @06:58AM (#62669434)

    Seriously, can reporting get any more stupid? Yes, many people are assholes and buy SVUs. Yes, that creates profits. And yes, these get invested. So what?

    • Seriously, can reporting get any more stupid? Yes, many people are assholes and buy SVUs. Yes, that creates profits. And yes, these get invested. So what?

      I'm not sure why you got modded off topic; but your right. Companies use their cash cows to develop new products to meet a changing marketplace. Trucks and SUVs have huge margins compared to cars and fund car company ventures.

      • by gweihir ( 88907 )

        Seriously, can reporting get any more stupid? Yes, many people are assholes and buy SVUs. Yes, that creates profits. And yes, these get invested. So what?

        I'm not sure why you got modded off topic; but your right. Companies use their cash cows to develop new products to meet a changing marketplace. Trucks and SUVs have huge margins compared to cars and fund car company ventures.

        Yes, obviously. Apparently some moderators have not read the moderation guidelines....

  • by Anonymous Coward on Sunday July 03, 2022 @07:01AM (#62669436)

    There are hundreds of moving parts in the average engine of an ICE vehicle, along with sensors and complex software for air/fuel management and ignition control. In an EV you can replace all that junk with an electric motor that has precisely three moving parts (a rotor and two bearings) along with much simpler software.

    If anything car makers have been dragging out the changeover to EV vehicles - and it's all to recover the tooling and setup costs of their ICE production lines, logistics and dealer networks.

    • There are hundreds of moving parts in the average engine of an ICE vehicle, along with sensors and complex software for air/fuel management and ignition control. In an EV you can replace all that junk with an electric motor that has precisely three moving parts (a rotor and two bearings) along with much simpler software.

      People have been making internal combustion engined cars for over 100 years. From this experience they've been able to produce vehicles that are highly reliable, low cost, very safe, and so people have considerable confidence in what they are buying.

      If anything car makers have been dragging out the changeover to EV vehicles - and it's all to recover the tooling and setup costs of their ICE production lines, logistics and dealer networks.

      Automobile makers will make what sells. People aren't flocking to BEVs in part because of the stories of cars setting houses on fire while charging in a garage. People aren't going to pay the upfront higher costs on a new BEV while it is still an experimental

      • by Ksevio ( 865461 )

        Automobile makers will make what sells. People aren't flocking to BEVs in part because of the stories of cars setting houses on fire while charging in a garage. People aren't going to pay the upfront higher costs on a new BEV while it is still an experimental technology. Dealers aren't going to invest the money in the logistics if people aren't buying the cars.

        None of that is true of course, people ARE flocking to buy EVs to the point they're hard to find in a lot of markets because people know the technology works and aren't concerned about a fire issue in a previous generation of battery that affected a smaller percentage than fires in ICE vehicles do.

        PHEVs can work for some people, but they're not a great solution for the vast majority of consumers. Like you say, they're twice the complexity and cost with reduced battery sizes where the vast majority of consu

        • by Shaeun ( 1867894 )

          Automobile makers will make what sells. People aren't flocking to BEVs in part because of the stories of cars setting houses on fire while charging in a garage. People aren't going to pay the upfront higher costs on a new BEV while it is still an experimental technology. Dealers aren't going to invest the money in the logistics if people aren't buying the cars.

          None of that is true of course, people ARE flocking to buy EVs to the point they're hard to find in a lot of markets because people know the technology works and aren't concerned about a fire issue in a previous generation of battery that affected a smaller percentage than fires in ICE vehicles do.

          PHEVs can work for some people, but they're not a great solution for the vast majority of consumers. Like you say, they're twice the complexity and cost with reduced battery sizes where the vast majority of consumers could charge at home and never need to fill with gas. There are some that might not have charging infrastructure available or regularly take long trips, but those are a minority.

          I'm not sure why you think BEVs aren't gaining market share - they've been gaining pretty regularly for years now.

          The argument is that the Car makers are dragging their feet by n not swapping over all at once. Which is amusing, because Cadillac is going all electric in the next model year. The newest GM Trucks are all electric as well. There are gas models still because - Not everyone can get where they need to go in a day on 400 miles. Though, I guess you could load a generator in the trunk and use that to charge if you had to

          The uptake on these vehicles is exceptional, and the supply side issues will begin to rem

    • No they are not - perhaps not yet - it's the economy of scales for new technologies. But perhaps also cost of the materials for batteries.

