Electric Vehicles Archives

The reality of producing and running electric vehicles

With electric vehicles (EVs) constantly in the news these days, you will by now be familiar with the main selling points: zero emissions and lower maintenance costs. Apart from governmental pressures, the industry is doing its best to persuade motorists to switch from vehicles with internal combustion engines (ICE) to EVs as quickly as possible to build up the numbers and reach economies of scale that can bring production costs down.

Understanding that driving range and price are key factors in consumers’ minds when considering an EV, they are working hard on those factors which will require greater manufacturing innovation and efficiencies across the sector. But the angle of zero emissions from EVs being able to address climate change and preserve the environment is not applicable everywhere. In the more economically advanced countries, ‘saving the planet’ may be something people can also think about (and do something about) but for much of the world, saving themselves first is a higher priority than changing to a more expensive EV in place of their still-functioning ICE vehicle.

“The reality is that, despite EVs eliminating tailpipe emissions, they also produce a ‘long tailpipe’ of increased demand for electricity and energy-intensive materials,” notes a report by global technology company Hexagon. The report, based on original research conducted by Wards Intelligence, says that many of today’s EVs have been designed for short-term well-to-wheel benefits without considering their ‘whole-lifecycle’ environmental footprint.

For motorists, the perspective is only from tank (the fuel tank or battery pack) to wheel whereas a true examination of the benefits of EVs must consider the much bigger picture. While EVs can certainly give the benefits which we are being told about, the cost of making them and running them is a side of the story which consumers don’t ask or know about. But it is one which is generating debate and which suggests that EVs are not necessarily the best solution to addressing climate change.

Bigger picture than just well-to-wheel
An EV can certainly beat an ICE vehicle on emissions while in use but what about over its entire life-cycle – starting with making it and also the resources to give it power? While the ‘well-to-wheel’ analysis typically looks at all emissions related to fuel production, processing, distribution, and use when comparing EVs to ICE vehicles, it is also necessary to cover an even wider scope which includes manufacturing of EVs and end of life.

This is where things start to look different and while studies have found that the amount of carbon dioxide (CO₂) in the production and distribution of ICE vehicles and EVs is not significantly different, the battery packs needed in EVs tip the scales.

*EVs may have less parts than ICE vehicles but the numerous electronic systems are made from rare earth elements. Making each battery pack (below) also generates a lot of carbon dioxide.*

Apart from requiring depletable rare metals, it is estimated that up to 150 kgs of CO₂are released for every 1 kiloWatt hour (kWh) of battery capacity. To provide an EV with 500 kms of range would require a battery that currently has at least 60 kWh of storage capacity. To make such a battery pack would mean that another 9 tonnes of CO₂would be added to manufacturing the vehicle and this is a negative impact from the perspective of environment-friendliness (compared to making an ICE vehicle).

‘Sustainability’ is also touted as another selling point of EVs but if so many of the electricity-generating plants are coal-powered, would it not then be a case of shifting demand of one depleting fossil fuel (oil) to another (coal)? After all, both fuels are the product of dead plants and dinosaurs and other organic stuff that was buried up to a billion years ago. According to a group at Stanford University, the world’s coal reserves will last only till 2090, oil reserves will run out by 2052, and natural gas by 2060. And this is based on current consumption; if demand for electricity starts to rise rapidly with more EVS in use, then the depletion will naturally accelerate.

*Half of the planet’s coal-powered electricity plants are in China but in other countries, there are also other types of environment-friendly power generators like wind turbines (below).*

Of course, not all sources of electricity use coal or oil. Studies show that 36.7% of global electricity production comes from nuclear or renewable energy (solar, wind, hydropower, wind and tidal and some biomass), with the remaining two-thirds from fossil fuels. But of these two-thirds, 54% of the electricity generators are in China alone where the world’s biggest car market is.

Less parts, less complexity but…
EVs are also described as being ‘less complex’ as they have less parts than ICE vehicles. They are essentially computers with electric motors and wheels. But a closer examination will show that all those electronic parts – which are in greater numbers than in ICE vehicles – are composed of more ‘high-end’ materials – lithium, cobalt and rare earth elements which need to be mined. The rare earth elements have to be extracted and waste from the processing methods can be radioactive water, toxic fluorine, and acids.

Estimates of lifetime emissions from EVs depend not just on mileage travelled in the vehicle’s lifetime but must also take into account whether the battery pack will last equally long. Current lithium-ion technology for battery packs has degradation over time, and after hundreds of charge/use cycles, become less effective. Like the battery in mobilephones, the lifespan will vary but studies have found that it takes at least 1,000 full cycles before the battery pack starts to show any degradation.

*Nissan is one of the carmakers that has started a project to recycle end-of-life battery packs which can still serve as energy storage units in other applications.*

Eventually, it will probably be that entire EVs – including their battery packs – will have a specific lifecycle so a new battery pack is unnecessary. Everything can be recycled and the batteries might even serve a further purpose for other equipment. The latter process already exists in some places through projects initiated by manufacturers.

The true test of success for electric vehicles is therefore to deliver on their broader promise and create a commercially successful automotive industry that can also be environmentally sustainable. The Hexagon survey demonstrates that manufacturers are aware of the need to go beyond eliminating end-user emissions and improve the ‘whole-lifecycle’ sustainability of EVs. Carmakers and suppliers also increasingly recognize the need to think beyond the vehicles and instead build car parts for a second life and a circular economy.

This will require the industry to compress and connect manufacturing processes together so that sustainability is ‘baked in’ to a vehicle’s DNA at design stage and every part is conceived and created to support both a sustainable car and economy.

