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GM CEO and chairman Mary Barra speaks during an “EV Day” on March 4, 2020 at the company’s tech and design campus in Warren, Mich., a suburb of Detroit
GM

DETROIT – General Motors said on Wednesday it will increase spending on electric and autonomous vehicles to $35 billion through 2025, a 30% increase from plans announced late last year. It also said it is raising its earnings guidance for the first half of the year.

The additional money will be used to expand its rollout of EVs and accelerate production of its battery and fuel cell technologies, including two new U.S. battery plants in addition to two that are currently under construction.

America’s largest automaker is racing to catch up to EV leader Tesla and compete for a leadership position against other well-established automakers such as Volkswagen. GM plans to sell more than 1 million EVs annually by 2025.

“We are investing aggressively in a comprehensive and highly-integrated plan to make sure that GM leads in all aspects of the transformation to a more sustainable future,” GM CEO Mary Barra said in a statement.

GM’s plans to expand its electric and autonomous vehicle lineup and technology have been praised by Wall Street. Its stock has almost tripled since reaching a 12-month low of $23.33 last July. Shares were trading up slightly before the markets opened Wednesday at about $61 a share.

GM said the new investments are enabled by its strong underlying business, including record pretax earnings over the last three quarters.

CFO Paul Jacobson on Wednesday said GM expects to deliver better-than-expected results in the second quarter despite a global semiconductor chip shortage that’s impacting the industry. He said GM expects adjusted pretax earnings of between $8.5 billion and $9.5 billion during the first half of the year, up from an estimated $5.5 billion.

For the year, GM previously said it expected pretax profits “at the higher end” of a $10 billion to $11 billion range. It didn’t provide an update on its full-year earnings.

GM’s increased spending plans come less than a month after crosstown rival Ford Motor increased its EV spending to more than $30 billion by 2025. But Ford’s investments date back to 2016, while GM’s are form 2020 through 2025.

Prior to the coronavirus pandemic shutting down auto factories in March, GM initially said it would invest $20 billion in autonomous and electric vehicles through 2025. It increased that spending to $27 billion in November as it pulled ahead vehicle programs and accelerated battery cell production.

GM’s new investments were announced ahead of Barra’s meeting Wednesday with U.S. House Speaker Nancy Pelosi and other Democrats to discuss EVs and vehicle emissions, according to Reuters, which first reported on the automaker’s plans late Tuesday.

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Subaru is jumping into the electric hot hatch craze

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Subaru is jumping into the electric hot hatch craze

Subaru is teasing a new electric hot hatch that will spearhead a new generation of STI. Is it the WRX STI we’ve been waiting for?

Subaru teases new electric hot hatch

In March 2022, fans were disappointed after Subaru announced plans to end production of the gas-powered WRX STI.

Subaru said the move was due to the shift toward electrification and stricter emissions regulations in places like Europe.

Although the Japanese automaker said at the time it was exploring opportunities for a next-gen WRX STI, including an electrified version, Subaru confirmed it will not be produced on the new WRX platform.

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It’s been over three and a half years, but we might finally see the WRX STI return in electric form. After teasing a new electric hot hatch on Wednesday, Subaru said the Performance-E STI concept will spearhead a new generation of vehicles.

The image offers a glimpse of Subaru’s new design with slim, three-line LED lights and a sportier roofline compared to the internal combustion engine (ICE) version that Subaru also previewed.

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Subaru teases new Performance-E STI concept ahead of the Japan Mobility Show (Source: Subaru)

Subaru is keeping most details secret for now, but said the new electric hot hatch offers “a design that evokes the brand’s heritage while providing a driver-friendly layout and a comfortable, spacious interior.” It will be equipped with new tech, offering “intuitive, exhilarating driving experiences,” the company said.

Subaru will unveil the new STI concepts at the Japan Mobility Show later this month. Atsushi Osaki, Subaru’s president, will deliver a press conference at the Subaru booth on October 29 at 12:30 PM (JST).

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Subaru teases two new STI concepts, an EV and an ICE version (Source: Subaru)

The booth will feature the two new STI models, alongside the Trailseeker, Subaru’s second global EV. It will also showcase more rugged Forester Wilderness and Outback Wilderness prototypes, as well as a 1982 Subaru GL Family Huckster.

Subaru is joining Hyundai, Volkswagen, Kia, and a few other automakers planning to introduce new electric hot hatches.

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Tesla is finally running TV ads, but they are not for its electric cars

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Tesla is finally running TV ads, but they are not for its electric cars

Tesla is finally running TV/streaming ads, but they are not to sell electric cars. They are to promote a vote for Tesla shareholders to approve Elon Musk’s next compensation package worth up to $1 trillion.

