Fires, probes, recalls: The shift to electric vehicles is costing automakers billions

Published

3 years ago

August 20, 2021

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In this article

The Vermont State Police released this photo of the 2019 Chevrolet Bolt EV that caught fire on July 1, 2021 in the driveway of state Rep. Timothy Briglin, a Democrat.

Vermont State Police

Automakers are spending billions of dollars to transition to cleaner and greener battery-powered vehicles, but the new technology has come with an even steeper cost: Reputation-damaging vehicle fires, recalls, sudden power loss and problems getting some of the cars started.

The learning curve with batteries is steep for traditional automakers, and battery technology remains challenging even for Tesla, which has faced similar issues. But automakers are eager to embrace the new technology with President Joe Biden in the White House pushing for half of new car sales to be electric by 2030, a plan that will likely come with billions of dollars in tax and other incentives.

While costly recalls occur in traditional vehicles with internal combustion engines, many of the current trouble spots for electric vehicles are software and batteries – two areas crucial to EVs that are not historically core areas of expertise for Detroit automakers.

“Anytime you go into a new area of technology, there’s more to be learned that there is that you know,” Doug Betts, president of J.D. Power’s automotive division, told CNBC. “There are risks and there are things to be learned.”

The problems are already showing up on corporate balance sheets. Three high-profile automaker recalls within the last year — General Motors, Hyundai Motor and Ford Motor — involving about 132,500 electric vehicles cost a combined $2.2 billion. Most recently, GM said it would spend $800 million on a recall of its Chevrolet Bolt EV following several reported fires due to two “rare manufacturing defects” in the lithium ion battery cells in the vehicle’s battery pack.

Recalls are a common in the automotive industry, especially for new vehicles. It’s one of the reasons vehicles with the newest technologies traditionally perform poorly in some J.D. Power studies.

“When you go from gas to electric, there’s going to be a whole new set of problems you have to deal with, and we just have to figure out how to how to deal with those issues that you know that we haven’t had to deal with in the past,” said Guidehouse Insights principal analyst Sam Abuelsamid.

Recent recalls or problems with batteries or software of new EVs have included:

GM last month issued a second recall of its 2017-2019 Chevrolet Bolt EVs after at least two of the electric vehicles that were repaired for a previous problem erupted into flames. The automaker said that officials with GM and LG Energy Solution, which supplies the vehicle’s battery cells, identified a second “rare manufacturing defect” in the EVs that increases the risk of fire. The $800 million recall covers about 69,000 of the cars globally, including nearly 51,000 in the U.S.
Porsche recalled the Taycan, its flagship EV, due to a software problem that caused the vehicle to completely lose power while driving.
In April, Ford Motor said a “small number” of early customers of its Mustang Mach-E crossover EV reported the 12-volt batteries in their vehicles wouldn’t charge, preventing those cars from operating. Ford said it was due to a software issue.
In Europe, Ford last year recalled about 20,500 Kuga plug-in hybrid crossovers and suspended sales of the vehicles due to concerns that the battery packs in the vehicles could potentially overheat and cause a vehicle fire. It cost the automaker $400 million.
Hyundai Motor earlier this year said it would spend $900 million for a recall following fires in 15 of its Kona EVs.
BMW, Volvo and others also have recalled EVs, including plug-in hybrid models, due to issues with battery systems.

Betts, whose career has included turns at Toyota, Fiat Chrysler and Apple, said he believes legacy automakers will figure such problems out as they release more electric vehicles. He said it’s just a matter of time.

“I wouldn’t say that the traditional OEMs have had more or less trouble than Tesla,” he said. “There have been fires with Teslas, too. Obviously, they have a lot more experience now.”

Tesla

While Tesla has avoided massive recalls of its EVs due to battery issues, litigation and investigations by federal officials in the U.S. and Norway could spell trouble for the company.

The National Highway Traffic Safety Administration opened an investigation in October 2019 into Tesla’s high-voltage batteries.

This Tesla Model S Plaid caught fire while the driver was at the wheel, according to a local fire department chief and attorneys representing the driver, on June 29, 2021, in Haverford, Pennsylvania

Provided by Geragos & Geragos

The probe was opened after NHTSA’s Office of Defects Investigation received a petition alleging that Tesla rolled out one or more software updates to control and conceal a potential defect that could result in non-crash fires in affected battery packs.