      Ever wondered why so many EVs still use incandescent bulbs? LEDs lamps seems to be so much simpler to produce...(abstracting from technology they use).

  • by MyNameIsFred ( 543994 ) on Sunday July 03, 2022 @07:09AM (#62669444)
    I don’t think that funding it with money from trucks and SUVs is surprising. It’s well known that they are the most profitable segment for US automakers.

    https://www.motorbiscuit.com/f... [motorbiscuit.com]

    And as reported a couple years ago, sedans are so unprofitable that Ford stopped making them. https://www.vehiclehistory.com... [vehiclehistory.com]

    They’re funding it with money from trucks and SUVs because it’s the only money that they have.

    • by Pollux ( 102520 ) <speter@[ ]ata.net.eg ['ted' in gap]> on Sunday July 03, 2022 @07:28AM (#62669466) Journal

      Americans have become conditioned to believe they must have a truck or SUV for daily living, which is the worst vehicle to electrify. Those vehicles are so heavy and are so aerodynamically inefficient that you need a huge battery just to have the power to move the huge battery.

      If we wanted to save the planet, we'd all be driving electric sedans, which take 240 - 300 Wh of electricity to travel one mile [ecocostsavings.com]. Rivian's R1T needs 488 Wh to do the same [insideevs.com], and that's a light-duty pickup.

      • Americans have become conditioned to believe they must have a truck or SUV for daily living, which is the worst vehicle to electrify. Those vehicles are so heavy and are so aerodynamically inefficient that you need a huge battery just to have the power to move the huge battery.

        If we wanted to save the planet, we'd all be driving electric sedans, which take 240 - 300 Wh of electricity to travel one mile [ecocostsavings.com]. Rivian's R1T needs 488 Wh to do the same [insideevs.com], and that's a light-duty pickup.

        Hope nobody has 4 kids then ... or groceries ... or a wheelchair ...

        • by chill ( 34294 ) on Sunday July 03, 2022 @08:21AM (#62669538) Journal

          I'm more hoping for a general upgrade in average intelligence, but expect to be disappointed. Then people like you would realize the average family size [worldpopul...review.com] in the US is a little over 3. That is, having 4 kids is a statistical outlier and should be treated as such -- a niche market.

          Wheelchairs, another niche market, are frequently hauled around by hitch attachments. I personally know several people with wheelchairs moved this way, but only one with a fully-converted van.

          And no one NEEDS a truck or SUV to haul groceries. Groceries easily fit in the trunks of regular cars. Hell, I'm constantly amazed by the amount of groceries my father-in-law hauls on his Honda Goldwing motorcycle.

          • > And no one NEEDS a truck or SUV to haul groceries

            Sure. But grocery hauling is not the only thing you need a vehicle for, and not every household has multiple vehicles.

            I'm absolutely not arguing every SUV/Truck purchase is justified, but I am arguing that you are understating the real practical utility of these vehicles and how they are used in the real world.
            =Smidge=

            • Comment removed based on user account deletion
              • Hatchbacks - I only buy these. Back in the days there were 'combies' aka 'station wagons' as the call it in the old wild west US.

            • by trenien ( 974611 )
              Unfortunately, over the last 10 years we've come to suffer from the same scourge over here in Europe.

              Considering that SUV an abysmal car size / Available space ration, anyone who argues they need one because they have so much to move around are either morons or a**holes

              Anyone arguing that idea of space needed = SUV should go take a look at japanese one box cars.

          • The wheelchair example is a good point. In terms of moving kids, groceries and wheelchairs a minivan/van is superior to an SUV or light truck. Lower step in height, better handling, better fuel economy, generally more features overall.

            • by Junta ( 36770 )

              True, but someone railing against SUVs probably should also rail against minivans for the same reason. The only reason minivans are spared from that criticism is that they aren't as 'cool' as SUVs.