*EV assembly at the Polestar factory in China.*

The automotive industry is therefore caught between bottom-up consumer expectations and top-down political pressure for more sustainable EVs. “Living up to the lofty vision of an ethical and environmentally-friendly automotive industry means moving beyond simply eliminating tailpipe emissions to creating lighter, more sustainable materials and manufacturing methods. Emerging smart manufacturing approaches are vital to bring these innovations to market within demanding deadlines, while remaining profitable,” said Paolo Guglielmini, President of Hexagon’s Manufacturing Intelligence division.

So should you buy an EV?
The ‘dark side’ of EVs aside, the change will come about and even if you presently have the choice of staying with an ICE vehicle, your children probably won’t. EVs are the future and ICE vehicles will either be banned from use in some countries or their sale will be stopped so that they eventually diminish in numbers (which could take decades in places like Malaysia). Right now, for Malaysians, it would be a good time to buy an EV if you can afford one because of the duty-exemption. This exemption won’t be around forever although there may be other incentives in future though not as great as this one.

There are definitely advantages to owning and using an EV compared to an ICE vehicle. Running and maintenance costs are less but you will incur an extra initial expenditure setting up a charging point at home (if you can do so). The earlier disincentives like limited range are steadily being erased as battery technology improves and the same goes for recharging facilities. The network is steadily growing and with increasing numbers of EVs on the roads, there will be more justification to invest in expanding the network.

Like computers and mobilephones, the technology keeps advancing each year. As we said earlier, there is a race on by the industry to improve range and reduce costs and so performance will get better and as volumes rise, production costs can go down so EVs will become cheaper. In this case then, perhaps it may be a better idea to consider the subscription approach instead of the outright purchase and ownership model that has been the norm for decades. This will help you to remain current with the latest technologies by changing cars regularly without concerns about depreciation and disposal.

Malaysians understand merits of EVs but misconceptions remain, BMW survey finds

Back-to-back victories for Jaguar TCS Racing’s Mitch Evans in Formula E Rome e-Prix

Jaguar TCS Racing’s Mitch Evans claimed back-to-back victories in the Formula E Rome E-Prix double-header of races with a dramatic win in Round 5 after a first place finish in Round 4 the day before. The Kiwi driver led Poleman Jean-Eric Vergne (DS TECHEETAH) in second and Envision Racing’s Robin Frijns.

DS TECHEETAH’s Vergne had pulled away from pole position while his former teammate and TAG Heuer Porsche Formula E Team driver Andre Lotterer passed Avalanche Andretti’s Jake Dennis into second. By the top of the hill and Turn 7, Dennis had reclaimed second, dropping Lotterer back down to third.

With a collision between Mahindra Racing’s Alex Sims and Nissan e.dams’ Max Gunther, the German driver retired to the pits, ending his race in the first 5 minutes. Despite setting the fastest lap in Qualifying earlier in the day, Dennis started losing ground after Lotterer attacked at Turn 7, reclaiming second. Shortly after, Evans managed to slip past into third.

Squeezing into Turn 4 side by side, standings leader and ROKiT Venturi Racing driver Edoardo Mortara tried to pass DS TECHEETAH’s Antonio Felix da Costa, with the Portuguese racer closing the door on the Swiss, damaging the front wing of his car. Mortara then clipped the wall on Turn 19 and coasted to safety, retiring from the race with a suspected driveshaft failure.

Italian driver Antionio Giovinazzi had lots of support from the crowd but the DRAGON/PENSKE AUTOSPORT drivers’ car came to a stop on the track between Turn 8 and 9, which brought out the Porsche Taycan Safety Car. When the Safety Car was brought in and the racing recommenced, 24 minutes remained. Vergne led Evans for less than a lap before the opportunist Evans overtook into Turn 4 to take the lead.

Dennis continued to slip down the order to seventh as the race passed the halfway mark. At the front, Evans continued to lead Vergne, with Porsche’s Lotterer in second and Frijns in third. Enjoying the benefit of the extra power gained through his 8-minute ATTACK MODE, Frijns made his way up the order and took race leader Evans up the hill on Turn 7.

Paying the price for closing the door earlier on Mortara, da Costa received a 5-minute time penalty while back at the front, Lotterer was looking to take the lead with extra power gained through ATTACK MODE. Now in second, the German driver was close on the tail of Frijns who was desperately trying to hold on to the lead.

With seconds of his ATTACK MODE power left, Lotterer made his move on Frijns to take the lead into Turn 4. Now setting the pace, the German driver was closing in on his first victory in the Formula E World Championship with 10 minutes left on the clock.

After a short Safety Car outing while Sims’ Mahindra racing car was recovered when it spun on Turn 14, racing was back underway. Added Time provided an extension of the race.

Saving his ATTACK MODE until the end of the race, Evans took the boost with less than 8 minutes of the race remaining. With extra power, Evans went after Lotterer, hunting the German driver before taking the lead on the hill up to Turn 7. With Evans holding firm, Vergne slipped past his former teammate Lotterer, jumping to second, before Frijns made a move on the German to knock him off the podium and into fourth.

With Envision Racing’s Nick Cassidy in the wall at the top of Turn 7, the Taycan Safety Car again made a brief appearance before coming in to leave a last lap dash for the finish. Evans was out in front and Vergne close behind, with the Frenchman was on the attack to regain his lead. However, he was unable to catch Evans and the Jaguar driver made it across the finish line first. Close behind, Vergne to join on the podium in Rome was Frijns.

