Car companies have been screwing up e-bikes for longer than you think
Believe it or not, there’s nothing new about major automakers and motorcycle companies trying and failing to build and sell electric bicycles. Despite millions upon millions of e-bikes being produced and sold each year by bicycle companies, automotive companies have spent decades failing to convert their design and manufacturing experience into e-bike success.
It might sound strange, especially since electric two-wheelers are the largest category of electric vehicles in the world – and growing quicker than any other type of EV. Even in a year when e-bike sales weren’t able to continue their meteoric growth trend, the e-bike industry still grew to a record size without any indication of stopping.
So you’d think that the automotive world, the very industry that has the most to lose from drivers becoming riders, would have gotten into the game by now.
The truth is that it has, and repeatedly. The problem is that Big Auto just hasn’t succeeded at it yet.
Chairman of the Light Electric Vehicle Association, Ed Benjamin, who has worked in the e-bike industry for nearly as long as it has been an industry and who has also advised several automakers on their e-bike projects, recently shared his thoughts on why Big Auto has failed so spectacularly in the e-bike industry.
And he certainly isn’t short on examples.
Legendary American automotive visionary Lee Iacocca was all-in on electric bikes as far back as the 1990s. He pushed for the EV Global electric bicycle (seen above), which was so revolutionary at its time that it had the word “e-bike” emblazoned across the side to let people know what it was. The e-bike started at a modest $995 and could hit 15 mph (25 km/h) all the way back in 1997 – a speed that Europeans still haven’t figured out how to surpass nearly 30 years later.
But as Benjamin explained, even automotive great Lee Iacocca couldn’t make e-bikes work for car companies. As it turned out, the deck was stacked against him. No matter how much he wanted his e-bikes to succeed, it didn’t translate into sales at car dealerships. The $1,000 price meant that car salesmen working on commission couldn’t be bothered to sell them, certainly not when they stood to make a lot more money pushing someone into a Taurus or F150. Dealerships also quickly learned that there wasn’t money to be made in servicing e-bikes when the same car bay could turn over significantly more cash.
Ford continued with global e-bike attempts into the early 2000s but was met with either quick failures or extremely slow, limited sales.
In Asia, giants such as Honda, Panasonic, and Yamaha were also met with limited success, though the limited Japanese market was one area where their early e-bikes did succeed. Panasonic was able to sell its e-bike drive system, but that agreement was largely led by the bicycle company Giant taking the reins and using its bike industry experience to set the partnership up for success.
Yamaha, it should be pointed out, actually created the first production electric bicycle as far back as 1993, though that early model also only took off in Japan while failing to gather meaningful traction in the rest of the world.
Yamaha is one of the few success stories to date, still producing impressive e-bikes, though the company famously spins its non-auto products off into their own companies. I think we can all accept that the engineers designing Yamaha’s motorcycles aren’t heavily involved in Yamaha’s pianos or biomedical products.
Harley-Davidson shocked the industry back in 2018 with its beautiful electric bike designs. Still, it ultimately spun the project out as an independent company, Serial One, that failed to achieve strong sales. The e-bike company was eventually sold off to another bicycle company, which is currently attempting to revive the Serial One brand.
In many of these cases, the actual product was quite impressive. Harley’s Serial One e-bikes often scored great reviews, despite not sticking the landing with sales.
It’s a tough cycle that has continued to repeat itself, with Benjamin explaining his belief that it comes down to the same root causes, “my opinion: The pain and failure has usually been when an engineering culture, proud of their creation, has turned the bikes over to a sales culture that did not truly understand or believe in the product.”
That might explain why plenty of new e-bikes bearing automotive company names released in the last few years were merely licensing deals, such as Jeep’s e-bike built by Quietkat, Hummer’s e-bike built by Recon Power Bikes, Polestar’s e-bike built by Allebike, Toyota’s e-bike built by DOUZE cycles, and Ducati’s e-bikes built by Thok Bikes, among others.
GM was one of the few companies to build an impressive electric bike entirely in-house, but the project came at the worst possible time as COVID was blamed for killing off the GM e-bike before it could succeed.
With decades of examples, you might think automakers would have given up on the dream of building and selling their own electric bikes. But that doesn’t appear to be the case.
Several major companies are still trying to develop their own models, with some even doubling down on their investments.
Porsche is one example, with the company recently buying e-bike motor manufacturers and entire e-bike companies in an attempt to bring more e-bike expertise under the Porsche nameplate.
Rivian, the US-based electric truck maker, has also significantly expanded its e-bike development team with hires from major bicycle companies. The CEO also explicitly stated the company has its eyes on an e-bike model, though didn’t share any details about the direction Rivian’s e-bike could be headed.
