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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%.”

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Yamaha throws in the towel, pulls out of e-bike market in North America

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Yamaha throws in the towel, pulls out of e-bike market in North America

Yamaha has announced to its dealers that it will be pulling its e-bikes out of the North American market at the end of this year. In the meantime, the brand says that it will offer sales of up to 60% off for its remaining inventory and continue to support its e-bikes already sold in the US for at least five more years.

Yamaha’s electric bikes have been well-received in global markets and have also received rave reviews in the US. However, the company’s higher prices make it harder to compete in the North American market, which is dominated by value-oriented models with significantly lower price points.

Yamaha’s various electric bikes designed for commuting, fitness, and mountain biking all feature higher-end components, which has resulted in the company competing more directly with premium bicycle shops. The company’s elaborate frames and in-house motors have added value to their models, yet have also contributed to a more premium price range.

Meanwhile, Yamaha hasn’t been immune to the same sales slowdown and overstocking issues that have plagued the e-bike industry over the last few years, as the company explained to its dealers in the letter seen below.

“Dear Yamaha eBike Dealer,

We want to thank you for your partnership and for your business in purchasing and retailing Yamaha eBikes, and for proudly representing the Yamaha brand. However, as you know, the combination of a post-COVID oversupply within the entire bicycle industry, coupled with a significant softening of the market, has resulted in a particularly challenging business environment where it is extremely difficult to achieve a sustainable business model. Given these market conditions, we regret to inform you that Yamaha has made the difficult decision to withdraw from the U.S. eBike business and cease wholesaling units effective the end of this year.

Yamaha Motor Corporation, U.S.A. (YMUS) entered the U.S. eBike market in 2018, and we have enjoyed the opportunity to partner with you these past six years to sell exciting, high-quality, all-road, mountain, and fitness/lifestyle eBikes.

We will continue to support your dealership in the sell down of your inventory by extending the current “Fan Promotion” program where customers may receive up to 60% off their purchase of a new Yamaha eBike. This “Fan Promotion” program will be offered on all units retailed and warranty registered through June 30, 2025. YMUS will continue to provide parts, service, and customer support in the United States both now and in support of our limited 5-year warranty.

Finally, we wish to express our sincere appreciation and gratitude to you and your staff for your dedication and support of the Yamaha eBike business.

Thank you for your understanding and support.”

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

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

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.”


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

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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-Oct-sales
Onvo L60 electric SUV models (Source: NIO Onvo)

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.

NIO's-Oct-sales
NIO Onvo L60 electric SUV (Source: Onvo)

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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