How Slowing EV Sales and Strict Fuel Economy Standards Made GM Return to Plug-In Hybrid Cars
With Rising concerns about increasing CO2 emissions globally several actions are being taken to counter it and this includes automobiles which are among the biggest contributors to CO2 emissions several countries around the world are looking at the transition to cleaner Automobiles
And this includes electric vehicles Norway for example plans to transition to sales of zero emission Vehicles by 2025 this includes battery electric vehicles and Fuel Cell hydrogen vehicles but many automakers are struggling to meet such timelines and some automakers are pushing back
Against timelines entirely Global Automotive giant General Motors is one such company the company is revising its transition to electric vehicles once committed to an all electric future the company is now looking to reintroduce plug-in hybrid electric vehicles back into its vehicle lineup in North
America this change comes in the wake of slowing electric vehicle sales and the urgent need to meet increasingly stringent fuel economy standards in April 2022 the US Department of transportation’s National highway traffic safety administration or nhtsa announced new fuel economy standards which
Follow President Joe Biden’s executive order to drive America’s transition to clean cars these standards are called the corporate average fuel economy or Cafe so what is CAFE? well CAFE stands standards are regulations in the United States aimed at improving the average fuel economy of
Cars and light trucks including trucks vans and sport utility vehicles manufactured for sale in the US CAFE was implemented with three major goals the first of which being energy conservation Cafe standards were first enacted by the US Congress in 1975 in response to the 1973 oil crisis the
Oil embargo against the US led to fuel shortages as well as high fuel prices and really highlighted the US’s vulnerability due to its heavy Reliance on foreign oil the second goal is reducing fuel consumption by setting fuel economy targets for automakers Cafe standards aim to reduce
The amount of fuel consumed by vehicles in the US thereby decreasing the overall consumption of oil and finally environmental benefits over time the scope of Cafe standards were expanded to include environmental considerations improved fuel economy reduces greenhouse gas emissions which contributes
To us efforts to combat climate change the new standards are aimed at making vehicle miles per gallon more efficient saving consumers more money at the pump and reducing emissions from Transportation Cafe in reality is more complicated than conserving energy and reducing fuel
Consumption Cafe standards require each automaker to meet certain miles per gallon averages across the fleet of vehicles that they sell in a given year this means the average fuel economy of all the new vehicles from an automaker must meet or exceed specified targets so if they are selling
The automaker is selling a small vehicle and a large SUV or pickup truck the average of those vehicles must meet Cafe standards for that given year the standards are periodically updated to reflect the advances in automotive technology and changing economic and environmental needs this
Includes setting progressively more stringent fuel economy targets to comply with these standards automakers invest in new technologies to improve the fuel efficiency of their vehicles this includes developing more efficient engines transmissions and using lighter weight materials as well as advancing hybrid and electric vehicle propulsion technology automakers that fail to
Meet these standards are subject to fines these penalties are calculated based on the extent to which the automakers fall short of the standards and the total volume of their vehicles sold Cafe is challenging for automakers because they plan their product lines years in advance predict iting
The fuel economy for various vehicle types like SUVs and pickup trucks can be quite challenging for an automaker there can also be shifts in Market demands which could cause a shift away from the types of vehicles that an automaker is focusing on bringing to Market sometimes there’s a
Mismatch between the fuele efficient vehicles that regulations encourage and the types of vehicles that cons consumers prefer such as SUVs and trucks these vehicles typically have lower fuel efficiency and these two classes of vehicles have been the most popular classes of vehicles sold in
The US over the past 10 years the increased costs associated with meeting Cafe standards can lead to higher prices for new vehicles this can affect Market competitiveness for automakers and consumer purchasing decisions the new Cafe standards under the Biden Administration require
An industrywide Fleet average of 49 miles per gallon for passenger vehicles and light trucks this includes SUVs and these Cafe standards are among the most stringent fuel efficiency requirements to date the previous Cafe standards requ required Passenger cars and light trucks to
Achieve an industrywide Fleet average of roughly 40 m per gallon this was part of the regulations established in 2012 under the Obama Administration however there was a roll back of these standards during the Trump Administration in 2020 which reduced the requirement the industrywide fleet
Average 2 28 mil per gallon the new stand standards under the Biden Administration will increase fuel efficiency 8% annually for vehicle model years 2024 to 2025 and 10% annually beginning for model year 2026 they will also increase the estimated Fleet average by nearly
10 miles per gallon for model year 2026 relative to vehicle model year 2021 the new Cafe standards for model years 2024 through 2026 are projected to reduce fuel use by about 200 billion gallons through 2050 as compared to continuing under the current standards increasing vehicle efficiency
And reducing fuel consumption will save Americans at the pump Americans who buy vehicles in 2026 will get 33% more miles per gallon compared to current standards but what does this mean for the automotive industry and consumers alike well some automakers have begun introducing EVS into
Their lineup but recently there has been a well documented slowdown in the automotive industry as it relates to EVS automakers and suppliers bet big on on future demand for electric vehicles but the Slowdown has caused huge financial losses for several automakers prompting production cuts and a
