The average electric car now costs $54,000

A photo of a charging Hyundai electric car with the caption The Morning Shift below.

Photo: Christophe Furlong (Getty Images)

Average cost of buying an electric car is now $10,000 higher than a gas-powered vehicle, Japanese lawmakers want to lower targets for zero-emission vehicles, and the Hyundai Ioniq 5. All this and more in The morning shift for June 27, 2022.

1st gear: The average cost of EVs Is on the rise

Everyone knows that electric vehicles are more expensive than their gas-powered counterparts. JThanks to the growing demand for battery-powered cars and the rising costs of the components needed to manufacture them, many electric vehicle manufacturers are increasing the prices of their cars even more.

The Wall Street Journal reports that price hikes from GM, Tesla and Ford now mean the average price of a new EV has reached $54,000 – do it around $10,000 more than the average cost of a new gas-powered car.

According to WSJcarManufacturers have steadily raised the prices of their electric vehicles “in part to offset the skyrocketing cost of materials used in their large batteries.” This included a hike in the price of a Hummer EV over $6,000 and a warning of Ford that he was no longer making a profit on the sales of its Mustang Mach-E. The WSJ reports:

“Companies say they are trying to offset a recent rise in the prices of raw materials that go into batteries to power electric cars, by far the most expensive component in an EV. cobalt have roughly doubled since the start of the Covid-19 pandemic, according to consultancy AlixPartners LLP.

In recent months, Tesla and Rivian also raised prices of their fleets of electric vehicles. This, coupled with, in some cases, deleted Electric vehicle tax credits mean one of the biggest barriers to EV adoption appears to be getting worse.

However, as more brands release their battery-powered models, competition could force prices to move in the opposite direction. Hoping for the release of new models like VWVinFast and Hyundai can help you do that.

2nd gear: Japan wants to reduce zero-emission vehicle targets

OAs countries around the world aim for a transition to zero-emission vehicles like electric vehicles, hydrogen trucks or other cleaner means of power, Japan seems to be dragging its feet.

The country, home to automakers such as Toyota, Subaru, and Honda reportedly pressured fellow G7 countries to remove zero-emission vehicle targets from its Goals to combat climate change. As reported by Reuters:

“Japan has proposed removing a reference to a ‘collective goal of at least 50% zero-emission vehicles by 2030,’ according to a draft statement reviewed by Reuters.

“In its place, he proposed a less concrete goal of ‘significantly increasing the sale, sharing and adoption of zero-emission lightweight vehicles by recognizing the range of paths members are taking to achieve these goals,'” according to the project.”

This all seems rather tasteless to me, because there’s no such thing as replacing a hard digital goal with something vague like “significantly increase” sales of zero-emission vehicles. Who defines what is an important increase looks like?

Here in the United States, PResident Biden said he wants 50% of all new vehicles sold to be zero emissions by 2030. This would increase sales of such cars from 340,000 in 2020 to nearly 9 million a year by 2030.

3rd gear: Rising Gas Prices Won’t Change Small Cars

And it’s not just global EV adoption targets that may struggle to encourage people to buy battery-powered vehicles, rising gas prices doesn’t do much to help the Switch either.

While you might expect the current $5 per gallon average that we face in the United States to force people to reconsider their daily drivers, a new report from Automotive News says it hasn’t quite happened yet.

The report found that despite the high cost of filling the tank on your F-150 or Suburban, drivers across the country remain attached to their bigger cars. This, he says, is at odds with what happened in 2008, when fuel prices also saw a sharp rise that peaked at $4 a gallon. At the time, automakers rushed to push more economical vehicles due to consumer demand. (See also: Chrysler’s Doomed EV Project of the time.)

But now automakers don’t see the same request. And that, according to the report, is the result of the increased efficiency of these larger cars in 2022 compared to 2008. According to Automotive News:

“Besides a proliferation of electrified options, experts point to a significant improvement in fuel economy for most internal combustion vehicles, including large pickups and utility vehicles. A four-wheel-drive Ford F-150 2022, for example, is rated at 21 mpg combined, 50% better than a comparable 2008 model.

As such, Automotive News reports that demand for new gas-powered cars and trucks remains high. So much so that inventory removed due to production issues still cannot keep up with consumer interest.

4th gear: Infiniti bets on a brand refresh

While it may seem like Infiniti has been a bit forgotten in recent years, everything is about to change for Nissan’s premium offering. According to the brand, it has a refresh up its sleeve which will include an all-new QX80 which will form the centerpiece of a bit of brand makeover.

Automotive News Reports that Infiniti is preparing the relaunch for the coming months. According to the site:

Outlining the plan publicly for the first time, Infiniti Chairman Peyman Kargar told Automotive News that the campaign will begin this fiscal year and develop a more cohesive and sophisticated brand image.

“Plans include a new look for Infiniti dealerships, a new design language for its vehicles and a host of accents to impress customers, such as a unique Infiniti fragrance and signature sound.”

The relaunch will center around the next-generation QX80, which the group hopes can cement its place as a true luxury SUV. If it works, Infiniti hopes to turn around its fortunes of recent years, which saw sales drop 55% globally in 2021 and almost half here in the United States.

5th gear: Hyundai and Kia are sweeping the floor of electric vehicles

Infiniti should perhaps draw inspiration from Hyundai and Kia’s playbook. That’s because both automakers have swept since launching their new EVs here in the United States.

In reality, Bloomberg reports that the Ioniq 5 of Hyundai and Kia’s EV6 were two of the best-selling EVs in the United States in the first five months of 2022. The two new EVs sold everything from the Ford Mustang Mach-E to the Chevrolet Bolt and Nissan Leaf. According to Bloomberg:

“Earlier this year, South Korean automakers launched two new battery-powered cars – the Hyundai Ioniq 5 and its sibling, the Kia EV6 – which quickly tore up the sales charts, overtaking the Nissan Leaf, Chevrolet Bolt and all other electric vehicles. in the market not manufactured by Tesla. In the United States this year through May, Hyundai and Kia sold 21,467 of these two machines, even surpassing the white-hot Ford Mustang Mach-E, which was purchased by 15,718 drivers.

East the real key to unlock EV volume a pair of cool-as-hell battery-powered SUVs disguised as hot hatchbacks? Who knew.

Reverse: Route 66 enters the history books

Neutral: How are you?

It’s a new week, how was your weekend? Do you have anything exciting planned for the week ahead? I have a friend from back home visiting me this week, so I’m making a list of super American things to do while he’s in New York. All suggestions are always welcome!

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