As a company, under Elon Musk’s leadership, Tesla has famously been against advertising. The CEO is even on the record saying that he “hates advertising” and that “other companies spend money on advertising and manipulating public opinion, Tesla focuses on the product.”

However, that was before he acquired Twitter, now X, which relies heavily on advertising.

After that, he started to push Tesla to do some advertising, but the company quickly stopped or greatly reduced its advertising efforts.

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Last month, we reported that Tesla’s advertising effort picked back up with ads to encourage Tesla shareholders to vote for Musk’s new unprecedented CEO compensation package worth up to $1 trillion.

The renewed advertising effort was limited to Google and social media ads or sponsored posts, which was also the case in Tesla’s previously mentioned advertising efforts.

Now, Tesla is even running TV-like ads on streaming services. Paramount+ watchers were surprised to see this ad running on the streaming service this week:

This is one of the very first TV-style video ads that Tesla is paying to air, but it is not to sell EVs.

While the automaker is struggling to sell its existing vehicles, the ad exclusively features future products that are not yet available for sale, and it serves only to ask shareholders to vote in accordance with the board’s recommendation at the upcoming shareholders’ meeting.

Electrek’s Take

It’s funny because I was talking to a friend of mine who came back on a long rural road trip with his Cybertruck last week.

He was saying that he was surprised how many people in rural areas not only didn’t know about the Cybertruck, but they didn’t even know much about Tesla. Yet, they were curious about it and electric vehicles in general.

We were discussing how these people are not as active on social media, and that Tesla would greatly benefit from advertising its vehicles in more traditional channels, such as TV/streaming ads, with clear messaging that relates to them, such as the cost of ownership and utility.

I joked that Tesla will do TV ads about Elon’s compensation plan before they do about their EVs. It literally took less than a week for Tesla to prove me right.

There is just no reasonable justification for this. It’s as simple as Elon is bigger than Tesla, a company of 100,000+ people.

You can’t make a viable argument against the fact that this would be money better spent advertising Tesla’s available cars when the company is currently operating its production lines at 60% capacity and the compensation package would be better spent on tens of thousands of full-time employees whose contribution to Tesla is much greater than Elon’s at this point.

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Toyota lands $20 million to bring this pint-sized EV with a solar roof to life

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Toyota lands  million to bring this pint-sized EV with a solar roof to life

Toyota’s smallest electric vehicle might actually hit the road. Thanks to new funding from the UK government, Toyota is one step closer to turning this pint-sized EV with a solar roof into a reality.

The Toyota FT-Me is a micro EV with a solar roof

It may be only 2.5 meters (98″) long, but Toyota believes the tiny electric car could be an affordable way to zip around the city.

The FT-Me is “a ground breaking concept” that blends premium design with affordability, Toyota said after unveiling it in March.

After securing a £15 million ($20 million) investment from the UK government’s DRIVE35 program, Toyota is moving closer to actually launching the pint-sized EV.

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The Advanced Propulsion Centre UK, which manages the funding, announced that the £30.3 million ($40,500) project includes a £15 million grant from the Department for Business and Trade. Toyota is expected to fund the other roughly £15 million.

Toyota is working with several partners, including urban delivery specialist ELM Mobility and the University of Derby, to develop a new lightweight battery electric vehicle (BEV) in the L6e category.

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Toyota FT-Me micro EV (Source: Toyota)

Meanwhile, Savcor will design and develop the solar roof, which Toyota claims can extend a vehicle’s range by 20%, or about 20 to 30 km per day.

The pint-sized EV will be manufactured at Toyota Manufacturing UK’s Burnaston site, where it currently builds the Corolla.

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Toyota FT-Me micro EV concept (Source: Toyota)

Although it’s about the size of a golf cart, Toyota promises the micro EV fits two passengers comfortably. The company also claims the FT-Me’s propulsion system uses 3X less energy per km than current high-capacity electric vehicles.

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The interior of the Toyota FT-Me EV concept (Source: Toyota)

Inspired by a jet helmet, Toyota said the vehicle’s compact design makes it perfect for getting around the city. It only takes up about half a parking spot.

Toyota’s pint-sized EV could arrive as a potential rival to the Citroen Ami. The Ami starts at £7,695 ($10,000) OTR, offering a WLTP range of up to 46 miles.

Would you buy Toyota’s micro EV for about $10,000? It could be a fun (and efficient) way to zip around town. It’s basically a futuristic electric golf cart with a solar roof. Unfortunately, it likely will never make it to the US with America’s growing love for big trucks and SUVs.

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