The championship next moves to Monaco for a single round on April 30. This is a much-anticipated event as the Gen3 cars for the next season will be unveiled for viewing.

All-new battery electric SUV from smart to be unveiled on April 7 in Germany

With the renewal of its brand, product and business model, smart has entered a new era of development. The company, which has a history going back to 1994, had struggled to get a strong footing but lack of profitability hindered its development. By 2020, Daimler AG established a joint-venture with Geely which would give the brand a new lease of life.

The joint-venture company will produce the new generation of cars in China and the first of these was revealed in 2021 as a concept car referred to as Concept #1. While the pandemic has slowed down development, the production program has been able to continue between the Mercedes-Benz global design team and smart’s R&D team.

Concept #1
The Concept #1, painted glossy white, has smart elements but also shows that its design language will evolve for the new generation of New Energy Vehicles (NEVs). “The new sporty Concept #1 is a redefinition of the smart brand in a very cool grown-up way,” said Gorden Wagener, Chief Design Officer Daimler Group. “We have created a completely new design DNA that has the potential to establish smart as the leading design brand.”

Balanced proportions, a powerful sculpture, the usual short overhangs at the front and rear and a progressive design language characterise the concept vehicle which is in the form of a compact SUV. One of the central design features is the large panoramic glass roof with a striking ring of light. The seamless transition to the windscreen and to the window surfaces of the frameless doors makes the roof appear to float above the body – an impression further enhanced by the atmospheric roof lighting.

In contrast to this visual lightness, striking design elements in anthracite and black in the lower body area emphasise the robustness of the sport utility vehicle. This is further accentuated by the distinctive 21-inch wheels with their unique design.

A first hint of the new dimension of digitalisation of future smart vehicles is provided by the concealed door handles, which are merely indicated by light elements. The rear doors of the smart Concept #1 are hinged at the back and open in the opposite direction from the front doors. This portal door concept makes it particularly easy to get in and out of the car. Plus, the absence of a B-pillar facilitates an unobstructed view of the generously dimensioned interior when the doors are open.

The LED headlights and taillights, with their striking signatures, make a significant contribution to the unique and emotional appearance of the smart Concept #1. At the same time, they are fundamental components of an attention-grabbing light display around the vehicle. In this sophisticated orchestration of the exterior and interior lighting in harmony with specially arranged sound elements, the front light strip divides into small triangles which flicker in rhythm. Starting from the illuminated radiator grille, light effects also move in time to the music along the sides of the vehicle to the rear diffuser.

Of course, many of the features seen on the Concept #1 will not be adopted for the production car. However, recent pictures of the car, albeit camouflaged, show that the concealed door handles will be present although those ‘suicide doors’ which open in opposite directions will not. Such doors often appear in concept cars but rarely continue into production models.

*Prototypes undergoing testing in winter conditions in China.*

Final testing of prototypes
Prototypes have been undergoing endurance testing in winter conditions and aerodynamic work was done at the China Automotive Engineering Research Institute in Chongqing. Testing in the facility’s wind tunnel showed the smart #1, as the new model will be known, to have a drag coefficient performance of 0.29 Cd. This is thanks to the features like the flush door handles as well as an Active Grille Shutter (AGS) to lower wind resistance.

*Win tunnel testing has shown the cd to be 0.29, important for an EV especially which needs low wind resistance to go further.*

The smart #1, which will be the brand’s first all-new production car as a purely electric brand, will be unveiled on April 7, 2022 at STATION-Berlin, a historic landmark and disused train station in the German capital.

Coming to Malaysia too
Proton Edar has been appointed distributor for Malaysia and Thailand so we should be seeing the smart #1 on Malaysian roads in future. They are unlikely to be associated with the Proton brand and would be an additional business venture for the subsidiary which handles sales and marketing in the Proton Holdings Group. Proton’s own electrification program would likely start off with hybrids and then move to fully electric vehicles, perhaps towards the end of the decade.

Malaysians understand merits of EVs but misconceptions remain, BMW survey finds

With the public transport system yet to be efficient, reliable and appealing enough to attract more users, Malaysians remain car-dependent, resulting in one of the highest car ownership rates in Southeast Asia. A new survey conducted by the BMW Group in Southeast Asia reveals just how car-dependent Malaysian drivers are, with 85% of respondents indicating that they drive every one to three days – either commuting to and from the office (74%), run daily errands (65%), or travel on the weekends (36%).

Encouragingly, 8 out of 10 of Malaysian drivers also wish to see more electric vehicles (EVs) on the road, with the hope of contributing to a more environmentally conscious world – not to mention save on fuel costs. Reduced carbon emissions (72%), cost savings from using electricity instead of petrol (49%) and a more premium experience (40%) are just some of the key benefits cited by drivers who see the merits of electrification of motor vehicles.

Nevertheless, misconceptions on EVs remain and, at this time, more than half of the Malaysian drivers surveyed say that they will still likely choose a petrol vehicle (59%) for their next purchase. Some common concerns raised were the electric range of EVs, the maintenance costs, as well as the difficulty in keeping their EVs charged. Specifically, 33% of respondents believe that EVs can only travel up to 100 kms before requiring a recharge; another 41% expect EVs to be more expensive to service or maintain over a period of 10 years; while 29% believe that charging EVs would be ‘difficult’.

Valid as they are for any prospective EV owner, these are the concerns of yesterday. As exemplified by BMW i’s pioneering progress in electrified mobility over the years, the technology surrounding EVs and the ecosystem developed to support them have come a long way. With the arrival of the latest BMW i fleet, as well as the expansion of the BMW i public charging network, Malaysians can be more confident switching to EVs.

