EXTRA! Vehicle-to-Grid Expansion Saves Planet!
the AutoMobility Roadmap on California’s energy dynamics and the role of electric vehicles! Despite challenges in solar overgeneration, EVs present a solution to utilize surplus energy effectively.
The Green Acceleration
AutoMobility Roadmap Newsletter The Green Acceleration October 23, 2023 Rapid technological advancement is often a symptom of great human need. On a fateful December day in 1903, the Wright Brothers accomplished the first controlled flight of a heavier-than-air aircraft. After almost 5000 years of human civilization, this was the first time that humans were able to achieve this momentous feat. Yet, 66 years later, within one single lifetime, man landed on the moon. These 66 years saw two globe spanning conflicts and one of the most rapid eras of technological development in human history. Simply put, the need to defeat advanced and threatening enemies drove near-unthinkable levels of innovation. In the 21st century, a new enemy has arisen, one perhaps as existentially threatening or more than the United States’ previous adversaries abroad. This new enemy is not an ideology or a country, but the dangers to our planet that have resulted from decades of burning excessive fossil fuels. Climate change is the next great hurdle humans have to overcome. The United Nations among a variety of other global organizations has reported that the Earth’s temperature has increased by an average of about 1.8 degrees Fahrenheit since 1880 and could potentially warm by 2.7 degrees Fahrenheit by 2050. Assuming that nothing is done to curb this change, these higher temperatures will result in water shortages, unlivable summer conditions, higher ocean temperatures, and greater prevalence of extreme, life threatening weather events. Though grim, this challenge is not insurmountable, and the automotive industry has an increasingly viable solution. The investment into and mass adoption of electric vehicles will have an enormous impact on slowing the climate change crisis, especially as growing need drives further innovation. According to the EPA, the transportation industry accounts for 29% of all US Greenhouse Gas (GHG) emissions. This sector of the economy is by far the largest contributor to GHG emissions, and the EPA has thus far spent decades working to curb these numbers. Globally, passenger cars produce nearly 3 billion metric tons of carbon dioxide emissions per year. Moreover, cars and vans alone produce just under 50% of all global carbon emissions. It is clear that the automotive industry makes up a disproportionate percentage of the world’s emissions output, so the adoption of EVs will make a significant impact on the efficacy of the global climate response. Regulators, automakers, and consumers alike have recognized that EVs are an important step towards reducing these numbers, and great strides are being made towards conquering the challenge presented by the climate crisis. Since 2016, most major automakers and new automotive startups have funneled enormous amounts of capital and talent into EVs. In the last two years alone, investment has skyrocketed from $50 billion to $210 billion, driven by stricter legislation and widespread consumer demand for environmentally conscious vehicles. Much of the investment goes towards developing brand new EV models. Companies such as Ford and GM now have flagship EV models that are able to compete directly with the likes of Tesla and Rivian. Moreover, consumers are noticing and rewarding automakers for their commitment to EVs. In Q3 this year, Tesla’s share of the EV market dropped below 50%, as more buyers look to traditional manufacturers offering competitive products. However, this was the strongest quarter for EV sales ever, with over 300,000 vehicles sold, surpassing both Q2 and passing Q3 2022 by almost 50%. Coming in at just under 8% of the total market sales in Q3, EVs have a long way to go until they dominate the market, but these bullish sales figures paint a rosy picture for environmentalists, regulators, and OEMs alike. The next step in reducing carbon emissions is the mass implementation of battery-electric medium and heavy duty vehicles. A frequent point of discussion on the AutoMobility Roadmap, electric commercial vehicles have the potential to completely overhaul the way in which businesses produce carbon emissions. Cutting out nearly 25% of all transportation CO2 emissions (456.6 million tons of carbon dioxide) sounds like an impossibility, but with such strong financial incentives from the US government, it is closer to reality than previously thought. A plethora of commercial vehicle companies are investing time and money into developing practical EVs that fill the needs for markets such as tractor trailers and delivery trucks. Attacking toxic emissions outputs from this direction is sure to be a necessary step in the battle against climate change. In the grand scheme of things, the battle against climate change has only just begun. EVs still make up a small minority of the market, and the challenges around their production have not yet been solved. 