Success and failure
Ir. Martijn C. de Kuijer
Electrical engineer, Sustainability Nerd, Columnist, Founder of Greenchoicess, Senior Construction Manager @ Pilot Construction Sdn Bhd
Last week's good and bad car news
Saturday morning, having a nice breakfast with a cup of coffee and...., ready for some exciting car news. At Greenchoicess we look back on a week in which even Americans don't seem to like BMW XM, the Fiat 500e factory is closed and thanks to Volkswagen your morning mood disappears. Good news, bad news. Success and failure.
Failure - Even Americans don't want a BMW XM
In these polarizing times, it seems like no one can agree on anything anymore. Except about the BMW XM. It looks awful, and even Americans, who generally love everything big, think so. But no, no one 'musts' the BMW XM.
BMW achieved more registrations in Europe from January to August 2024 than a year earlier. An increase of 7.1 percent does not break any records, but it is in any case better than eternal competitors Mercedes (minus 1.3 percent) and especially Audi (minus 9 percent).
On the other side of the pond, BMW is doing less well. The brand recorded a decline of 9.2 percent in North America in the third quarter of 2024. And that is mainly due to the BMW XM. We think the enormous plug-in hybrid is the epitome of bad taste and almost all of America agrees with us. Remarkable, because the XM is large and imposing, exactly what many Americans want. But nobody is waiting for the XM.
So Few Americans Bought a BMW XM
In the third quarter of 2024, BMW dealers were able to convince just 307 Americans to drive an XM out of the showroom. Mind you, we're talking about a country with about 333 million inhabitants.
A year earlier, things weren't much better (443 sales). That's a 30.7 percent drop. Sales are falling so fast that BMW is considering opening a roller coaster at Six Flags that will send you plummeting downhill called 'Experience the XM'.
BMW XM is doing better here
Even the BMW Z4 is doing better than the XM with 543 units. While this is a roadster and the XM is an SUV that most Americans much prefer.
In short: nobody 'must' the XM. Although there is growth in sales of the monstrous German in the Netherlands. This year, the counter stands at 207 registrations up to and including September 2024 - only 100 less than in the US. In 2023, there were still 129. How is that possible.
Failure - Fiat 500e is a failure
Poor Fiat. After the 500 from 2007, the brand has never scored a hit again. Even its electric successor 500e is ignored by friend and foe. And so the factory workers are sitting at home twiddling their thumbs, because the 500e factory in Turin will remain closed longer than originally planned.
Stellantis announced last month that the factory where the Fiat 500e rolls off the production line would be shut down for four weeks. Fiat's parent company said this measure was necessary because there were too few orders both inside and outside Europe to maintain production. And this while the mischievous EV was still a bestseller in 2022. Fiat closed the historic Mirafiori factory in Turin from September 13, 2024.
The factory was supposed to reopen in a week and a half, but Stellantis has put a stop to this. The closure has been extended until November 1. Demand is still so poor that Fiat must guard against overproduction. According to Stellantis, the market for electric cars is 'in big trouble' if the lack of demand continues much longer.
EV sales are rising
Incidentally, sales of electric cars continue to rise worldwide. But the biggest growth is in China. In many other countries, EV sales are not going nearly as well as many car manufacturers had hoped. That is why more and more brands are re-examining their EV strategies. The question is whether these are smart choices in the long term.
Preparation for production of hybrid Fiat 500
Back to the misery of Fiat. Things have been going on for a while in the Mirafiori factory. The unions want more cheaper models to be produced, instead of just the Fiat 500e. That is why Stellantis is investing 110 million dollars in the factory and to build a hybrid version of the Fiat 500e. That will apparently be a different car than the Fiat 500 Hybrid that recently went out of production. That is a mild hybrid, based on the Fiat 500 that has been around since 2007.
Fiat 500e much too expensive
Although there is indeed a decrease in the demand for EVs, the limited demand for the Fiat 500e is also due to the car itself. The car looks cute and drives nicely, but that does not outweigh its high price. The entry-level model of the 500e costs 28,990 euros in the Netherlands. For that you get an EV with 93 hp and a modest 24 kWh battery, which will take you 190 kilometers in the best case.
