Electric vehicles improve in sales for 2022

Leah Cooper on January 16, 2023

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Electric vehicles:Electric vehicles have become more popular than ever before, and manufacturers besides Tesla are becoming more recognized.

Matt Degen, an editor at Cox Automotive, a website and company devoted to cars, described the situation best.

“It’s not your eyes tricking you,” highlighted Degen.

“For the longest time, the majority of the EVs on the road were Teslas, and they still get the lion’s share of sales.”

“But they’re now hardly the only game in town.”

The numbers

5.6% of the automobiles sold in 2021, according to Kelley Blue Book, were electric vehicles.

Two years ago, only 1.4% of EVs were sold.

Norway was referenced by BloombergNEF expert Corey Cantor in connection to the performance within the global markets.

The 5% market share underlined a crucial turning point for greater adoption.

dBloombergNEF added that markets like China and Europe experience similar changes.

Although plug-in hybrids were listed among the “electric vehicles” by Bloomberg, battery-power vehicles account for the majority of them.

A norm

5% can seem like a little amount, but it could signal the beginning of something becoming common.

For instance, according to Cox Automotive, Hyundai’s overall US market share and the market share for electric vehicles are comparable.

Purchasing a Hyundai doesn’t feel out of the ordinary, and the same is true for electric cars.

However, the main obstacle to buying an electric vehicle is the convenience.

“I think now the demand is definitely there,” said Cantor.

“It’s just been more a supply side of automakers not being able to ship enough.”

Supply & demand

The distribution of parts has been a problem for the entire year 2022 in the global car industry, which has hindered production for a range of vehicles.

The unexpected popularity of a few electric vehicle models caught the manufacturers off guard.

As an example, the 2021 Mustang Mach-E was the first electric vehicle to compete with Tesla sales.

Since then, Ford has had trouble keeping up with demand.

According to Darren Palmer, vice president of electric vehicle initiatives at Ford, every Mach-Es produced by the company was made in response to a specific customer order.

“We could sell it out at least two or three times over,” said Palmer.

“We have held back from launching more global markets because we’re completely sold out.”

The F-150 Lightning is a later version of the F-series pickup truck made by Ford.

The factory where the Lightning is made in Michigan is also being expanded by the manufacturer.

Variety

The selection of electric vehicles on the market has also been expanding.

Eleven electric vehicle models sold more than 1,000 units in 2019, claims Kelley Blue Book.

This year, there were 26 different models.

Hyundai and Kia launched new models for the Hyundai Ioniq 5 and the Kia EV6 even though they already sold electric vehicles.

The R1S SUV and R1T truck were released by Rivian.

General Motors also observed an increase in sales after the Bolt EV and Bolt EUC were brought to the market after a battery fire recall.

The market currently provides electric cars from the premium manufacturers listed below:

Audi
BMW
Genesis
Mercedes
Volvo

“There’s different segments, there’s different price levels,” said Matt Degen.

“It’s not just having to spend $50,000 or $100,000 on an EV anymore.”

According to Tony Quiroga, editor-in-chief of Car and Driver, cheaper electric vehicles have become better as a result of longer driving ranges and faster charging periods.

Additionally winning the 2022 Car and Driver Electric Vehicle of the Year award was the Hyundai Ioniq 5 ($41,000 starting MSRP).

“It’ll go from 10% to 80% on a fast charger in 18 minutes,” said Tony Quiroga. “Which is something that only the luxury brands were doing.”

Inflation Reduction Act

Despite the availability of a wider choice of electric vehicles, it is predicted that EV sales will rise as production problems are resolved.

However, several questions remain unsolved.

According to Jessica Caldwell, industry analyst for Edmunds.com, gas prices may have something to do with the rise in interest for electric vehicles earlier this year.

The recent steep drop in gas prices may make consumers think twice about purchasing electric vehicles next year.

The consequences of the Inflation Reduction Act, meanwhile, remain undetermined.

The terms under which electric vehicles might be eligible for consumer tax credits were changed by the act, which was passed this year.

Furthermore, it establishes a limit on the car’s price based on the buyer’s income.

A few requirements also support indigenous production of the batteries that power electric vehicles.

The question isn’t how many electric vehicles will be eligible, says Corey Cantor, but rather which one.

“So, if a Tesla Model 3 and the Chevy Bolt, and the Tesla Model Y, and a Ford Mach-E and an F-150 Lightning all qualify, those are high volume vehicles,” said Cantor.

Due to their popularity and high sales, incentives may lead to an increase in the sale of electric vehicles.

Reference:

Electric vehicle sales hit a tipping point in 2022

Ford joins a number of companies in cutting its workforce

Edward Anderson on August 29, 2022

The economic situation in the United States has prompted several companies to lay off some of their staff.

Ford Motor is the latest company to lay off employees to cut costs.

The report

Ford is cutting around 3,000 jobs from its global workforce as part of its restructuring efforts under CEO Jim Farley.

A company spokesperson said the news was made public on Monday when workers were informed of the cut.

Farley and Ford Chairman Bill Ford sent a message to workers that the cuts will create 2,000 paid jobs and 1,000 temporary jobs in the United States, Canada and India.

Reports circulated in July that Ford had laid off factories and laid off up to 8,000 workers.

Ford’s memo

Ford and Farley sent the memo, which reads:

“Ford Team,

As you know, we are in the midst of a significant transformation of our company. Our industry and the business environment in which we operate are changing with breathtaking speed.

We have an opportunity to lead this exciting new era of connected and electric vehicles; create the most growth and value for Ford and our stakeholders since we scaled the Model T; and continue to make a positive difference in our customers’ lives and on society at large.

Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century. It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors.

We committed to sharing information as decisions are made along the way. As we tackle all aspects of costs – from materials to those related to quality – we are informing some Ford teammates this week in the U.S., Canada and at FBS in India, that their positions are being eliminated. Overall, we are reducing our salaried workforce by about 2,000, as well as reducing agency personnel by about 1,000. These actions follow significant restructuring in Ford operations outside of North America over the past couple of years.

We worked differently than in the past, examining each team’s shifting work statement connected to our Ford+ plan. We are eliminating work, as well as reorganizing and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week.

None of this changes the fact that this is a difficult and emotional time. The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed to Ford. We have a duty to care for and support those affected – and we will live up to this duty – providing not only benefits but significant help to find new career opportunities.

Thank you for all you do for Ford. Please continue to support each other, including colleagues who are leaving the company, as we build a strong and sustainable future.

Bill and Jim”

Inflation influence

The company’s efforts are part of a number of other efforts to cut costs and employees in the face of a potentially looming recession, especially when inflation peaks for the past 40 years.

The cuts caused a stir Monday after Automotive News published reports, less than a month after Farley said: “We absolutely have too many people in certain places, no doubt about it.”

The cuts will affect all business areas of the company, which was split into two entities earlier this year to separate its electric motor and internal combustion engine businesses.

Ford

Ford employs more than 31,000 people in the United States and had 186,769 employees worldwide at the end of 2021.

About 48.7% or 90,873 of the global workforce works in the United States.

When Jim Farley became CEO of Ford in October 2020, the company, dubbed Ford+, was undergoing major changes, including plans to cut structural costs by $3 billion by 2026.

Ford has also invested billions in expanding its electric vehicle and utility vehicle businesses. On Monday afternoon, shares of the company fell 5% to $15.10 per share.

In 2022, stocks have fallen around 27%.

References:

Ford is laying off thousands of employees, and here’s the memo explaining the change

Ford to eliminate 3,000 jobs in an effort to cut costs