Does anyone understand why US car companies went hard on gigantic EVs? It seems like a market that is less interested in the product and a problem that is harder to solve. I assume it has something to do with price point?
It's the US. It was inevitable. Just like any food that gains popularity in the US is inevitably going to be deep fried. It doesn't need to make sense. People are going to buy it because it's excessive. Because it's 'Murica.
Crossovers and SUVs are basically the most popular ICE car segment. Take out all the emissions and boom. Americans have massive range anxiety (kinda due to the still fairly abysmal charging infrastructure) and you can pack a ton of batteries into a longer/wider car. Margins are bigger on CUVs too
EV is still a niche market in US. Car enthusiasts will buy niche products if marketed to them and pay more than average car buyer. Big EVs with big power are fun and create buzz. I'm still waiting for a slow EV minivan with great range before I take the plunge.
My first thought is that car companies think “people like big truck, people like EV’s. If we combine them, more people buy our cars!” But knowing how much car companies do research and market analysis or whatever, feel like they’d realize the overlap between those two demographics isn’t very large.
There is a lot of stupid regulation that basically incentives selling heavy cars
We have a simular rule in the EU that heavy cars are allowed to emit more
And bigger cars are a way to demonstrate change/ "progress"
A bit like smartphones that get bigger and bigger, maybe?
I honestly think they're trying to trendy, yet appeal to truck owners and be able to go longer distances. I oddly believe they are still building them so big because of their habit with cafe standards.
Same reason that US car companies went hard on gigantic gas powered cars. People are willing to pay a greater increase on the cost to construct for them.
I don't understand why foreign manufacturers aren't trying either. VW just debuted the ID.7 Tourer, which is an electric wagon, and it is specifically not coming to the US.
I think it has a lot to do with American consumers. People want to be environmentally friendly while holding onto large luxury vehicles. I think the best thing we can do is invest in EV public transportation. We also must make it more desirable than driving in order for this to work. #ENVSCOMM24
Because the good ol’ boys will drive right the heck over you with their pickups and confederate flags? 😠 I WANT a Leaf, not sure in Texas of the north it’s… ideal.
In countries where EVs have already broken through big (like here in Norway) it was the big flashy cars that managed to break onto the market. Smaller smarter vehicles remained a curiosity for decades. Then the big heavy Teslas came and people who actually buy cars went gaga for them.
My guess is that since non-EV vehicles are getting larger & larger thanks in part to gaming the CAFE standards, no one wants a small vehicle period. It’s a vehicle arms race and that includes EVs.
From what I've read, it's a combo of a) Americans want bigger cars b) range anxiety is real, and the sweet spot in most focus groups is around 300 miles, and with current tech the best way to make that happen is to slap a big honkin' battery in the floor or whatever
Pretty sure the floor price to develop EVs currently is high and healthy margins are important for them to scale & reduce costs but the one of the biggest factors might have to do with the tax credit caps.
Probably the same reason we've gone back to large vehicles in general. I've got the plug-in hybrid Escape, and I think that's the sweet spot for me. Bigger feels like it would fully defeat the purpose.
Big car big man lol I think it’s the same as why a lot of meat alternatives are trying to bleed in the last few years. They think it’ll help bridge the gap for skeptics, though that still requires a sorta “gotcha” in order to work but hey, boards of directors and CEOs aren’t known for being in touch
I am dying for an EV light duty pickup, like the old Toyotas. Simple, light and runs forever. But now with less maintenance.
What I get are these behemoths with so much gadgetry in them that someone is always going wrong.
I have a husband, 3 kids, and 2 aging parents that I want to travel around with. I would love an affordable 7-seater EV. I know I'm not everyone, but I think there is a reasonable market of people like me?
I don't have a good answer for this broadly, but I did just buy a PHEV SUV myself. I needed a larger family car, and I wanted an EV of some kind. Both of those were forms of "trading up" for me, and I did them in tandem.
EVs aren't a separate category where gigantic vs. small ones compete w/each other.
Thanks to the "small truck" SUV loophole, companies make most of their money off gigantic vehicles. Within that category, hybrids + EVs easily outcompete ICE offerings. (Same vehicle/profits, better powertrain.)
Americans are convinced they need bigger. Tesla Model Y outsells the comparable Model 3 despite being more expensive. Look at non-EVs like truck sales vs sedans. Safety ratings are an interesting self perpetuating byproduct. Larger cars are safer as the average vehicle size increases.
I'm sure it's a bit more complex than this, but larger vehicles have more lax emissions standards, which means a better fleet fuel efficiency rating, and then retooling what you're making is easier than creating a whole new vehicle platform that's smaller.