California-based attorney Edward Chen, who submitted the petition, also filed a class action complaint for the issue against Tesla in August 2019. While Tesla recently agreed to pay $1.5 million to settle the lawsuit, NHTSA’s investigation remains open.

After the settlement, CEO Elon Musk said on Twitter: “If we are wrong, we are wrong. In this case, we were.”

Another proposed class action lawsuit in California, Fish v. Tesla Inc., alleges that Tesla knowingly over stated the capacity of the high-voltage batteries in its cars, and has used remote “battery health checks,” and software updates to conceal battery degradation, and deny owners battery replacements to which they were entitled under warranty.

The complaint says the lead plaintiff’s 2014 Tesla Model S lost more than half of its range over just six years, dropping to the equivalent of 144-mile range on a full charge from a 265-mile range when he first bought it.

The battery complaints in the U.S. were similar to one in Norway in which more than 30 Tesla drivers told the courts that a 2019 software update slashed their Teslas’ battery life, decreased the range and lengthened the time the cars took to charge, according to Norwegian newspaper Nettavisen.

The court preliminarily sided with the owners and told Tesla it may have to pay customers affected by the battery throttling software up to $16,000 each, which could amount to a $163 million payout.

In April, Tesla CEO Elon Musk during an earnings call said there had been “more challenges than expected” in developing new versions of the Tesla Model S and X – the company’s more expensive vehicles. That included the recently released Model S Plaid and “quite a bit of development to ensure that the battery of the new S/X is safe.”

Tesla did not respond for comment on the federal inquires or allegations. The company is not yet delivering the updated version of its luxury SUV, the Model X and has delayed deliveries of many customers’ Model S vehicles this year.

Fires

Vehicle fires are common, generally. According to the National Fire Protection Association, there were 212,500 vehicle fires that caused 560 civilian deaths, 1,500 civilian injuries and $1.9 billion in direct property damage in the U.S. in 2018.

Most of those fires did not involve EVs, which still only make up about 2% to 3% of new vehicle sales in the U.S. annually. However, automakers and their battery cell suppliers are going to have to be extremely careful in the manufacturing of battery electric vehicles and their parts.

“The manufacturing processes are really going to have to be tightened up,” Abuelsamid said. “It’s part of dealing with the way batteries behave. They don’t like heat and they don’t like contamination. They’re very sensitive.”

Something as small as an errant spark from welding or another process can cause a serious problem in battery cells.

Experts are still trying to determine EV fire incident rates; the data is hard to collect from disparate fire departments. Fleet Auto News previously reported on London Fire Brigade records that suggest, based on a small local sampling, “an incident rate of 0.04% for petrol and diesel car fires, while the rate for plug-in vehicle [sic] is more than double at 0.1%.”

Environment

Toyota to buy clean power from a $1.1 billion solar farm in Texas

Published

16 hours ago

November 1, 2024

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Toyota to buy clean power from a .1 billion solar farm in Texas

solar farm — https://unsplash.com/photos/solar-panels-on-green-field-513dBrMJ_5w

Enbridge, a Canadian energy company, just announced it’s moving forward with an 815-megawatt (MW) solar project called Sequoia in Texas. When it’s done, it’ll be one of the largest solar farms in North America. The project’s price tag is a hefty $1.1 billion.

Enbridge’s Sequoia, around 150 miles west of Dallas, has already landed long-term power purchase agreements (PPAs) with AT&T and Toyota, ensuring most of its output is sold for years to come. This deal was highlighted in Enbridge’s third-quarter report on Friday.

Sequoia will be built in two phases, with power expected to start flowing in 2025 and 2026. Enbridge says it’s taken steps to reduce risks by securing equipment and procurement contracts in advance. Permits and purchase orders are also locked down.

Toyota’s PPA with Enbridge’s Texas solar project is part of Toyota’s broader push toward sustainability, as the automaker aims to achieve net zero by 2035 and match 45% of its purchased power with renewable electricity by 2026 as it still clings to its “diverse powertrain strategy.”

If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

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Environment

NIO’s EV sales top 20,000 for the sixth straight month as new low-cost SUV shows promise

Published

17 hours ago

November 1, 2024

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NIO's EV sales top 20,000 for the sixth straight month as new low-cost SUV shows promise

With its new electric SUV rolling out, NIO’s (NIO) sales topped the 20,000 mark again in Oct, its sixth straight month hitting the milestone.

