#Industry

Despite helping mainstream electrification with the hybridized Prius, Toyota still isn’t “all-in” on EVs. This is counter to the corporate rhetoric shared by many automakers and governments around the world. But CEO Akio Toyoda doesn’t see customers jumping onto the bandwagon as quickly as Toyota’s industrial rivals originally assumed. 

That’s not to suggest the Japanese company is completely snubbing EVs, however. Toyota plans on offering a mix of all-electric, hybrid, and traditional gasoline vehicles for the foreseeable future. It’s even throwing some hydrogen-powered cars into the mix for good measure. But an all-electric lineup seems to have been taken off the table of possibilities. 

Automakers have been having trouble building much of anything since 2020 began, thanks to a comprehensive breakdown in logistics. But the hype around electric vehicles has made them even trickier to build now that they’re starting to represent a more meaningful portion of the market. Ironically, the industry’s desire to see EVs become more popular seems to be backfiring as nobody seems capable of keeping up with demand.

With electric vehicle sales on the rise and the Biden administration allocating $900 million to address the insufficient charging infrastructure – one of the biggest obstacles EVs have to contend with – it seems like alternative energy automobiles may indeed become the future of driving. However, there is one problem even a firehose of money and mounting regulatory pressure can’t address. 

Despite massive investments from both government and private entities, EVs need batteries, and the raw materials required aren’t getting any easier to obtain. Lithium values continue to rise and have recently reached an all-time high that’s setting the stage for pricier electric vehicles. While this wouldn’t be so bad by itself, EV prices jumped dramatically this year and have continued to do so at a pace that has overshadowed their combustion-reliant counterparts. 

Tesla executive Martin Viecha has reportedly shared some of the automaker’s short-term goals with investors during an invite-only Goldman Sachs tech conference held in San Francisco on Monday. As the company rarely engages in any form of public outreach and scrubbed its PR department in 2020, leaks from the event immediately became newsworthy.

Following the passing of the U.S. “ Inflation Reduction Act,” South Korea came to the defense of Hyundai Motor Group to urge America to postpone things until the automaker completed a facility in Georgia intended to manufacture all-electric vehicles. Hyundai chairman Chung Eui-sun had reportedly expressed serious concerns that revamping and renewing the EV credit scheme disproportionately advantaged certain manufacturers – sending the Korea Automotive Industry Alliance into lobbying overdrive.

Volkswagen AG is moving forward with its plan to list a minority stake in Porsche, with the latest details suggesting that the initial public offering could manifest by this month – if not early October. It’s set to be one of the biggest IPOs ever. But it’s also sounding like Volkswagen Group may abandon the scheme if the larger political or economic situation continues to sour. Considering the continent’s present trajectory, that doesn’t sound like it’s beyond the realm of possibilities. However, the quick turnaround for the offering may mean VW can get out ahead of any social unrest and financial upheaval. Ideally, the automaker still wants to see the sale happen. 

Dodge recently announced that the iconic Charger and Challenger models would be sacrificed in the name of electrification next year — releasing the battery-powered, two-door Dodge Charger Daytona SRT Concept to show the public what might be on offer in the near future. But the language used felt somewhat noncommittal, as if the company was really just testing the waters to see what V8-obsessed Mopar fans were willing to tolerate. Meanwhile, Stellantis has opted to eliminate the brand’s high-performance SRT (Street and Racing Technology) division. 

Executives have attempted to spin this as good for the company, suggesting that integrating Dodge’s performance-focused engineering team into the broader pool will mean better cars across the board. But I’m worried about my favorite American brand and am wondering if anyone else on the road feels similarly. 

The scissors have been busy at the Glass House, reportedly cutting 2,000 salaried and 1,000 agency jobs as it seeks to bolster profitability. Affected employees will be informed this week, said spokespeople, and we have the internal memo after the jump.

Toyota has suspended operations at a factory in China because local authorities issued an order for the region to conserve electricity. Sichuan province is reportedly rationing energy for both residential and industrial zones, complicating things for manufacturers. Toyota has said that the plant is likely to be closed through Saturday — adding that it would be monitoring the situation and taking guidance from the Chinese government. But the issue could have sweeping ramifications because the area is also home to numerous part suppliers.

Ford conducted a lot of marketing research for its Edsel brand and was assured by many well-educated MBA types that its new lineup would be hugely successful. The research scientists said the unique styling and features Edsel offered would appeal to a broad cross-section of the American populace. After a television musical debut in the fall of 1957, Edsels were shipped to dealers where they remained under wraps until it was time for the ‘58 model year. 

Crazy styling aside, Edsel’s arrival caused some immediate brand confusion in relation to Mercury, and in more limited circumstances, Ford. Much of said confusion occurred in the company’s debut year when Edsel spread the “lots of new models” sauce a little too thin. We start at the brand’s second most basic offering: Pacer.

A few years ago, the industry narrative was that all-electric vehicles would reach financial parity with their combustion-driven counterparts in 2025. The assumption was that this would gradually occur by way of ramping up battery production and leveraging economies of scale. However, reality had a different take, as the world is now confronting record-setting prices across the board. Manufacturer and dealer hikes have resulted in the average invoice of EVs rising to $54,000 — roughly 10 grand higher than the typical transaction price of gasoline-powered vehicles, according to J.D. Power.

With economic pressures spiking the value of all automobiles, hardly anything is leaving the lot for less than it could have been had for in 2020. But the increases seen on all-electric models are actually outpacing the models we’ve been told they’re supposed to replace.

The latest data from Carfax has indicated that roughly 50 million U.S. vehicles presumed to still be in operation still have outstanding recalls that have yet to be addressed. Though the good news is that this represents a 6 percent decline from 2021 and a meaningful 19 percent drop against 2017.

Still, the metrics may not be wholly down to better communication on the part of the manufacturer and people taking recall notices more seriously. Between 2013 and 2015, the average number of U.S. vehicles and equipment subjected to recalls per year went from 26.3 million to 83.6 million. While the annual averages have come back down since, recalls have remained substantially higher than in decades past.

On Monday, General Motors, Ford, Stellantis, and Toyota Motor North America reportedly asked the United States Congress to lift the existing cap on the $7,500 federal tax credit for electric vehicles. Though automakers petitioning the government for free money is hardly new business.

S&P Global Mobility has reported that the average U.S. automobile is now 12.2 years old, which it said represented a 2 percent increase since 2021. While relatively modest, the general trend for the last five years has been for vehicles to get older as drivers attempted to milk more life from beleaguered hardware.

Much of this has been attributed to North America’s broadening wealth gap and general improvements in vehicle longevity. If you look back at Department of Transportation data from the 1990s, the average age of a car was under nine years. By 2007, the typical car would see its 10th birthday before scrappage and the number has continued to climb from there. Much of that is due to households having to make do with tighter budgets, which was arguably made easier by modern powertrains that can easily exceed 100,000 miles before needing any serious maintenance.

Unless you’ve been living under a rock since 2019, you’ve probably realized that just about every major carmaker has plans to go “fully electric” at some point in the rapidly approaching future. That’s going to mean big changes in the way we buy and use cars, obviously— but change is hard, and not every company is going to be willing or able to make those changes.

That equally obvious fact begs the question: who’s not gonna make it?