Stuck in reverse: why car companies must prioritise customers’ needs over profit
It’s well understood that with electric vehicles (EV) the larger a car is, the heavier it is, and the bigger the battery required – all of which impact its range and purchase price, as highlighted by Stellantis Chief, Carlos Tavares, at the Financial Times’ Future of the Car summit yesterday.
So why do major car brands, even at the EV end of the scale, continue to focus their time and attention on making SUVs, which – let’s face it – are much more regularly used for the supermarket shop, rather than the craggy countryside scenes they’re designed and marketed for?
We know that for EVs in particular, range is still a huge obstacle. Not only that, but statistics show time and time again that there is a high demand from consumers for small vehicles, which is no surprise considering the average car journey in the UK includes just 1 to 2 people - a far cry from the 4 or 5 person families we’re used to seeing in adverts.
The answer surely is to start making smaller cars that can travel further. Manufacturers are loath to do this, however, because smaller cars inevitably mean a smaller profit.
Interestingly, manufacturers have largely adopted the underfloor battery configuration in the ‘skateboard’ arrangement. But, whilst great for freeing up space in the cockpit, this comes with structural, weight and cost drawbacks, leading to much reduced profits. So, what are the alternative arrangements that still deliver on customers’ needs, yet don’t suffer the cost and weight penalties? Do we need to revisit customers’ needs to innovate for suitable yet more efficient arrangements?
The car has traditionally been at the heart of the family; an essential component for every-day life. But the fact is, every-day life is changing dramatically – not just because of COVID – and that has an impact on the way we travel.
If car companies started to prioritise customers’ needs over profit, they’d open the door to a world of innovation that would really put them at the front of the EV race. They’d be able to be much more flexible with design, playing with materials, size and shape, to deliver lighter, more efficient models that get people from A to B whether the charging infrastructure is there or not.
Between plummeting birth rates, remote working, the rise of the rental economy, and ever-increasing investment in public transport, the journeys people take are evolving. It’s time our cars evolved with us.
#electriccars #electricandhybridvehicles #electric #electriccharging #automakers #autodealerships #automotiveindustry #automotivetechnology #carswithoutlimits
Chief Technology Officer at Page-Roberts Automotive
3 年Good observations.?Electric vehicles are the future for many good reasons.?It’s great to hear an influencer like Carlos Tavares challenge thinking about progress with EVs.?Rather than view his comments as a need to maintain combustion engines, I see them as a challenge to innovators to overcome the current drawbacks with EVs. In principle EVs are great: clean air, low noise, instant torque and potential to be powered by green energy.?The current reality as indicated by Tavares is that EVs are much heavier and more costly than combustion engine vehicles. I was shocked to read that the kerb mass of the Fiat 500e is nearly 1500kg.?The cost and range are equally disappointing. Yet the 500e is a valiant effort to create a stylish EV.?The high weight requires greater energy to produce, use and recycle the vehicle; and adds to tyre wear, an emerging environmental concern.?The high cost will add to the growing inequalities in society.?Some cynics may even view the limited range as a good thing as it reduces freedom to travel!?Thankfully Tesla and others are making good progress at producing cars with decent range, supported by great charging networks. If only they were affordable by the masses... What needs to change for mass EV adoption?
Account Director at The Think Tank (B2B)
3 年Well said!!