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Volkswagen is making it clear it will not partake in the EV price war spurred by Tesla’s recent price cuts.

Is an EV price war on the horizon?

After Tesla slashed prices in China, the US, and the EU, across its lineup of electric vehicles, including a 20% discount on the Model Y, analysts predicted it would have a spillover effect on other BEV manufacturers.

We first saw it happen in China when EV maker Xpeng reduced prices by up to $5,300 on some of its most popular models shortly following the Tesla price cuts.

Although Tesla saw “unprecedented demand” as many stores hit new records following the cuts, it put essentially every other automaker (startups and legacy) in a spot to compete.

For example, Vinfast, a Vietnamese EV maker looking to establish a presence in the US, is offering a new special pricing promotion on its first model to make it to the states, the VF 8 City Edition, which will now start at $49,000 with an addition $3,000 direct discount off the MSRP.

Amid growing indications of an EV price war brewing, Ford also slashed prices on its ever-popular Mach-E electric SUV earlier this week. Marin Gjaja, chief customer officer for Ford’s EV unit, told Automotive News:

We have to compete. It’s a competitive marketplace, and it just got a lot more competitive because of what Tesla did. We’re not going to cede ground to anyone.

Volkswagen’s leader says the company will take a different route, sticking to its pricing strategy despite demand concerns.

VW-EV-price-cuts
Volkswagen ID.4 (source: VW)

VW not matching Tesla’s price cuts

According to VW CEO Oliver Blume’s recent statements, the automaker already has a pricing strategy in place and will stand by it.

Blume told German newspapers it would not partake in a price war with Tesla, stating:

We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands.

VW joins General Motors, which also announced it would not offer EV price cuts during its latest earnings release.

Instead of price cuts, VW will aim to achieve profitable growth to become a global EV leader. The automaker delivered around 330,000 ID.4 models in 2022, up 23%, and over 580,000 ID models since launching in 2020.

Volkswagen Group recently brought back former Bentley and Audi designer Andreas Mindt to help lead the company’s EV efforts and bring the company into the modern age.

Electrek’s Take

Tesla’s price cuts are clearly having a profound effect on the EV market. As the EV leader continues to shatter expectations while continuously breaking electric vehicle delivery records, it’s making it difficult for other automakers to compete, especially with lower prices.

Tesla is lightyears ahead in terms of production capabilities because of its focus on zero-emissions EVs from the beginning; other auto manufacturers are now looking to catch up.

While Ford is cutting prices to compete, GM and VW are standing by their pricing strategies. We’ll see how the pricing battle plays out over the next few months.

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E-quipment highlight: Komatsu PC365-11 hybrid excavator

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E-quipment highlight: Komatsu PC365-11 hybrid excavator

Thanks to a clever, fully electric swing system and “boom up” power assist features, the big PC365-11 hybrid excavator from Komatsu promises better performance and serious fuel savings compared to conventional diesel machines.

Komatsu says its PC365-11 hybrid excavator uses a “boom-up” power assist feature that captures and stores kinetic energy during different operation cycles, then taps into that power to provide an extra energy boost when needed. The result is 15% more productivity and a 20% improvement in fuel efficiency when compared to non-hybrid excavators in ~40 ton class.

“The PC365LC-11 was engineered for excellence in multifunction applications by leveraging its innovative electric powertrain system to boost job site productivity while reducing fuel consumption,” says Matthew Moen, Komatsu’s product manager. “To highlight these performance enhancements, we’re emphasizing the concept of ‘multifunction plus’ as the defining feature of this machine.”

How it works


Komatsu hybrid explainer; via Komatsu.

Komatsu’s hybrid system replaces the conventional hydraulic swing function with a fully electric swing motor that draws power from an ultracapacitor (as opposed to a battery) energy storage unit. As excavator slows or stops swinging, something like a regenerative braking system captures the kinetic energy that would normally be lost as heat and stores it in the capacitor. Once there, the stored energy can be quickly released to power the swing motor or assist the engine, delivering up to an extra 70 hp when needed to support heavy lifting or digging cycles.

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And, thanks to Komatsu’s proprietary software, all of this energy capture and reuse happens automagically during normal work, without the need for external charging. The fuel savings happen because removing the hydraulic load from the ICE engine allows it to run at an ultra-low idle, while the productivity comes from the greater power and overall speed of the electric operations vs. conventional hydraulics.

Electrek’s Take


Komatsu lunar excavator; image by the author.

Trust me when I tell you that Komatsu didn’t wake up one day and decide to build a capacitor-based hybrid crane. One of their customers had the idea and came to them, promising orders. That’s what Komatsu does – from undersea remote control dozers to lunar mining rigs (above), if you bring Komatsu an order, they will absolutely find a way to fill it.

As for PC365-11 hybrid excavator, it’s packed with clever tech, overall – offering significant fuel, emissions, and TCO reductions without dramatically changing the operational logistics of an existing fleet’s operations. That’s all the sales pitch it needs.

SOURCE: Komatsu, via Equipment World.


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Five for Five: Kia PV5 scores 5 star European safety rating

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Five for Five: Kia PV5 scores 5 star European safety rating

For serious fleet buyers, safety isn’t a “nice-to-have,” it’s an absolute must – and Kia’s new PV5 electric van meets that need with a positively stellar, five-star safety rating on the tough European NCAP safety test.

The new “do-it-all” Kia PV5 showed strong performance across a number of key safety categories, including Occupant Protection, Safety Assist/Crash Avoidance, and Post-Crash Safety. The PV5’s robust suite of standard ADAS technologies that includes AEB, Lane Support System, and Speed Assistance System also helped the new electric work van to deliver top marks in the NCAP’s “real world” test scenarios.

