Automakers Face 'Daunting' Task to Meet 2032 EV Rules, Industry Says

First Up 03/28/24

Automakers Face 'Daunting' Task to Meet 2032 EV Rules, Industry Says

Automakers face "daunting" government regulations to sell half of new vehicles by 2030 as electric or plug-in hybrids despite a U.S. decision to soften the final rules over its initial, tougher proposal, a top industry official said on Wednesday. Under all compliance scenarios, automakers will need to sell at least 50 percent plug-in and EVs by 2030 to meet regulatory targets, according to the Environmental Protection Agency. Under the initial proposal, they were projected to need to sell 60 percent EVs by 2030 and 68 percent by 2032, reports Reuters. John Bozzella, who heads the Alliance for Automotive Innovation trade group, said the revised rules represent "very ambitious and daunting targets. There's no sugarcoating that." After heavy lobbying by the automakers that called the EPA's initial April 2023 proposal "neither reasonable nor achievable," the 2027-2032 EPA vehicle emissions rules dramatically soften yearly requirements, dropping its U.S. electric vehicle adoption target from 67 percent by 2032 to as little as 35 percent. Bozzella had urged the Biden administration to make changes. "I said, 'You need to slow the pace of the rules.' And they did," Bozzella said. Click here for the full story.

What Electric Vehicle Buyers Want Vs. What The Market Has to Offer

New research has identified a disconnect between the expectations of electric vehicle shoppers and the reality of what the market has to offer, underscoring the need for better consumer education both in and outside the dealership. According to Edmunds‘ latest electric vehicle sentiment survey, consumers tend to hold overly optimistic beliefs concerning multiple aspects of the battery-powered car segment. One of the most noticeable areas where expectations and realities clash is pricing. According to CBT News, nearly half (47 percent) of research participants said they were looking for a model below $40,000, with 25 percent searching in the $30,000-$40,000 range and 22 percent searching for a sub-$30,000 car. However, Edmunds notes that there are no new electric vehicles on the market with an average MSRP of less than $30,000, while only four models retail the $30,000-$40,000 range. It is important to note that electric vehicle prices have been declining at a rapid pace; so fast, in fact, that they are nearing price parity with gas-powered models. On the other hand, the number of internal combustion engine models retailing below the $30,000 mark has dropped significantly since the pre-pandemic era. Click here for the full story.

Dealers’ Body Shops Repair Bottom Lines

Collision repair isn’t a service immediately associated with a dealership, but around a third of franchised dealerships have body shops, according to NADA. Consultants and dealers say collision repair can be profitable, but it’s not for the faint of heart. “I feel like dealerships are missing out on an incredible opportunity to have their own body shop,” Mike Anderson, owner and president of Collision Advice, a consultancy, tells WardsAuto. Anderson, who worked in collision repair for more than two decades, sees at least four reasons a dealership should establish a body shop: To protect the franchise brand; To sell more wholesale parts; To drive more new car sales; and To boost business in the service lane. Another good reason to be in the collision repair business is to boost the dealership’s bottom line. Body shops are making up to 48 percent gross profit, Anderson says, and the average repair is $5,000. “Do the math,” he says. “The business case is there to justify the investment.” Click here for the full story.

America’s VW ID.7 to be Sold with 82 kWh Battery And RWD, AWD Options

Volkswagen will sell just two versions of the all-electric 2025 ID.7 in the United States, but pricing details will not be released until close to the car’s launch in Q3. When VW took off the wraps to the U.S.-spec ID.7 almost 12 months ago, it said it would be sold in Pro and Pro S guises with 82 kWh and 91 kWh battery packs. It has since been revealed that local shoppers will be able to get the ID.7 in Pro S or Pro S Plus forms, but both with the smaller 82 kWh pack only. VW’s new electric sedan will be available in rear- and all-wheel drive configurations. Models sending power through the rear will offer 282 hp and 406 lb-ft of torque while dual-motor models will produce 335 hp. Official driving range figures won’t be released until closer to the car’s launch, reports Carscoops. The ID.7 Pro S and Pro S Plus models will come standard with illuminated front and rear logos, a 15-inch infotainment display, an augmented head-up display, a panoramic glass roof with electrochromic tinting, and 12-way adjustable heated front seats. Click here to learn more about the 2025 ID.7.

Hyundai Plans $51 Billion Investment in EVs, Software-Defined Vehicles Over 3 Years

Hyundai Motor Group will invest 68 trillion won ($51 billion) over three years to bolster its growth potential in electric vehicles and new mobility business and separately hire 80,000 new employees. More than half of the investment, or 35.5 trillion won, will be allocated for new R&D infrastructure and assembly lines for EVs, the group said in a statement. Another 31.1 trillion won will be slated for R&D in EVs, including software-defined vehicles (SDVs) and battery technology, it said reports Automotive News. A majority of the new jobs created will be to promote future business, with 44,000 new staff in electrification, SDVs and carbon neutrality, it said. Hyundai Motor Group includes Hyundai and its affiliate Kia, which together are the world's number three automaker by sales. Automotive parts maker Hyundai Mobis and Hyundai Engineering & Construction are also part of the conglomerate. Click here for the full story.

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