NIO sold 20,976 vehicles last month, up 30.5% from October 2023. The NIO brand sold 16,657 vehicles, while its new “family-oriented smart vehicle brand,” Onvo, contributed 4,319 in its first full sales month.

After launching its new mid-size Onvo L60 electric SUV in September, NIO said production and deliveries are steadily ramping up.

At the end of October, NIO’s Onvo had 166 Centers and Spaces throughout 60 cities. Onvo plans to continue expanding its network to drive future growth.

NIO’s new electric SUV starts at around $21,200 (149,900) and is a direct rival to Tesla’s Model Y. The base $21K model is if you rent the battery. Even with the battery included, Onvo L60 prices still start at under $30,000 (206,900 yuan), with a CLTC range of up to 341 miles (555 km). That’s still less than the Model Y.

Tesla’s Model Y RWD starts at around $35,000 (249,900 yuan) with 344 mi (554 km) CLTC range in China.

NIO’s new Onvo brand drives higher Oct sales

NIO has often compared its new electric SUV to the Model Y, claiming it’s superior in many ways. The L60 has better consumption at 12.1 kWh/100km compared to the Model Y at 12.5 kWh/100km).

With a longer wheelbase (2,950 mm vs 2,890 mm), NIO’s electric SUV also provides slightly more interior space.

Despite the L60’s success so far, NIO believes its second Onvo model will be an even bigger hit. It could be a potential game-changer.

“If you think the L60 is good, then this new model is a much more competitive product,” NIO’s CEO William Li told CnEVPost after launching the L60. Onvo will launch a new EV every year. Following the L60, Onvo will launch a new mid-to-large-size electric SUV next year.

NIO’s leader claims the new model will be revolutionary. According to Li, it will offer even more surprises than the L60. Deliveries are planned to begin in Q3 2025.

NIO Onvo L60 vs Tesla Model Y trims	Range (CLTC)	Starting Price
NIO Onvo L60 (Battery rental)	555 km (341 mi) 730 km (454 mi)	149,900 yuan ($21,200)
NIO Onvo L60 (60 kWh)	555 km (341 mi)	206,900 yuan ($29,300)
NIO Onvo L60 (85 kWh)	730 km (454 mi)	235,900 yuan ($33,400)
NIO Onvo L60 (150 kWh)	+1,000 km (+621 mi)	TBD
Tesla Model Y RWD	554 km (344 mi)	249,900 yuan ($34,600)
Tesla Model Y AWD Long Range	688 km (427 mi)	290,900 yuan ($40,300)
Tesla Model Y AWD Performance	615 km (382 mi)	354,900 yuan ($49,100)

NIO Onvo L60 compared to Tesla Model Y prices and range in China

Local reports suggest a six-or seven-seat electric SUV could hit the market even sooner. With rumors of a launch around Q1 2025, deliveries could happen as soon as May 2025.

According to sources close to the matter, the L60 is just a “stepping stone” with even more exciting EVs on the way. The source claimed the new six-seat option will start at around $42,100 (300,000 yuan).

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Environment

Velotric Ebikes’ big early-bird Black Friday discounts are here!

Published

18 hours ago

November 1, 2024

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Velotric Ebikes' big early-bird Black Friday discounts are here!

Velotric Ebikes are designed by some of the most brilliant minds in the business. And now, you have the opportunity to own one (or two!) of these high-performance, elegant, reliable rides. You won’t want to miss these fantastic early-bird Black Friday deals running from November 1-14, and, also get a sneak peek at special offers that start on November 8.

Read on to find the right model for you and learn how you can donate $5 to get up to $550 off a superb Velotric electric bike.

Velotric Black Friday deals – give to get back

If you donate $5 to either the Clean Air Task Force or the Solutions Project at checkout, you’ll unlock some fantastic discounts off Velotric e-bikes:

Clean Air Task Force: Fighting air pollution for healthier communities
The Solutions Project: Advocating for 100% renewable energy in frontline communities

Plus, Velotric is giving Electrek readers an exclusive discount: Enter the code Electrek20 at checkout to get an additional $20 OFF!

Velotric Discover 2 Ebike

The Velotric Discover 2, Velotric’s most comfortable e-bike, now has even more power, with a 750W high-performance motor and 75 Nm of torque. The 48V 706 Wh battery, providing up to 75 miles per charge, maximizes your range.

