Latest news with #Abuelsamid
USA Today
29-04-2025
- Automotive
- USA Today
Ford said it's made a breakthrough in battery tech to make cheaper EVs with longer range
Ford said it's made a breakthrough in battery tech to make cheaper EVs with longer range Show Caption Hide Caption When will replacing EV battery be cheaper than cost of gas car engine? Experts predict that by 2030, the cost of replacing an electric vehicle battery could be cheaper than a new gas-powered car engine. Straight Arrow News Ford Motor said it has made a breakthrough in electric vehicle battery technology. Ford expects to be able to offer more affordable EVs with longer range by the end of the decade. Ford Motor Co. said it is getting closer to offering car buyers more affordable and longer-range electric vehicles thanks to a breakthrough it made in battery technology, though the announcement lacked details, leaving some experts underwhelmed. Charles Poon, Ford's director of electrified propulsion engineering, on April 23 announced that the Dearborn-based automaker plans, by the end of the decade, to offer lower-priced EVs that can travel farther on a single charge thanks to its work on new battery cell chemistry. "Today marks a pivotal moment in Ford's electrification journey and for the future of electric vehicles," Poon wrote in his LinkedIn post. "After intense research and development at our state-of-the-art Battery Center of Excellence, Ion Park (in Romulus, Michigan), I'm thrilled to share that the Ford team is delivering a game-changing battery chemistry: Lithium Manganese Rich (LMR). This isn't just a lab experiment. We're actively working to scale LMR cell chemistry and integrate them into our future vehicle lineup within this decade." Poon said the Ford team is already producing its second generation of LMR cells at its pilot line. But experts said lithium manganese batteries aren't new. The first-generation Chevrolet Volt used cells with manganese spinel cathodes, said Sam Abuelsamid, vice president of market research at Telemetry Insights. He said spinel refers to a specific type of 3D molecular structure. Tariffs shake the auto industry: Ford stops shipping Michigan-built vehicles to China due to soaring tariffs There are other battery formulations as well, Abuelsamid said, explaining that Our Next Energy, a battery startup based in Novi, is developing manganese cells and the Gemini hybrid battery pack. Gemini as an architecture designed to double the range of EVs by using two cells: a lithium iron phosphate cell for daily driving and an anode-free cell for longer trips. "The big advantage of manganese is that it's plentiful, cheap and very stable (it doesn't readily experience thermal runaway the way nickel chemistries do)," Abuelsamid told the Free Press in an email. "At least some varieties of manganese cells don't last as long, though." LMR is an answer Ford spokeswoman Emma Bergg clarified to the Free Press that while LMR has been researched by many companies, the technology poses challenges with voltage decay and gas generation. What is unique about the Ford LMR development is that the automaker is directly addressing these issues while "not sacrificing energy density," Bergg wrote in an email. Abuelsamid said manganese cells have had a short charge cycle life, and Ford's comments imply that they may have found a way to address this, but Ford did not provide details on how. Sam Fiorani thought the clarification suggested progress more than a breakthrough. "'Directly addressing' does not sound like they've 'found a solution,' but rather getting better and working toward an eventual produceable solution," Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told the Free Press. In his post, Poon said Ford's LMR battery technology has the potential to make a "step change," by giving its EVs enhanced safety and stability comparable to lithium iron phosphate batteries as well as a higher energy density than even high-nickel batteries, which provide longer range on a single charge. Poon said Ford is also targeting a significantly lower cost than current mid-nickel batteries, which would bring down the prices of EVs. Batteries represent at least a third of the cost of an EV, and Ford believes lowering prices on EVs is key to achieving true cost parity with gasoline-powered vehicles. "Ford started by offering nickel cobalt manganese batteries and later added lithium iron phosphate batteries in 2023," Poon wrote. "LMR is the answer to 'what next?'' But battery technology for EVs is in its infancy compared with the development of internal combustion engines, said Fiorani. "There will be many improvements over the coming years and decades as the automotive industry is finally focusing on this technology," Fiorani said. He said efforts such as LMR batteries, however, cannot be overlooked because they show promise in getting EVs positioned as a practical replacement for gasoline-powered vehicles, ultimately leading to broad EV adoption. But he exercises caution without further details from Ford. "Like all of the reported breakthroughs over the last few years, LMR has its shortcomings and isn't likely the panacea we're looking for at this point," Fiorani said. "Getting over the problems with