              I'd say the biggest boon is the sliding doors, the generally taller area (which makes for more drag, but awesome cargo capacity). The step-in height depends greatly upon the SUV, many SUVs are not really equipped for off-road operation and have clearance lower than some sedans. Some SUVs have adjustable air susp

              • Afaik, fuel economy and physical footprint of most minivans are smaller compared to SUVs - it's just more weight per person and more horsepower - those are the most frequent reasons why people rally against SUVs. If you need a truck/SUV for work or because you live in the wilderness, that's fine but if you could have gotten a more fuel efficient car or got a SUV just because you feel more secure sitting high, then it's not.
            • by XXongo ( 3986865 ) on Sunday July 03, 2022 @09:46AM (#62669708) Homepage
              Yeah, SUVs are terrible for wheelchair users. Due to the height; you can't even get into most SUVs without a custom-built ramp.

              mini-vans are the vehicle you need if you're driving wheelchair-bound people around.

              • Anything flat-floored that you can get into with just a ramp is a winner. I've done some work on a Ricon chair lift in a full sized van, and it's miserable.

        • Because the average SUV owner has 4 kids, right? In my family we were three kids and we managed with a first generation Opel Corsa [wikipedia.org] so, no, having kids doesn't mean you need a SUV.

        • ⦠or is over 55. Older people cannot bend/straighten easily - the skeletal muscles tend to lock up unexpectedly - making it very hard to get in/out of a sedan. That is why SUVs and trucks are more popular as the population ages.
        • by XXongo ( 3986865 )
          There are indeed some people in America who need giant vehicles. But when I look at the number of huge SUVs and giant pickups on the road, most of them are driven by one person who got the vehicle because it's cool.

          Hope nobody has 4 kids then ...

          And what fraction of Americans have 4 kids? https://www.statista.com/stati... [statista.com]

      • No, if you want to "save the planet", in the sense of reducing carbon footprint, you don't drive your own car. You live in a city that don't require people to drive to work unless you are a farmer or fisherman (so you don't live in towns and you will be driving a tractor) or cargo delivery is part of your job duty (then it is obvious you will be driving a truck or some other form of truck-like vehicle).
      • by Junta ( 36770 )

        Note that particularly 'SUV' is too vague and even 'Truck'.

        'SUV' can be basically the cool word for 'compact wagon', which can weigh and can have roughly equivalent aerodynamic profile to a sedan. In your own source, about half of those under 300wh/mile are called 'SUV'.

        Smaller pickup trucks can even play in the segment. So far the sample size is one 'full size" pickup, so it's hard to say one thing or another. It may look much better once you have competitor full size pickups in the charts, and especiall

        • Note that particularly 'SUV' is too vague and even 'Truck'. 'SUV' can be basically the cool word for 'compact wagon', which can weigh and can have roughly equivalent aerodynamic profile to a sedan.

          No.

          It's a vague word indeed, but no, a SUV is not just a cool word for "compact wagon" and is absolutely not "roughly equivalent in weight and aerodynamics" to a sedan. The most popular, mid-size SUV models weigh around 5,000 pounds.

          • The reason this is confusing is because a lot of auto manufacturers, all of them really, are disingenuous douchebags. I mean I know they're corporations, they don't have minds or hearts or souls or whatever, but that's how they behave. And basically all of them have tried at some point to convince us that a CUV is a SUV. Sport has a grunty, manly connotation, while crossover sounds like you're transitioning. Never mind that some CUVs are better off road than some SUVs, that's irrelevant to marketing. They w

      • Americans have become conditioned to believe they must have a truck or SUV for daily living, which is the worst vehicle to electrify. Those vehicles are so heavy and are so aerodynamically inefficient that you need a huge battery just to have the power to move the huge battery.

        I'm not gonna say I don't see a lot of people driving a truck for no reason. But I do see a lot of people driving one for a reason, too. If you don't live smack dab in the middle of a city then there are lots of cases where it helps. A four door truck transports five people and a whole lot of stuff in comfort, hauls yard materials for those who still have yards, etc.

