Re:Japan is holding back as the world rushes toward electric...
by WorldMaker on Monday August 23, 2021 @01:44PM
(#28279416)
A lot of these price differentials seem to be marketing ploys more than marginal costs realities (and/or bad amortization of [misspent hydrogen esp.] R&D funds or catch-up factory retooling costs). Chevy's Bolt for whatever reason is still marketed as "more luxury" than Chevy's Spark and comparing the base model Bolt to the base model Spark missing some configuration you'd need to get it closer to a similar base package. Chevy/GM here is teasing a mixup of things in the 2023 model year so I definitely agree that late 2022 is probably going to be really interesting for a lot of reasons when it comes to EVs (as Chevy is the big US manufacturer next most likely to feel like they've finished amortizing R&D costs across EV lines).
Meanwhile Ford is definitely playing catch up and the Electric F-150 seems like it's charging for all of the above ("luxury base package", R&D costs from too many years in the hydrogen wilderness, "new and innovative" model retooling costs, etc). (Ford's an interesting dark horse in the 2022/2023 statements crowd. I think they are hedging too many bets right now, and playing way to conservatively. Current estimates are that if they got their head in the game and cut the Electric F-150 base price in half they'd dominate the US market very quickly, and there's some sentiment that if they weren't playing dumb amortization games with themselves and very easily created a less luxury package base model they are possibly in a position to do exactly that. Based on current estimates of true marginal costs.)
The part that I find most interesting is that Chinese manufacturers with no ICE legacy are building cheaper cars than everyone else right now and it is amazing to watch. There are sub-$1000 cars on Alibaba today! Those sub-$1000 cars might not be strongly interesting to US market preferences right now (where "big" and "truck-like" dominate perhaps way too much), but if it is an early warning sign that the margin wars in EVs are about to get started then it is a really exciting and encouraging one.
Meanwhile Ford is definitely playing catch up and the Electric F-150 seems like it's charging for all of the above ("luxury base package", R&D costs from too many years in the hydrogen wilderness, "new and innovative" model retooling costs, etc). (Ford's an interesting dark horse in the 2022/2023 statements crowd. I think they are hedging too many bets right now, and playing way to conservatively. Current estimates are that if they got their head in the game and cut the Electric F-150 base price in half they'd dominate the US market very quickly, and there's some sentiment that if they weren't playing dumb amortization games with themselves and very easily created a less luxury package base model they are possibly in a position to do exactly that. Based on current estimates of true marginal costs.)
The part that I find most interesting is that Chinese manufacturers with no ICE legacy are building cheaper cars than everyone else right now and it is amazing to watch. There are sub-$1000 cars on Alibaba today! Those sub-$1000 cars might not be strongly interesting to US market preferences right now (where "big" and "truck-like" dominate perhaps way too much), but if it is an early warning sign that the margin wars in EVs are about to get started then it is a really exciting and encouraging one.