Carmakers don’t need ‘EV divisions,’ the whole company should go electric now
Over the years, we’ve seen several car companies tout their decision to create an “EV division” within the company, a group tasked specifically with looking into EV technology and how to implement that within the product line.
But many times, this can still be counterproductive. With the EV shift happening now, companies need to stop thinking about “EV divisions” and go all-in on EV development today.
Last week, we heard news of Toyota establishing a new “EV role” in North America. Many took this as a positive, given Toyota’s long history of anti-EV advocacy.
It certainly could signal a change since Toyota has somewhat softened that anti-EV stance in recent years, notably with the resignation of its former CEO and replacement with a purportedly more pro-EV successor.
But sometimes these EV divisions turn into an attempt to silo EV thinking into a part of the company that can be easily ignored.
For example, BMW had an early lead on EVs with the original MINI E and ActiveE projects, leading to the BMW i3, one of the first ground-up EVs developed by any company. The i3 and the i8 were part of BMW’s “Project i” division, a separate unit meant to focus on electric mobility.
The division languished under CEO Harald Kruger, who came into the company with a mission to improve BMW’s EV projects but met resistance from company executives and was unable to make much progress on that front, leading to his resignation in 2019. In this case, having a separate division made it easier for the company to continue its old ways of thinking without integrating electrification fully into the product line.
It doesn’t have to be like this. Ford did a similar thing when it split off a separate “Team Edison” to focus on EV programs, and it worked quite well. Ford shipped the Mustang Mach-E only about four years after Team Edison was established – impressively quick in terms of vehicle development timelines, which are generally around seven years long.
But even Ford’s effort needs to be stronger given where we are in the timeline of industry electrification and where companies need to be by the next decade.
60% EV by 2030 means companies must plan majority EV now
The EPA recently announced rules targeting 60% EV sales by 2030. Given the aforementioned seven-year development timeline, this means that 60% of cars going into development today, mid-2023, with less than seven years left until 2030, need to be electric. This doesn’t just apply to light-duty vehicle sales, either, as US and California governments are implementing strong truck regulations as well.
If a majority of vehicles going into development today need to be electric, then a separate “EV division” isn’t going to cut it. The whole company needs to put its main focus on electric. There is still room for potential side projects to salvage whatever small niches gas engines might continue to fill come next decade, but more effort needs to go into EVs than into gas at this point, rather than the other way around.
We did some similar math two years ago when we declared that it would be easy for any company to end gas car sales by 2035. In 2021, all a company would need to do to end gas car sales by 2035 is just stop greenlighting new gas car projects – even if they changed none of their development plans and continued developing and selling the models they were already working on at the time.
This is not just a necessity due to individual government regulations, but given where we are in the climate crisis, urgent action is needed. Continuing to sell fossil-powered vehicles well into the next decade, which will continue polluting for a decade or more after they’re put on the road, is not what the world needs right now.
And so establishing a separate EV division is simply not enough. What Toyota and everyone else need to do is put the company’s primary focus on electrification, starting now, if they want to have any chance of making it through the next decade.
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Tesla is going to build a new Megafactory in Texas near Houston, according to a tax abatement agreement with Waller County.
At the time of writing, Tesla had yet to comment on the new project, but the Waller County Commissioners Court confirmed the project on Wednesday when they approved a tax abatement deal with the company:
Under the proposed agreement, Tesla will receive tax abatements from Waller County based on property improvements. The deal includes $44 million in facility improvements and $150 million in Tesla manufacturing equipment that Tesla will install. The next phase involves a new $31 million distribution facility with about $2 million in Tesla distribution equipment and building upgrades.
Tesla is going to take over a 1-million-sq-ft building that it already held the lease on at the Empire West industrial park near Katy, Texas – just outside of Houston.
Logistics company DB Schenker occupied the space where it handled parts for Tesla, but it will move out and Tesla plans to build Megapack production lines at the site:
Tesla will operate a new Megapack battery storage manufacturing facility at a 1 million-square-foot building, which was initially constructed with no tenant on speculation that it would attract jobs and economic development.
Tesla has previously referred to plants producing Megapacks as “Megafactory”. The company already operates one in Lathrop, California, and one in Shanghai, China, where it just started production.
Those factories are set up for a production capacity of 40 GWh worth of Megapacks per year.
It’s not clear if Tesla plans for a similar capacity at this new factory, but the county announced project should result in creating 1,500 jobs.
In addition to the existing building, the project will include the construction of an additional “600,000-square-foot distribution facility with some manufacturing capabilities.”
Unlike its automotive business, Tesla’s energy business has been growing at an impressive pace – although prices and margins have come down last year.
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![Is Genesis taking notes from Porsche? New GV60 Magma caught with the Taycan [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Genesis-GV60-Magma-Porsche-2.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to unleash its alter ego with its upcoming Magma lineup, its debut into the world of high-performance luxury vehicles. First up is the Genesis GV60 Magma, due out later this year. As testing wraps up, the GV60 Magma was spotted alongside none other than the Porsche Taycan.
The first dedicated Genesis EV model, the GV60, will kick off another new chapter for the Korean luxury automaker.
Genesis unveiled the GV60 Magma last March, claiming it will kick off “the brand’s expansion into the realm of high-performance vehicles.” The performance EV includes an improved battery, chassis, and motor for added performance.
The Magma model boasts a wider, lower stance for more control. Other key upgrades include a wider front air intake to help cool the batteries, motor, and brakes. It also includes air curtains to maximize efficiency and an added roof fin channels air to the rear wing, generating downward force.
Genesis upgraded the interior to match the GV60 Magma’s luxurious, sporty design. It includes unique sports car-like bucket seats with exclusive “double-diamond stitching” in the Magma orange and titanium coloring.
Genesis GV60 Magma spotted with the Porsche Taycan
With its official debut coming up, the sporty Genesis GV60 Magma was spotted testing alongside a Porsche Taycan and Hyundai’s IONIQ 5 and IONIQ 6 N models.
Despite the camouflage, the video from CarSpyMedia reveals a few new design elements, like the two-line headlight featured on the updated GV60 model.
Genesis will launch the GV60 Magma later this year in its home market, followed by the US, Europe, and others. Production is scheduled to start in the third quarter of 2025.
Will the Genesis GV60 Magma keep up with the Porsche Taycan or Tesla Model S Plaid? Priced and specs will be revealed closer to launch, but it will sit above the Performance AWD trim, which starts at $69,900 in the US. With up to 429 horsepower and 516 lb-ft of torque, it can hit 0 to 60 mph in 3.7 seconds.
| Horsepower | 0 to 60 mph (seconds) |
Starting Price | |
| Genesis GV60 Performance | 429 | 3.7 | $69,900 |
| Genesis GV60 Magma | ? | ? | ? |
| Porsche Taycan | 402 | 4.5 | $99,400 |
| Porsche Taycan Turbo GT (with Weissach Package) |
1,092 | 2.1 | $230,000 |
| Tesla Model S Plaid | 1,020 | 1.99 | $89,990 |
In comparison, the Porsche Taycan starts at $99,400 with up to 402 hp and a 0 to 60 mph time in 4.5 seconds. The Taycan Turbo GT, equipped with its Weissach package, packs 1,092 hp for a 0 to 60 mph sprint in just 2.1 seconds, but it costs $230,000.
Tesla’s Model S Plaid starts at $79,990 and can accelerate from 0 to 60 mph in 3.1 seconds with 1,020 horsepower. Which performance EV are you choosing?
Source: CarSpyMedia
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