voltage decay and short charge-cycle life are huge hurdles to jump." Losing cobalt cuts costs, child labor Ford's current all-electric lineup includes: Mustang Mach-E, F-150 Lightning pickup and the E-Transit van. In the first quarter, Ford reported it sold 22,550 all-electric vehicles, an 11.5% increase from the year-ago period. Ford Chair Bill Ford has long advocated for greater EV affordability. At the Detroit Auto Show in January, Bill Ford said that the company is working hard on making EVs more affordable because EV affordability will be "the catalyst for much wider adoption." Ford's news comes after the New York Times reported on Monday that China's CATL — the biggest supplier of batteries for the world's EVs — said it had made technological advances that would allow it to make batteries that are cheaper, lighter, faster to recharge and more resistant to cold — all while providing greater driving range. CATL said most of the changes will not be widely available in new EVs for a couple of years, but its new system would allow a driver to charge an EV in five minutes with enough juice to drive 320 miles. Wall Street autos analyst David Whiston with Morningstar told the Free Press that Ford's announced battery cell technology advancements might eliminate or reduce the need for cobalt, an expensive mineral often mined with child labor, making it a human rights concern. Whiston admitted he is not an expert on battery chemistry, but said LMR batteries use more abundant elements rather than cobalt for the cathode, so sourcing LMR is easier and cheaper. Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
Yahoo
26-04-2025
- Automotive
- Yahoo
Little Trucks Are Quietly Taking Over the U.S. Car Market
"Hearst Magazines and Yahoo may earn commission or revenue on some items through these links." The compact pickup has returned to America and is poised to become the next big (little-ish) thing in a competitive and fragmenting category. Since their reintroduction in 2021—via the unibody, crossover-based Hyundai Santa Cruz and Ford Maverick—these vehicles have sold nearly 450,000 units, with their best sales year occurring in 2024, with over 130,000 Mavericks and over 32,000 Santa Cruzes rolling off dealer lots. These trucks are succeeding because they tap into a long-ignored need. 'People like the idea of having a pickup, and these vehicles can actually do the truck stuff that most people want—hauling mulch or topsoil, or making a run to Ikea for new patio furniture, or to Home Depot for DIY projects—without the negatives of a big truck,' says Sam Abuelsamid, director of market research for automotive consulting firm Telemetry Insight. These negatives are myriad. Full-size trucks have undergone radical enlargement, and are currently colossal, making them difficult to drive and park, challenging to clamber in and out of, guzzly of fuel, spewy of tire particles, crushy of roadways, and—as my reporting for R&T has shown—deathly cudgels, for occupants and other road users. All of these drawbacks are compounded by the fact that many owners rarely use them for truck-like behaviors. They're also expensive, with the Kelley Blue Book data posted in January showing that the average transaction price for one is nearly $65,000. Midsize trucks, revived in the first decades of the 21st century to combat these liabilities, have followed the path of their larger brothers. 'People started to want more features, more room in the cab, larger payload, more capability,' says Abuelsamid. 'So you ended up with feature creep.' To give you a sense of this enhancement, a base 2025 Toyota Tacoma is now a half-foot longer than a base 2010 Chevrolet Silverado. The realization of an unmet consumer need was evident. 'Hyundai looked at the market and said, 'Maybe now's the time to try a new compact truck,'' says John Sohn, the insurgent Korean brand's senior group manager of product planning. The Santa Cruz concept was shown in 2014 and began production at Hyundai's Georgia plant several years later. 'We wanted to create a unibody vehicle that could deliver an SUV-like driving experience, and offer quality interior materials, ride, and NVH, but with the added functionality of an open bed,' Sohn says. 'Ford did the same with the Maverick.' This isn't a new idea. Asian automakers Nissan (née Datsun) and Toyota were the first to introduce small pickups here in the 1950s. 'Toyota compact trucks helped define low-priced, convenient-sized, highly capable trucks that had excellent reliability and longevity,' says Marcus Umlauff, general manager of Toyota's truck strategy. This spurred the domestic manufacturers to lean on their Asian manufacturing partners to badge-engineer small, Japanese-built pickups for the U.S. market. GM brought out the Chevy Luv which was made by Isuzu, the Ford Courier of the 1980s was a rebadge of a Mazda, and Chrysler had a variety of pickups built by Mitsubishi, according to Abuelsamid. Some of these vehicles were subject to the so-called 'Chicken Tax,' an 25-percent tariff added to the price of imported light trucks in 1964, initially to combat the popularity of the VW T2 pickup—and as part of President Johnson's inside deal with UAW leader Walter P Reuther to quell labor unrest, and cement support for his Civil Rights legislation, in the runup to his election. To avoid the duty, some were imported in bed-less chassis cab configurations, and then 'assembled' domestically. Some 'import' truck production was eventually moved to the U.S. to avoid the tax, but mainly, this tariff helped destroy the market, allowing the Big Three to breed ever-larger trucks in an evolutionarily closed environment mainly devoid of predators, like the Komodo Dragon of the U.S. car market. Hyundai's entry into compact trucks avoids this history. 