I *think*the Not Just Bikes video on SUVs mentions that, but it's been a while since I watched it. Something something bigger cars are better because everyone else has bigger cars. Now in EV flavour!
I had heard that Ford was already well into development of the lightning before rhe IRA was passed so pivoting to smaller vehicles didnt make sense for them specifically, and the assumption was if they could all beat tesla to the e-truck, they could corner the market.
My guess would be that smaller cars aren't sufficiently lighter to give the range that people want so they have to be that big to carry enough batteries.
To many I know it not the EV but the package they put it in. GM and Ford both bailed on making cars in favor of larger profit SUV's. EV adds even more to that price, and smaller EVs that are available just aren't a value or they are butt ugly boring.
@marquesbrownlee.bsky.social had some good thoughts about this in a recent video. Price point was a lot of it iirc but also weight of the batteries needed to get the range people want works better in large cars.
Nissan introduced the Leaf back in the day as a small hatchback and Renault offers the Zoe in the EU.
What kind of vehicle do most ppl we know in US buy? SUVs.
For all the claims of environmentalism, what ends up selling is “no behavior change but more torque and range.”
The limiting factor on EV production (since the rest largely involves the same processes for making an ICE chassis) is making the battery. If you can realistically make X cars’ worth of batteries, you want to sell each of those cars for as much as possible; nobody’s buying a $70k Mini.
There was/is a loophole on emissions/efficiency standards for SUVs, not as strict as for trucks, so they were able to basically sell trucks, but with auto emissions/efficiency standards; which yes was about selling a higher price point
The inflation reduction act is putting a billion dollars toward replacing “heavy duty” vehicles with zero emission replacements.
So perhaps the same as when improved fuel standards exempting heavy vehicles led to an increase in SUV sales/production?
Assuming you are talking about *legacy* US car companies (and not Tesla, Rivian, etc.), I think they weren't sure how they were going to continue to make the same margins so they delayed investing in batteries too long. And now it's going to be very difficult to catch up.
This may be a bit cynical, but i believe it’s because the large car brainrot has completely taken over the US auto market. Ford has gone all in on giant SUVs and trucks, they don’t even make any small or medium cars anymore. There’s an unchecked arms race on the road right now.
US companies gave up on sedans/small cars due to $$ & the "light truck" loophole etc., & then pushed even harder into this when doing EVs since "Americans only buy SUVs" so, therefore, they'll buy EVs if they're giant SUVs. They stopped *trying* to build good med/small cars--self fulfilling prophecy
From listening to Marketplace APM I’ve learned that large trucks and SUV’s are the most popular cars in the U.S. market which why some makers stopped making cars altogether. I guess they assumed large EV’s would sell better as well. Also, price points
a large vehicle is necessary to protect yourself from dangerous drivers in large vehicles, and so nobody is going to buy a small vehicle
plus, larger vehicles are perceived as a status symbol
In the US those giant cars are actually classified as “light trucks”, which means they don’t have to conform to the same standards and practises as "passenger vehicles", especially regarding fuel efficiency.
The YouTube channel Not Just Bikes, has an explainer about that, if you like to know more.
Basically everyone in the US is scared because the guy next door already owns gigantic and dangerous to pedestrian generic SUV #45
Also with electronics bigger stuff is easier to make
Best guess is they are just used to making large cars. It's cheaper and easier to use structures from non-EVs that are already large (to bypass emission laws) so they use similar frameworks for their EVs.
I have a theory!
1. Easier to ask people to make 1 change (fuel to EV) than 2 (fuel SUV to EV sedan)
2. People buying new vehicles are more likely to buy an SUV
3. Moving to LA, it hit me that between EV incentives, gas prices, and luxury culture, electric Hummers (!) only make sense in this city
Here is the truth about EVs: They won't help the environment. You would need to drive one of them for 15 years to compensate for the carbon footprint of battery manufacturing for EVs.
People just have cars already, this is a way the automobile industry found to force a new fad.
I can't speak for them, but as a consumer, I'm definitely looking for a gigantic EV. Dogs, (eventual) grandkids and a cabin in the woods mean I need a hauler, and I'd love it to be EV. We've had Leaf for a decade as a city car, but can finally get rid of our old Subaru now!
Higher priced vehicles are usually more profitable. Plus product planners start at the high end because early adopters are willing to pay anything, vs later adopters.
We need to figure out why the automobile killed the plug-in hybrid to get to EVs. Plug-in hybrids make so much more sense than EVs in a country as sprawled out as ours.
This article describes how auto companies were incentivized go all in on light trucks (SUVs) and then consumers now prefer them www.washingtonpost.com/business/202...