Delay in their plans to shift to EVS investment in capacity and Technology development actually outpaced the demand for EVS really putting added pressure on automakers to cut costs American automakers general motor and Ford Motor Company are two examples GM recently announced a
Delay to it production plans for its EVS until 2026 as the company rethinks its strategy in order for its EV business to become profitable Ford has also delayed its EV production plans as well as implemented production Cuts due to slower than expected demand for their vehicles
For more information on these company’s plans as it relates to EVS see the related video link for GM it has decided to refocus its near-term Plans by bringing plug-in hybrid electric vehicles or phevs back into its lineup plug-in hybrids combine traditional internal combustion engine technology
With electric Battery Technology they offer a blend of reduced emissions and extended driving range Bridging the Gap between conventional and fully electric vehicles despite this shift in plans GM says it’s maintaining its commitment to eliminating tailpipe emissions from light duty
Vehicles by 2035 the integration of phevs is seen as a strategic move to balance environmental goals and the current challenges in the automotive Market General Motors isn’t new to plug-in hybrid vehicles if you recall the company had the Chevrolet Volt Plug-In hybrid from 2010 to 2019
Which was a very popular choice among consumers following the discontinuation of the vault which was met with a lot of controversy the company shifted its focus to EVS with the initial Focus being on the Chevrolet Bolt EV the company also has high hopes for its ultium Battery Technology
However models like the Chevrolet Blazer EV and GMC Hummer EV have faced challenges from owner frustrations with the vehicle software to the function of the vehicle overall including Motors batteries and brakes interestingly GM has been offering plug-in hybrid vehicles in
Markets outside the US China would be an example but now the company is bringing the technology back home to North America GM strategy this goes beyond meeting Federal fuel economy and tailpipe emission regulation it’s about meeting consumer demand as well shifting to plug-in hybrids offer
Several advantages to automakers one they can attract a wider range of consumers as consumers may have concerns around range anxiety as it relates to battery electric vehicles there are also concerns from consumers around EV charging infrastructure and whether they will be
Able to safely and reliably charge their EVs and there’s also the higher upfront costs associated with buying an EV many automakers also have the technology in place as well as the manufacturing capabilities for plugin hybrid electric vehicles which allows for a quicker and potentially less
Costly transition compared to developing an allnew battery electric vehicle Toyota would be one such example while plug-in hybrids emit fewer pollutants than internal combustion engine Vehicles they still contribute to emissions in the atmosphere when they are operating in gasoline mode meaning that they are less environmentally friendly than their battery electric vehicle
Counterparts then there’s the consumer Behavior aspect to plug-in hybrid vehicles research by the international Council on clean transportation in 2023 found that many plug-in hybrid vehicle owners don’t actually plug in their vehicles for charging especially those with company cars meaning that
These hybrid vehicles are operating primarily in gasoline mode this could be influenced by various factors such as convenience meaning whether owners have access to charging stations or whether the vehicle is actually directly owned by by them they may not feel that it’s necessary to
Plug the vehicles in for charging in some cases plug-in hybrids may actually emit more carbon dioxide into the atmosphere than is advertised by automakers this is due to these vehicles being heavier than their internal combustion engine counterparts due to the hybrid electric motor
And the combination of the internal combustion engine also some of these vehicles are being operated primarily in gasoline mode as many drivers are not charging the batteries in their plug-in hybrids meaning that these vehicles are actually having a counterproductive effect
Versus what is advertised by automakers as the world increasingly moves toward a zero emission future plug-in hybrids may only be a short-term solution long-term Investments by automakers into plug hybrid technology may not align with the trajectory of the automotive industry as well
As governments there is an increasing focus on carbon emissions reductions and one way to achieve that is through full electrification so what does this mean for you the consumer in the near term it means more choices in terms of vehicle offerings and the type of technology
That they use it also allows automakers to make a more gradual transition to electric vehicles as the industry adapts to evolving demands and as the technological capabilities develop as always thanks for watching and for more from the definitive source for clean tech
E-mobility and sustainability make sure that you like and that you’re subscribed to cleanearth.io.
General Motors is revising its vehicle strategy by reintroducing plug-in hybrid electric vehicles (PHEVs) into their lineup, alongside their electric vehicles (EVs). This strategic pivot reflects GM’s response to market demands and regulatory pressures, balancing the company’s environmental commitments with practical consumer needs.
Research:
1. https://www.cnbc.com/2024/01/30/gm-to-release-plug-in-hybrid-vehicles-backtracking-on-product-plans.html
2. https://www.forbes.com/sites/michaelharley/2024/01/31/gm-does-a-u-turn-plug-in-hybrids-are-coming-back/?sh=47b69799ec45
3. https://www.thedrive.com/news/gm-reverses-all-in-ev-strategy-to-bring-back-plug-in-hybrids
Related Videos:
1. Why GM Reversed Its Decision and Kept Chevy Bolt in Its EV Plans – https://youtu.be/t8H57OEBATI
2. Ford’s $12 Billion Dollar Shift In Reverse: What Its EV Decision Reveals About the EV Market – https://youtu.be/tjToMNEL6iU
3. Ford Cuts F-150 Lightning EV Production as Sales Continue to Fall – https://youtu.be/75zX7COM7ag
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