Latest news with #Ram
CNBC
2 hours ago
- Automotive
- CNBC
As EVs stumble, automakers are bringing back a kind of hybrid that promises long range
Major automakers are set to resurrect a type of hybrid vehicle that seemed dead in the U.S. just a few years ago to meet a changing consumer demand electric vehicles (EREVs) are a form of plug-in hybrid that falls midway between traditional hybrids and full EVs. EREV cars and trucks rely on battery powered motors for propulsion (like an EV) but also have a relatively small gas engine to use as a generator to keep the batteries charged up (like a typical hybrid). A key difference between EREVs and other hybrids is the relative size of their batteries and gas engines. Mainstream hybrids and plug-in hybrids (PHEVs) like the Toyota Prius still rely on combustion engines as their main means of propulsion. Thus, they have proportionately smaller batteries, but substantial gas engines that are directly connected to their drivetrains to help move the car. EREVs are much more focused on the electric side of the equation, so they tend to have bigger batteries than other hybrids, but comparatively small gas engines that solely function as generators to top off the batteries when examples of this type of vehicle – the Chevy Volt and Fisker Karma – were introduced to the U.S market in 2011. These were followed by the BMW i3 and Cadillac ELR in 2014. But EREVs (also known as Range Extended Electric Vehicles, or REEVs), never attracted much interest from American consumers. The Volt was the most popular EREV by far, with GM selling 157,000 over nine years, until it ended production in 2019. That may seem impressive, but it's a blip in the overall U.S. new vehicle market, which saw about 16 million sales each year in that timeframe. The last EREV sold domestically was the i3, which BMW discontinued in 2022. While there are no new EREVs for sale in the U.S., several are in the pipeline. This includes an upcoming version of the Ram 1500 pickup truck, set to come to market in early 2026. A Ram spokesman noted that it will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery power. An EREV version of the Jeep Grand Wagoneer is also under development, according to the company. Volkswagen is planning to begin production of an EREV pickup truck and SUV under the Scout brand name starting in 2027. Hyundai Motors plans to introduce EREV versions of its mid-sized SUVs by the end of 2026, according to a spokesman. The vehicles are expected to have more than 560 miles of range, and be sold under the Hyundai and Genesis brands. In addition, a Nissan spokesman confirmed that the company is considering offering EREV options in its mid-size and larger SUVs. "They do offer advantages versus 100% EVs when it comes to hauling and towing," he said, "allowing greater driving range without the need for a large capacity battery, as well as faster refueling." James Martin, the director of consulting services at S&P Global Mobility, says one reason manufacturers are turning to EREVs is lower production costs. EREV use of smaller and less expensive batteries than full EVs allows manufacturers to keep their expenses down. EREVs are also less complex than plug-in hybrids, Martin said. PHEVs have two functioning propulsion systems and sophisticated controls to allow them to communicate with each other. Most EREVs, by contrast, are solely propelled by their electric motors. But one of the biggest advantages of EREVs is range. In China, where EREVs are gaining in popularity, the manufacturer BYD offers mid-sized sedans with more than 1,300 miles of claimed range. EREVs also alleviate range anxiety due to the ubiquity of gas stations. Consumers can just fill up with gasoline to charge the battery if a charging port is unavailable. The new EREVs can travel more than 100 miles on batteries alone, then hundreds more using gasoline. "Range anxiety is still a factor when it comes to choosing an electric vehicle over an internal combustion vehicle," said K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Center for Automotive Research. "EREVs, allay the range anxiety concern," he said. These hybrids may especially appeal to consumers who frequently travel long distances, and getting more consumers used to plugging in their vehicles might also appeal to manufacturers. "The actual charging experience of EREVs is very similar to that of BEVs," Prasad said. "So, the market adoption of EREVs is likely to be seen as a good ramp to future BEV purchase considerations," he added. Charging infrastructure is still lagging in many areas