'We don't really have any heritage in terms open-bed vehicles in the U.S. market,' says Sohn. 'But Hyundai is known for trying something different.' As a bonus, in addition to helping the brand further establish its position as a market innovator, Santa Cruz has created unique sales opportunities. According to Sohn, 75 percent of its buyers are new to the Hyundai brand, and almost 25 percent of them are trading in a (non-Hyundai) full-size or mid-size pickup. Some Ford data shows that nearly 60 percent of Maverick buyers are new to the brand as well. These vehicles have become so popular that other manufacturers are taking notice. 'Compact pickups have a role within the broad U.S. truck market and will likely solidify as a distinct segment, differentiated from midsize pickup trucks,' says Toyota's Umlauff. This growing interest is confirmed by Sohn. 'Our competitive intelligence shows that Toyota is looking to enter into the space with their TNGA-C unibody platform, sub-Tacoma,' and that Chevy is 'supposed to be entering the space with a new vehicle in the low to mid $30,000 MSRP range.' Abuelsamid concurs, noting that the coming years could see iterations of compact Central or South American market trucklets like the Ram Rampage and Chevy Montana find their way to the U.S., alongside domestic production from Mazda or VW's Scout brand. 'I don't know about Honda,' Abuelsamid says. 'And Nissan probably has bigger fish to fry right now,' referring to the company's swirling financial disarray. Our global shift toward electrification could work well in this category, as proven by the Maverick, which offers a popular hybrid option. Additionally, on Thursday night, a new compact electric truck contender officially entered the space. The Jeff Bezos-backed Slate Truck was revealed as a small, modular, single-motor EV that the company says will get to customers in 2026 and start under $20,000 after federal incentives. It's a truck-SUV combo that's supposed to be as barebones and financially accessible as possible. That means crank windows and no infotainment screen. 'Electrification, even full EV, makes more sense for compact trucks because customers buying those are not expecting to be able to tow big trailers for long distances like they would in a full-size truck. It's more putting stuff in the bed, driving it around town,' says Abuelsamid. Yet Hyundai's Sohn isn't convinced compact EV pickups will flood the market in the near future due to possible cost-associated roadblocks. But while he sees the category likely to grow, he offers one caveat. 'The question for OEMs that have an existing pickup in the mid-size space is what it would do to their total volume and profitability,' he says. 'Would it cannibalize sales, which is something Ford has seen with people buying Maverick instead of Ranger.' Personally, I'm ready to witness some cannibal action if it means more small trucks populating our roads again. You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car
Yahoo
24-04-2025
- Automotive
- Yahoo
Ford said it's made a breakthrough in battery tech to make cheaper EVs with longer range
Ford Motor Co. said it is getting closer to offering car buyers more affordable and longer-range electric vehicles thanks to a breakthrough it made in battery technology, though the announcement lacked details, leaving some experts underwhelmed. Charles Poon, Ford's director of electrified propulsion engineering, on April 23 announced that the Dearborn-based automaker plans, by the end of the decade, to offer lower-priced EVs that can travel farther on a single charge thanks to its work on new battery cell chemistry. "Today marks a pivotal moment in Ford's electrification journey and for the future of electric vehicles," Poon wrote in his LinkedIn post. "After intense research and development at our state-of-the-art Battery Center of Excellence, Ion Park (in Romulus), I'm thrilled to share that the Ford team is delivering a game-changing battery chemistry: Lithium Manganese Rich (LMR). This isn't just a lab experiment. We're actively working to scale LMR cell chemistry and integrate them into our future vehicle lineup within this decade." Poon said the Ford team is already producing its second generation of LMR cells at its pilot line. But experts said lithium manganese batteries aren't new. The first-generation Chevrolet Volt used cells with manganese spinel cathodes, said Sam Abuelsamid, vice president of market research at Telemetry Insights. He said spinel refers to a specific type of 3D molecular structure. There are other battery formulations as well, Abuelsamid said, explaining that Next Energy, a nonprofit that is researching alternative energy technology, has