110 years ago, the aviation industry was in the same situation. Difficult production of expensive novel technologies held aircraft back. But with time and urgent need, this lull was rapidly reversed, leading humanity to walk on the moon not six decades later. EVs have reached that critical stage, and as summers become hotter and severe weather more deadly, it is almost inevitable that EVs will capture a large enough portion of the market to make a stand against climate change. Learn more about how the AutoMobility Advisors team can help you and your business seize the amazing opportunities to serve the new mobility market. Click on the link below and get in touch, we’d love to talk with you! Home Let us help you succeed in AutoMobility! Edit Template Edit Template Contact Us Today Name Email Message Send Edit Template Get to Know Us About Our Team Consulting Services Events AMA News Get the AutoMobility Roadmap Newsletter White Papers & Reports AMA Thought Leadership Let’s Connect Contact Us Follow us on LinkedIn Follow us on YouTube Copyright @2024 AutoMobilityAdvisors, All Rights Reserved. Edit Template
AMA to attend AutoTech Electrification in Detroit
IN THE NEWS We’re pleased to announce that Automobility Advisors will be participating in the upcoming AutoTech Electrification event in Detroit, taking place on October 17th and 18th. This event is a pivotal gathering for industry experts, innovators, and enthusiasts to come together and discuss the transformative shift towards automotive electrification. The ongoing transformation of the automotive industry is evident, with the shift toward vehicle electrification taking center stage. This transition is not just about cleaner and more sustainable transportation; it’s about reducing carbon emissions, enhancing energy efficiency, and driving technological advancements. Electrification presents opportunities for job creation and long-term cost savings for consumers, and it’s clear that automakers, tech companies, and industry experts are fully embracing this electric revolution. The AutoTech Electrification event in Detroit is a cornerstone for staying updated on industry developments, and Automobility Advisors is thrilled to be part of it. We look forward to the networking opportunities the event will provide, enabling us to expand our industry connections and foster collaborations that will shape the future of clean and sustainable transportation. If you’re passionate about the future of the automotive industry and its electrification journey, we invite you to join us at the AutoTech Electrification event in Detroit. Let us help you succeed in AutoMobility! Edit Template Edit Template Contact Us Today Name Email Message Send Edit Template Get to Know Us About Our Team Consulting Services Events AMA News Get the AutoMobility Roadmap Newsletter White Papers & Reports AMA Thought Leadership Let’s Connect Contact Us Follow us on LinkedIn Follow us on YouTube Copyright @2024 AutoMobilityAdvisors, All Rights Reserved. Edit Template
Turning EV Dreams Into Reality: Fleet Edition
EVs are solidifying their place as the future of automotive technology. With billions of dollars of investment pouring in from national governments and the private sector, it is abundantly clear that electric technology is here to stay.
MOVE America: Keynote by Witricity’s CEO Alex Gruzen
Wireless charging solutions are rapidly becoming a high priority in our quest to integrate them seamlessly into the infrastructure of our cities and homes. Witricity, a pioneer in this field since 2007, has been at the forefront of this transformation.
MOVE America: Keynote presentation by Amir Tirosh, CEO of StoreDot
Amir Tirosh, CEO of StoreDot, shared insights about his company and its innovative solutions for electric vehicles (EVs).
Great insights at MOVE America’s investment strategies panel!
MOVE America’s investment strategies panel, The panelists were:
Bob Bennett from Cities Today
Emily Yates from Southeastern Pennsylvania Transportation Authority (SEPTA)
Thomas Bartholomew of the Department of Energy, Environment and Climate Action
Baris Guzel from BMW i Ventures
Morteza Farajian from the Build America Bureau at the U.S. Department of Transportation
Carpe EV Diem
Automobility Roadmap Newsletter – A perspective on all the changes in automotive transportation and the technology that’s now driving you. This week’s topic Carpe EV Diem and the EV adoption future.
We need to talk about Tesla’s deadly problem
This issue is not covered well enough in the industry press. As a motorcyclist myself, and someone working to help improve the tech underlying vehicle “perception” and therefore reaction to seeing motorcycles on the road, we need to look more closely at all road users. In a future of Automated Driving that includes EV powered Pods continuously circulating, there will still be some who choose to ride 2 wheels. Autonomous cars that can’t see motorcycles is not acceptable. Thank goodness there are companies like BlueFusion helping to improve how vehicles see in all conditions. https://lnkd.in/ghbjk55D I support the AMA’s good work educating automakers, autonomous driving technology companies, and the public about this issue, and will continue to do so. #cars #autonomousvehicles #autonomousdriving #adas #motorcycles #safety #tech # #future You can subscribe to the AutoMobility Roadmap for free and continue to follow the dynamic and changing automotive mobility world. If you’d like to engage directly with the team at AutoMobility Advisors, contact us or contact us via Linked In. View and Subscribe to the Automobility Roadmap on LinkedIn here.