All of this is to say that despite automakers consistently trying and failing to bring their own e-bikes to market, one thing is crystal clear: they sure aren’t giving up.
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For the second time, a judge strikes down Elon Musk’s $55 billion Tesla CEO pay package as the company struggles to avoid seeing its sales slip year over year for the first time. Plus: an all-new look for Jaguar this Giving Tuesday on Quick Charge!
We’ve also got record EV sales from both Kia and Hyundai, with the latter seeing IONIQ 5 sales double over last year, more Tesla discounts in China AND North America, and more.
Today’s episode is sponsored by Buzz Bicycles, an omnichannel eBike brand that prioritizes excellent value for its growing base of eBike enthusiasts. For a limited time, use promo code “ELECTREK200” at checkout for $200 off the purchase of a Buzz Centris Folding eBike, and be sure to explore all of the company’s Black Friday Deals at Buzzbicycles.com.
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Read more: Renault E-Tech T semi truck gets 600 km range for ’25, logs 19 million miles.
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“Tesla could not meet program standards” on Oklahoma’s NEVI EV charger installation program, so EVgo took over.
As Electrek originally reported in April, Oklahoma approved more than $8 million in federal funds for Tesla, Love’s Travel Stops, and Francis Energy to build DC fast chargers along its interstates.
The three companies were to provide a combined $7 million in private funding match to build 13 DC fast charging stations. The first round of awards would complete the buildout of I-35, I-40, and I-44 as Alternative Fuel Corridors.
Tesla was supposed to install three Superchargers at the I-44 exit 240 in Catoosa, the I-40 exit 240B in Henryetta, and the I-44 exit 125B in Oklahoma City. In order to qualify for National Electric Vehicle Infrastructure (NEVI) Formula Program funding, they had to be equipped with Magic Docks – that is, CCS compatibility.
However, OK Energy Today reports that Oklahoma Transportation Commissioners unanimously approved replacing Tesla with second-place EVgo yesterday.
Jared Schennesen, multi-modal division manager to the nine commissioners, said:
Tesla could not meet program standards for the gap awarded along I-44 in Oklahoma City.
Due to not meeting the program requirements, ODOT required that the award be revoked from Tesla as direct[ed] by state procurement rules and awarded to second-place finisher EVgo for this gap.
Schennesen didn’t specify exactly how Tesla couldn’t meet the program standards, but the article goes on to note that EVgo reduced its costs considerably compared to what Tesla’s project costs were:
EVgo won the award for a total of $519,740, and Schennesen said it reduced the total project cost by $317,932. The federal share of the project will increase by $201,781 bringing the final total to $801,780.
EVgo has more than 1,000 DC fast charging locations in 40 states and serves over 65 metropolitan areas.
Oklahoma’s NEVI EV charger installation program, EVOK, is responsible for spending $66 million from 2022-27 in NEVI Formula Program funds to create a state EV charging network. The federal NEVI program allocates $5 billion over five years to help US states create a network of EV charging stations. The funding comes from the Bipartisan Infrastructure Law.
The NEVI program requires EV charging stations to be available every 50 miles and within one travel mile of the Alternative Fuel Corridor. EV charging stations must include at least four ports with connectors capable of simultaneously charging four EVs at 150 kilowatts (kW) each, with a total station power capacity of 600 kW or more.
The charging stations must have 24-hour public accessibility and provide amenities like restrooms, food and beverage, and shelter.
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The US Department of Energy (DOE) says it will loan up to $7.54 billion to a Stellantis and Samsung SDI joint venture to help build two EV lithium-ion battery plants in Indiana.
Stellantis + Samsung EV battery plants loan
The joint venture is called StarPlus Energy LLC, and its huge project will create huge job growth: at least 2,800 jobs at the plants, plus hundreds more for parts suppliers at a nearby park.
At full capacity, the plants will produce about 67 GWh of batteries for Stellantis EVs in Kokomo, enough to supply about 670,000 vehicles annually, the DOE’s Loan Programs Office said. Stellantis said yesterday that the first plant will open in early 2025 and the second in 2027.
To secure the loan, StarPlus needs to implement its Community Benefits Plan, which includes working with community and labor leaders to create well-paying jobs. It’s unclear whether the loan will be able to be finalized before Donald Trump takes office on January 20, but according to the Associated Press, the DOE said “it would be irresponsible for ‘any government to turn its back on private sector partners, states, and communities that are benefiting from lower energy costs and new economic opportunities’ from the loans.”
Electrek’s Take
Since Trump is threatening tariffs all over the place to stimulate domestic manufacturing, it would be pretty dumb if he attempted to kill this loan. The DOE anticipates this and makes a point of saying in its announcement that “the project will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on adversarial foreign nations like China, as well as other foreign sourcing of EV batteries.”
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.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
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