also been working on lithium manganese cells as part of its Gemini hybrid battery design. Next Energy describes Gemini as an architecture designed to double the range of EVs by using two cells: a lithium iron phosphate cell for daily driving and an anode-free cell for longer trips. "The big advantage of manganese is that it's plentiful, cheap and very stable (it doesn't readily experience thermal runaway the way nickel chemistries do)," Abuelsamid told the Free Press in an email. "At least some varieties of manganese cells don't last as long, though." Ford spokeswoman Emma Bergg clarified to the Free Press that while LMR has been researched by many companies, the technology poses challenges with voltage decay and gas generation. What is unique about the Ford LMR development is that the automaker is directly addressing these issues while "not sacrificing energy density," Bergg wrote in an email. Abuelsamid said manganese cells have had a short charge cycle life, and Ford's comments imply that they may have found a way to address this, but Ford did not provide details on how. Sam Fiorani thought the clarification suggested progress more than a breakthrough. "'Directly addressing' does not sound like they've 'found a solution,' but rather getting better and working toward an eventual produceable solution," Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told the Free Press. In his post, Poon said Ford's LMR battery technology has the potential to make a "step change," by giving its EVs enhanced safety and stability comparable to lithium iron phosphate batteries as well as a higher energy density than even high-nickel batteries, which provide longer range on a single charge. Poon said Ford is also targeting a significantly lower cost than current mid-nickel batteries, which would bring down the prices of EVs. Batteries represent at least a third of the cost of an EV, and Ford believes lowering prices on EVs is key to achieving true cost parity with gasoline-powered vehicles. "Ford started by offering nickel cobalt manganese batteries and later added lithium iron phosphate batteries in 2023," Poon wrote. "LMR is the answer to 'what next?'' But battery technology for EVs is in its infancy compared with the development of internal combustion engines, said Fiorani. "There will be many improvements over the coming years and decades as the automotive industry is finally focusing on this technology," Fiorani said. He said efforts such as LMR batteries, however, cannot be overlooked because they show promise in getting EVs positioned as a practical replacement for gasoline-powered vehicles, ultimately leading to broad EV adoption. But he exercises caution without further details from Ford. "Like all of the reported breakthroughs over the last few years, LMR has its shortcomings and isn't likely the panacea we're looking for at this point," Fiorani said. "Getting over the problems with voltage decay and short charge-cycle life are huge hurdles to jump." Ford's current all-electric lineup includes: Mustang Mach-E, F-150 Lightning pickup and the E-Transit van. In the first quarter, Ford reported it sold 22,550 all-electric vehicles, an 11.5% increase from the year-ago period. Ford Chair Bill Ford has long advocated for greater EV affordability. At the Detroit Auto Show in January, Bill Ford said that the company is working hard on making EVs more affordable because EV affordability will be "the catalyst for much wider adoption." Ford's news comes after the New York Times reported on Monday that China's CATL — the biggest supplier of batteries for the world's EVs — said it had made technological advances that would allow it to make batteries that are cheaper, lighter, faster to recharge and more resistant to cold — all while providing greater driving range. CATL said most of the changes will not be widely available in new EVs for a couple of years, but its new system would allow a driver to charge an EV in five minutes with enough juice to drive 320 miles. Wall Street autos analyst David Whiston with Morningstar told the Free Press that Ford's announced battery cell technology advancements might eliminate or reduce the need for cobalt, an expensive mineral often mined with child labor, making it a human rights concern. Whiston admited he is not an expert on battery chemistry, but said LMR batteries use more abundant elements rather than cobalt for the cathode, so sourcing LMR is easier and cheaper. Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: Ford says it has breakthrough Lithium Manganese Rich battery for EVs
USA Today
30-03-2025
- Automotive
- USA Today
GM storing poor-selling Canadian-made electric vans on Michigan lot
