Fewer buyers are open to electric cars than just two years ago: survey
It’s a bad sign when… more The choice leads to less Desire, but that seems to be the case with electric cars. It seems like more new electric cars and trucks are hitting the market every week, however, a new survey shows that fewer and fewer potential consumers are considering those vehicles as something they would like to own. What is happening here?
We’ll explore that in this episode of The Morning Dump, as well as take a look at the strange case of ZEEKR’s IPO and what it portends for Chinese electric vehicle companies looking to reach beyond their home market.
Additionally, there is further evidence that now is a good time to buy a Stellantis product, and President Joe Biden believes that all auto workers in the United States may join a union. Or at least it’s appropriate for him to say so.
The only chart to show how bad it is for electric car makers
Other than the colors, which are difficult to parse, I enjoy this chart from S&P Global Mobility that shows a survey of about 8,000 global respondents and their openness to purchasing an electric or hybrid vehicle.
What’s amazing to me here is that in 2021, at the height of the pandemic, 86% of respondents were open to purchasing an electric vehicle and 93% were willing to consider a hybrid. In the following two years, according to the survey, consumer interest in electric vehicles fell to only 67%, while interest in purchasing a hybrid fell to 72%.
Why is this happening? Fortunately, the survey also breaks down some of the reasons why. It’s not necessarily about network charging, as only 46% of respondents said they were concerned about charging time. And it’s not just range that you’re concerned about, as most respondents will be satisfied with a car that produces a range of less than 300 miles.
All of the above are factors, but the biggest factor is affordability according to the study:
Rice fatigue has set in, driven by rising interest rates and an inventory shortage that has only recently eased, said Brian Rhodes, director of automotive and connected vehicle experience at S&P Global Mobility.
Depending on where the electric vehicle is manufactured, changes to the US tax credit program now force consumers to lease rather than buy many models. Repeated media reports about shortcomings in grid charging reliability haven’t helped either. At this stage in the development of electric vehicles, Simply adding more models cannot eliminate these problems.
I emphasized this last part because it is very important. The constant drumbeat of $50-60K is annoying if you’re considering something like this, which is why vehicles like the $35K Volvo EX30 are so important.
Certainly, since 2019, consumer purchases of both types of these propulsion systems have risen, and frankly, the world cannot support 67% of the world to purchase a new electric vehicle, yet there is still a lot of room for electric vehicles to grow.
Chinese automakers need the United States, too
Here’s a little complaint: Apparently Zeekr has been driving some of its cars at Monticello Motor Club, which isn’t far from me, recently. I wasn’t invited. this is embarrassing. I really want to get into Zeekr 09 and try it out.
Why is Male trying to attract journalists in the US, anyway? Because the Geely Auto-owned company wants to build goodwill before a potential listing on the New York Stock Exchange. This seems to be part of Geely’s strategy with its subsidiaries and makes a lot of sense financially.
The problem is China. Or the United States. Or Taiwan. It all depends on your point of view, but it is the Chinese government that ultimately decides which companies to list or not to list, and it is the United States that will decide how interested it is in regulatory issues. Taiwan fits because Taiwan is, historically, the issue that China and the United States can’t agree on, but it’s also just a proxy for the two companies’ general interoperability, which has been low recently.
Zeekr’s listing isn’t just a big deal for Geely, it’s also an important test of whether the relationship between the US and China is frosty or lukewarm. here Reuters On the big picture:
The listing could mark the first major offering by a Chinese company in the United States in two years, following ride-hailing giant Didi Global’s delisting from the New York Stock Exchange.
Didi angered Chinese regulators by pressing ahead with a $4.4 billion New York stock listing despite demands for its suspension.
This incident, along with the long-standing audit dispute between China and the United States, has prevented Chinese companies from seeking a US listing. Only six companies based in mainland China have launched IPOs in the US in 2022.
But since then, Beijing has softened its stance on companies looking to list internationally, unveiling a set of rules earlier this year to revive such listings, after the US accounting watchdog and China resolved an audit dispute in December 2022.
I just want some sweet trucks.
There are many Stellantis products available from dealers
Stellantis’ ongoing saga of building cars that American consumers don’t seem to want continues. I joked earlier this year that the strike might have been good for the automaker because it meant it had an excuse to stop making cars it couldn’t sell, but that seems less of a joke today.
Despite the strike, the total supply of unsold inventory nationwide across all brands (on lots or in transit) rose to 2.4 million vehicles, up about 62% from last November, when supply constraints were still ravaging the market. Given the current pace of sales, Cox Automotive estimates this represents a 67-day supply (somewhere near the 60-day range is considered a good supply).
As for Stellantis, though? The Dodge brand reaches a whopping 186 days’ supply on average, followed by Chrysler with 135 days’ supply, Ram with 129 days, and Jeep with 123 days.
While Ford, Lincoln, and Buick are all above the national average (and Toyota and Honda are well below that), no automaker is in the same position as Stellantis. So, if you need a new car, expect offers at your local Dodge/Ram/Jeep/Chrysler dealer.
Joe Biden wants UAW deals for all US auto workers
President Joe Biden, wearing a bright red UAW shirt over his usual shirt and tie, was covered in spit and vinegar when he arrived in Belvedere, Illinois yesterday. You can read the above discussion and the ruling on how much spit and how much vinegar is in it.
Here is the most important thing he said, after praising the recent initial deals:
“But I’m a little selfish, I want this type of contract for all auto workers, and I have a feeling the UAW has a plan for that,” Biden said. “The future of the auto industry will be made in America by American labor unions.”
This sentiment should come as no surprise to anyone who regularly reads this morning’s news, although whether or not the UAW can pull this off remains to be seen. It also remains to be seen whether or not the union will formally endorse President Biden, although a meeting like this suggests that might happen.
The big question
Rank the reasons why you should not buy an electric car as follows:
- it costs