“It is encouraging to see the level of awareness and excitement around sustainable mobility, and that Malaysian drivers see EVs as the gateway to a more premium driving experience. Being the pioneer of electrified mobility in Malaysia and having been in the field since 2015, we have observed how Malaysian drivers are receptive and even enthusiastic about transitioning to EVs but remain concerned about key issues surrounding it – all of which we have been actively working to alleviate,” said Hans de Visser, Managing Director of BMW Group Malaysia.

He added: “In addition to introducing the best that we have to offer with the latest fleet of vehicles from BMW i, we have also been proactively developing our infrastructure for charging the vehicles. With these initiatives, there is also an opportunity to change the perception of prospective EV owners in Malaysia on the significant advancements made and that an electric future for the passenger vehicle market in Malaysia is closer than they think. In the end, it is about helping Malaysians realise that they now have a greater Power of Choice to adopt a more sustainable way of mobility.”

The latest EVs from BMW i tackle many of the past and current concerns Malaysians have towards adopting EVs. According to the survey, a significant number of them (39%) have the perception that EVs can only travel up to 100 kms before needing to recharge. That’s an out-of-date number and with BMW i models, the maximum range can be as much as 425 kms. With the premise that most Malaysians travel up to 20 km daily at most, recharging would thus be only necessary roughly once every two to three weeks. That range would also make it possible to go from the Klang Valley to Johor Bahru too, without recharging.

Another perception is around the difficulty of charging EVs – with 29% of Malaysians surveyed believing that the process of charging an EV can prove troublesome. However, in many ways, charging a BMW i vehicle would not be disruptive, partly due to its sufficient electric range allowing for less frequent charging. Additionally, a BMW i Wallbox can be installed at home for overnight charging.

The latest BMW i vehicles are also compatible with DC fast-charging, which BMW Group Malaysia has begun to deploy across its dealership network, public spaces and on the highways, in collaboration with its premium partners. Fast-charging shortens recharging time, so the wait is shorter.

On the misconception that EVs are more expensive to service and maintain – a view held by 41% of survey respondents – EVs actually cost less in this regard, due to having fewer components in the vehicle that require servicing. Components and elements, such as engine oil, sparkplugs and air filters, are absent in an EV.

Aside from this, the woes of battery replacements are also mitigated due to the modular nature of the lithium-ion battery packs at the heart of every electrified BMW. With multiple modules making up the battery pack, the cost of replacement is greatly reduced as owners need to replace only the faulty module, not the entire battery pack.

Further peace of mind is also ensured courtesy of substantial warranty programmes, such as the BMW 5-year Unlimited Mileage Warranty with Free Scheduled Service, and the BMW 8-year/160,000 km Battery Warranty. In fact, the survey revealed battery warranty as a motivation to adopt EVs for 39% of Malaysian drivers, while good aftersales support makes up 35%.

Another key motivator is the level of support Malaysians have from the government, as expressed by 45% of respondents. The Energy Efficient Vehicles (EEV) incentive in the Malaysian automotive policy has encouraged BMW to assemble plug-in hybrid (PHEV) models locally and this year, full duty exemption for EVs is a very welcome development that will narrow the gap in pricing between EVs and traditional vehicles.

“Increased support and confidence from key players in the industry will play a significant role in getting Malaysian drivers comfortable with making the switch over the next few years. As a market leader and pioneer in the Electric Vehicle space, we are committed to delivering innovation that will truly make a change in the Malaysian automotive landscape, while continuing to deliver Sheer Driving Pleasure,” Mr. de Visser said.

BMW Group Malaysia moves into next phase of electrification with new BMW i model range

Hyundai to use new Integrated Modular Architecture for all future BEV models

By the end of this decade, Hyundai Motor, like other major carmakers, aims to capture a sizable share of the global market for battery electric vehicles (BEVs). Of the 9.5 trillion Korean won it plans to spend during the decade, 20% will be spent on R&D in electrification of its products and related facilities.

It has set a target of selling 1.87 million BEVs annually by 2030 and to do this, it will offer a broad line-up that will consist of 17 new models (11 for the Hyundai brand and 6 for the Genesis brand). The new Hyundai BEV models will include 3 sedan models, 6 SUVs, a light commercial vehicle as well as a model of a new type. Genesis, its luxury brand, will get 2 new passenger cars and 4 SUVs; from 2025, all newly launched models from Genesis will be electrified.

Integrated Modular Architecture
In order to achieve the sales targets, the products will have to be priced competitively, which means that production costs will have to be brought down as much as possible. Key to this will be the Integrated Modular Architecture (IMA), a new platform evolved from the electric global modular platform (E-GMP) that is currently used for models such as the IONIQ 5 and GV60.

The IMA, revealed recently, will be utilized not only to as Hyundai’s passenger BEV platform but also as its exclusive purpose-built vehicle (PBV) platform, helping to streamline production processes and reduce cost. It will standardize not only the chassis but also the battery system and motor. In this way, economies of scale can be higher with many parts being shared by a larger volume of models.

Standardisation of battery packs
Hyundai also aims to standardize battery packs which can be attached to any models, also improving cost efficiency. This differs from the existing BEV development system which has different types of battery packs for each model. Through the cell-to-pack system, the new architecture can secure sufficient energy density and shorten charging time.

5 types of electric motors
The same approach of standardisation will be applied to electric motors, with no more than 5 types being used, depending on the model. This modular motor system will help achieve competitiveness in terms of cost and weight as well as motor efficiency.

