AAH #771 - How OEMs Got the EV Thing So Wrong
About this episode
The discussion centers on the missteps of legacy automakers in the electric vehicle (EV) market, particularly regarding consumer expectations and market realities. Patrick Anderson from the Anderson Economic Group shares insights on why EV adoption has been slower than anticipated, emphasizing that the vehicles cater primarily to affluent urban consumers. The panel debates the impact of government regulations, the importance of consumer preferences, and the need for better infrastructure and incentives. The conversation also touches on the future of EVs and internal combustion engine vehicles, with predictions of fewer EV models but potentially higher sales as the market evolves.
plug-in
"you also drive an EV. In fact, it's plugged in right outside the studio"
Plug‑in means the car can be plugged into a charger to recharge its battery, and it may also have a small gasoline engine.
A plug‑in electric vehicle (PHEV) can be charged from an external power source and also has a gasoline engine as backup.
diesel truck
"Like, this is just way more expensive than a gas truck, let alone a diesel truck."
A diesel truck runs on diesel fuel, which is a type of gasoline that burns cleaner and gives more power for heavy loads.
A diesel truck uses a diesel engine, which is more fuel efficient and produces higher torque than gasoline engines.
legacy automakers
"Why did the automotive, the legacy automakers?"
Legacy automakers are the older car companies that have made cars with gasoline engines for many years.
Established car manufacturers that traditionally produce internal combustion engine vehicles.
electric vehicles
"you know, got into this because it believes electric is the future"
EVs are cars that use electricity to move, not gas.
Electric vehicles (EVs) run on electric motors powered by batteries instead of gasoline engines.
electrification
"General Motors did a really good job of picking the vehicles that were their most successful for the electrification first because it's less of an adjustment."
Electrification is the move from gas cars to electric ones. It means more cars run on batteries.
Electrification refers to the industry-wide shift from internal combustion engines to electric powertrains in vehicles.
battery placement
"But they were later to the party because they wanted to start from scratch versus a four motor company that essentially carved a hole where the battery would go and did the conversion there."
Battery placement means where the big battery is put inside a car. It affects how the car looks and handles.
Battery placement refers to the location within a vehicle where the electric battery pack is installed, often influencing design and weight distribution.
EV
"They launched a lot of EVs this year and they had been planning these for about 10 years."
EV means a car that runs on electricity, not gas. It charges from outlets or stations.
EV stands for Electric Vehicle, a car powered primarily by electric motors and batteries instead of gasoline.
full-size electric trucks
"And so anybody who's buying I shouldn't say anybody that's too broad a brush but the vast majority of people buying full-size electric trucks are still selling some are people who largely have never been in the pickup segment before"
Full‑size electric trucks are big trucks that run on batteries instead of gasoline. They can haul heavy loads and are becoming more common as people look for greener options.
Full‑size electric trucks refer to large pickup vehicles powered entirely by batteries, offering the utility of a traditional truck without internal combustion engines. They are gaining popularity among consumers seeking both performance and sustainability.
crossover point
"And at some point, probably before this decade is out, even in the United States, we're going to have that crossover point."
The crossover point is the moment when owning an electric car costs less overall than a gasoline car, considering buying price, fuel, and maintenance.
The crossover point is when the total cost of ownership for an electric vehicle becomes lower than that of a conventional internal combustion engine (ICE) vehicle.
modular EVs
"until Ford comes out with the series of modular EVs that it's going to build down in Tennessee."
Modular EVs are like a set of building blocks that let car makers create different electric cars from the same basic parts, saving time and money.
Modular EVs are electric vehicles built on a flexible platform that can be adapted for different body styles and powertrains, allowing manufacturers to produce multiple models efficiently.
Fiskers
"[1136.0s] And I am getting picked up in Rivians, in Fiskers and Teslas."
Fisker makes electric cars that are stylish and eco‑friendly. They use batteries instead of gasoline.
Fisker Inc. is an American electric vehicle company founded by Henrik Fisker, known for the Fisker Ocean SUV and earlier models like the Karma. The brand emphasizes sustainable design and high‑performance electric drivetrains.
Rivians
"[1136.0s] And I am getting picked up in Rivians, in Fiskers and Teslas."
Rivian makes electric trucks and SUVs that are good for off‑road adventures. They use batteries instead of gasoline.
Rivian is an American electric vehicle manufacturer known for its pickup trucks and SUVs, such as the R1T and R1S. The company focuses on off‑road capability and sustainable materials.
Teslas
"[1136.0s] And I am getting picked up in Rivians, in Fiskers and Teslas."
Tesla makes electric cars that can go a long way on one charge and have smart tech like autopilot.
Tesla, Inc. is a leading American electric vehicle manufacturer founded by Elon Musk. Its lineup includes the Model S, 3, X, and Y, known for long range, high performance, and advanced driver assistance features.
SK On
"[1564.0s] See, and this is in charge of home. [1566.0s] So SK on the South Korean company that has been working with Ford on making batteries for electric vehicles."
SK On makes batteries that power electric cars and works with big car companies like Ford.
SK On is a South Korean battery manufacturer that supplies batteries for electric vehicles, including partnerships with major automakers like Ford.
Redwood Materials
"[1582.0s] And then we heard Redwood Materials, which was the company that was founded by JB Strabal, [1588.0s] who used to be a Tesla, who basically said, okay, what we'll do is we'll recycle all of these batteries"
Redwood Materials takes used car batteries and reuses the parts inside them, helping reduce waste.