GM storing poor-selling Canadian-made electric vans on Michigan lot Show Caption Hide Caption General Motors: History, innovation, and legacy Learn about the rich history and notable innovations of General Motors, from its founding in 1908 to its leadership in electric and autonomous vehicle technology. GM has struggled to sell its electric commercial vehicles in the U.S. CAMI Assembly took two weeks of previously planned downtime to align production schedules and balance inventor Before incentives, Ford's electric van is more than $20,000 cheaper than GM's General Motors is contending with a glut of slow-selling BrightDrop delivery vans, representing another flawed projection of EV sales and leaving hundreds of the vehicles parked on both sides of the U.S.-Canadian border, the Detroit Free Press has learned. The Ingersoll, Ontario, plant that produces the all-electric vans just reopened after a two-week shutdown related to inventory. And GM is reportedly offering tens of thousands of dollars in rebates on the largest model. The struggles come less than a year after GM folded the commercial vans into its Chevrolet brand in a bid to boost its performance as GM tries to gain ground against competitors, including Ford and Rivian, in the electric van space. Sam Abuelsamid, vice president of market research at Telemetry Insights, said the extended range of BrightDrop vans far surpasses its market competitors — but so does its price tag. Before incentives, the vehicles cost about $74,000. Ford's E-Transit van with extended battery range, for example, is $51,600 — more than $20,000 cheaper — even before applying incentives. 'There is a market for electric vans,' Abuelsamid said. 'Just not at that price point.' A Free Press photographer captured images last week of hundreds of vehicles lining a Flint, Michigan storage lot. Reuters published similar photos from CAMI Assembly plant in Ontario. General Motors innovation: GM partners with Silicon Valley chipmaker Nvidia on AI, self-driving The cause is low demand, according to a union official, as GM has struggled to sell its electric commercial vehicles in the U.S. Chevrolet, the brand under which BrightDrop is now sold in the U.S., is reportedly offering rebates that add up to a 40% discount on the larger van. GM produces BrightDrop vehicles at Canada's — and GM's — first full-scale all-electric vehicle manufacturing plant, which required massive investment to retool for EV production, including funding support from both governments. Heavy rebates offered this year CAMI Assembly closed during a scheduled two-week shutdown to 'align production schedules and balance inventory,' a GM spokesperson said in a statement. Production restarted last week. Representatives at Unifor Local 88 said the BrightDrop vehicles in Flint had always been slated for the U.S. market and have nothing to do with President Donald Trump's tariff threats. Their rapid appearance is due to refining border-crossing transportation to include shipments by rail. If the vehicles remain in Flint, one union official said, it's likely because dealers aren't buying them. BrightDrop's sales figures fall far short of its immediate competitors. GM sold 1,529 BrightDrop commercial electric vans in the U.S. last year, compared with Ford's 12,610 E-Transit vehicles and Rivian's 13,243 EDV. BrightDrop does, however, outsell Mercedes-Benz, which sold only 828 eSprinter vans in the U.S. last year. According to a bulletin that CarsDirect said was sent to dealers, 2025 BrightDrop incentives surged on Feb.24,. Through June 30, the BrightDrop 400 and BrightDrop 600 are available with $25,500 purchase rebates throughout the country as part of the 2025MY BrightDrop Consumer Cash Program. 'Based on our analysis, these savings appear to be stackable, bringing up to $31,000 in potential savings,' CarsDirect reported. General Motors said in a statement that it remains committed to the success of Chevrolet BrightDrop, 'and we remain optimistic about its future.' 'Customers continue to add BrightDrop products to their fleet thanks to its best-in-class available range and complete suite of driver safety solutions,' the statement said. The company this week hired a new vice president to oversee GM Envolve, its fleet and commercial business software platform. Ian Hucker, who was previously with GM, most recently was chief commercial officer for Hyundai Capital Europe. Since consolidating BrightDrop under the Chevrolet name, GM has more than 340 dealers selling the commercial vans, up from seven BrightDrop-specific dealers. Chevrolet BrightDrop has more than 250 unique commercial customers, the spokesperson also said, and 'we continue to earn new ones regularly.' Long range means big expense BrightDrop's superior range is what pushes prices above the others. Ford's vehicle has about 140 miles at full charge, and Rivian's is slightly higher. The BrightDrop van goes nearly double the distance, at 272 miles with maximum range battery pack and all-wheel drive. But industry experts say long range isn't enough enticement for buyers to forget about added cost. Ford CEO Jim Farley told Wall Street last month retail customers already demonstrate they won't pay a premium for large EVs, making them 'a really tough business case given the expense of the batteries.' Without naming names, Farley said some of Ford's competitors continue to bring expensive EVs to the market 'that are not going to work.' Cost concerns hit fleet customers more than a traditional retail customer, and paying more for a bigger battery may not seem prudent as work and delivery vans tend to travel fewer than 70 miles a day, Abuelsamid said. About 60% of Ford's fleet customers return to corporate lots or garages at night where they can recharge for the next day's driving, he