Once upon a time, in a much less crowded competitive field, the cute retro face was enough to convince people. In fact, in 2022, the Fiat 500e was the best-selling electric car in Europe for a few months in a row, but those days are over.
Fiat 500e competitors
The 118 hp Fiat 500e with the large battery (42 kWh) and a range of 319 kilometers costs 33,490 euros. Then an MG4 (170 hp, range 370 km) for 32,285 euros is a better buy. The same goes for the budget competitor from Stellantis' own house, the Citro?n ?-C3 (from 23,300 euros). Even the Peugeot e-208 and the larger Fiat 600e are not much more expensive than the 500e, while they offer more range and also much more space. And then consider that the affordable Hyundai Inster and Renault 5 are also in the starting blocks.
If Fiat wants to get more people behind the wheel of the Fiat 500e, the manufacturer will have to lower the price. On the other hand, that is also not healthy for the brand. Maybe the new hybrid version of the Fiat 500e, expected in 2025 or 2026, will appeal to more people.
Failure - 'Rich' safety equipment is a cigar from its own box
In brochures and price lists, car manufacturers like to list all the systems that watch over your safety. However, many of these systems have little to do with the generosity of the car manufacturer. They are simply mandatory. So don't be fooled by smooth sales talk.
For 20 years, the anti-lock braking system (ABS) has been a mandatory safety feature on all new cars sold in the EU. Since 2014, every new car that comes onto the market here must also have ESP (electronic stability program) on board. This system can protect you from accidents if things threaten to go wrong in bends or during sudden evasive maneuvers. We have known how valuable this system can be, especially since the first Mercedes A-Class without ESP failed miserably in the Swedish elk test.
From coffee cup to brake and steering interventions
Since 2004 and 2014, countless new systems have been invented to ensure our safety in the car. It was usually expensive brands that started with it. For example, we still remember the friendly coffee cup symbol in Mercedes cars. With this, the car let us know that your driving behavior was getting a bit ragged and that it might be time to take a break. Parking sensors and reversing cameras? Handy!
But what used to be a luxury is now often mandatory. In other words: the enormous list in brochures and price lists is largely due to legislation. The following systems are mandatory in new models that have been on the market since July 7, 2024. They do not all apply to cars that were already sold before that date.
Many of the above systems can be switched off by the driver. This has to be done every time the car is started. The Event Data Recorder cannot be switched off.
Success - Solid state battery coming sooner than expected
The solid-state battery could eliminate the biggest stumbling blocks of electric cars. For example, the price will probably drop considerably. Everyone assumed that we would have to wait a long time for a breakthrough, but BYD (one of the largest battery manufacturers in the world) is optimistic. "Give us another 5 years," says the lead researcher.
The solid-state battery can eliminate the biggest stumbling blocks of electric cars. This makes it the holy grail for EVs. The only drawback is that they will take a while to arrive. But according to Chinese car manufacturer and battery giant BYD, it will be here sooner than you think.
According to Lian Yubo, solid-state batteries could be used on a large scale within 5 years. BYD's chief researcher said this at a conference in China, according to CnEVPost. Lian expects that the advanced batteries will be used in luxury EVs in the coming years. After this, the technology will become increasingly cheaper through further development, so that it can also be used in affordable electric cars in the long term.
Battery giants busy with solid-state
BYD is busy with this development and is making progress, according to Lian. This could lead to a huge breakthrough, as the brand is the second largest manufacturer of EV batteries according to SNE Research. In the first half of 2024, BYD had a share of no less than 15.8 percent of global battery production. However, the Chinese CATL was clearly number one with a share of 37.8 percent.
This battery giant is also busy developing solid-state batteries. CATL aims to produce the first units in 2027. Although this will initially be on a small scale, it is promising that the two largest battery manufacturers in the world are optimistic about the solid-state battery.
Lithium-ion vs. solid state
But why is that solid-state battery so important? We'll give you a little refresher on the difference between today's battery packs and solid-state batteries. Currently, most electric cars use lithium-ion batteries. A lithium-ion battery works by moving ions back and forth between two sides of the battery cell (the anode and cathode). This releases electrons that we can use as electricity. The conductor - also called electrolyte - that makes the movement of the ions possible is liquid in these batteries.