Redwood Materials is a company focused on recycling spent electric vehicle batteries to recover valuable materials.
EV batteries
"And therefore, the amount of investment going into the development of new EV batteries is going to be decreased."
EV batteries are the big rechargeable packs that give electric cars their power. They decide how far the car can go before needing a charge.
Electric vehicle (EV) batteries are the energy storage systems that power electric cars, typically using lithium‑ion chemistry. They determine range, performance, and charging times.
Ampere company
"[1817.7s] You know, it's the Ampere company."
Ampere is a business that makes parts for electric cars, especially batteries and related technology.
Ampere is a company that develops battery technology and electric vehicle components, often partnering with automakers to advance EV performance.
launch control
"You know, I got launch control in my vehicle. I'm trying to ever even use it."
Launch control helps a car start quickly by automatically managing the throttle and brakes so you get the best acceleration when you hit the gas.
Launch control is a vehicle feature that optimizes throttle and clutch engagement to achieve the fastest possible start from a standstill, often used in performance cars.
all wheel drive
"You can, you know, I like all wheel drive. And I know a lot of cars we had all wheel drive."
All-wheel drive means the car can send power to all four wheels at once, which helps it grip the road better when it's slippery or during sharp turns.
All-wheel drive (AWD) is a drivetrain configuration that sends power to all four wheels simultaneously, improving traction and handling in various driving conditions.
CVT
"to get the max fuel economy coupled with a CVT. You never heard so much moaning and groaning coming out."
It’s a type of gearbox that changes gears smoothly without the usual gear shifts, which can make driving feel smoother but sometimes causes a ‘rubbery’ feeling.
A continuously variable transmission (CVT) uses a belt and pulleys to provide an infinite number of gear ratios, allowing the engine to run at its most efficient RPM while delivering smooth acceleration.
hybrid
"...modern cars with internal combustion engines, already get into almost any hybrid with a CVT, or so on the judge."
A hybrid car uses both a regular gasoline engine and an electric motor to help save fuel. It can run on gas, electricity, or a mix of both.
A hybrid vehicle combines an internal combustion engine with one or more electric motors to improve fuel efficiency and reduce emissions. The power source can switch between the engine, battery, or both depending on driving conditions.
moving parts
"Like, count out the moving parts in the brakes and the seats, and you're already at 200, right?"
In a car, moving parts are the bits that move around—like pistons in an engine or gears in a transmission. Fewer moving parts can make the car simpler and more reliable.
Moving parts refer to components that physically move during operation, such as pistons, gears, and rotors. Fewer moving parts generally mean less wear and fewer potential failures.
EVGO
"and they're now with the EVGO"
It’s a business that puts up quick chargers so people can recharge their electric cars faster, and it works with car makers like Tesla and GM.
EVGO is a company that builds and operates fast‑charging stations for electric vehicles, partnering with automakers to expand charging infrastructure.
GM
"[3412.8s] ...all-building here, as well as GM, Ford..."
GM makes a variety of cars under brands like Chevrolet and Buick, covering many styles from trucks to sedans.
General Motors (GM) is an American automaker that owns brands such as Chevrolet, GMC, Buick, and Cadillac.
Toyota
"[3412.8s] I'm including Honda, Toyota, BMW, Mercedes..."
Toyota makes reliable cars that last a long time, such as the Corolla and Camry.
Toyota is a Japanese automaker famous for its durable cars and pioneering hybrid technology with the Prius.
BMW
"[3412.8s] I'm including Honda, Toyota, BMW, Mercedes..."
BMW makes cars that feel sporty and are often considered luxury vehicles, such as the 3 Series.
BMW is a German luxury automaker known for sporty driving dynamics and high-performance models like the 3 Series and X5.
Stellantis
"[3412.8s] ...as well as GM, Ford, and Stellantis."
Stellantis owns many car brands, including Jeep and Ram trucks.
Stellantis is a multinational automotive group formed from the merger of Fiat Chrysler Automobiles and PSA Group, owning brands like Jeep, Ram, Peugeot, and Citroën.
Mercedes
"[3412.8s] I'm including Honda, Toyota, BMW, Mercedes..."
Mercedes-Benz makes high-end cars that are known for comfort and safety, like the C-Class.
Mercedes-Benz is a German luxury automaker renowned for its premium vehicles, advanced safety tech, and iconic models like the C-Class.
hemi
"[3543.0s] in that four‑letter word is, hemi."
A "hemi" engine has a bowl‑shaped combustion chamber that lets air and fuel mix better, making the car run faster and smoother. It’s a special design most people know from classic American muscle cars.
Hemi refers to a hemispherical combustion chamber design used in some internal‑combustion engines, most famously by Chrysler’s Hemi V8s. The shape allows for larger valves and better airflow, improving power and efficiency.
North Star
"EVs remain their North Star"
It’s like a compass for the company, telling them what they should focus on to succeed.
In business strategy, a "North Star" is the guiding principle or primary goal that directs all decisions and actions.
Chevrolet Bolt
"like we saw with the Bolt, you know"
The Bolt is a small electric car that can go a good distance on one charge and is cheaper than many other EVs.
The Chevrolet Bolt is a compact electric hatchback produced by General Motors, praised for its range and affordability.
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