said, making larger batteries with long ranges less important. Producing vans that can be configured to meet different customer needs is another driver of Ford's success. The E-Transit, for example, has 'more configurations than any other all-electric commercial van from a full-line automaker, offering two lengths, three roof heights, three body styles and up to 487 cubic feet of cargo volume,' according to the company's website. GM launched BrightDrop in 2021 as a wholly owned subsidiary with expectations its revenue would top $10 billion by 2030 with low-20% profit margins. BrightDrop offers two commercial electric delivery vehicles: the Zevo 600, which resembles a UPS-style truck, and a smaller EV410 midsize truck. The automaker made an $800 million investment to convert the CAMI Assembly to an EV factory to build the vans — a factory that previously made 300,000 Equinox vehicles per year, according to Sam Fiorani, vice president of global vehicle forecasting at Auto Forecast Solutions. Adding Chevrolet to the BrightDrop name hasn't improved sales, either. Automotive industry: GM car buyers most loyal in 2024; Ford wins pickup and SUV categories 'BrightDrop has to establish itself as a brand and a source of these products. It's a whole new network that you have to build, where Chevrolet is established and knows the market,' Fiorani said. Using electric vehicles for stop-and-go delivery usage is practical and amounts to significant cost savings from gas-powered vehicles. BrightDrop's EVs can save a fleet $10,000 to $12,000 per vehicle each year, the company said. BrightDrop CEO Travis Katz said in 2022 that the company expected to be making 50,000 trucks a year starting in 2025 and bring in 'a lot of revenue.' Katz left the company in late 2023 without specifying why as GM began reorganizing BrightDrop to function less independently and reduce costs. 'GM was going down the path that the corporation laid out for a market they anticipated to go heavily into electric vehicles. They are way ahead of the curve at the moment, and sales aren't meeting them there. Are GM executives anticipating 70,000 or 80,000 BrightDrop sales to break even, or can they work toward producing 10,000 a year?' Fiorani said. 'That's a much more practical number for this type of vehicle than the sales you see from the Express.' CAMI's future It's unclear what low BrightDrop sales in the U.S. could mean for the future of CAMI, a question complicated by possible loss of U.S. tax incentives and the potential for tariffs adding additional expense to these vehicles, Abuelsamid said. If Trump successfully reverses aspects of the Inflation Reduction Act, which President Joe Biden signed into law on Aug. 16, 2022, to provide up to $7,500 in federal incentives for EVs through 2032, then costs for all EVs, not just fleet, will rise, and make importing these types of vehicles less enticing. Meanwhile, community members in Ingersoll expressed concern over job stability in the current landscape, with the plant's 1,300 employees comprising a significant chunk of the area's roughly 11,000 residents. 'CAMI is the biggest employer in town and thousands of spinoff jobs across the region are attached to its future,' read a report from the London Free Press ahead of the planned shutdown. The paper also reported auto and auto parts plants could shut down within a week of U.S. tariffs being imposed. Still, General Motors has deep ties to Canada that go back almost a century and would not move out of the country lightly. Dimitry Anastakis, the L.R. Wilson and R.J. Currie Chair in Canadian Business History at the University of Toronto, said that walking away from the major investments GM has made in the country just to start from scratch stateside would be lunacy. 'There was a feeling in the industry — and on Wall Street — that (Trump) wouldn't do this,' Anastakis said. 'No sane individual would bring down their own industry in this way. The uncertainty he is causing is going to impact Canada, but not in the way that he wants it. And it's going to hit Americans just as hard.' Move to Michigan? GM CFO Paul Jacobson hinted that the company's playbook to manage tariffs could entail moving production back to the U.S. in its earnings call and other recent public appearances. 'There's plays that we can do on that perspective to minimize the impact if there are tariffs either on Canada or Mexico,' Jacobson said. 'We're doing the planning and have several levers that we can pull.' Those plans weren't meant to move forward, he said, until a permanent level of tariffs seemed unavoidable. In total, Ingersoll-based companies in 2022 exported about $2.1 billion worth of goods. About $1.4 billion of that came from auto, food processing, defense, packaging and other advanced manufacturing, according to Lightcast, a labor market analytics company. Retooling a plant for EV production is costly and time-consuming, yet it's not as though GM doesn't have another option — and in Michigan, no less. 'They could conceivably build these at Factory Zero,' Abuelsamid said. Free Press staff writer Jamie LaReau contributed to this report. Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@
Yahoo
29-03-2025
- Automotive
- Yahoo