Because SUVs are the better sellers.
There's also an issue of range. To get a range that people are comfortable with, you need a larger battery which leads to a larger car.
As battery tech improves, cars can get smaller and maintain range.
It costs about the same amount of money to develop a large vs a small vehicle. Tooling investment isn't much different either. But the larger vehicles can be sold for a higher price and therefore are more profitable.
I wonder if it's connected to the tax/emissions regs benefit car manufacturers get for "light trucks" (pickups, SUVs, etc.)? That may be going too deep on it though, more likely it's just what car makers think the market wants.
They convinced everyone for years that they want a crossover or an SUV, so when it's time to add an EV to their fleet they start with the big model because that's what they made popular?
When we were looking at EVs a couple of years ago, all I wanted was an electric Accord or Camry -- bigger than a Volt or Leaf but not humungo. Except for the Polestar they just didn't exist. (And the Polestar literally went up $4,000 in the week after we test drove it, so that was a no-go.)
Non-expert assessment: car companies in the US are incentivized to make giant trucks because there is a tax loophole that allows them to classify those vehicles as something other than actual trucks, so they end up making more money.
Battery packs are heavy. In order to enter the EV market, it was easier to just retrofit a Ram frame carry that load and get it out the door than design a new sedan body.
It's an American culture thing. Many Americans want the biggest car they can get their hands on (it's stupid but true) but there's also policy pushes for more EVs so we wind up with giant SUV-size EVs.
Also the profit margins are higher in bigger cars
People like big cars. They already build big cars, and replacing the combustion engine with a battery doesn’t seem all that tricky. Would have been difficult to grow the EV market if they kept to slim sedans forever.
1) There's more margin potential on larger vehicles, and they need it
2) Anyone that wanted a truly economical car already has a Prius, and anyone that wanted a luxury/sport EV already has a Tesla. The market potential is people who drive big cars
I think there's a sort of "tyranny of the rocket equation" type of math when it comes to large batteries. A compact electric car weighs 1 ton without the battery and can fit a battery with a 200 mile range, a 3 row electric suv weighs 1.5 tons without the battery but can have a 400 mile range.
“And buried in there is a fascinating federal flip-flop: an attempt to close a loophole that may be partially responsible for the exploding size of passenger vehicles on US roads.”
Yeah as others have said, I just assumed it's a reflection of the vehicle market in general. I'll get excited when they start offering ev minivans and cargo vans, tho.
U.S. market is heavily slanted towards very large vehicles. However, I've not seen many large EV offerings from American car companies so not sure what you are referring to. Ford 150 Lightning makes sense because America loves pickups. Hummer EV is niche. Most American EVs are mid size crossovers.
I think it is all about the business sales of EVs. Larger vehicles tend to be considered more "useful" for business, and the tax treatment for ICE vehicles always favored the heavier vehicles. It is more profitable to sell hundreds/thousands to companies than the sole individual.
Typically you see two types of vehicles coming to market. Smaller range maximized price competitive (with tax incentives) and large luxury vehicles where prices can get very high, huge batteries can make range numbers less scary, and there's room to play with inefficient vehicle design.
Nope, it's because of a "loophole" of the federal regulation. In a nutshell, trucks and SUVs are classified differently and they get to have their own emission and safety regulations that passenger cars have to adhere to.
Batteries are heavy. So if you make a small EV (like a Leaf), it will be heavy for its size, and its range will be short compared to a big SUV. I suspect it's the same forces making smartphones bigger every year.
Almost certainly price, but interestingly, converting huge trucks to EVs saves a heck of a lot more gasoline than converting an already efficient lower horsepower people-mover sedan.
I think they saw Tesla crack the market with upscale high performance cars (such as they are) rather than appealing to climate or economy concerns and they, of course, followed the money. And, back when Tesla was starting it was probably the right move.
You say that like we have a real small car (gas) segment. We don’t really. Not compared to the real small cars that exist in countries like Japan or in most of Europe
A lot of people are saying "battery range" but bigger cars get worse range. It's really just that American automakers stopped making sedans, used the "light truck" emissions exemption and convinced people they wanted SUVs for false safety, capacity, etc, and now are electrifying what sells
My best guess is: the car market is like 80% SUV and Truck sales, and the big three decided that they needed to make a statement that EVs will out-SUV the SUVs, and out-Truck the Trucks. And thus, these enormous impractical land whale EVs.
It's a lot to do with it being a solution to CAFE standard issues. It allows them to make bigger and bigger SUVs while still hitting their numbers and not having to sell as many small less expensive and less profitable cars to meet their fleet standards.