of the U.S., according to executive analyst Karl Brauer, which can make a full EV impractical for consumers. EREVs avoid that issue and may also be attractive to consumers who live in apartments or houses that lack charging stations. A recent report from McKinsey noted that EREVs could also combat cost concerns among consumers, noting that the smaller batteries can shave off as much as $6,000 in powertrain production costs, compared to BEVs. Another factor, according to McKinsey, is that both domestic and European manufacturers have seen how EREVs have gained sales momentum in China, a sign the technology may help to increase electrification adoption in their own marketplaces. "We expect all levels of hybridization to increase production in North America throughout the decade," said Eric Anderson, the associate director of Americas light vehicle powertrain forecasting for S&P Global Mobility. Hybrids, including EREVs, are a "relatively affordable way for consumers to move up the electrification ladder without a significant monthly payment increase, he said. While the EV vehicle market continued to grow last year, the pace of growth has slowed considerably. "The BEV market is in the process of shifting from early adopters to a more price-conscious buyer," Anderson said. Domestic sales of hybrids grew from 1,175,456 in 2023 to 1,609,035 in 2024, according to the U.S. Department of Transportation, a 37% increase. Plug-in hybrids grew 10% in the same period — from 293,578 to 321,774. By comparison, fully electric EVs saw 7% growth, from 1,164,638 to 1,247,656. While overall sales of traditional internal combustion engine (ICE) vehicles continues to dominate, its market share has fallen every year since 2015, according to Edmunds. Last year, ICE vehicle sales fell to 80.8% of total U.S. sales, down from 84% in 2023. Another attribute that might make EREVs popular with consumers is resale value. Hybrids - which includes EREVs and more common plug-in hybrids - depreciate less than EVs or traditional gas vehicles. Since depreciation is the most expensive part of car ownership, finding a vehicle that better retains its value can provide consumers with significant savings. By contrast, electric cars and trucks lose value faster than any other vehicle type – dropping by 58.8% after five years, compared to the overall vehicle depreciation average of 45.6% and only 40.7% for hybrids, according to research from iSeeCars. "Electric vehicle sales have been slowing on both the new and used market, with EVs sitting on dealer lots longer despite falling prices," Brauer said. "Consumers are showing increasing appreciation for hybrid vehicles, creating a friendly environment for automakers to introduce more plug-in hybrids as an intermediate step toward full electric vehicles."
Mint
4 hours ago
- Business
- Mint
InvITs look tempting. But are they right for you?
Sixty-year-old Ram was looking for some good investment options when he came across Power Grid Infrastructure Investment Trust (InvIT). Trading at ₹86 and having a 14% yield, it appeared to be an attractive option for locking in a high income during his retirement years. After all, fixed deposits yield 6-7% interest every year, and investment-grade bonds could only reach up to 10%. Tempted by the high return, Ram decided to consult his financial advisor before making a move. 'That's not how it works," his advisor said. Understanding InvITs For starters, Infrastructure Investment Trusts or InvITs are instruments that allow investors to earn from the cash flow generated from various infrastructure assets, including roads, power generation, transmission projects, optic fibre networks. Each InvIT has an income-generating asset, and a chunk of the income earned after deducting the costs is distributed to investors. However, they are neither debt instruments, nor traditional equities. Unlike FDs or bonds, where you get the initial investment back at the end of the term, there is no principal repayment for most InvITs at the end of the tenure. The underlying project is also not owned directly by the unitholder in most cases, and it simply represents rights to collect cash flows (such as tolls) for a fixed period. To be sure, there are exceptions like warehousing InvITs, in which the underlying asset is owned by the unitholder, and the revenue will keep generating as long as the asset remains occupied. When the warehouse ages, the underlying land and the building can be sold off and distributed among investors or used to buy new assets. Also Read: How InvITs can add yield to your investment portfolio So what was the 14% InvIT yield? Power Grid InvIT had distributed ₹12 to each of its unitholders in the previous financial year. However, this amount does not represent just the interest payments but also includes a component of capital repayment. Since InvITs don't return capital to unitholders at the end of maturity, the yield is not comparable to bond yields or interest in fixed deposits. 