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American automakers targeting average households with new crop of EVs

In their first rollouts of electric vehicles, America91裸聊视频檚 automakers targeted people who value short-range economy cars. Then came EVs for luxury buyers and drivers of pickups and delivery vans.
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The 2024 Chevrolet SS EV is shown in Warren, Mich., Tuesday, July 12, 2022. (AP Photo/Paul Sancya)

In their first rollouts of electric vehicles, America91裸聊视频檚 automakers targeted people who value short-range economy cars. Then came EVs for luxury buyers and drivers of pickups and delivery vans.

Now, the companies are zeroing in at the heart of the U.S. auto market: The compact SUV. In their drive to have EVs dominate vehicle sales in coming years, the automakers are promoting their new models as having the range, price and features to rival their gas-powered competitors.

Some are so far proving quite popular. Ford91裸聊视频檚 $45,000-plus Mustang Mach E is sold out for the model year. On Monday night, General Motors91裸聊视频 Chevrolet brand introduced an electric version of its Blazer, also starting around $45,000, when it goes on sale next summer.

Also coming next year: An electric Chevy Equinox, with a base price of about $30,000, whose price could give it particular appeal with modest-income households. There91裸聊视频檚 also the Hyundai Ioniq 5 and Volkswagen91裸聊视频檚 ID.4 in the $40,000s and Nissan91裸聊视频檚 upcoming Ariya around $47,000 with a lower-priced version coming.

All start off considerably less expensive than Tesla91裸聊视频檚 Model Y small SUV, the current top EV seller, with a starting price well into the $60,000s.

The new models, which can get about 300 miles per electric charge, are aimed at the largest segment of the U.S. market: Modest-size SUVs, representing about 20% of new-vehicle sales. Industry experts say entering the smaller SUV segment, with its reach into a broader demographic of buyers, is sure to boost electric vehicle sales nationally.

91裸聊视频淕oing to the smaller utility segment gives you the opportunity to access the most customers in one (market) segment,91裸聊视频 said Stephanie Brinley, principal analyst for S&P Global Mobility. 91裸聊视频淭o make a transition from (internal combustion engines) to electric, you have to be in more space. You have to be in more price points. You have to be in more sizes.91裸聊视频

Brinley noted that the small and midsize SUV segments meet many people91裸聊视频檚 needs, something that previous electric vehicles did not.

91裸聊视频淚f it91裸聊视频檚 a price you can reach but it91裸聊视频檚 a product that you can91裸聊视频檛 put your kids and your dog in, you91裸聊视频檙e not going to buy it,91裸聊视频 she said.

Chevrolet says the Blazer will get a minimum of 247 miles (398 kilometers) per charge. Pricier high-end versions could go up to 320 miles (515 kilometers). The Blazer will be available with Chevrolet91裸聊视频檚 SS performance package with a zero-to-60 mph (97 kilometers per hour) time of under four seconds. There will be a police version, too.

91裸聊视频淓arly on, the demographic composition of an EV buyer was certainly someone that perhaps had higher education, higher household income,91裸聊视频 said Steve Majoros, Chevrolet91裸聊视频檚 marketing director. 91裸聊视频淭hat91裸聊视频檚 very indicative of early adopters. But as we move up that curve, the intention and where we91裸聊视频檙e pricing this product is to certainly make it more available for more mainstream buyers.91裸聊视频

To attract buyers of modest means, , in the $30,000-to-$35,000 range, GM CEO Mary Barra . Electric vehicles, she said, also have to have the range and charging network so they can be the sole vehicle that some people own.

91裸聊视频淢ost electric vehicle owners today own multiple vehicles, so they have an internal combustion vehicle to jump into depending on their needs,91裸聊视频 .

Automakers have been pushing to fully restore a $7,500 tax credit for people who buy EVs to jump-start sales. But the measure is stalled in Congress. It91裸聊视频檚 especially important for GM, Tesla and Toyota, which have maxxed out the number of credits they are allowed and can no longer offer them to buyers. Other automakers are approaching the limit, too.

Money for the credits, as well as funding for additional EV charging stations, was in President Joe Biden91裸聊视频檚 $1.8 trillion 91裸聊视频淏uild Back Better91裸聊视频 social and environment bill, which is all but dead because of the objections of Sen. Joe Manchin, a West Virginia Democrat.

Last week, that included provisions to combat climate change. He indicated his support for just two items from Biden91裸聊视频檚 broader agenda: Reducing prescription drug costs and bolstering subsidies for families to buy health insurance. His vote in an evenly split Senate would be needed for anything to pass.

Even without the tax credit, the industry91裸聊视频檚 march toward electric vehicles is moving apace. Edmunds.com says electric vehicles now account for about 5% of U.S. new vehicle sales with 46 models on sale. S&P91裸聊视频檚 Brinley foresees the market share rising to 8% next year, 15% by 2025 and 37% by 2030.

91裸聊视频淚t seems like the number of choices are growing exponentially for electric vehicles as we move forward,91裸聊视频 said Erich Merkle, Ford91裸聊视频檚 top U.S. sales analyst.

Demand for battery-powered vehicles and gas-electric hybrids has grown as gasoline prices skyrocketed this year. Dealers report that every vehicle delivered is typically already sold or gone soon after it arrives.

Jonathan Chariff, CEO of South Motors, an 11-dealer group in South Florida, said it91裸聊视频檚 impossible to assess just how big the demand for electric vehicles is. There91裸聊视频檚 huge interest, especially in electric SUVs, and vehicles are selling fast. But the supply is constrained because automakers don91裸聊视频檛 have enough computer chips to build as many vehicles as they want.

Given the enormous consumer interest in EVs, Chariff said he expects the vehicles to continue to sell even if their prices don91裸聊视频檛 fall.

91裸聊视频淭he real question,91裸聊视频 he said, 91裸聊视频渋s if and when the supply chain can meet the market demand, what is the true price point?91裸聊视频

91裸聊视频擳om Krisher, The Associated Press





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