        Meanwhile, trucks are actually super duper easy to electrify because of their body on frame construction. If you're eliminating the transmissio

      • Sometimes you do need to move more people or haul stuff. Renting a car is an option but compared to have something suitable in your driveway, renting is a colossal headache. Car rental is one area which would benefit immensely from self-driving cars. I wouldn't want to use that to rent out my own vehicle to strangers or share my daily driver, as many people seem to predict, but it would be great to order a truck when I need one, and have it rock up to my door 30 minutes later, and have it drive to its ho
      • SUVs now include crossovers, which are just a slightly taller station wagon. A station wagon is just a car with the trunk integrated into the passenger compartment. Station wagons used to be the popular family car. Drives like a sedan and can haul a ton of stuff around.

        People have realized that sedans are great for driving, but if you want to get practical get a station wagon, er I mean crossover is the best choice. Unless you want a sports car a crossover is quicker and more nimble than sedans of just a
  • OMG! (Score:5, Insightful)

    by zerosomething ( 1353609 ) on Sunday July 03, 2022 @07:24AM (#62669458) Homepage

    This reads like "Giant companies fund things in in ways I don't expect or approve of." Every company has products they lose money on which are essentially funded by other products. Do you really thing a game console only costs $300?

    • I heard an allegation that Apple is using revenue from the iPhone XXIII to fund development of the iPhone XXIV! Scandalous stuff.
  • So what happens when/if we force the going away of the trucks and SUVs?
    • After the revenue from vehicles with carburetors funded the development of vehicles with fuel injection, what happened after the carbureted vehicles went away is that people drove the vehicles with fuel injection.
    • by Junta ( 36770 )

      Why would we?

      Hypothetically going electric wouldn't preclude the possible, which is plainly seen that already most electric models nowadays are already SUVs, and full size pickups are starting to make appearances.

  • Americans love SUVs and pickups. The extra ride height, perceived "safety" increases and there is a definite American working class version of "keeping up with the joneses" in regards to pickup trucks. When all your friends drive Rams, Silverados and F150's you're not gonna be the guy driving some Toyota Camry are you? I've had people remark how my Tacoma is not "a real truck" despire the fact it usually has more bed space than their giant crew cabbed versions.

    It's silly, it's unnecessary and it's ineffi

    • I think the thing that could boost sales of the F-150 is the power the house in a blackout option. After living thru a 1 week blackout in the dead of winter, and overall reliability of the grid seemingly getting worse, I would consider one.
    • I've had people remark how my Tacoma is not "a real truck" despire the fact it usually has more bed space than their giant crew cabbed versions.

      My only problem with a Taco is that I don't fit in it. They're built like a car, with a seating position like a car. That does also mean they don't have the elevation of pickups with a more upright seating position, which translates into a decreased road picture. It also gives them the same problem as a Chevy, with its super long and flat hood, where you can't see over it... despite not having a hood like that, it just brings your head down closer to it. Ford has indisputably the best sight picture, with a

    • Once the F150 Lightning has been on market for a year and we get the real sales numbers it will set the tone for the industry.

      I think fleet sales will be a big one for the Lightening. It's a perfect fit for an electric utility that already runs a large truck fleet on a daily basis. Lower operation costs, can charge daily so range never an issue, and power it with their own electricity. They'll install a charger at employee's homes and replace gas cards with power credits.

      if we want EV car manufacturers to sell more sedans they need to make them quite sporty in terms of performance and speed. Americans will trade over from a "big" vehichle to a "fast" one.

      What is really needed is develop the infrastructure so on a vacation or business trip charging is as easy as stopping for gas.

  • Tesla's 2022 projection is 1.5 million EVs, 2023 is 2.25 million. 2024 and 2025 are 3.4 and 5 million respectively. They appear to be set up today to handily beat the 2023 number and 2024 is not far away from established capacity. For 2025 we don't have any indication of how they will manage the incremental 1.5-1.6 million units, but they do have a plan.

    Their competitors, collectively, are optimistic in being able to match Tesla's 2025 number.

    (Don't get me wrong-- Tesla has plenty of challenges ahead sti

    • I suspect there may be a fairly large contingent of people who like me, would never consider giving a penny to that billionaire. In fact, I try very hard to avoid amazon for the exact same reason. I don't think the US needs a group of oligarchs. Do you?
      • So, you would rather give your money to the Ford family, or the Toyodas, or any of the other families in the automobile business for the better part of a century?

