The Most Significant and Innovative Automotive Joint-Ventures of 2022 So Far
Automakers are ramping up their joint-ventures, especially in 2022. Automakers are partnering with domestic and foreign suppliers of EV battery components to lower the cost of EV materials and increase production. Many vehicle makers have had to stop production or slow it down because of a lack of EV parts, like battery components and vehicle chips. During the second quarter, EV sales hit a new record high (up 13 percent from Q1), but they are still not high quite enough to replace gas-powered vehicles anytime soon. CBT News lists five of the best automaker joint-ventures in 2022. 1. Sony and Honda create a joint EV company. Sony and Honda joined forces this year to complete a joint EV company to compete with other giant names like Tesla. The new company is called Sony Honda Mobility Inc, and reportedly Sony has top billing. Honda will focus on its car-building power while using Sony’s advanced technology. Unlike other companies, Sony and Honda are not focusing on creating electric vehicles on their own. Sony’s CFO stated, “We will not start making batteries or vehicles ourselves.” Click here to learn the other four best automaker joint-ventures.
After Losing Favor to Electric Cars, Plug-In Hybrids Gain Ground
In late 2010, General Motors sought to seize the high ground from Toyota’s successful Prius hybrid with the Volt plug-in hybrid — a car that could drive short distances on only electricity and fire up a gasoline engine for long trips. But the Volt and other cars like it struggled to win over drivers as many early adopters opted for fully electric cars like Tesla’s Model S and the Nissan Leaf. But a funny thing happened on the way to obsolescence: Plug-in hybrid sales are climbing in the United States, in part because of the recent surge in gasoline prices. The New York Times reports automakers sold a record 176,000 such cars last year, up from 69,000 in 2020. This year, sales of plug-in hybrids could reach 180,000, analysts said, even as the overall new-car market drops to 14.4 million from 15.3 million a year earlier, according to Cox Automotive. All-electric cars have seized around 5 percent of the new-car market, and most analysts and industry executives expect them to eventually surpass hybrids as automakers commit to eliminating tailpipe emissions, a major contributor to climate change. Click here for the full story.
In-Car Digital Wallets Ready to Open Up
The car as a credit card is an innovation that’s gaining attention in the age of automotive connectivity. “There are lots of ways to monetize vehicles, such as opening them up to delivery (and ordering) services,” says Alex Smout, a principal at inMotion Ventures, a transportation-centered investment company. Wards reports in-car digital wallets allow drivers to use an infotainment system platform to buy fuel, purchase groceries (for pickup or delivery), place to-go orders, pay for parking and perform various other transactions. (The infotainment screen also offers navigation to places of purchase.) Car occupants already can use outside devices, such as smartphones, to make such purchases. But connected-car proponents say an in-car platform offers more compatibility and flexibility to accommodate customer needs. In-car payment systems have been around for a few years. For example, Hyundai’s luxury Genesis brand offers them. But they remain a limited industry offering. Granted, in-car digital wallets are not as essential as a brake pedal or steering wheel. Instead, they offer a touch of something extra, says Vijay Rao, Genesis Motor America’s director-connected operations. “It’s not about making payments in the car as much as improving the customer experience,” he says. Click here for the full story.
Brand And Dealership Loyalty Decreasing as Consumers Pay More, GfK Research Say
New research from Growth from Knowledge AutoMobility shows that loyalty toward brands and dealerships is continuing to decline as consumers pay at or above the manufacturer's suggested retail price. "It's been widely publicized in the industry that a lot of people are paying over MSRP. We know that prices have been escalating and continue to reach near record highs virtually every month," said Julie Kenar, senior vice president at GfK AutoMobility. "This notion of paying sticker and even above sticker is absolutely something that's come really over the past 18 months." Automotive News reports in May and June, 80 percent of car buyers paid at or above the sticker price, the research showed. In addition, 31 percent of buyers who paid above sticker said they would tell others not to go to the dealership they used, and 27 percent said they would not return to the dealership for service. Kenar said dealerships worried about building a link with consumers must consider the future cost of charging more. Click here to learn more about the study.
Mercedes, BMW, Audi Race to EV Future
The German luxury marques are drag-racing one another down the electrification autobahn. The heavyweights — Mercedes-Benz, BMW and Audi — are remaking their lineups for the new age with fleets of battery-powered models. Automotive News reports Mercedes expects electric vehicles to account for about half of its U.S. sales by 2030. To help get there, it plans to bring a half-dozen electron-powered sedans, crossovers and vans here by mid-decade. Rival BMW Group is more pragmatic with its pivot to a zero-emission future. Having launched two EVs in the U.S. this year, the automaker will deliver battery-powered versions of the BMW 7 Series sedan and 5 Series sedan and the Mini Countryman crossover over the next two years. At Audi, the transition to an all-electric portfolio is proceeding with the addition this year of the Q4 E-tron while the brand continues to run out its lineup of internal combustion-powered vehicles through one more life cycle progression. Click here to learn more about the EV future of Mercedes, BMW and Audi.
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