Details of the powertrains shown in a presentation indicate that four of them will have 800V systems with a fifth one having 400V system, possibly for use in more specialised vehicles operating in demanding conditions (perhaps light commercial vehicles).

Comprehensive battery strategy
Batteries are, of course, a vital part of BEVs and as more BEVs are sold, demand will increase rapidly. In anticipation of this, Hyundai is trying to increase the local procurement rate of batteries through strategic alliances with battery companies in major regions to ensure sufficient battery supply. Through these alliances, the company expects to obtain more than 50% of its next-generation lithium-ion batteries for BEVs starting in 2025.

In addition, Hyundai will also diversify battery sourcing to consolidate the competitiveness of future BEVs. The company has secured sufficient battery supply to meet its sales targets by 2023. With a comprehensive battery strategy, Hyundai plans to continue cooperation with various battery companies with an aim of securing 170 GWh of batteries for its models. For the next-generation batteries, such as solid-state types, Hyundai is cooperating with various global partners to improve energy density and cost efficiency

*Hyundai factory in the Czech Republic.*

Expanding manufacturing footprint
To meet the growing demand for BEVs, Hyundai aims to establish a high efficiency manufacturing process to accelerate its transition into electrification. A human-centered manufacturing innovation platform is expected to bring dramatic innovation in production efficiency through a flexible production system, advanced level automation and digital twin technology. The innovation will be expanded to global plants in the future.

The existing BEV production facilities in Korea and the Czech Republic will be complemented by additional factories in other locations. One of them is in Indonesia which will start BEV production and contribute to the global volume.

Hyundai Motor Group aims to take lead in technology for future hydrogen society

Ford to create separate business units for EVs and for combustion vehicles

For the auto industry, this decade is one which will require a major decision to be made on the type of vehicles to produce in future. It is clear that, besides going back to horse carriages, electrification of motorcars is the quickest solution to addressing one of the contributors to climate change. While there are ongoing debates about the actual benefits of electric vehicles (EVs) from a total perspective (including generating the lectricity), it cannot be denied that EVs generate no emissions and that can make a difference to air quality.

The industry has already begun its path to electrification and many have announced targets that will see 100% or almost 100% of the vehicles they produce and sell being fully electric by the end of this decade. But can this full-scale transformation take place globally? Can every country on the planet do away with combustion-engined vehicles and use only electrically-powered ones?

This is something the carmakers are grappling with and as Toyota has said, they do not want to leave any customer behind [by offering only EVs). Other carmakers have also said that they will introduce EVs in markets where conditions are acceptable and offer other solutions for those which cannot afford EVs in the immediate future. This can mean offering hybrid electric vehicles (HEVs) which are a bit less costly or try to cleanse the emissions of the combustion engine as much as possible.

Ford’s approach
Ford has announced its approach which will be to cover both the EV segment and the ‘old’ segment where combustion-engined vehicles will still be in demand. It will have two business units in its company as part of the Ford+ plan introduced last May. There will be two distinct, but strategically interdependent, businesses – Ford Blue and Ford Model e – the former focussing on products with combustion engines and the latter to be fully focussed on EVs and have the agility of a start-up.

Driving the change was recognition that different approaches, talents and, ultimately, organizations are required to develop and deliver of electric and digitally connected vehicles and services, while also fully capitalize on the company’s iconic family of internal combustion engine (ICE) vehicles.

Ford has over 100 years of experience in manufacturing motor vehicles and it will draw on this vast experience to continue making conventional combustion engine vehicles as well as the new generation of EVs.

“This isn’t the first time Ford has reimagined the future and taken our own path,” said Ford Executive Chairman, Bill Ford. “We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet.”

Dedicated EV division in China
The creation of Ford Model e was encouraged by the success of small, mission-driven Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup as well as Ford’s dedicated EV division in China.

“Ford Model e will be Ford’s centre of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,” explained Ford President & CEO, Jim Farley.

Continuing with iconic models
“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families and earn greater loyalty by delivering incredible service and experiences. It’s about harnessing a century of hardware mastery to help build the future. This team will be hellbent on delivering leading quality, attacking waste in every corner of the business, maximizing cashflow and optimizing our industrial footprint,” he said, adding that the company will continue to invest in combustion engines.

*Ford’s President stressed that company will continue to invest in internal combustion engines and offer them in some models under the Ford Blue brand.*

Ford Model e and Ford Blue will be run as distinct businesses, but also support each other – as well as Ford Pro, which is dedicated to delivering a one-stop shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services and support.

Making ownership experiences better
Back in the ‘dotcom era’ over 20 years ago, Ford was an early promoter of online media for its business. In this decade, Ford Model e also will lead on creating a new shopping, buying and ownership experience for its future EV customers that includes simple, intuitive e-commerce platforms, transparent pricing and personalized customer support from Ford ambassadors. Ford Blue will adapt these best practices to enhance the experience of its ICE customers and deliver new levels of customer connectivity and satisfaction.

The carmaker expects to spend US$5 billion on EVs this year, a two-fold increase over 2021. By 2026, Ford aims to produce more than 2 million EVs annually, which will represent about one-third of the company’s global volume. This is expected to rise to half by 2030, capturing with EVs the same, or even greater, market shares in vehicle segments where Ford already leads.

“This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,” said John Lawler, Ford’s Chief Financial Officer. “It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes and lowering costs. Most importantly, we believe it will deliver growth and significant value for our stakeholders.”