GM storing poor-selling Canadian-made electric vans on Michigan lot
General Motors is contending with a glut of slow-selling BrightDrop delivery vans, representing another flawed projection of EV sales and leaving hundreds of the vehicles parked on both sides of the U.S.-Canadian border, the Detroit Free Press has learned. The Ingersoll, Ontario, plant that produces the all-electric vans just reopened after a two-week shutdown related to inventory. And GM is reportedly offering tens of thousands of dollars in rebates on the largest model. The struggles come less than a year after GM folded the commercial vans into its Chevrolet brand in a bid to boost its performance as GM tries to gain ground against competitors, including Ford and Rivian, in the electric van space. Sam Abuelsamid, vice president of market research at Telemetry Insights, said the extended range of BrightDrop vans far surpasses its market competitors — but so does its price tag. Before incentives, the vehicles cost about $74,000. Ford's E-Transit van with extended battery range, for example, is $51,600 — more than $20,000 cheaper — even before applying incentives. 'There is a market for electric vans,' Abuelsamid said. 'Just not at that price point.' A Free Press photographer captured images last week of hundreds of vehicles lining a Flint, Michigan storage lot. Reuters published similar photos from CAMI Assembly plant in Ontario. General Motors innovation: GM partners with Silicon Valley chipmaker Nvidia on AI, self-driving The cause is low demand, according to a union official, as GM has struggled to sell its electric commercial vehicles in the U.S. Chevrolet, the brand under which BrightDrop is now sold in the U.S., is reportedly offering rebates that add up to a 40% discount on the larger van. GM produces BrightDrop vehicles at Canada's — and GM's — first full-scale all-electric vehicle manufacturing plant, which required massive investment to retool for EV production, including funding support from both governments. CAMI Assembly closed during a scheduled two-week shutdown to 'align production schedules and balance inventory,' a GM spokesperson said in a statement. Production restarted last week. Representatives at Unifor Local 88 said the BrightDrop vehicles in Flint had always been slated for the U.S. market and have nothing to do with President Donald Trump's tariff threats. Their rapid appearance is due to refining border-crossing transportation to include shipments by rail. If the vehicles remain in Flint, one union official said, it's likely because dealers aren't buying them. BrightDrop's sales figures fall far short of its immediate competitors. GM sold 1,529 BrightDrop commercial electric vans in the U.S. last year, compared with Ford's 12,610 E-Transit vehicles and Rivian's 13,243 EDV. BrightDrop does, however, outsell Mercedes-Benz, which sold only 828 eSprinter vans in the U.S. last year. According to a bulletin that CarsDirect said was sent to dealers, 2025 BrightDrop incentives surged on Feb.24,. Through June 30, the BrightDrop 400 and BrightDrop 600 are available with $25,500 purchase rebates throughout the country as part of the 2025MY BrightDrop Consumer Cash Program. 'Based on our analysis, these savings appear to be stackable, bringing up to $31,000 in potential savings,' CarsDirect reported. General Motors said in a statement that it remains committed to the success of Chevrolet BrightDrop, 'and we remain optimistic about its future.' 'Customers continue to add BrightDrop products to their fleet thanks to its best-in-class available range and complete suite of driver safety solutions,' the statement said. The company this week hired a new vice president to oversee GM Envolve, its fleet and commercial business software platform. Ian Hucker, who was previously with GM, most recently was chief commercial officer for Hyundai Capital Europe. Since consolidating BrightDrop under the Chevrolet name, GM has more than 340 dealers selling the commercial vans, up from seven BrightDrop-specific dealers. Chevrolet BrightDrop has more than 250 unique commercial customers, the spokesperson also said, and 'we continue to earn new ones regularly.' BrightDrop's superior range is what pushes prices above the others. Ford's vehicle has about 140 miles at full charge, and Rivian's is slightly higher. The BrightDrop van goes nearly double the distance, at 272 miles with maximum range battery pack and all-wheel drive. But industry experts say long range isn't enough enticement for buyers to forget about added cost. Ford CEO Jim Farley told Wall Street last month retail customers already demonstrate they won't pay a premium for large EVs, making them 'a really tough business case given the expense of the batteries.' Without naming names, Farley said some of Ford's competitors continue to bring expensive EVs to the market 'that are not going to work.' Cost concerns hit fleet customers more than a traditional retail customer, and paying more for a bigger battery may not seem prudent as work and delivery vans tend to travel fewer than 70 miles a day, Abuelsamid said. About 60% of Ford's fleet customers return to corporate lots or garages at night where they can recharge for the next day's driving, he said, making larger batteries with