Strategic choices in EV industry

Issue #262, Sep 18, 2024

Companies continue to rethink their strategy in the electric vehicle (EV) market. Appliance maker Sharp has unveiled a concept EV that turns the car into an extension of a home. The Chinese carmakers are moving at light speed, Ford CEO Jim Farley witnessed recently - they are using AI and other tech in cars that is unlike anything available in the US. Jim Farley's visit to China made Ford look at changing strategy to manage the existential threat from China. Standards are evolving for wireless charging. "Care by Volvo", a vehicle subscription service launched in 2017, ran up against dealer opposition in several states in the US and was scrapped. China has strongly advised its carmakers to make sure advanced EV technology stays in the country. Japanese self-driving startup Tier IV is challenging the dominance of Tesla and Google by releasing free software to lower the barrier to entry. Isuzu Motors is adopting Tier IV's autoware operating system. Below are some recent updates on evolving EV strategies.

Car as an extension of home

Electronics and home appliance maker Sharp has unveiled a concept EV meant to offer a future style of mobility that turns the car into an extension of the home. Sharp's EV prototype, called the LDK+, uses a platform developed by Sharp's Taiwanese parent, Foxconn. It takes a novel approach to automaking that combines the functionality of a conventional car and adds value by designing a comfortable, room-like interior. The concept uses the car as an extra room when not moving. - Nikkei Asia

The existential threat from China

Ford CEO Jim Farley?had just returned from China. What he found during the visit made him anxious: the local automakers were pulling away in the electric-vehicle race.? In a call with fellow board member?John Thornton, an exasperated Farley unloaded.?The Chinese carmakers are moving at light speed, he told Thornton. They are using AI and other tech in cars that is unlike anything available in the US. These Chinese EV makers are using a low-cost supply base to undercut the competition on price, offering slick digital features and aggressively expanding to overseas markets.

“John, this is an existential threat,” Farley said.- - WSJ

Standards for wireless charging

The speed, power density and efficiency of wireless charging are increasing. And in August, automakers and suppliers established standards aimed at making wireless charging work uniformly, regardless of vehicle brand or charging equipment maker. Automakers including Tesla, Stellantis,?Hyundai and Volkswagen are interested in giving their EV customers the option of cutting the charging cord. Wireless charging won't eliminate the plug — at least not right away — but it would give drivers the option of parking over a mat to charge their vehicle's battery. SAE International Standard J2954 finalizes a method of ensuring that the pad on the ground will work with the receiving pad on the vehicle — regardless of manufacturer — and that the vehicle is aligned properly over the pad for efficient charging. - Auto News

Volvo ditching subscription service

"Care by Volvo", a vehicle subscription service launched in 2017, ran up against dealer opposition in several states in the US, though some retailers said it attracted new customers and created a pipeline of used cars. The service bundled vehicle use, road hazard coverage, maintenance and other services into a monthly payment. The automaker says it has suspended the program "for the foreseeable future." Volvo pitched the program as a tool to draw younger buyers into the brand with a lower price point. More than 80 percent of subscription customers were new to the brand. Volvo retailer Matthew Haiken said subscriptions accounted for 10 percent of annual sales at his two New Jersey stores. - Auto News

Open source for autonomous driving

Japanese self-driving startup Tier IV is challenging the dominance of Tesla and Google in the field by releasing free software to lower the barrier to entry by less wealthy players. Isuzu Motors is adopting Tier IV's Autoware operating system for its plans to operate buses that run on Level 4 autonomy -- one notch below full autonomy, requiring human intervention in a few cases -- in fiscal 2027. - Nikkei Asia

Chinese EV investments in India

China has strongly advised its carmakers to make sure advanced EV technology stays in the country, people familiar with the matter said, even as they build factories around the world to escape punitive tariffs on Chinese exports. Beijing is encouraging Chinese automakers to export so-called knock-down kits to their foreign plants, the people said, meaning key parts of a vehicle would be produced domestically and then sent for final assembly in their destination market. - Money Control