The PV5 opens a new chapter in practical, electrified mobility, offering generous space and modular versatility for everyday use,” explains Sangdae Kim, Executive Vice President and Head of the (relatively) new PBV Business Division at Kia. “Achieving the top Euro NCAP five-star rating is clear validation of its safety performance and will serve as strong momentum as Kia expands its PBV lineup across Europe.”

The Euro NCAP tests highlighted the strong performance of a number of the PV5’s ADAS features, specifically calling out the following:

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  • Demonstrated strong responsiveness in vehicle-to-vehicle scenarios
  • Provides additional protection for pedestrians behind the vehicle
  • Avoided collisions in most pedestrian and cyclist test cases

The Kia PV5 slots into familiar territory for US buyers, landing roughly in the same size class as the Ford Transit Connect or Ram ProMaster City, with ~180 cubic feet of interior cargo space available, which is plenty to make it attractive for last-mile delivery and trade work in tight urban markets.

Globally, the PV5 is offered with a number of battery options, including a smaller 43.3 kWh Lithium-Iron-Phosphate (LFP) pack, as well as larger Nickel-Cobalt-Manganese (NCM) packs at 51.5 kWh and 71.2 kWh. The longest-range versions are good for about 250 miles of estimated range – more than enough for Kia to make a case for it as a practical, city-focused alternative to much larger (and pricier) electric vans.

Larger vans, by the way, that may not have that 5 star Euro NCAP rating.

Kia PV5


SOURCE | IMAGES: Kia; photo by Scooter Doll.


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Waymo pauses robotaxi service in San Francisco after blackout chaos — Musk says Tesla car service unaffected

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Waymo resumes robotaxi service in San Francisco after blackout chaos — Musk says Tesla car service unaffected

Alphabet-owned Waymo has suspended its driverless ride-hail service in the San Francisco Bay Area after blackouts plagued the city Saturday afternoon.

“We have temporarily suspended our ride-hailing services in the San Francisco Bay Area due to the widespread power outage,” a Waymo spokesperson tells CNBC. “Our teams are working diligently and in close coordination with city officials, and we are hopeful to bring our services back online soon. We appreciate your patience and will provide further updates as soon as they are available.”

Waymo notice of service outage in San Francisco.

Source: Waymo

As power outages spread yesterday, videos shared on social media appeared to show multiple Waymo vehicles stalled in traffic in different parts of the city.

San Francisco resident Matt Schoolfield said he saw at least three Waymo autonomous vehicles stopped in traffic Saturday around 9:45 p.m. local time, including one he photographed on Turk Boulevard near Parker Avenue.

“They were just stopping in the middle of the street,” Schoolfield said.

A Waymo vehicle stuck between Parker and Beaumont, on the north side of Turk Boulevard in San Francisco.

Credit: Matt Schoolfield

The power outages began around 1:09 p.m. Saturday and peaked roughly two hours later, affecting about 130,000 customers, according to Pacific Gas and Electric. As of Sunday morning, about 21,000 customers remained without power, mainly in the Presidio, the Richmond District, Golden Gate Park and parts of downtown San Francisco.

PG&E said the outage was caused by a fire at a substation that resulted in “significant and extensive” damage, and said it could not yet provide a precise timeline for full restoration.

San Francisco Mayor Daniel Lurie said in a 9 p.m. update on X that police officers, fire crews, parking control officers and city ambassadors were deployed across affected neighborhoods as transit service gradually resumed. “Waymo has also paused service,” Lurie said.

Amid the disruption, Tesla CEO Elon Musk posted on X: “Tesla Robotaxis were unaffected by the SF power outage.”

Unlike Waymo, Tesla does not operate a driverless robotaxi service in San Francisco.

Tesla’s local ride-hailing service uses vehicles equipped with “FSD (Supervised),” a premium driver assistance system. The service requires a human driver behind the wheel at all times.

According to state regulators — including the California Department of Motor Vehicles and California Public Utilities Commission — Tesla has not obtained permits to conduct driverless testing or services in the state without human safety supervisors behind the wheel, ready to steer or brake at any time.

Tesla is vying to become a robotaxi titan, but does not yet operate commercial, driverless services. Tesla’s Robotaxi app allows users to hail a ride; however, its vehicles currently have human safety supervisors or drivers on board, even in states where the company has obtained permits for driverless operations.

Waymo, which leads the nascent industry in the West, is Tesla’s chief competitor in AVs, along with Chinese players like Baidu-owned Apollo Go.

The outage-related disruptions in San Francisco come as robotaxi services are becoming more common in other major U.S. cities. Waymo is among a small number of companies operating fully driverless ride-hailing services for the public, even as unease about autonomous vehicles remains high.

A survey by the American Automobile Association earlier this year found that about two-thirds of U.S. drivers said they were fearful of autonomous vehicles.

The Waymo pause in San Francisco indicates cities are not yet ready for highly automated vehicles to inundate their streets, said Bryan Reimer, a research scientist at the MIT Center for Transportation and co-author of “How to Make AI Useful.”

“Something in the design and development of this technology was missed that clearly illustrates it was not the robust solution many would like to believe it is,” he said.

Reimer noted that power outages are entirely predictable. “Not for eternity, but in the foreseeable future, we will need to mix human and machine intelligence, and have human backup systems in place around highly automated systems, including robotaxis,” he said.

State and city regulators will need to consider what the maximum penetration of highly automated vehicles should be in their region, Reimer added, and AV developers should be held responsible for “chaos gridlock,” just as human drivers would be held responsible for how they drive during a blackout.

Waymo did not say when its service would resume and did not specify whether collisions involving its vehicles had occurred during the blackout.

Tesla and the National Highway Traffic Safety Administration did not immediately respond to requests for comment.

This is a developing story. Please check back for updates.

CNBC’s Riya Bhattacharjee contributed reporting.

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