You can ride in comfort, as the frame design supports an upright posture; plus, it’s got a 200mm wide saddle and ergonomic grips, reducing long-ride strain. Enjoy a premium, versatile ride that turns every journey into a joyride.

Discover 2 – Save up to $200

Velotric Summit 1 Ebike

If you want both an everyday bike and a trekking bike, then this is the one for you. The customizable Velotric Summit 1 Ebike is a hybrid e-bike featuring a 750W motor with 90 Nm of torque that delivers exceptional power for both city streets and offroad terrain, and the intuitive throttle means you can access that power effortlessly. When you’re off-road, the 120mm travel suspension absorbs the impacts, resulting in a smoother ride. The 48V, 705.6Wh battery provides up to 70 miles of charge.

Plus, it features a vibrant multifunctional screen with three configurations and use the Velotric app to monitor mileage and access real-time bike data.

Summit 1 – Save up to $200

Velotric Nomad 1 Plus Ebike

The Nomad 1 Plus Ebike‘s 750W motor and 75 Nm torque allow you to conquer just about any terrain. The 691Wh battery keeps you on the move for up to 55 miles, an 80mm suspension fork smooths your ride, and powerful waterproof hydraulic brakes give you full control.

The Nomad 1 Plus features an adjustable stem, a brighter front light, and max speed adjustable range is 12-28 mph.

Nomad 1 Plus – save up to $550

Velotric Fold 1 Ebike

The Velotric Fold 1 Ebike becomes compact in just three quick moves, but don’t mistake it for simple. The high-performance 750W motor and generates 70 Nm torque, beating most of the competition for acceleration and climbing ability. The 608Wh battery will give you up to 55 miles of range, its step-through design is 20% lower than the competition, and when you’re done zipping around town or commuting, you can pop it into a car trunk or even a closet.

Plus, the Fold 1 is compatible with a wide range of cool accessories so you can customize it to meet your needs.

Fold 1 – Save up to $350

Velotric T1 ST Plus Ebike

The Velotric T1 ST Plus Ebike is an ultra-compact, 39-pound city-and-gravel bike that’s designed for riders with an active lifestyle. But don’t be fooled by its sleek look because it’s very well-equipped: The five pedal-assist-level T1 ST has a 70-mile range and three riding modes, and the peak 600W motor generates 40Nm of torque. It also comes with Apple Find My integration.

T1 ST Plus – Save up to $400

Velotric Discover 1 Plus Ebike

The Velotric Discover 1 Plus Ebike is a fantastic commuter bike that’s designed for comfort. (Plus, it’s kinda fun that it comes in five color choices.) If your commuting route is a bit more challenging, then the Discover 1 Plus might be the right fit for you. It features a rear light with braking high-beam, a 60 Lux front light, and double hydraulic disc brakes for extra safety. Plus, Velotric rigorously tests its frames 150,000 times under tough conditions for quality assurance.

This commuter e-bike that rides like a cruiser has a pedal assist range of 65 miles and throttle range of 58 miles on a 900W peak motor that generates 65 Nm of torque.

Discover 1 Plus – Save up to $550

Velotric Go 1 Ebike

Velotric’s Go 1 Ebike is small but mighty – it can carry up to 440 pounds comfortably. This ride has hydraulic suspension and a plush saddle, and it can be kitted out with a wide range of accessories, making it a versatile form of transport for everything from a fun day out to carting groceries across town.

It’s powered by Velotric’s proprietary Velopower H50 Drive System, which provides a range of up to 55 miles on pedal assist up to 25 mph (unlocked) with a peak 900W motor.

Go 1 – Save up to $400*

Regular price: $1,399 ~~$1,699~~
Promotion: Get $100 off total saving $400
Discounted price: $1,299
Get 3 accessories & unlock 30% off on selected accessories

*Not included in the early-bird Black Friday deal, this deal runs from November 8-28 only

Velotric Packer 1 Ebike

From kids to cargo, the Velotric Packer 1 Ebike was designed to haul it all! The Packer 1 features Velotric’s proprietary Velopower H75 Drive System, which provides a range of up to 52 miles on pedal assist up to 25 mph (unlocked) with a 750W motor.

It can carry up to 440 pounds and has a 176-pound rear cargo carry capacity, plus hydraulic suspension with 80 mm of travel for a smooth ride. If you’re running a child to school every day, this would be a fantastic choice. Be sure to check out all the great accessories.

Packer 1 – Save up to $600