long ranges less important. Producing vans that can be configured to meet different customer needs is another driver of Ford's success. The E-Transit, for example, has 'more configurations than any other all-electric commercial van from a full-line automaker, offering two lengths, three roof heights, three body styles and up to 487 cubic feet of cargo volume,' according to the company's website. GM launched BrightDrop in 2021 as a wholly owned subsidiary with expectations its revenue would top $10 billion by 2030 with low-20% profit margins. BrightDrop offers two commercial electric delivery vehicles: the Zevo 600, which resembles a UPS-style truck, and a smaller EV410 midsize truck. The automaker made an $800 million investment to convert the CAMI Assembly to an EV factory to build the vans — a factory that previously made 300,000 Equinox vehicles per year, according to Sam Fiorani, vice president of global vehicle forecasting at Auto Forecast Solutions. Adding Chevrolet to the BrightDrop name hasn't improved sales, either. Automotive industry: GM car buyers most loyal in 2024; Ford wins pickup and SUV categories 'BrightDrop has to establish itself as a brand and a source of these products. It's a whole new network that you have to build, where Chevrolet is established and knows the market,' Fiorani said. Using electric vehicles for stop-and-go delivery usage is practical and amounts to significant cost savings from gas-powered vehicles. BrightDrop's EVs can save a fleet $10,000 to $12,000 per vehicle each year, the company said. BrightDrop CEO Travis Katz said in 2022 that the company expected to be making 50,000 trucks a year starting in 2025 and bring in 'a lot of revenue.' Katz left the company in late 2023 without specifying why as GM began reorganizing BrightDrop to function less independently and reduce costs. 'GM was going down the path that the corporation laid out for a market they anticipated to go heavily into electric vehicles. They are way ahead of the curve at the moment, and sales aren't meeting them there. Are GM executives anticipating 70,000 or 80,000 BrightDrop sales to break even, or can they work toward producing 10,000 a year?' Fiorani said. 'That's a much more practical number for this type of vehicle than the sales you see from the Express.' It's unclear what low BrightDrop sales in the U.S. could mean for the future of CAMI, a question complicated by possible loss of U.S. tax incentives and the potential for tariffs adding additional expense to these vehicles, Abuelsamid said. If Trump successfully reverses aspects of the Inflation Reduction Act, which President Joe Biden signed into law on Aug. 16, 2022, to provide up to $7,500 in federal incentives for EVs through 2032, then costs for all EVs, not just fleet, will rise, and make importing these types of vehicles less enticing. Meanwhile, community members in Ingersoll expressed concern over job stability in the current landscape, with the plant's 1,300 employees comprising a significant chunk of the area's roughly 11,000 residents. 'CAMI is the biggest employer in town and thousands of spinoff jobs across the region are attached to its future,' read a report from the London Free Press ahead of the planned shutdown. The paper also reported auto and auto parts plants could shut down within a week of U.S. tariffs being imposed. Still, General Motors has deep ties to Canada that go back almost a century and would not move out of the country lightly. Dimitry Anastakis, the L.R. Wilson and R.J. Currie Chair in Canadian Business History at the University of Toronto, said that walking away from the major investments GM has made in the country just to start from scratch stateside would be lunacy. 'There was a feeling in the industry — and on Wall Street — that (Trump) wouldn't do this,' Anastakis said. 'No sane individual would bring down their own industry in this way. The uncertainty he is causing is going to impact Canada, but not in the way that he wants it. And it's going to hit Americans just as hard.' GM CFO Paul Jacobson hinted that the company's playbook to manage tariffs could entail moving production back to the U.S. in its earnings call and other recent public appearances. 'There's plays that we can do on that perspective to minimize the impact if there are tariffs either on Canada or Mexico,' Jacobson said. 'We're doing the planning and have several levers that we can pull.' Those plans weren't meant to move forward, he said, until a permanent level of tariffs seemed unavoidable. In total, Ingersoll-based companies in 2022 exported about $2.1 billion worth of goods. About $1.4 billion of that came from auto, food processing, defense, packaging and other advanced manufacturing, according to Lightcast, a labor market analytics company. Retooling a plant for EV production is costly and time-consuming, yet it's not as though GM doesn't have another option — and in Michigan, no less. 'They could conceivably build these at Factory Zero,' Abuelsamid said. Free Press staff writer Jamie LaReau contributed to this report. Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@ This article originally appeared on Detroit Free Press: GM storing poor-selling Canadian-made electric vans on Michigan lot