'People confuse InvIT yield with REITs and use it interchangeably with other instruments," said Niraj Murarka, chief investment officer and head of Real Assets at 360 ONE Asset. 'Comparing it to other dividend yields would be incorrect. While interest from common bonds and FDs is pure interest, the InvITs distribution includes interest, dividend, and part repayment of the capital." The payouts in the previous financial year are also not a constant figure and tend to decline over time. For instance, toll-based road InvITs, after a certain period, will no longer have permission to collect tolls and will stop earning from it. In Reits, investors continue to own the underlying asset and the cash keeps flowing as long as the building is intact and there is an occupancy. Typically, an InvIT could have 8-20 projects, each with a different 'balance concession period,' which means that each project may have a different lifespan until when it can earn income. If there is a road asset and the license to take toll expires after a year, then the income would stop from the next year. If this road project was fetching them ₹2 every year, and if the balance concession period of this project stops, unitholders will get ₹2 less or whatever this project could have earned from next year. To be sure, InvITs can choose to buy new assets when existing Invits projects expire through equity dilution or by taking debt. Also Read: Sebi's big bet on REITs, InvITs—are we fixing what isn't broken? Discount to NAVs Ram also noticed that Power Grid InvIT was trading at ₹86 while its net asset value (NAV) stood at ₹94. Optically, it looks like it's trading at a discount of ₹8 to its fair value. He wondered if this presented a chance for capital appreciation. 'It doesn't quite work that way," replied the financial advisor. Mutual fund NAVs are straightforward. The closing price of underlying securities is tallied to arrive at the daily NAV of MF schemes. It's a relatively simple process and requires no subjectivity. It is generally considered a good representation of the underlying value of the scheme. On the other hand, InvITs' NAV is calculated quite differently. Every six months, the InvIT trustee appoints a valuation agency to arrive at the value of the underlying assets in the Invits. However, different valuation agencies use different methods and assumptions to arrive at the value of the same asset. This makes the InvIT's NAV subjective and open to interpretation compared to other kinds of NAVs, such as those used by MFs and ETFs. A host of factors can also play a role in how the market prices InvITs. For instance, traffic on a road could fall if a new, better road is constructed, and it might lead to reduced toll collection. Also read: Infrastructure Investment Trusts: How do they provide a new path for infrastructure financing? So should you invest? Murarka said retail investors may invest in InvITs through mutual funds or under the guidance of a professional financial advisor. Understanding InvITs requires a detailed study of the underlying projects, lifespan of each asset, and the cash flow potential it has. Such material can be best studied by analysts or fund managers to make an informed decision, said Murarka. Although InvITs have a low traded volume, and free float market cap ranges from around ₹2,000 to Rs.19,000 crores, retail investors investing a few lakhs shouldn't face much liquidity issues. Mutual funds can invest up to 10% in InvITs and REITs. The market regulator has proposed to increase this limit to 20% in equity and hybrid schemes. Taxation of InvITs is more complex than plain vanilla instruments, said Gautam Nayak, partner, CNK & Associates LLP. 'While the interest component is taxed in the hands of the unitholder at the slab rate, the dividend income may be taxable or tax-free, depending upon the tax rate opted for by the SPVs in which the InvIT has invested." Capital repayment is tax-free, but reduces the cost base and may get taxed as capital gains upon sale. Capital gains on sale of InvITs are at par with equities. 'It's advisable to consult a tax expert to understand the implications," Nayak added. Ram's example is hypothetical.