The High Cost of EV Adoption Today
George Ayres Automotive | Leader | Sales | Marketing | Mobility | Connected | Electric | Autonomous | Shared | Revenue | Growth 18 articles The transformation of the auto industry from internal combustion engines to battery power is accelerating, no doubt about it. And the infrastructure, charging networks, and government support for this change are increasing. Consumer themselves are listening, learning, and becoming more interested in moving towards EV’s too. The article below describes a recent Consumer Reports survey that said 14% of people would definitely purchase an EV, but twice this number (28%) definitely “would not” consider an EV. What about the 58% in the middle? What will it take to move them? I think the main issue at the moment is not range, charging infrastructure, or fear of new tech. It’s simply cost. EV’s are expensive right now. Too expensive! And it seems things will be this way for at least 3 years. Let’s look at why. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8431522422095463804&li_theme=dark It’s clear that soon we will have many varieties of electric vehicles available, and some will be more affordable. All OEM’s are moving quickly. Just take a look at the center-spread of this week’s Automotive News (shown below) and you can see that every Automaker is moving faster to transform their product line-up to more EV’s. And States like California are moving to full EV only. But much of this terrific new product development is not helping buyers yet, as the models currently available for sale are all just too expensive. For example, the EV market leader, Tesla, has not expanded its model range for awhile, and even the Model 3 starts at $45k. Ford has the F-150 Lightning and Mach E, but they both cost $40k or more, and very hard to get. And yes, the Cadillac Lyriq sold out in a few hours, but it is in very limited production and costs over $60,000 which is much more expensive than the majority of the buyers in the new car market can afford. And because GM is no longer eligible, there is not even an EV tax credit for this vehicle. But GM did recently reduce the price of the Chevy Bolt. So GM is clearly thinking about EV affordability. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8673126474556867075&li_theme=dark But all of the new EV vehicles are not here yet. And people need to buy something, or upgrade their current vehicle, and can’t wait. Supply is constrained due to the ongoing semi-conductor chip shortage. And component material prices for batteries are increasing, especially for lithium and cobalt, due to the overall growing EV demand. See the article below from Alix Partners, a research firm, outlining the current situation. One key point they mention is this comparison. “At $3,662 per vehicle (in the US), ICE raw-material content is nearly double pre-pandemic levels. This pales in comparison to BEV raw-material content, which is now $8,255 per vehicle. The disparity is driven largely by cobalt, nickel, and lithium prices.” https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7764712561928756266&li_theme=dark While new advances in battery technology like “solid-state” batteries promise better range and greater materials supply, these batteries currently cost four times more than standard lithium-ion batteries, exaggerating the current problem. Toyota is well placed to lead in this area, but it will be awhile before we see the majority of vehicles with solid-state batteries. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=9124043172319042537&li_theme=dark Add in rising global inflation, which means you can buy less for the same money, and a war in Ukraine which keeps energy markets volatile, and no wonder consumers are hesitating. While they are paying $5 for gasoline, and sure don’t like it, coming up with the cash for a new EV is getting harder and harder. For example, the average new car payment is now over $700 per month. Since the cost of borrowing is rising as the Fed raises interest rates to combat inflation, car buyers can either buy less car, or they have to put up more of their income for a car. Since all other prices are also rising, like mortgage payments, groceries, and school supplies, they feel the squeeze. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7812184282103910342&li_theme=dark And the average car loan length is now six years, which means that consumers that buy ICE vehicles today will be “upside down” a few more years longer, meaning they will owe more for the car than the car is worth. A negative equity situation. We have seen this phenomenon in the car market more than once, and it never works out for the either the consumer or the automaker. It delays purchases and keeps people trapped in their old technology. The average car on the road in the US is currently 12.2 years, which is much longer than historically we have seen. The current financing market dynamics are suggesting this may get even longer. The promise of a new EV will be in the distant future for too many. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8622472421372719983&li_theme=dark So if OEM’s want people to move to EV’s they need to bring affordable EV’s to market. They need to work with the government and their ecosystem to ensure that there is wide penetration of EV infrastructure. And of course the government needs to increase EV incentives and encourage more switching from ICE to EV, and not with just tax cuts. What about helping people pay for installing home chargers? While there is good commitment for this from the current administration, these programs are not yet simple, practical, and easy to access. Why not a “voucher” system for anyone buying an EV from a dealer, or even online, to receive a rebate on the cost of a home charger. Tax credits are hard to access and too far removed from the original cost outlay. Consumers need relief on this cost more quickly. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=6987414249488379809&li_theme=dark Overall consumer will move to electric vehicles, the trend is now inevitable, as product development cycles for automakers are many years long. The ocean liner turns slowly. So we will see lots of EV choices for new car buyers in a few years. And high volume categories like Pick-up trucks will even be very EV