Ford spends another US$900 million in Thailand to upgrade two factories

Honda and Sony to form new company to develop and sell EVs from 2025

Since being established 73 years ago, Honda Motor has been able to remain independent instead of becoming part of a bigger group. On its own, it has been able to successfully manage its business and endure even the most challenging periods without having to surrender its independence. However, the 21^st century sees the auto industry changing and with the move towards electric vehicles (EVs), the cost of developing entirely new technologies is very high. In April, Honda became the first Japanese automaker to declare its intention will stop selling combustion-engines vehicles by 2040.

So even though Honda has preferred to be a ‘lone ranger’, it has been forming strategic alliances with some companies in the area of EVs because it is crucial to remain competitive in the new field, and sharing resources is more realistic. Honda has already agreed with General Motors to jointly develop two all-new EVs for Honda’s range, based on GM’s global EV platform. The EVs will be manufactured at GM plants in North America with sales expected to begin in 2024 for that market.

New joint-venture company
On another front, Honda will be working with Sony Group Corporation to develop EVs as well. The two companies have signed a Memorandum of Understanding (MoU) that outlines their intent to form a joint venture company through which they plan to engage in the joint development and sales of high value-added battery electric vehicles (BEVs) and commercialize them in conjunction with providing mobility services. The new company is expected to be established before the end of this year.

*The Honda e, a fully electric EV model, is already on sale in Europe.*

This alliance aims to bring together Honda’s mobility development capabilities, vehicle body manufacturing technology and aftersales service management experience, while Sony has expertise in the development and application of imaging, sensing, telecommunication, network, and entertainment technologies.

Sony has already developed EVs
Honda has already developed a few EV models for sale, with the Honda e having received a good response in Europe. Sony has also been developing its own EVs, with two prototypes displayed earlier this year at CES 2022 in Las Vegas. The prototypes appear to have reached quite an advanced stage and have been shown in real-world road-testing.

*Sony’s two EVs which were shown at CES 2022 earlier this year.*

While Sony announced in January that it would start a new unit called Sony Mobility which would handle commercialization of EVs, this move may well have been too challenging for the company which does not have experience in making cars. Honda, on the other hand, has been producing many fine cars with its decades of experience. As Sony would have vast experience in electronics, which are dominant in EVs, its expertise will be very useful.

So it remains to be seen whether Honda will adopt Sony’s concepts – called VISION-S – or come out with a new design. If they want to do a new design, they have less than 3 years to do so as the plan is to start sales of the first model from the new company in 2025.

A new brand name?
There is also a possibility that the new EVs will have separate branding rather than be sold as Honda or Sony products. This is because the agreement is for the new company ‘to plan, design, develop, and sell the EVs’. It is agreed that Honda will be responsible for manufacturing the first EV model at its own factory.

*Honda has had many decades of experience manufacturing cars. not only in Japan but also in other countries.*

“The New Company will aim to stand at the forefront of innovation, evolution, and expansion of mobility around the world, by taking a broad and ambitious approach to creating value that exceeds the expectations and imagination of customers. We will do so by leveraging Honda’s cutting-edge technology and know-how in relation to the environment and safety, while aligning the technological assets of both companies. Although Sony and Honda are companies that share many historical and cultural similarities, our areas of technological expertise are very different. Therefore, I believe this alliance which brings together the strengths of our two companies offers great possibilities for the future of mobility,” said Toshihiro Mibe, Director, President, Representative Executive Officer & CEO of Honda Motor.

Lexus releases pictures of electric sportscar on the track as well as other future BEV models (w/video)

In 2020, Toyota (or more specifically, its President, Akio Toyoda) expressed reluctance to make a bigger push towards fully electric vehicles (battery electric vehicles or BEVs) and even felt that it was not the right move in pursuit of carbon neutrality. While the other major carmakers were outlining their EV plans and even previewing models to come, it seemed that Toyota was not going to join the crowd if it meant leaving some customers behind. And being the world’s largest carmaker, that certainly has implications.

However, just a year later, the Toyota President went in front of the cameras and announced to the world that the company would be spending a total of 8 trillion yen (1 trillion yen = around RM37.2 billion) over a period of 9 years from 2022. Of this gigantic amount, 50% would be for the development of BEVs (inclusive of battery development).

And while other carmakers might show a handful of prototype models that will be in showrooms in coming years, Toyoda had no less than 17 models of the Toyota and Lexus brands assembled in the hall. They represented virtually all the segments that the two brands are in, including pick-ups, a segment that the American manufacturers already have fully electric models about the enter the market. And as long as Akio Toyoda is still the boss, we will certainly also get sportscars, even if they no longer run on combustion engines.

The BEVs to come
Only a couple of models among the 17 shown last December are to go on sale this year or in 2023 and, presumably, the others are just having the development programmes started. From Lexus, the closest one to production is the SUV known as the RZ450e but there was also interest in some of the other models that were visible, including a sportscar.

It is likely that top management has signed off on the designs and Lexus can now give a preview of the 3 BEVs that will follow the RZ450e. The three will slot into the segments the brand is now in – sedan, SUV and sportscar – and are associated collectively as the ‘Lexus Electrified’ vision. The brand aims to accelerate sales of electrified models from 2025.

Of the three, Lexus has provided three bits of information about the sportscar which it says revives the spirit of the LFA. Its targets are a 0 to 60 mph (96 km/h) time in the low 2-second range, a cruising distance of over 700 kms, and it will possibly use solid-state batteries.