        Right now, Tesla has the best product. Being short-sighted to that and buying something inferior does not further any social justice/income equality agenda. It is a lot like the people that are all-in with Apple, Google, or Microsoft... because the alternative is not palatable.

        • by Junta ( 36770 )

          Musk is going a bit more off the rails, and notably preventing unionization suggests that manufacturers that are UAW shops would treat their employees better than Musk's companies.

          As far as Tesla being the best product, I don't think that's the case anymore. There were always drawbacks that I didn't like based on my experience with a colleague's Tesla. Most obviously the minimalism that says the touchscreen is the all-mighty everything. Back seat passengers had to ask someone in the front seat to please c

        • Yes, NONE of them are even close to the money musk has. The ford family has been diluted wildly. Not sure about toyota. Never owned one. And as to best product, sure, whatever, I actually don't think it is. But I'll stop there. You seem to be all in on musk, so a pointless discussion.
        • Best product is a matter of opinion. I like simple hard buttons for most basic things while driving so that brand is not for me.
    • by godrik ( 1287354 )

      I haven't looked at tesla's production. But Musk has a habit of just lying on predictions. He makes claims that can't be backed up by reality. Do you know if these numbers are likely? Or are they the standard bullshit that Musk spews?

  • with funds from their current production. What a novel idea, why didn't anyone else think of that!
  • GM produces 6,3 Million cars pet year. 400k in 2025 is ridiculously little considering that the other 5.9 million will pollute the atmosphere for 10+ years.
  • by theshowmecanuck ( 703852 ) on Sunday July 03, 2022 @10:03AM (#62669738) Journal

    So how much has the the power grid improved in terms of capacity, resilience, and the ability to recover from outages. Answer: not at all. Adding wind turbines and solar farms won't help if all power is to come from electricity, there aren't enough power lines. And there is no capacitance in the system to absorb spikes or fill in for gaps/outages (and having wind farms on the other side of the country doesn't handle outages on the other side, imbalance can trip breakers). And how much has the power systems in the rest of the world where 80% of the people live, improved. Sorry, have they actually started building first world power distribution required by all electric cars? In short, no. So, good luck with your EVs when you find out there is not way to keep them charged if more than just the privileged buy them. Green hydrogen can be distributed using the same distribution networks that currently exist for gas stations. And fuel cells can realistically power heavy trucks, unlike EV trucks where the batteries weigh so much they cut into the economy of transport by reducing the carrying capacity to below economically viable operation, because of the heavy torque required.

    • Adding wind turbines and solar farms won't help if all power is to come from electricity, there aren't enough power lines.

      If you add any kind of capacity anywhere you'll have to build more lines to attach it. But the higher the nameplate capacity the larger the grid strain, so the more capacity you have to add.

      This is the big reason why rooftop solar is still a thing, despite the danger to installers. Point of use consumption requires no new offsite infrastructure.

    • Assuming Americans don't start driving more, we only need to add around 15% more capacity in a fairly gradual fashion over the next 20 years of time to change over to EVs. If we can't do that, we certainly aren't America the Great anymore - more like America the pitiful.
  • The car companies have always been supporting themselves on Trucks and SUVs. This is why we have so many of them and goes back decades.

    The trucks and SUVs are the most profitable product. So you can always say they support X which is less profitable.

    This is such old news. Here's a link for you and some text from it: https://www.motorbiscuit.com/f... [motorbiscuit.com]

    "In 2019, GM sold 80 light vehicles around the world. The top revenue generators were the Chevrolet Silverado, Chevrolet Tahoe, Chevrolet Equinox, GMC Sierra

  • Industry invests its profits to create a new generation,,, hmmmm. This is news?

    What I haven't seen is if this is any different than what they would normally need to invest to stay in business. Auto manufacturers routinely build new lines and retire old ones. Every new model is always a multibillion dollar deal. And, in a healthy industry, every new model would be seeking to bury its competitors.

    What is disturbing is that they don't seem to be taking advantage of the changeover to update their ways. Tesla's

  • Funding wasn't going to happen otherwise. Anyone with the slightest interest in BEV knew this for many years.

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