MXA121
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The Motor Company Struggles
What do all of the largest car manufacturers in the world have in common? As we dive into a new Battery powered Automotive landscape, new companies are jumping into the fray and making more than waves. The likes of Tesla, BYD, and Rivian are stealing market share away from some of the most established car companies in the world. The reason why is simple â car makers have long been defined by their Powertrains, and thatâs no longer enough.
Toyota âMotorâ, Honda âMotorâ, Ford âMotor, etc. Itâs right there in the name. For ages, customers have chosen their preferred mode of transportation based primarily on what flavor combustion engine fit their need best (along with styling, price, features, etc.). With the Model S introduction in 2012, the Motor companies were put on notice. The ICE can no longer be the most âreliableâ and is no longer considered âefficientâ or highest 'performance'. Today, we are seeing everyone scramble to change their company from a Motor company into an EV company.
You can argue there are Motors in EVs, but the unique advantage that longtime ICE makers had in reliability and performance have vanished. The best case to look at (which many news outlets have highlighted recently) is Toyota. The largest, most reliable engine builder in the world is faced with this changing landscape, and appears to be behind the curve of electrification. Their leadership has a larger mission than Rivian or even Tesla, though, which is to provide cars to everyone/everywhere. EVs simply cannot be the car for everyone â yet, and Toyota is banking on that. In addition, they are investing $35B into EV tech (twice Rivianâs market cap) over the next 10 years and it should yield some great results. The majority of this spending is on battery development. This will be spreading their R&D between no less than 4 powertrain technologies (Hybrid, Hydrogen, Gasoline, Battery). Only time will tell if this is a good path for the company.
Toyota may be OK considering their market focus is different than Rivian and Tesla (for now), but what about Mercedes, BMW, Audi, Cadillac? Recent reports confirm Tesla is the best selling âluxuryâ segment brand in the US, easily eclipsing BMW and Mercedes and putting an American manufacturer atop that list for the first time in years. (They are also the top selling car in Europe right now.) Those familiar with the âluxuryâ brands can confirm their reliability is typically substandard but the performance was what you paid for. What performance are they offering over an EV today?
With the Automotive landscape changing, which âMotorâ companies do you think will drop out? Can Mercedes, Audi, BMW, Cadillac compete with Tesla? Will Rivian be able to survive Land Rover?
Thanks for tuning in.
- MXA
What do all of the largest car manufacturers in the world have in common? As we dive into a new Battery powered Automotive landscape, new companies are jumping into the fray and making more than waves. The likes of Tesla, BYD, and Rivian are stealing market share away from some of the most established car companies in the world. The reason why is simple â car makers have long been defined by their Powertrains, and thatâs no longer enough.
Toyota âMotorâ, Honda âMotorâ, Ford âMotor, etc. Itâs right there in the name. For ages, customers have chosen their preferred mode of transportation based primarily on what flavor combustion engine fit their need best (along with styling, price, features, etc.). With the Model S introduction in 2012, the Motor companies were put on notice. The ICE can no longer be the most âreliableâ and is no longer considered âefficientâ or highest 'performance'. Today, we are seeing everyone scramble to change their company from a Motor company into an EV company.
You can argue there are Motors in EVs, but the unique advantage that longtime ICE makers had in reliability and performance have vanished. The best case to look at (which many news outlets have highlighted recently) is Toyota. The largest, most reliable engine builder in the world is faced with this changing landscape, and appears to be behind the curve of electrification. Their leadership has a larger mission than Rivian or even Tesla, though, which is to provide cars to everyone/everywhere. EVs simply cannot be the car for everyone â yet, and Toyota is banking on that. In addition, they are investing $35B into EV tech (twice Rivianâs market cap) over the next 10 years and it should yield some great results. The majority of this spending is on battery development. This will be spreading their R&D between no less than 4 powertrain technologies (Hybrid, Hydrogen, Gasoline, Battery). Only time will tell if this is a good path for the company.
Toyota may be OK considering their market focus is different than Rivian and Tesla (for now), but what about Mercedes, BMW, Audi, Cadillac? Recent reports confirm Tesla is the best selling âluxuryâ segment brand in the US, easily eclipsing BMW and Mercedes and putting an American manufacturer atop that list for the first time in years. (They are also the top selling car in Europe right now.) Those familiar with the âluxuryâ brands can confirm their reliability is typically substandard but the performance was what you paid for. What performance are they offering over an EV today?
With the Automotive landscape changing, which âMotorâ companies do you think will drop out? Can Mercedes, Audi, BMW, Cadillac compete with Tesla? Will Rivian be able to survive Land Rover?
Thanks for tuning in.
- MXA
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