Charging stations for all
On the issue of charging stations for BEV owners, Toyoda said that this is an area where different parties must collaborate and cooperate. Some of the companies may establish the infrastructure on their own, but that infrastructure should be accessible to all other customers who drive vehicles of other brands.

“Toyota would like to urge related parties to realize that. When it comes to infrastructure, there’s a limit to what each OEM (company) can do to realize the sufficient convenience for customers. Of course, we will try to do what we can do. Regarding the regions where Lexus aims to achieve 100% BEV sales, in North America, there are 1,800 dealers, 2,900 in Europe, 1,700 in China, and 5,000 in Japan. I believe it is important to utilize these locations, and make such infrastructure open and available to non-Toyota [and non-Lexus] owners,” he said during the press conference last year.

Lexus BEV Sedan 202x — *202x Lexus BEV Sedan*

Toyota to step up investment and development of fully electric vehicles during this decade

Perodua to surge forward in 2022 with RM1.326 billion investment

After two difficult years with disruptions caused by the COVID-19 pandemic, and then the global semiconductor shortage which started last year, Perodua is looking towards a stronger recovery in 2022. The Malaysian carmaker delivered 190,291 vehicles in 2021 – 13.6% lower than the volume reported in 2020 – but has set a target of 247,800 units for this year.

Speaking to the media during the annual press conference today, Perodua’s President & CEO, Dato’ Zainal Abidin Ahmad, said that this volume would amount to around 40.6% market share, based on Perodua’s own forecast of 610,000 units which is a bit higher than the 600,000 units forecast for 2022 by the Malaysian Automotive Association (MAA) recently. In 2021, Perodua, as market leader again, had a 37.4% market share.

*Perodua President & CEO, Dato’ Zainal Abidin Ahmad.*

Production target of 265,900 vehicles
With the target set at 247,800 units, Perodua plans to produce 265,900 vehicles during the year, which is 37.5% higher compared to 193,400 vehicles produced in 2021. The number is higher as the company produces extra as ‘buffer stock’ in case there are disruptions in production. The increase in production would also result in an increase in locally-sourced automotive parts by 41.5% to RM7.5 billion as compared with the RM5.3 billion purchased in 2021.

Commenting on the performance of 2021, Dato’ Zainal said the year was challenging as the country and its main industries had to cope with various crises throughout the year. “Demand remained strong for all our models with the Myvi leading the list with 47,525 units, followed by the Axia with 43,080 units, Bezza with 42,698 units, Ativa with 26,847 units, Aruz with 15,313 units and the Alza with 14,828 units,” he said.

*The Myvi continued to be the bestselling model for Perodua and also the bestselling car in Malaysia in 2021.*

Dato’ Zainal explained that the sales tax exemption initiative introduced by the government is still an excellent incentive for the consumer to purchase new cars. It was extended until June 30, 2022 and Perodua is hopeful that it might be extended again, which would have a positive effect on sales.

“Our order book for new vehicles is still quite healthy with the guarantee that the production will go uninterrupted will mean that we could fulfil the outstanding orders in a timely manner,” he said, adding that assurances by the government that the measures of containing the pandemic is showing success that another lockdown would not happen.

“With that being said, we have learnt a lot from this situation and have incorporated effective counter-measures to ensure that we will be able to face them better if they re-occur,” he said.

Over RM1 billion investment
During 2022, Perodua’s investments will go pass the 1 billion ringgit mark to RM1.326 billion. The development of a new model will take the biggest chunk of RM529.1 million, with improvements to manufacturing facilities and processes taking RM321.3 million.

It’s almost certain that much of the RM529.1 million allocated for new model development will be for the next generation of the Alza which has been around since 2009. It’s still a popular MPV, with almost 15,000 units sold last year.

Perodua will also spend RM46.6 million on digitalization which it sees as being very important in view of trends that show consumers making more use of online and digital services. This will encompass the entire company as well as its dealers and vendors and for customers, the initiative will be seen in the development of a Connected Vehicle as well as e-Manuals and more extensive use of online communications.

The digitalization move will also see the retail network being changed. Just as the banking industry has seen a steady reduction in branches over the past 10 years, Perodua’s outlets will also be adjusted accordingly. Nevertheless, physical showrooms will still exist even though online channels have been made available for communications and sales enquiries.

Upgrading dealerships
Additionally, the existing 1S/2S outlets will be upgraded to 3S outlets that provide a full range of sales and aftersales services to customers. Perodua is encouraging the small dealers to have a more entrepreneurial attitude and develop their businesses further so they can enjoy greater success. In fact, there is a special programme for this which 56 dealers are participating in to learn entrepreneurial skills, knowledge and business survival.

Exports over the past two years have been minimal due to the pandemic and as some of the overseas markets remain closed, no vehicles have been sent. However, some shipments have been made to Singapore, Brunei and Indonesia though they have been small in number. The company is interested in exports but not as a primary business. It also wants to ensure that wherever it exports to, it will have a proper understanding of market conditions and customer requirements to ensure that the products are right and can be well accepted.

Perodua hopes to eventually be given the role of a regional hub for Daihatsu’s R&D activities for the ASEAN region. Since the 2000s, it has built up its capabilities and can now handle full upper body development on its own.

Aiming to be regional production hub
While Proton has stated its aim to be a strong regional player in time to come, Perodua is aiming to become a regional hub, not in vehicle sales but in R&D. Since it started in 1993, it has been steadily building up its R&D capability which accelerated when the 2000s began. Its involvement in the development of the first Myvi, which was jointly developed with Daihatsu and Toyota, was a great opportunity to learn and today, Perodua has full capability for upper body development.