Yahoo
4 hours ago
- Automotive
- Yahoo
Stellantis CFO praises new CEO, promises progress in American market at fireside chat
Stellantis CFO Doug Ostermann spent the afternoon praising the automaker's new chief executive and promising big things for the American operations of the company in years to come. Speaking at the Bernstein Strategic Decisions Conference on May 29, an economic conference aimed at company executives and investors, Ostermann touched on an array of issues: How will Stellantis keep up with the blazing pace of Chinese automakers? How will the company address headwinds brought on by President Donald Trump's tariff policies? But to open the 50-minute discussion, Ostermann took a moment to praise Antonio Filosa, who was named the next CEO of Stellantis on May 28. "Antonio has, you know, kind of this proven track record of improving things, building things, getting at issues and being very hands-on," Ostermann said, pointing to his work in North and South America, where Jeep dominated South American markets under Filosa's guidance. "In the short time that he's been the head of North America, he fixed what was a significant inventory problem, adjusted pricing, built back the relationships with dealers," Ostermann said. "He's always been a man with a plan." Filosa, a self-described protégé of the late charismatic Fiat Chrysler leader Sergio Marchionne, is tasked with reviving a company that has lagged financially in the last several years. Under former CEO Carlos Tavares, Stellantis saw a 70% drop in net profit between 2023 and 2024. The struggles continued into 2025, as Stellantis' profits slid 14% in its first quarter of 2025. Ostermann, who has been with Stellantis-affiliated brands for eight years, says he trusts Filosa to lead the automaker out of the rough years. Stellantis names new CEO: Meet Antonio Filosa, the new CEO of Stellantis and protégé of Sergio Marchionne Fixing Model T's: Hot job? A growing field for mechanics who can fix Ford Model T's and antique cars Stellantis is an international company, managing 14 brands including Chrysler, Dodge, Jeep, Ram, Fiat and several names in the European market. American dealers and factory workers have previously scolded the company for leaving American operations behind. With the compounding influence of a new leader in Filosa, who previously told the Free Press the United States is "the biggest priority" for Stellantis, and tariff policies seeking to reward automotive production in the United States, Ostermann said that he anticipates the company putting more focus on American production and jobs. Ostermann noted that several new models will be rolling out this year, including a midsize truck under the Ram banner and a retooled Jeep Cherokee on a hybrid powertrain, set to be released in the back half of 2025. The new Cherokee comes two years after the model was canceled in 2023, and Ostermann said it will be Stellantis' first vehicle with a full hybrid powertrain. Along with the new Cherokee, Ostermann mentioned Ram's upcoming foray into the midsize truck market — a segment in which Stellantis does not currently offer a vehicle. Plans for the new truck and other manufacturing, Ostermann said, are being made with tariffs in mind. "Clearly, we're going to be more biased toward the U.S. manufacturing going forward," Ostermann said, when asked how the brand is adjusting to proposed tariffs. "When we look at the opportunities that we have to get into, say, the midsize truck segment ... we have a natural space there with the Ram brand." He followed up, indicating plans are moving forward to build the truck in America. "I'm sure we will industrialize (the midsize truck) in the United States," Ostermann said. "Our intent, you know, going forward, and always, for the most part, has been to produce where we sell." The new CEO, Filosa, officially assumes control of the company on June 23, when he will be tasked with maintaining his record of improving things for the struggling automaker. Liam Rappleye covers Stellantis and the UAW for the Detroit Free Press. Contact Liam Rappleye: LRappleye@ This article originally appeared on Detroit Free Press: Stellantis CFO says tariffs will bring more focus from company to U.S. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Indian Express
7 hours ago
- Politics
- Indian Express
If terrorism rises again, will force the snake out of its hole and crush it: PM Modi in Bihar