Greater energy density
In solid-state batteries, a solid electrolyte is used to conduct the ions. This has several advantages. The biggest advantage is that the energy density of solid-state batteries is greater than that of lithium-ion batteries. This gives the battery type more storage capacity and you can therefore get more energy from the battery. As a result, they do not have to be as large. Solid-state batteries are also faster to charge and generally have a longer lifespan. Finally, solid-state batteries are safer because they do not contain flammable liquid electrolyte.
Success - Toyota lowers prices of Yaris Cross
The Toyota Yaris Cross is very popular and so far holds a more than creditable ninth place in the top 50 of 2024. And yet Toyota is lowering the prices. That is always good news, but there is something behind it. It seems as if Toyota is afraid of electric competitors such as the Kia EV3 and Volvo EX30. The Japanese themselves have little to offer in the EV field.
There is a real price war going on among compact crossovers. And that is quite remarkable, because they are popular cars. The Toyota Yaris Cross is a real top seller in the Netherlands. Up to October 1, 4878 'Crossjes' were registered. This puts the Japanese in a neat ninth place in car sales of 2024 (measured up to October 1).
A price reduction does not seem necessary, yet Toyota has decided to do so. Ford previously did the same with the Puma. It became no less than 4000 euros cheaper. The Ford Puma has since been available from 28,990 euros. This suddenly increased the difference between the cheapest Puma and the most affordable Yaris Cross to a hefty 4200 euros.
Price difference Ford Puma and Toyota Yaris Cross
The new price of the Toyota Yaris Cross 1.5 Hybrid with 116 hp is 31,295 euros (old price: 33,195 euros). This means you pay 1900 euros less than before. Every version of the Yaris Cross has adaptive cruise control, automatic air conditioning and a multimedia system screen of at least 9 inches.
The price difference between the Ford and the Toyota has now been reduced to 2300 euros.
Yaris Cross Hybrid 130 1700 euros cheaper
Since the facelift, the Yaris Cross has also been available as a hybrid with 130 hp. It initially cost 39,295 euros, but it has only just hit the showroom floor, or the price has already been reduced. It is now available from 37,595 euros. That means it has become 1700 euros cheaper.
The Toyota Yaris Cross was always relatively expensive compared to the competition. The difference is now smaller, it is even cheaper than the Peugeot 2008 (32,950 euros). Another explanation for the lower prices could be that the electric competition is increasing. The Volvo EX30, Skoda Elroq and Kia EV3 fall into the same price range as the Yaris Cross. And Toyota simply has very little to offer in the electric field to the car buyer looking for a discount …
Success - Happy Volkswagens in sight
Andreas Mindt has been chief designer at Volkswagen for about two years and thinks that his brand's models look angry. He is going to do things differently: Volkswagens must be found sympathetic. Just like the Beetle and the well-known T1 van. With the ID.2 (2025) designed under his leadership, we will really see what Mindt means.
The headlights are the eyes of the car and models that look angry are cool. Or not? Volkswagen's chief designer thinks very differently about that.
Andy Mindt is Volkswagen's chief designer and a talkative guy. He tells TopGear that most drivers don't want to come across as cool or aggressive at all. They prefer to be happy and optimistic. That's why the designers at Volkswagen now have the mentality: be the nice guys.
How angry and aggressive are the current Volkswagens?
Do modern Volkswagens look so angry in their eyes? We immediately go to the Volkswagen website to assess the current state of affairs. Well, the new Volkswagen Touareg is a cool appearance, but even the largest of all Volkswagens doesn't provoke a spontaneous fight with its appearance. The round light units of the ID models and the new Passat and Tiguan, in turn, have something cuddly about them. Pillow fight?
But we wouldn't call the current design language happy and optimistic either. For that you have to go back in the brand history to the T1 and T2, the sweet vans. If you skip the chapter about 40-45 in the brand history, the round headlights of the Volkswagen Beetle will also make you happy.
Volkswagen ID.2 gets the scoop
The Volkswagen ID.2 is the first model where the designers fall back on the brand's heritage. Volkswagen describes the new design as 'stable and sympathetic'. According to Andy Mindt, the interior is also getting a makeover. "We are trying to kick out cheap plastic materials and invest the money in fabrics and improving the quality." Now we are extra curious about the unveiling of the affordable electric car.
More interesting car news next time!
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