It has been given increasing responsibilities by Daihatsu in development work for ASEAN products and Perodua personnel have even been assisting Daihatsu in Indonesia in some product development work. Dato’ Zainal said that it is possible Perodua could eventually become the R&D hub in ASEAN for Daihatsu. This would be something like Toyota having moved its R&D activities for the Hilux out of Japan to Thailand (although in that move, it was to its own subsidiary).

*If Perodua offers electric vehicles, it will make sure they are affordable as its mission has always been to provide Malaysians with affordable mobility.*

Perodua EVs?
On the move towards electric vehicles, Dato’ Zainal sounded positive towards the aims of the government to shift towards electrified vehicles in the effort to address climate change. However, Perodua is still studying the matter to determine what approach to take and is having discussions with Daihatsu as well. “What is important is that if we offer electric vehicles, they must be affordable for Malaysians as that is what Perodua has always strived to do,” he said.

Perodua offers assistance to flood-affected customers with 50% discount on selected parts

Proton Edar to distribute smart New Energy Vehicles from China

The future of the auto industry is electric and Proton does not intend to be left behind. Soon, electric vehicles may appear in Proton showrooms although they may not be Proton products. The Malaysian carmaker has signed a Memorandum of Agreement (MOA) with China’s smart Automobile Company (smart) which is a joint-venture company between Mercedes-Benz AG and Zhejiang Geely Holding Group, the parent company of Proton.

The agreement will see Proton collaborating via Proton Edar with smart to introduce the latter’s range of New Energy Vehicles (NEV) into the ASEAN automotive market. For a start, Proton Edar will be appointed as the importer, distributor and dealer for smart in Malaysia and Thailand. smart Automobile (Nanning) Sales Co. Ltd. (a fully owned subsidiary of smart Automobile), will fulfil the role of a gateway for smart to the region.

NEVs are battery electric vehicles (BEVs) which are a new generation of vehicles that will be designed by the Mercedes-Benz Design network and developed by the Geely global engineering network. Production is in China for global markets. As part of the vehicle-development program, the smart product portfolio will be extended into the fast-growing B-segment that are in line with smart’s brand positioning with a focus on pure premium electric and connected vehicles.

“With the signing of the MoA, Proton is taking its first steps on its New Energy Vehicle strategic journey. By collaborating with smart, we will be able to gain experience in the selling, servicing, and charging of NEVs and build up the skill sets we require to be a force in ASEAN’s rapidly expanding NEV sector. This is also an opportunity to tap on smart’s customer base, which will open up more opportunities for the Proton brand,” said Dato’ Sri Syed Faisal Albar, Chairman of Proton.

Marketing in Malaysia and Thailand
The MoA with Proton Edar is for the company to establish a multi-level sales and service network in Malaysia and Thailand, as well as a brand experience centre and a number of sales locations, providing the two markets with sales and aftersales services for smart vehicles.

From the description of the MoA, it does not appear that there is any technical collaboration such as transfer of technology or product development and the statement also stresses that ‘currently, there are no plans to collaborate beyond the tenets of the agreement’. This would mean that smart vehicles will be imported and distributed by Proton Edar as an additional business activity, and the vehicles will also not use the Proton brand.

However, as mentioned by the Proton Chairman, it will be an opportunity for the carmaker to gain experience and knowledge about electrification and BEVs which it would also have to offer at some point in the future. Whether the relationship with smart evolves into something broader (eg joint product development) remains to be seen.

*The Proton EMAS city car concept by Giugiaro in 2010 was proposed with a hybrid electric powertrain.*

Electrically-powered cars are not unknown at Proton. In the 1990s, the first known project was initiated with a company in California to develop electric Wiras, but it never went far. Then, eleven years ago, the company’s EMAS prototype city car proposed by Giugiaro had a hybrid electric powertrain. It has also done R&D on electric powertrains over the past 10 years but has not brought a model to the market.

*Proton Saga EV prototype displayed in 2012.*

History of smart brand
As for smart, the name may be familiar to some Malaysians as the original smart cars were sold in the mid-2000s, imported by DaimlerChrysler Malaysia (now Mercedes-Benz Malaysia). The smart company (which was founded by the man who created the Swatch watches) had been acquired by Mercedes-Benz which invested heavily to make city cars. However, it may have been a bit ahead of its time and though having a clever design (the vehicles used combustion engines), the relatively high prices and compact size were not so appealing globally. Perhaps the Japanese would have appreciated it but they already had their own kei cars.

Mercedes-Benz tried to make the smart business work and even tried to offer a larger model called the smart forfour that sat on a Mitsubishi Colt platform. That too didn’t sell too well and smart as a company was closed down, with the products being placed under the Mercedes-Benz division up to 2019. To try to keep the brand going, Mercedes-Benz formed a partnership with Geely which would see smart-branded vehicles – using electric powertrains – being developed and produced in China for sale globally.

*The original smart cars were sold in Malaysia in the mid-2000s by DaimlerChrysler Malaysia (now Mercedes-Benz Malaysia).*

“The smart brand has a unique value and global influence, it has grown to be a leader in urban mobility. Geely Holding will fully support the smart brand with its full advantages in R&D, manufacturing, supply chain and other fields into the joint venture and support its development in China and globally. We will work together with Mercedes-Benz to transform the smart brand into a leading player in urban premium, electric and connected vehicles to successfully develop the brand’s global potential,” said Li Shufu, Geely Holding Chairman.

Third year of growth in Proton sales in spite of challenging conditions

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