Prime Minister Narendra Modi said on Friday that India will 'force the snake of terrorism out of its hole and crush it' if it raises its head again. Addressing a public gathering at Vikramganj in Bihar's Rohtas district, he weaved his speech around the success of Operation Sindoor, in which India struck terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir earlier this month as a response to the terror attack in Pahalgam that left 26 civilians dead. He recalled announcing during his last visit to the state that the hideouts of the terrorists who carried out the April 22 attack in Pahalgam would be busted, and said that India's defence forces had achieved that with Operation Sindoor. 'Sasaram (the district headquarters of Rohtas) has the word 'Ram' in it. Ram's policy had been one of pran jaaye par vachan na jaaye (Promises must be kept even at if life is at stake). Ram's riti (the ways of Ram) are now India's niti (policy). India's fight against terrorism will not stop. I had promised from Bihar that those who had widowed our sisters during the Pahalgam attack would be taken to task. Our defence forces have destroyed the hideouts of terrorists,' he said in Rohtas on Friday. He also inaugurated and launched development projects worth Rs 48,500 crore, including three road and railway projects each and two phases of the Nabinagar thermal power project at Aurangabad. With Assembly elections coming up in Bihar later this year, Modi cautioned people against a return of jungle raj and 'fake claims' of social justice. 'Those who had done little for the poor and the backward, those who had forced the people of Bihar to leave the state, are now talking of social justice,' he said. The Prime Minister had arrived in Patna on Thursday on his two-day Bihar trip. After landing at Patna airport, he had opened a new terminal to the public, and also virtually flagged off construction and development of Bihta airport, which is slated to come up near the state capital. The PM then held a five-km roadshow from the airport to the state BJP headquarters in Patna. Santosh Singh is a Senior Assistant Editor with The Indian Express since June 2008. He covers Bihar with main focus on politics, society and governance. Investigative and explanatory stories are also his forte. Singh has 25 years of experience in print journalism covering Bihar, Delhi, Madhya Pradesh and Karnataka. ... Read More
Time of India
8 hours ago
- Politics
- Time of India
'Returned to Bihar after fulfilling promise made here': PM Modi says terrorism razed to ground
Prime Minister Narendra Modi NEW DELHI: Prime Minister Narendra Modi on Friday recalled his last rally in Bihar when he vowed to take revenge on Pakistan after the April 22 Pahalgam attack and said that he is back after fulfilling his promise. While addressing a rally in Bihar, PM Modi said, "There is 'Ram' in 'Sasaram'. The people of Sasaram know the custom of Ram- 'Pran Jaye Par Vachan Na Jaye'. It means that promises get fulfilled. Ram's custom has become Bihar's policy. After the dreadful terrorist attack in Pahalgam, I had promised the country on the land of Bihar that the hideouts of the masters of terrorism would be razed to the ground, that they would get a punishment bigger than they could ever imagine. Today, when I have come to Bihar, I have come here after fulfilling my promise." In the early hours of May 7, India launched peration Sindoor, targeting nine terror launchpads in Pakistan and PoK, after the Pahalgam attack which claimed the lives of 26 people. The Indian Air Force also destroyed 11 Pakistani airbases in response to Pakistan's failed attempts to strike Indian military positions on May 8, 9, and 10. Here are the top quotes: Pakistan and the world have seen the power of India's daughters' Sindoor... The world has seen the unprecedented valour and courage of the BSF during Operation Sindoor ... While performing the sacred duty of serving the motherland, BSF Sub Inspector Imtiaz laid down his life at the border on 10 May. I pay my respectful tribute to this son of Bihar... The enemy has seen the power of Operation Sindoor. They should understand that this is just one arrow in our quiver. India's fight against terrorism has neither stopped nor halted. If the hood of terror rises again, India will crush it by pulling it out of its hole. The people of Bihar are witnesses to how we have eliminated those who spread violence and unrest in the past years. How Naxalism was dominant in the Sasaram and nearby districts a few years ago... These people had no faith in Babasaheb Ambedkar. Even in those circumstances, Nitish Kumar tried his best for development here... Before 2014, more than 75 districts were Naxal-affected. Now, only 18 districts are left Naxal-affected. The day is not far when Maoist violence will be completely eradicated. When the Jungle Raj government was dismissed under Nitish Kumar's leadership here, Bihar also started moving ahead on the path of progress. Broken highways, bad railways, limited flight connectivity, that era has now become history... A web of four-lane highways is being constructed in Bihar... Bridges are being constructed on all major rivers.. The condition of railways in Bihar is also changing rapidly... These development works could have been done earlier as well. But those who were responsible for modernising railways in Bihar looted the lands of the poor. These were their methods of social change: looting the poor and taking advantage of their helplessness.... It is necessary for the people of Bihar to remain cautious of the lies and deceit of Jungle Raj in future as well.
